Broadridge Financial Solutions has added efficiencies to its solution to support both institutional- and retail-focused intermediaries for global proxy voting, in preparation for the European Commission’s updated Shareholder Rights Directive.
The new offering includes a range of process enhancements and a new blockchain-based platform for shareholder disclosure.
Firms supporting retail and private wealth clients will now be able to distribute proxy materials to these retail clients through electronic distribution, including mobile devices.
Working with custodian clients, banks, brokers and other market service providers, Broadridge is leveraging its global proxy voting infrastructure and vantage point across the shareholder communication value chain to help intermediaries navigate their new responsibilities under the directive.
This support will include the distribution of meeting agendas within stricter timeframes, reconciling votes on a daily basis and processing votes without delay.
It will also handle all aspects of vote confirmation, including timely electronic confirmation of receipt, post-meeting recording and counting of votes in all markets.
Broadridge’s solution for the distribution of meeting notices to retail shareholders and voting includes electronic distribution and voting through a choice of channels including email, access via a bank or broker website, branded portal, and Apple and Android apps, as well as physical mail.
The Shareholder Rights Directive is designed to achieve greater transparency in corporate governance and improved shareholder engagement.
The regulation is due to be transposed into national law in EU member states by 3 September 2020.
The directive’s scope will extend beyond the EU, impacting intermediaries domiciled outside of the region if they hold shares in EU-based issuers listed on regulated EU markets.
Demi Derem, general manager of investor communication solutions international at Broadridge, said: “Broadridge is committed to helping firms meet their compliance objectives. The updated Shareholder Rights Directive is the most comprehensive change to European corporate governance standards and processes in many years.”
He added: “As a neutral and independent service provider, Broadridge is focused on continually raising governance and transparency standards throughout the shareholder voting network.”
