Its aim is to encourage long-term shareholder engagement and enhance transparency between issuers and investors. Its main focus is shareholder disclosure requests and Annual General Meetings.
The objective of SRD II is to improve European financial stability by boosting shareholder loyalty and limiting those risks that are perceived to be linked to short term and speculative behaviour.
With SRD II, issuers will have a better knowledge of their investors, they will be able to better communicate with them and can expect greater attendance and engagement at AGMs.
In this article, we speak to Dan Toledano, Product Manager in Euroclear’s Product Core Europe team about what the new Directive means for financial intermediaries and what they need to do to meet its requirements.