UniCredit Bank Slovenija d.d.
Members of the Slovene CSD (KDD) participated in the 2nd workshop on the implementation of CSDR settlement discipline measures. The workshop was organized by the KDD on January 19th.
The majority of the information shared during the 2nd workshop was already provided during the 1st workshop in September 2021, however relevant new updates are summarized as follows:
1. KDD’s obligation for regulatory reporting on failed settlements:
- Monthly reporting - 5th working day
- Annual reporting on:
o failed settlements
o measures of KDD and its members to improve settlement efficiency and regular monitoring of implementation of these measures - by January 20 of each year.
- Annual publication of settlement efficiency data in aggregate and anonymous form on the KDD website in English.
2. Buy-in regime postponement:
- Even though neither ESMA nor National Competent Authorities possess any formal power to allow the disapplication of directly applicable EU legal text, the KDD does not expect that the Slovene regulator will enforce supervisory actions in relation to the application of the CSDR buy-in regime.
- The position of the KDD is in line with the expectation mentioned in the public statement published by ESMA on its webpage (here)
3. Penalties mechanism - costs:
- During the initial stage of the implementation of the penalties mechanism, the KDD will not charge its members any fees for its maintenance. After the initial stage, the KDD intends to perform an internal analysis of the costs related to the penalties mechanism and to then decide on the implementation of potential fees which would be charged to KDD members.
- The KDD confirmed that there will be no official form/document for the appeal process.
- KDD members are expected to send appeals to the KDD via e-mail by the 10th business day of the month.
- UniCredit Slovenia will accept appeals from our clients via e-mail. The appeal should include the following information:
o instruction reference,
o reason for penalty change,
o expected penalty with calculation details.
5. Important dates:
- 1st February – penalties mechanism go-live date
- 14th March (10th working day) - end of appeal period for February penalties
- 18th March (14th working day) - monthly report for February penalties
- 21st March (17th working day) - settlement of penalties.
Impact on investors: Clients should take note of the above updates on the implementation of CSDR settlement discipline measures.