Broadridge Financial Solutions has signed a record number of clients for its SRD II solution, which addresses the European Commission’s (EC’s) updated Shareholder Rights Directive (SRD II), coming into effect on September 3, 2020. The scope of SRD II is global, impacting any financial intermediary holding or servicing European equities, irrespective of where the firm is located.
Financial institutions in need of this SRD II solution for global proxy voting and shareholder disclosure are based both within and outside of Europe and include both retail- and institutional-focused firms. Since the EC reconfirmed the September deadline, Broadridge has received unprecedented international demand and signed new clients across markets in Europe and North America, including multiple tier-one banks, brokers and wealth managers.
Demi Derem, the Broadridge executive who is spearheading global SRD efforts, said: “We are witnessing strong demand, and we are market-ready with our end-to-end solution across the shareholder communications chain. It is crucial for firms to move ahead with a strong solution with proven viability for all in-scope markets – from the straightforward to the most complex – while simultaneously meeting stringent European client data standards.”
Markus Kaum, founding partner at Governance & Values, a European company focused on corporate governance and shareholder engagement services, commented: “SRD II heralds a major step forward for corporate governance standards in Europe, bringing greater transparency and efficiency to investor communications, and driving higher standards of stewardship and improved levels of investor engagement. While some intermediaries, such as global custodians, are fully aware of their new obligations under SRD II and duly prepared, for many other firms in the banking, brokerage and wealth industries the provision of services, such as proxy voting and shareholder disclosure, are new and, with September 2020 fast approaching, they cannot afford to delay.”
Broadridge’s enhanced Global Proxy solution includes same-day event capture and distribution, same-day proxy vote processing and vote confirmations, advanced multi-channel retail functionality, and European client data storage. Its recently launched Shareholder Disclosure Hub is an industry-wide digital solution that utilizes the latest API- and blockchain-based technologies to address SRD II’s new shareholder disclosure requirements.