The members of The Hungarian National Stakeholder Group (HU-NSG), including Custodian Banks (such as UniCredit Bank Hungary), Issuers, KELER, Central Bank of Hungary and the Association of Investment Service Providers were invited to participate at the 4th meeting of the HU-NSG on 16November 2018. The main topics were as follows:
- Information on the progress and the results of the consultations initiated by the Banking Association and Association of Investment Service Providers on regulatory and tax related changes with relation to the Corporate Actions Market Reforms.
- Establishment the following HU-NSG working groups:
- Business Working Group – having the main goal to work out the frameworks of the Golden Source and the market claim rules. The first meeting of the working group is expected to be held in December 2018.
- Regulatory and Tax Working Group – the task of the working group is to find resolutions for standardizing the income processes and tax obligations of the market participants, including clarification of the withholding agent status and income types, modifications of the nominee concept and cooperation with the Shareholders Rights Directive (SRD) Working Group on interpretation of the SRD.
- Shareholders Rights Directive Working Group – having the role to interpret and analyze the Shareholders Right Directive, improve the efficiency of the general meeting related processes.
- Updates on the foundation of the Settlement Discipline Working Group. The User Committee of KELER has held it’s meeting on 19th of October, discussing the technical terms to apply with regards to the Settlement Discipline stipulated by the CSDR, and authorized KELER to convene and establish the Settlement Discipline Working Group (SDR Working Group). The first meeting of the SDR Working Group will be held on 29 November 2018.
- Presentation of the agenda of the forthcoming AMI-SeCo meeting to be held on 20 November 2018.
- Discussion on the letter of intent to be given by HU-NSG in relation to the implementation of the European Collateral Management harmonization. The participants of the meeting agreed that further time is requested to analyze the supporting documents of the European Collateral Management harmonization, and postponed the decision on the letter of intent.
Further information on the Corporate Actions Market Reforms related agenda points and the previous market consultations on this topic will be later published in our next quarterly Newsletter around the mid of December.
Impact on investors: The market participants continue the consultations on the Corporate Action Market Reforms in order to create a more standardized investor friendly market environment that can lead to simplified payment processes and market requirements.