Summary of expected SRDII changes in Croatia

Zagrebacka Banka d.d.
Summary: 
Central Depository & Clearing Company Inc. (SKDD) held a webinar on expected SRDII developments
Tue, 08/12/2020

On 4 December 2020, the Central Depository & Clearing Company Inc. (SKDD) held a webinar for local market participants to present the SRDII expected changes within its system. SKDD confirmed the processing of the information will not be SWIFT supported. Communication between SKDD and market participants will be possible either via SKDD’s proprietary IT system DEPRIN or STP web service (under development) by exchanging files which contain ISO 20022 data format. The most important updates are as follows:

 
1.   Disclosure of Shareholder's Identification

    • SKDD will send the disclosure request to local custodians’ safekeeping the shares subject to disclosure on custody accounts. In case of pending trades for the shares with settlement date before the disclosure relevant record date
    • Disclosure will not be required in case of segregated custody accounts at SKDD
    • If SKDD is engaged by the issuer in the process of shareholders’ identification disclosure, information must be sent back to SKDD through the intermediary chain. Engagement of SKDD is subject to additional fees for the issuers, however this is still not officially confirmed;
    • Communication will follow the format of the following ISO 20022 messages: seev.045, seev.046, seev.047, seev.048 and seev.049.

 2.   General Meetings SKDD will send the general meeting notification to local custodians safekeeping the respective shares on custody accounts. In case of pending trades for the shares with the settlement date before the record date of the general meeting;

    • After the entitlement has been determined (as of the record date), each custodian holding the shares on behalf of its clients will receive the Confirmation of entitlement;
    • SKDD is expected to offer the possibility to register the attendance to the general meeting and proxy’s details, as well to cast proxy votes, however further details are still to be confirmed, as well as the new pricing, if any;
    • Communication will follow the format of the following ISO 20022 messages: seev.001.001.06, seev.002.001.06, seev.003.001.06, seev.004.001.06, seev.005.001.06, seev.006.001.06, seev.007.001.06 and seev.008.001.06.

Details on corporate actions in scope of SRDII have not yet been disclosed. 

Technical specifications, operational guidelines, including SKDD Procedures and the pricelist are still not available and may be expected during December 2020. External testing of new features of the SKDD’s proprietary IT system DEPRIN is expected in January 2021.  Information regarding the testing of new SRDII web service, supporting straight through processing, is expected during 2021.

Impact on investors: SKDD presented expected SRDII changes, however further technical and operational details are still not available. Further details will be provided as they become available.