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

Asset Servicing covers a diverse group of business areas including corporate actions, income processing and proxy voting.

Current in scope topics under consideration include:

  • Data Sourcing methods
  • Withholding Tax Processes
  • Proxy Voting market practices
  • Complex Corporate Action Event handling

The current two active topics are:

Data Sourcing

The WG has identified that the sourcing of corporate action data continues to be problematic. The participants will analyze the current approach to sourcing data and create a best practice guidance paper for the industry to use to effect change.

Withholding Tax (WHT) Processes

One area of concern highlighted as a result of the pandemic was the area of withholding tax processing. The WG is reviewing the current issues and looking at how these could potentially be addressed for both tax reclaims and relief at source.

Key Deliverables

  • Data Sourcing Subgroup
    • Collaborate with The Value Exchange and other partners in a survey to better understand the issues around sourcing corporate action data (COMPLETE).
    • Attend presentations from the Russian and Swiss CSDs on their approach to sourcing corporate action data (COMPLETE).
    • Take the key survey findings and use this as the basis for a paper outlining best practice guidance in the data sourcing space (IN HAND).
  • WHT Processes Subgroup
    • Outline the key challenges that currently exist in processing Withholding Tax (for both relief at source and reclaim events) (COMPLETE).
    • Create a paper highlighting the key challenges and providing recommendations for a way forward (IN HAND).

Key Outcomes

Key outcomes will be:

A road map for the Securities Services industry that provides best practice guidance for data sourcing and highlights the benefits of adopting a golden copy approach.

A summary of the current challenges faced when processing withholding tax as well as potential solutions covering both tactical and more fundamental solutions.

Reports

  • 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.
Daniel Thieke, DTCC

Institutions Represented by Experts in the Working Group

  • Aite Novarica
  • Bank Julius Baer
  • BNY Mellon
  • Broadridge Financial Solutions
  • Caja de Valores, Argentina
  • Clearstream
  • Computershare
  • DTCC
  • Euroclear
  • Fidelity Corporate Actions Solutions
  • FIS Global
  • GlobeTax Services
  • Hong Kong Exchanges and Clearing
  • HSBC Securities Services
  • IHS Markit
  • ISSA
  • JP Morgan
  • NSDL India
  • NSD Russia
  • Proxymity
  • SIX Group
  • SLIB
  • Standard Chartered Bank
  • Strate
  • SWIFT
  • Tegra118
  • Tata Consultancy Services
  • Unicredit
  • WTax