Solutions Atlantic has released an updated substantial shareholding disclosure form for Germany to reflect the changes announced by BaFin on 3 January. BaFin released a new form to reflect current section numbers of the German legislation, the WpHG. The content of the form remains the same as does submission protocol.
Solutions Atlantic released the rule set for the Marshall Islands following aosphere LLP’s announcement including it in its Rulefinder covered jurisdictions list. Being able to release this new jurisdiction right on the heels of Rulefinder’s release shows the nimbleness of RRS’ RuleBuilder component. RRS RuleBuilder enables customers of RRS to customize or introduce customer-specific rules to their production system. RRS is the only solution on the market that puts this kind of power in the hands of its end users.
On 9 November, users of Regulatory Reporting System (RRS) gathered in NY and on the phone, as far away as India, to discuss the latest regulatory developments in the global shareholding disclosure space. It was the fourth annual meeting of the RRS User Group hosted by Solutions Atlantic. This year’s discussion focused on the classification of managed holdings and potential changes that might come about next year in the area of short selling in both the EU and Korea. On hand to discuss these and other relevant topics were regulatory experts from aosphere, LLP.
The second half of the meeting focused on the future. Users provided insight to their evolving business needs as it relates to the functionality of RRS and the team at Solutions Atlantic, proposed additional capabilities that should be considered for the 2018 release. Mitch Greess, had this to say about the session, “We truly value the input from our end users as it relates to the strategic direction of RRS. Having firsthand feedback and insight to their day to day workflow as it relates to global shareholding disclosure enables the team here at Solutions Atlantic to continually deliver a product that is superior to others and continues to be relevant in the hand of our customers.”
From 16 October to 18 October, the National Society of Compliance Professionals’ Annual Meeting will take place in Washington, D.C.
Solutions Atlantic has been an exhibitor at this yearly event for several years. The NSCP Annual Meeting, continues to be the conference of necessity for most compliance professionals in the financial services industry. Regardless of firm type, the conference focuses on the compliance issues that many of our customers face every day. Solutions Atlantic looks forward to greeting our customers in attendance and meeting other attendees to discuss how the Regulatory Reporting System can improve their major shareholding disclosure process through end to end automation.
Solutions Atlantic has expanded the ready submission document set of the Regulatory Reporting System. The market leading solution for SEC Filings and global shareholding disclosure reporting now includes Issuer Request Letters for 10 countries. This broadens the capabilities of RRS to enable customers to readily address the notification requirements of issuers where they have a substantial holding. Some of the countries covered include: France, Germany, Hong Kong, and Singapore.
The Regulatory Reporting System expands its required forms coverage to 55 ready to submit forms across 40 countries. RRS is the only solution that enables customization of form language in the hands of its users. RRS also generates generic forms for countries where no required form is stated.
- Update includes changes to the Substantial Shareholding threshold and time to report.
- Changes to Sensitive Sectors which include new restrictions on foreign ownership in airlines.
Solutions Atlantic has expanded its consolidated takeover list to 14 countries; now including Australia, Cyprus, and Malaysia. This consolidated takeover feed supports the takeover reporting obligations simplified by the Regulatory Reporting System. Also released are updated forms for UK TR-1 and Hong Kong SFC Form 2 both of which become effective in the coming weeks.
As previously reported in April 2017, the Icelandic Financial Supervisory Authority announced its proposal to implement the EU Short Selling Regulation into Icelandic law.
SA has released the ESMA SSR Rule for Iceland ahead of the effective date, 1 July 2017.
More about the ESMA SSR rule:
The short selling regulation is a regulation of the European Union (EU)No 236/2012 (Opens in new window) of 14 March 2012 on short selling and certain aspects of credit default swaps. The short selling regulation consists of Regulation (EU) No. 236/2012 as well as the Implementing Regulations and Delegated regulations that implement the so-called technical standards. Technical standards may be RTS (e. Regulatory technical standards) or ITS (e. Implementing technical standards) regarding the further implementation of short-selling regulation. The short selling regulation has four technical standards, Implementing Regulation (EU) 827/2012 (Opens in new window) and delegated regulations (EU). 826/2012 (Opens in new window) , (PDF file) (EU) 918/2012 and (PDF file) (EU) 919/2012.
A new framework regarding short selling of financial instruments and transactions in credit default swaps was introduced with the short selling regulation. The regulation requires holders of net short positions in shares or sovereign debt to make notifications once certain thresholds have been breached. It also outlines further restrictions on investors entering into uncovered short positions in shares or sovereign debt. The competent authorities are given powers to suspend or restrict short selling of such transactions under certain circumstances.
Net short positions in shares
A notification must be made to the competent authorities when a net short position exceeds or falls below the limit of 0.2% of the issued share capital of the company that has had its shares admitted to trading on a regulated market or MTF. In addition a notification must be made every time a net short position is increased by 0.1% in excess of the aforementioned 0.2% limit. Notification must be made public if the net short position in shares exceeds 0.5% of the issued share capital of a company and for each 0.1% above that. Notifications must be made privately or in public when a net short position falls below the aforementioned limits.
Restrictions on uncovered short sales
Short selling of shares and sovereign debt instruments
According to the provisions of the short selling regulation an uncovered short selling of shares and sovereign debt instruments is banned. When entering into a short sale, the investor should have the financial instruments available, or be ready to take appropriate measures to ensure that it will be available on the agreed settlement date of the transaction. The requirements can be met in three ways:
- borrow the shares or the sovereign debt instruments, or make alternative provisions resulting in a similar legal effect,
- enter into an agreement to borrow the share or the sovereign debt or have another absolutely enforceable claim under contract or property law to be transferred ownership of a corresponding number of securities of the same class so that settlement can be effected when it is due,
- have an arrangement with a third party under which that third party has confirmed that the share has been located and has taken measures vis-á-vis third parties necessary for the natural or legal person to have a reasonable expectation that settlement can be effected when it is due.
These restrictions do not apply if the transaction serves to hedge a long position in debt instruments of an issuer, the pricing of which has a high correlation with the pricing of the given sovereign debt.
On 23 May, Solutions Atlantic released updated rules for Egypt and Romania.
Information pertaining to Egypt:
The EFSA announced new rules which will restrict investment in issued share capital or bonds convertible to shares (voting or non-voting) of securities companies licensed in Egypt.
Such investment will require pre-acquisition approval of any acquisition (directly or indirectly and either alone or through a related group) when the acquisition reaches or exceeds the following percentages of the company’s capital or voting rights: 10%, 25%, one third, 50%, two-thirds or 75%.
Information pertaining to Romania:
- TDA standard disclosure thresholds apply.
- Cash settled instruments need to be disclosed.
- Introduction of 5% trading book exemption.
- Indicative instruments may be disclosable if the conditions for disclosure are met.