As the Danish market moves towards an omnibus account structure, issuers need confidence that they can continue to identify and engage with their shareholders. Euronext Securities is developing a Name Registration Service designed to preserve accurate shareholder registers, direct investor communication and participation in general meetings.
Supporting issuer needs in a changing market
Danish banks are preparing to move more retail investor holdings from individual, segregated accounts into omnibus accounts. This can simplify account structures for banks, but it also creates an important challenge for issuers.
Today, individual investor accounts in the central securities depository support the direct transfer of name registration information to an issuer’s shareholder register. Under an omnibus structure, several investors’ holdings are aggregated in accounts held at bank level. Without an additional solution, issuers could lose visibility of their underlying shareholders and see their registers reduced to a list of banks or a limited number of aggregated accounts.
The impact would extend beyond the shareholder register. Accurate ownership information helps issuers understand their shareholder base, communicate directly with investors, and support registration, participation and voting at general meetings.
Protecting shareholder visibility
The Name Registration Service being developed by Euronext Securities with the support of Danish banks is designed to preserve the capabilities issuers rely on for shareholder engagement and corporate governance. It will allow issuers to continue to have access to accurate shareholder information, maintain direct communication with investors, and support participation in general meetings, even as holdings move into omnibus accounts.
The Name Registration Service does not aim to recreate today’s individual account structure. Its objective is to ensure that issuers continue to have access to the information and functionality they rely on for shareholder engagement and corporate governance, once omnibus accounts are in place.
How the Name Registration Service works
To maintain shareholder visibility, banks will provide end-of-day information about the holdings of investors who have requested name registration. A central hub will process the information and forward the relevant data to the issuer’s service provider, which can update the shareholder register in much the same way as today.
The solution will support the sharing of shareholder information with issuers and their service providers while protecting personal information. This helps maintain a reliable link between investors and their holdings, even as account structures evolve.
It will also support continued access to investor portals, including identification through MitID, so investors can register for general meetings and vote. Together, these capabilities are intended to preserve the practical connection between issuers and their shareholders as the underlying account model changes.
Preparing for implementation
Implementation of the Name Registration Service will be coordinated with the banks and service providers, including phased testing before the service goes live. Detailed operational guidance will be provided directly to the market participants involved.
For issuers using an existing service provider, the applicable adaptation to the omnibus account structure changes will primarily take place within the infrastructure operated by banks and continue over an extended period of time, Euronext Securities and other service providers. Issuers are not expected to make direct technical changes themselves.
The focus is continuity for issuers. The transition should protect access to shareholder information and established governance processes while the necessary changes are managed within the market infrastructure.
Supporting a more connected post-trade infrastructure
While developed to address the move to omnibus accounts in Denmark, the Name Registration Service also supports the broader objectives of the Euronext Securities Convergence Programme.
By standardising the flow of shareholder information across banks, the CSD and service providers, the solution aims to protect investor rights and give issuers continuity as account models evolve. This contributes to a more connected post-trade infrastructure while helping issuers maintain visibility of their shareholder base and the ability to engage effectively with investors.
The result should be a smoother transition to omnibus accounts without weakening shareholder transparency or the direct connection between issuers and their shareholders.
If you would like to learn more about our Name Registration Service, please contact CPH-clientsupport@euronext.com.