Further to GSS UniCredit Newsflash “New Reporting to CBR on mandatory non-disclosure of beneficial owners” published on 19 December, 2018 we underline that reporting to CBR on non-disclosures relates not only to mandatory disclosures prescribed by the legislation but, in certain cases, of disclosures under voluntary corporate actions as well. The latter will not be required in case of no intention to participate in a corporate action and if this is stipulated in the agreement between the nominee holders and their clients. In light of this, nominee holders should include in their agreements with the underlying clients the possibility of non-disclosure for corporate actions in case they intend not to provide information about themselves. Furthermore, clients shall also send the respective notification thereof to Global Securities Services Russia (GSS). In case of absence of the abovementioned notification on the disclosure of information for voluntary corporate actions, GSS will be obliged to report such cases to CBR.
From the practical perspective, we recommend our clients to choose a preferential option in advance. Options are:
i) disclosure by default, i.e. disclosures are provided on the basis of the pre-disclosed account structure and the standing instruction, or
ii) non-disclosure by default on the basis of the above provisions and the respective notification to GSS in advance;
iii) disclosure/non-disclosure on a case by case basis.
Impact on investors: Cases of non-disclosure under voluntary corporate actions in case those are not included in the agreement between the nominee holder and its clients of which GSS is duly notified will be reported to CBR.