Adhering to the spirit of the directive and going beyond the minimum requirements will benefit all parties in the securities post-trade value chain, explain Deutsche Bank’s Steven Hondelink and Mike Collier
By early September 2020, SRD II is scheduled to become effective in EU member states. The Directive, which is an extension of the original SRD introduced in 2007, requires transposition into each EU member state’s national law, so could potentially involve up to 28 variations and interpretations. The national law transposition date was 10 June 2019 and not all member states have transposed the SRD II into national law. Although this remains a concern, the differences each member state may have might be minor, knock-on effects could be greater for any global institution undertaking cross-country and cross-CSD trading and portfolio management. SRD II aims to strengthen the position of shareholders and ensure that decisions are made for the long-term stability of a company. Its requirements impact on intermediaries; proxy advisers; institutional investors; asset managers and issuers.
Germany implemented the relevant SRD II changes into German law through an implementation act (ARUG II), which took effect on 1 January 2020. ARUG II amends the German Stock Corporation Act (AktG) and the rules on director remuneration have been adapted to the two-tier board system in Germany, consisting of the management board and the supervisory board.
flow magazine is published twice per year and can be read online and delivered to your door in print
Find out more about products and services