The implementation of the EU Shareholder Rights Directive will, among other things, introduce a new regulatory framework enabling EU issuers to identify their shareholders. From Sept. 3, 2020, EU-based “intermediaries” (such as custodians and prime brokers) will be required to respond to requests from issuers to identify clients with holdings over a stated percentage of shares or voting rights (specified in the local law of the relevant EU country). EU intermediaries will also be subject to a new framework requiring them (i) to transmit certain information on corporate actions to their clients and (ii) to facilitate the exercise of the voting rights by their clients.
This article appeared in the July 2020 edition of SRZ’s Private Funds Regulatory Update. To read the full Update, click here.
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