The local CSD (KDD) has published amended Rules (KDD Operations Rules) and Regulations (KDD Regulatory Technical Procedures) on its web page https://www.kdd.si/. The new Rules and Regulations will be effective on August 24, 2021. The amended Rules and Regulations are currently available only in the Slovene language.
The changes described in the Rules and Regulations are driven by the change of the Companies Act from February 2021 and the Directive (EU) 2017/828 and Commission Implementing regulation (EU) 2018/1212.
The changes include the following:
- All corporate actions are executed via the KDD.
- The KDD is not liable for damages, completeness and accuracy of data provided to the KDD by others nor for data provided by the KDD to member issuers in accordance with the regulation on the promotion of long-term shareholder engagement
- General meetings:
- General meetings are defined as voluntary corporate actions.
- Issuers are obliged to inform the KDD immediately of intended and actual convening of GM’s, and any subsequent changes.
- Issuers are obliged to immediately confirm to the KDD the receipt of registrations to the GM and / or receipt of votes, if the registration and / or receipt of votes was done through the KDD. The acknowledgment of the receipt of votes does not automatically imply acknowledgment of the vote.
- The KDD will immediately forward the received Issuer confirmations to the relevant systems of the members (local custodians).
- The GM announcement has to include the Record Date and the Deadline to register the attendance.
- The System members (local custodians) must forward the received instructions to the KDD immediately after the record date defined for the GM
- Shareholder Identification (SHI):
- SHI requests will be sent only for shares held on fiduciary accounts.
- The SHI request must include the Record date and the Deadline to respond.
- The KDD will send all received information related to the SHI to the issuer without any modification of the data received. The KDD does not guarantee and is not responsible for the completeness and accuracy of such data.
- The Statement of Holding is used as a confirmation/proof for exercising the shares ownership rights in line with the regulation on long-term shareholder engagement.
- For all trades executed on the Ljubljana stock exchange, the KDD will reserve (block) a sufficient amount of securities on the sellers' account prior to the beginning of the settlement day. In case the amount is insufficient, only the available quantity is reserved. The remaining amount is reserved after it is transferred to the sellers account by the system of the member.
Impact on investors: Clients should take note of the amended KDD Rules and Regulations related to GM’s, SHI and Settlements.