An Environment for Change in Europe

European regulators have turned a corner over the last couple of years when it comes to their view of the markets and their priorities for the future. The focus is now less on increasing reporting requirements and much more on encouraging the growth of the European capital markets as part of the Capital Markets Union (CMU) action plan.

The CMU places the investor at the centre of the plan to encourage greater retail participation and more foreign investment into EU financial markets. One of the areas of significant focus for the European Securities and Markets Authority (ESMA) and the European Commission (EC) is the asset servicing space as part of the push to increase transparency and engagement between issuers and investors, specifically encouraging automation and shareholder participation in corporate governance.

The EU’s revised Shareholder Rights Directive (SRD II) has been another key piece of regulation for the asset servicing space in Europe since it came into force in September 2020. SRD II is targeted at increasing transparency between issuers and their shareholders and encouraging investors to engage more frequently in shareholder voting activities. It reflects the increased regulatory focus on corporate governance and fostering shareholder capitalism in the region over the last five years.

Download the new white paper from Firebrand Research, sponsored by Broadridge, for analysis on the SRD II journey, including:

• A focus on electronic processing
• Local market transpositions
• Implementation challenges and harmonisation