Upcoming changes in KDD rules and regulations

UniCredit Bank Slovenija d.d.
KDD amends its Rules and Regulations
Mon, 07/12/2020

Local CSD (KDD) published amended Rules (KDD Operations Rules) and Regulations (KDD Regulatory Technical Procedures) on its web page, currently only available in Slovenian language.

The new Rules and Regulations will become effective on 1 January 2021.

Changes are the following:

  • The KDD is organized as a Limited Liability Company and no longer as a Joint-stock company.

  • New definitions:

    • Settlement day is T2S settlement day.

    • Business day is a settlement day which is also a business day in compliance with the applicable regulations of the Republic of Slovenia.

  • The Takeover Account is redefined as Dedicated Account that also serves as a takeover account.

  • The member-issuer may perform corporate actions through a system member authorized to do so.

  • Detailed description of communication between issuers and KDD (forms, mandatory date information) regarding corporate actions.

  • Voluntary corporate actions:

    • Unless otherwise defined by legislation, the securities holder may cancel the selection already made until the corporate action deadline.

    • If the securities holder does not make a choice it shall be deemed that:

      • in case of a corporate action without affecting the balances of the securities or in case of a corporate action of deletion of securities: the securities holder selected the default option specified by the member-issuer;

      • in case of a corporate action carried out by transfer of securities: the securities holder chose the option not to participate in the transfer.

  • Tender offer: The securities holder who accepted the tender offer can no longer cancel the instruction after the securities have been transferred to dedicated takeover account, it is irrevocable

Impact on Investors: Clients should make note of the amended rules for cancellation of voluntary corporate actions and for the execution of default option.