Each issuer of securities is obliged to regularly update data on a company in register of Centrálny depozitár cenných papierov SR, a.s. (CDCP SR) which, in compliance with valid regulation, is registering securities. Omitting of this duty may cause several risks that could affect not only the issuers but also the account owners whose securities are registered on accounts in the central securities depository. Therefore CDCP SR shall enable to the issuers to make changes on their companies related to the Business Register free of charge.
“Our primary goal is to motivate security issuers to update data on their companies regularly,” said Martin Wiedermann, the Managing Director and the Chairman of BoD of CDCP SR. “This is another way how we would like to eliminate all risks due to neglecting of this obligation to the largest extent possible.”
Each company or business decided to issue securities with intention to trade the securities has to inform CDCP SR on changes of the company name, registered seat, billing or mailing address. Furthermore, the company also has to notify of eventual termination of the company or fusion or merger with other firm. Registration of actual identification data on an issuer and an issue is important not only for the issuers but for the account owners as well. Keeping of inaccurate data in the register may lead to incorrect identification, or even to confusion of companies. „However, it is essential that security issues of companies that ceased to exist were cancelled and securities debited from owner’s accounts“, explains Ľubomír Demčák, the Head of Issue Department of CDCP SR. “Thus the account owners shall avoid of paying administration fees for inexistent securities.”
Services provided free of charge
Starting this year Centrálny depozitár cenných papierov SR, a.s. offers to the issuers possibility to make free of charge update of all details, kept in the registry of book-entry or paper form securities, that were changed in the Business Register and relate to change of company name, change of trade name or of company seat. Equally, the issuers are not charged for change of ISIN code essentials that serve for identification of a security issue. Cancelation of the ISIN code is free of charge as well. In addition, by recent changes in the scale of fees CDCP SR facilitates for the issuers also cancellation of book-entry security issue registered in the central securities depository. When the issue of debt securities was redeemed or an issuer ceased to exist without legal successor, there are no barriers for the issuer to cancel the issue in the central depository. Before security issue is cancelled, the securities from given issue are debited from all accounts administered by the central depository. So the account owners will not have to pay account administration fee for already cancelled securities.
Realisation of the change
If the issuer wants to make mentioned changes, it is sufficient to fill in the form and attach an excerpt from the Business Register involving current data. In case the issuer submits the request for change in writing, the signature has to be officially verified. ”The filled-out form has to be signed by authorised person and if required changes are compliant with records in the Business Register, CDCP shall execute the changes in accordance with the Rules of Operation”, explained Ľubomír Demčák. According to the Rules of Operation CDCP SR is allowed to perform required change in 15 working days, though the changes are usually done immediately. The issuers can find the request form for change of essentials or for cancellation of the ISIN code on the web site www.cdcp.sk.
“Access of the global capital market participants to important information on securities is more simple and faster as data recorded in our register are up-to-date and accurate what, at the same time, enhances reliability of the information“, added Martin Wiedermann, the Managing Director and Chairman of BoD of CDCP SR. “Therefore we try to be helpful to the issuers as much as possible and to facilitate regular update of company data also to their benefit.”