Broadridge: CSDR still having considerable impact
25 January 2019 London
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The Central Securities Depository Regulation (CSDR) has and will continue to have a considerable impact on firms, according to Bob Santangelo of Broadridge.
Santangelo revealed in a recent interview with Asset Servicing Times, “the new regulations imposed by CSDR carry clear implications for the wider securities industry in Europe and will mandate changes in a number of the steps in the process lifecycle”.
He said: “An overriding priority for CSDR is to harmonise the different rules applicable and establish a level playing field among European securities depositories.”
“Another imperative is to increase the safety of assets and improve the operational efficiency of securities settlement, leveraging enhanced infrastructure and more robust, consistent discipline measures that will encourage timely settlement.”
Santangelo indicated that while many key deadlines for CSDR have passed, starting with
its publication in the European Journal in August 2014, CSDR is “a continual process with key milestones still to come”.
He added: “The next deadline approaches on the 12 July 2019 where the first internalised settlement report is due to national competent authorities, and then the settlement discipline comes into force in 2020.”
Santangelo warned further down the line the CSDR’s requirement for new issues to be represented in book-entry form will apply from 1 January 2023, and this will be followed by a 1 January 2025 deadline for all transferable securities to be in book-entry form.
He affirmed: “In order to prepare for these dates, steps need to be taken in order to meet requirements. Central securities depositories/international CSDs, issuers, brokers, intermediaries and asset managers should set themselves clear self-assessment checklists.”
He concluded: “Ultimately, whether you are a CSD, broker, issuer, intermediary or asset manager, CSDR has had and will continue to have a considerable impact. In order to mitigate risk and remain compliant, practices need to be reviewed.”
Click here to read the full interview with Bob Santangelo of Broadridge in the latest issue of Asset Servicing Times. Also, make sure you subscribe to receive the latest news, features and analysis.
Santangelo revealed in a recent interview with Asset Servicing Times, “the new regulations imposed by CSDR carry clear implications for the wider securities industry in Europe and will mandate changes in a number of the steps in the process lifecycle”.
He said: “An overriding priority for CSDR is to harmonise the different rules applicable and establish a level playing field among European securities depositories.”
“Another imperative is to increase the safety of assets and improve the operational efficiency of securities settlement, leveraging enhanced infrastructure and more robust, consistent discipline measures that will encourage timely settlement.”
Santangelo indicated that while many key deadlines for CSDR have passed, starting with
its publication in the European Journal in August 2014, CSDR is “a continual process with key milestones still to come”.
He added: “The next deadline approaches on the 12 July 2019 where the first internalised settlement report is due to national competent authorities, and then the settlement discipline comes into force in 2020.”
Santangelo warned further down the line the CSDR’s requirement for new issues to be represented in book-entry form will apply from 1 January 2023, and this will be followed by a 1 January 2025 deadline for all transferable securities to be in book-entry form.
He affirmed: “In order to prepare for these dates, steps need to be taken in order to meet requirements. Central securities depositories/international CSDs, issuers, brokers, intermediaries and asset managers should set themselves clear self-assessment checklists.”
He concluded: “Ultimately, whether you are a CSD, broker, issuer, intermediary or asset manager, CSDR has had and will continue to have a considerable impact. In order to mitigate risk and remain compliant, practices need to be reviewed.”
Click here to read the full interview with Bob Santangelo of Broadridge in the latest issue of Asset Servicing Times. Also, make sure you subscribe to receive the latest news, features and analysis.
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