The European Association of Co-operative Banks (EACB) is pleased to respond to the European Commission's public consultation on the protentional revision of the Shareholder Rights Directive (SRD) I and II. In particular, we support the Commission’s intention to fill the gaps affecting shareholders’ interactions, intermediaries and companies, so that investing becomes cheaper and easier within the single market.
The EACB stressed several priorities in its answer, to enhance and guarantee shareholder rights and their full exercise:
- Improved shareholder identification and clarification of shareholder-related concepts.
- SRD II application to only ordinary shares traded on recognised platforms.
- One notification per action policy for retail to enhance cross-border chains, alongside Shareholder Identification.
- Use of Regulation instead of Directive, to fully allow for harmonisation to complete previous efforts.
- Automation of the inclusion of shareholder registration in the voting process to void requiring a separate message, in respect of information flow previously enhanced using SWIFT-based messaging.
- Facilitation of direct communications between companies and shareholders by mandating a single standardised format while remaining cautious on allowing full straight-through processing (STP) as certain steps may still require human oversight to ensure accuracy and shareholder intent.
- Proposed measures on shareholder rights facilitation are appreciated to avoid entitlement and documentation issues, but having intermediary charges that are publicly disclosed, non-discriminatory and proportionate is key.
- Standardisation attempts and the new central database of intermediaries’ charges structures to ensure transparency are welcomed. Yet further progress is needed.
- More flexibility for general meetings by authorising hybrid format and harmonising current SRD requirements on format, deadlines and identification rules, therefore guaranteeing the exercise of shareholder and intermediaries rights.