Compliance

Regional Asian banks seen more at risk of breaching EU shareholder directive

Directives that took effect last month could subject intermediaries to fines and other business costs for non-compliance related to investments in Europe.

The European Union’s Shareholder Rights Directive II SRD II that took effect on Sept. 3 has likely caught investment intermediaries unprepared, as expectations that its implementation would be delayed because of Covid 19 were belied.

The directives, which aim to improve transparency and strengthen corporate governance of companies in most of Europe, establish certain requirements with the aim of encouraging shareholder engagement. Those requirements cover, among other things, the need to identify shareholders and create the infrastructure to facilitate the exchange of information, including voting at company meetings.

Intermediaries could be responsible for not only sharing shareholder identities with companies, but also for ensuring that information is...

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