Consultation Paper High level description, Nordic CSD Corporate ...

about simplified and automated processes but may also create new or
changed requirements to Issuers.
5.2 Core CSD Corporate Action services
CSD core services should include the processing of Corporate Actions
transactions – both securities and cash - in its systems to the investor accounts
and to intermediary accounts at CSD level. The Account Operators/Nominees
should take care of the further processing of the Corporate Action to the end
investors when necessary. This means that Corporate Action processing to
nominee registered holders should not be part of CSD core services.
The securities and cash transactions should be created in the Corporate
Action system and processed in the Settlement system as Corporate Action
instructions. For cash payments the actual credit to end investors’ cash
accounts is not performed by the CSD, instead the CSD creates a file of
payment instructions. The settlement process can use both Central Bank
money and commercial bank money.
The processing of Corporate Actions at CSD level includes also income
payments, i.e. dividends, interest on bonds, any net value payments on
maturing covered warrants and other yield or return payments on investment.
This would imply that some other related processing such as tax withholding
and reporting to the authorities would be dealt with at CSD level.
Proposal [CA 10]
Corporate Action transactions should be processed to the investor accounts
and to the intermediary accounts by the CSD.
These issues will be further dealt with in the following sections followed by
some examples.
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