New Book Entry Securities Act

UniCredit Bank Slovenija d.d.
Summary: 
A new Book Entry Securities Act enables the implementation of T2S and harmonises the corporate actions processes with international standards
Fri, 09/10/2015

The new Book Entry Securities Act was published in the Official Gazette on 8 October 2015 and will come into effect on 23 October 2015.

With the new Act, the Slovenian regulatory framework will be harmonised with the provisions of the EU legislation on markets in financial instruments, settlement finality and financial collateral arrangements.

The most important changes are as follows:

  • Corporation actions processes will be executed through the CSD and its members. Details of the new processes will be determined by the CSD in line with international standards. The CSD’s regulations will define: deadlines and ways of notifications; ways of notification on chosen options for voluntary corporate actions; important days for the execution of corporate actions (e.g. record date, ex-date, last trading date, etc.) and other details of importance to the corporate actions processes.

  • It would become possible for the CSD to be managed as a branch of another CSD registered in an EU member country.

  • The CSD would be able to register foreign securities issued in accordance with the legislation valid in their country of issue.

  • The registry securities accounts that have so far been opened by the CSD will be eliminated as follows: for legal entities until 30 September 2016 and for other persons until 1 January 2017. Securities that remain on the registry accounts after the above-mentioned dates will be transferred to the court. The CSD is obliged to notify all owners of registry securities accounts of their closure.

  • The securities account administration fees will be limited for private individuals. The total annual safekeeping and maintenance fees charged by the CSD and its members should not exceed 50 bps of the average value of the securities on the account. The CSD’s members are not allowed to charge any additional fees for account opening or closing from private individuals. Such fee restrictions also apply to the underlying private individual clients of our customers. 

Impact on investors: Harmonisation of the Slovenian securities market with EU regulations on corporate actions and for the purposes of joining T2S.