About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Broadridge Uses Blockchain to Address European SRD II Compliance

Subscribe to our newsletter

With the Shareholder Rights Directive II (SRD II) regulatory compliance deadline fast approaching, intermediaries supporting institutional and/or retail clients face one of the biggest changes in European corporate governance in many years. And according to Broadridge, many businesses are not yet ready for the transition – which is expected to place considerable pressure both on existing processes and new regulatory requirements.

The new regulation is designed to codify effective stewardship and corporate governance with regards to long-term investment decision-making for listed companies in Europe – targeting increased transparency and engagement, and introducing substantially more rigorous disclosure requirements.

Although SRD II was officially implemented from June 10, 2019, September 2020 marks a key regulatory deadline for elements including shareholder identification (Article 3a), transmission of information (Article 3b) and facilitating the exercise of shareholder rights (Article 3c).

To help firms prepare for this transition, Broadridge has created a blockchain-based industry solution to address some of the new shareholder disclosure requirements. The Interoperable Shareholder Disclosure Platform, developed from the firm’s experience with previous Distributed Ledger Technology (DLT) proofs of concept, provides new elements such as retail functionality, European client data storage, same-day event capture and distribution, same-day vote processing and vote confirmations.

“Focused on enhancing the end-client user experience, Broadridge continues to transform regulatory communications infrastructure and create new solutions, such as the market-wide shareholder disclosure platform, to meet the evolving requirements of corporate issuers, institutional and retail-focused intermediaries,” says Demi Derem, General Manager, Investor Communication Solutions International, Broadridge. “We maintain a proactive approach to SRD II, engaging with industry authorities and market participants throughout the investor communications value chain, with ongoing discussion groups, participation at industry forums and hosting thought leadership events.”

Although Broadridge has hitherto focused primarily on custodians through its Global Proxy solutions, which will be extended to cover the upcoming regulatory change, the new SRDII compliance requirements have expanded its client base to both retail and institutional financial intermediaries. The new solution underwent its first prototype testing in May 2019. The platform us currently undergoing final refinements before an official June 2020 launch ahead of the September 2020 deadline.

“SRD II is one of those regulations, which for some firms, is still ‘on the shelf’ awaiting attention. However, given the scope of the obligations, it is important that firms begin preparations now,” says Stephen Pinner, Managing Director of Goodacre, a leading specialist consultancy firm headquartered in the UK. “We encourage all firms in scope – including banks, brokers and wealth managers – to consider the impact to their business operations and take action now.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Best Practices for Managing Trade Surveillance

1 July 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes The surge in trading volumes combined with the emergence of new digital financial assets and geopolitical events have added layers of complexity to market activities. Traditional surveillance methods often struggle to keep pace with these changes, leading to difficulties in detecting...

BLOG

How RegTech has Shaped Compliance in a Year of Global Regulatory Changes

2024 has been a transformative year for the regulatory landscape marked by major updates to trade reporting rules across the globe. Leo Labeis, CEO of REGnosys, reflects on the year and discusses how firms can harness RegTech solutions to stay prepared for ongoing regulatory evolution. While some will remember 2024 as “the year the world...

EVENT

ESG Data & Tech Briefing London

The ESG Data & Tech Briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...