Asset Servicing Working Group

Purpose

The Working Group’s purpose is to research the key challenges and issues that continue to impact the Asset Servicing area with the aim of providing best practice guidance for existing services as well as proposing alternative business models. Through these improvements and fundamental change propositions, the WG can assist the Securities Services industry in adopting more accurate, efficient and cost-effective Asset Servicing arrangements.

Scope

In scope topics for 2023 include:

Asset Servicing – Corporate Governance

Corporate governance is becoming increasingly important to investors. Within the Asset Servicing arena, governance events – such as Proxy Voting and Class Actions – involve operational processes that are highly manual, inefficient and costly. This subgroup will explore opportunities to improve the current processes through revised practices and automation in order to improve the effectiveness, timeliness and accuracy of the service offering.

Asset Servicing – Technology Enablers

This subgroup will investigate the potential for utilizing technology, such as APIs, to improve operational processes in Asset Servicing. Validation of the technology’s potential will be achieved through a number of key use cases, including governance events (see above) and complex corporate actions.

Key Deliverables

Asset Servicing – Corporate Governance

  • An industry survey on operationalizing corporate governance looking at how assets are governed, what challenges are faced and potential solutions to ensure good governance
  • A report outlining the current challenges faced in the Proxy Voting and Class Actions space as well as potential solutions covering both tactical and more fundamental solutions.

Asset Servicing – Technology Enablers

  • A summary of potential different technology options that could be used to improve the operational processes in asset servicing. Confirmation, through taking a number of use cases, of which option could be viable solutions.

Key Outcomes

Key outcomes will be:

  • Education of the membership on the current operational processes for proxy voting and class actions and how the Securities Services industry could benefit from change.
  • A road map for the Securities Services industry on the potential for technology to enable positive change in asset servicing

Reports / Podcasts

  •  Podcast on Shaping the Target Operating Model for Corporate Actions
  • Identifying the Key Challenges and Potential Solutions to Withholding Tax Relief and Recovery Processes (07/2022) > PDF 405 kB
  • Reimagining the Corporate Actions Operating Model Survey Key Findings > link
  • Corporate Actions 2021: Podcast on the Key Survey Findings (10/2021) > link
  • Corporate Actions 2021: Key Survey Findings (08/2021) > PDF 1401 kB
  • Report on Current Practices for Beneficial Owner Disclosure (07/2020) > PDF 580 kB
  • Digitization at Source of Corporate Action event data (12/2015) > PDF 918 kB
  • Progress report on the implementation of ISSA’s Global Principles for Corporate Actions and Proxy Voting (09/2013) > PDF 391 kB
  • Final Report on Global Principles for Corporate Actions Processing and Proxy Voting (06/2012) > PDF 797 kB
  • Annex to the Final Report (05/2010) > PDF 344 kB
  • Overview on Global Principles for Corporate Actions Processing and Proxy Voting (06/2012) > PDF 104 kB
  • Issuer Outreach 2012 (06/2012) > PDF 182 kB
  • Market Survey Reports of Interim Report on Corporate Actions (05/2010):
    • Market Survey – Europe (06/2010) > PDF 305 kB
    • Market Survey – Middle East & Africa (06/2010) > PDF 360 kB
    • Market Survey – Asia (06/2010) > PDF 622 kB
    • Market Survey – Americas (06/2010) > PDF 272 kB

Working Group Co-Chairs

Stephen Ridley, Broadridge Financial Solutions Ltd.
Ann Marie Bria, DTCC

Executive Sponsor

Jyi-Chen Chueh, Standard Chartered Bank

Institutions Represented by Experts in the Working Group

  • Aite Novarica
  • Bank Julius Baer
  • BBVA
  • BNP Paribas
  • BNY Mellon
  • Broadridge Financial Solutions
  • Caja de Valores, Argentina
  • Citigroup
  • Clearstream
  • Computershare
  • DBS Bank
  • DTCC
  • Euroclear
  • Fidelity Corporate Actions Solutions
  • FIS Global
  • GlobeTax Services
  • Hong Kong Exchanges and Clearing
  • HSBC Securities Services
  • S&P Global / IHS Markit
  • ISSA
  • JP Morgan
  • NSDL India
  • Proxymity
  • SIX Group
  • SLIB
  • Standard Chartered Bank
  • Strate
  • SWIFT
  • Tata Consultancy Services
  • U.S. Bank
  • Unicredit
  • WTax