T-Scape is in the development stage for a solution to help wealth managers and other intermediaries meet one of the regulatory requirements for the upcoming Shareholder Rights Directive (SRD) II.
Coming into effect on 3 September, SRD II contains a processing requirement for shareholder identification disclosure (SID), including dissemination of SID requests, communication with internal systems for shareholder information, and user alerting.
The new application will be added to its growing iActs suite.
The directive's primary aim is to enable closer engagement between a company and its shareholders, strengthening the position of shareholders and ensuring decisions are made for the long-term stability of the company.
A new ISO20022 message set has been established specifically for this purpose and will provide the basis upon which new processes are established.
According to T-Scape, iActs will make full use of these as well as catering for other machine-readable formats that may be used early on.
David Baxter, managing director of T-Scape, commented: “In the short-term, we very much expect ISO15022 and other formats to be in play, especially as it may take some time for organisations to transition.”
“The real key to SID is the speed at which information is processed, how quickly each incoming SID request can be normalised and how quickly a SID disclosure can be produced and delivered to the requesting company.”
“If the recommended 24-hour turnaround outlined in the directive is to be met, new automated processes will need to be introduced, hence the iActs suite,” Baxter explained.
The recent request of post-trade groups to delay implementation of SRD II for 12 months following the effects of the COVID-19 pandemic was rejected by the European Commission.
