Global Impact of SRD II and Lessons Learned Highlighted in New Whitepaper from Broadridge

Rhea-AI Summary

Broadridge Financial Solutions (NYSE: BR) has released a new report analyzing the early stages of compliance with the European Commission's Shareholder Rights Directive II (SRD II). Despite the directive's requirements taking effect in September 2020, many firms are still struggling to implement necessary processes. The report, based on over 350 client implementations, highlights the challenges faced by intermediaries, particularly those providing voting-related services. Broadridge emphasizes the importance of seeking experienced partners in navigating compliance complexities to avoid severe penalties.

Positive

• Launched a comprehensive report guided by insights from over 350 SRD II implementations, aiding firms in compliance.
• Positioned as a leader in addressing complex compliance challenges for financial intermediaries, enhancing Broadridge's market reputation.

Negative

• Many firms are still unable to achieve full compliance with SRD II, risking severe penalties.
• Implementation challenges could lead to reputational damage and financial losses for non-compliant firms.

NEW YORK and LONDON, March 25, 2021 /PRNewswire/ -- Despite its new obligations for financial intermediaries taking effect in September 2020, the European Commission's updated Shareholder Rights Directive (SRD II) is still very much in the early stages of a full and seamless adoption across European regulated markets, according to a new report by global Fintech leader Broadridge Financial Solutions, Inc. (NYSE: BR).

Today Broadridge launches its latest industry whitepaper on SRD II. The report extracts learnings from over 350 SRD II client implementations, which should serve as a valuable resource for firms that have yet to implement their SRD II solution, as well as those who met the deadline but continue to refine their processes.

"The implementation of SRD II compliance procedures has created a number of challenges on affected intermediaries, especially those providing voting-related services for the first time," said Demi Derem, General Manager, International Bank Broker-Dealer Communication Solutions at Broadridge. "Having worked with clients based within and outside of Europe, including both retail- and institutional-focused firms, spanning multiple tier-one banks, brokers and wealth managers, this report will serve as a useful reference and navigation guide".

SRD II is a key part of the Capital Markets Union agenda and, as such, it remains a high-profile, mandatory requirement subject to deep scrutiny over the coming years, including a formal review of the directive's effectiveness by the European Commission.

"The risks and penalties are wide-ranging and can be severe for firms, which are yet to be fully compliant," Derem added. "Firms seeking external support should consider their options carefully. They should pay particular attention to companies that can offer the requisite knowledge and experience of navigating the shareholder communications landscape, and can provide the necessary economies of scale, digital data security and complete market coverage".

ABOUT BROADRIDGE
Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $4.5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance and communications to enable better financial lives. We deliver technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge's technology and operations platforms underpin the daily trading of on average more than U.S. $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work^®, Broadridge is a part of the S&P 500^® Index, employing over 12,000 associates in 17 countries. For more information about us and what we can do for you, please visit www.broadridge.com

Media contact:
Sophie Hamilton 
E: sophie.hamilton@cognitomedia.com
M: +44 (0) 7943 050820

 

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is the SRD II compliance deadline for Broadridge Financial Solutions?

The compliance obligations for SRD II took effect in September 2020.

How many SRD II client implementations did Broadridge analyze in their report?

Broadridge's report is based on insights from over 350 SRD II client implementations.

What risks are associated with non-compliance to SRD II according to Broadridge?

Non-compliance with SRD II can lead to severe penalties and reputational damage for firms.

What industry does Broadridge operate in?

Broadridge operates in the financial technology (Fintech) sector, providing solutions for banks, brokers, and asset managers.

What is the significance of the Capital Markets Union agenda in relation to SRD II?

SRD II is a key component of the Capital Markets Union agenda, aimed at enhancing shareholder rights and corporate governance.