BorderXingInfo
bXi
BorderXingInfo (“bXi”) facilitates the digital governance platform between issuers and their (potential) investors on a European level.
ID: 820757127925-21
Lobbying Activity
7 May 2018
REACTION from BorderXingInfo (“bordercrossinginformation”, “bXi”, website under construction www.info-bxi.com ; EU Transparency Register number: 820757127925-21) to the consultation regarding.
General remarks
1. Paragraph (4) of the preamble of the IR refers to the encouragement to use modern technologies in communication between issuers and their shareholders and by intermediaries, including other service providers. We suggest that the encouragement to use modern technology requires a careful approach to the wording of the final version of the IR each time that reference is made to the use of “chains of intermediaries” and “Straight Through Processing” (“STP”).
2. The IR would undermine its aim to encourage the use of new technologies if it inadvertently imposed the use of the chain when other innovative methods of dissemination and transmittance of information are (becoming) available that can supplement the chain in the areas that the chain is in-effective.
One innovative approach to the dissemination of AGM related information is a model based on the network centric distribution of said information. This approach has already been put into practice by bXi in 14 EU countries, offering all information in multiple languages, and will be expanded to include all 28 EU countries.
3. A European Repository of AGM-related information has multiple societal benefits:
a. Firstly it creates a level playing field for access to AGM information of European Listed Companies. This strengthens, from a governance perspective, the Capital Market Union initiative.
b. Secondly the Repository supports EU’s aim to improve effective exercise of shareholder rights: the easy access to AGM-information fosters dialogue and engagement between listed companies and their shareholders.
c. Thirdly the Repository is a trustworthy source for information, not only for AGM related information but also, if a listed company wishes, for investor related information.
The last benefit, enhancing fact-based governance, is made more effective by making the AGM-repository available on the websites of third parties that offer services to investors. This service will also be made available to financial intermediaries to improve the customer experience on their own websites.
4. In this context we have reviewed the wording of the IR to examine which parts could inadvertently limit the benefits of a network centric approach.
Suggestions / questions
5. Preamble 4. We suggest the following changes (delete words in CAPITAL):
……. using widely available modalities, WHICH ENABLE STRAIGHT-THROUGH PROCESSING BY INTERMEDIARIES.
6. Preamble 6. We suggest the following changes (ADD WORDS IN CAPITAL)
Without prejudice to the convocation of the general meeting, in order to ensure straight-through processing within the chain of intermediaries it is necessary ...... to the issuer in the event an intermediary wishes to offer this possibility.
7. Preamble 10. We suggest the following changes regarding word IN CAPITAL.:
A swift processing of transmissions WITHIN THE CHAIN OF INTERMEDIARIES (DELETE), particularly WITHIN THE CHAIN OF INTERMEDIARIES (ADD) when it ......
8. Article 5 par 1. We suggest the following changes:
........... the entitled position, unless it is known to the issuer and the first intermediary, or is transmitted to the issuer and first intermediary THROUGH THE CHAIN OF INTERMEDIARIES.(DELETE)
9. We suggest an additional article in the preamble that clarifies how activities that take place in relation to the Directive through intermediaries, including other service providers, relate to the GDPR and are in sync with the GDPR.
We hope that the Commission welcomes these comments and suggestions, which aim to safeguard the possibilities for innovation in the domain of the transmission of information and the facilitation of the exercise of shareholders rights.
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