The new service, Broadridge Direct Market Solutions (DMS), is designed to help custodians extend their range of investor services and more efficiently manage the complexities and nuances of country-level proxy management.
It extends Broadridge’s Global Proxy Management service by adding tailored market-specific services for use by local or sub-custodians.
These include direct sourcing of meeting announcements and related meeting materials, translation of shareholder materials from the local language to English, and execution of vote instructions in local markets through direct delivery of both local and cross-border voting instructions to the central securities depository (CSD), issuer, issuer’s agent or registrar.
CSDs, as well as local and sub-custodians, can now use Broadridge’s local services in Germany, Italy and Belgium, as well as its established services for the UK and Netherlands.
Broadridge has also launched end-to-end local market proxy services in Hong Kong, Australia and New Zealand. It already has a proven local proxy processing service in Japan through a joint venture with Japan Exchange Group.
“Shared services solutions for business functions like proxy processing are gaining traction in local markets around the world, as custodians respond to growing pressure from their institutional investor clients to provide a more transparent and efficient service to aid the stewardship of their portfolios,” said Demi Derem, general manager of investor communication solutions international at Broadridge.
“Through our DMS service, we are helping firms manage the complexity and nuances of market-level proxy management by leveraging our economies of scale and best practices along the chain of custody.”