Notification to Transfer Agents and Registrars in relation to CSDR requirements
In relation to CSDR and in accordance with consultations with its supervisory authority, LuxCSD hereby notifies Transfer Agents and Registrars with which LuxCSD has engaged in registration of customer positions, of the following regulatory requirements:
CSDR Art 37.2 states:
“Where appropriate and if other entities are involved in the reconciliation process for a certain securities issue, such as the issuer, registrars, issuance agents, transfer agents, common depositories, other CSDs or other entities, the CSD and any such entities shall organise adequate cooperation and information exchange measures with each other so that the integrity of the issue is maintained.”
In this respect, LuxCSD is required to reconcile the overall holding of a particular fund it maintains for its customers with the holding position as confirmed by the Transfer Agent or Registrar appointed by the fund in question.
To this end LuxCSD must carry out such reconciliation at the same frequency as that of the NAV calculation frequency of the fund in question.
LuxCSD has been advised by its supervisory authority that all EU based Transfer Agents or Registrars must cooperate with LuxCSD in a way that allows it to comply with art 37.2 of CSDR, while non-EU based Transfer Agents or Registrars with which LuxCSD maintains positions are not in scope of this CSDR requirement.
This commitment to cooperate entails the following requirements:
- The Transfer Agent or Registrar shall provide LuxCSD with a statement of all holdings on the Position Account of LuxCSD as at the close of a Business Day.
- The Transfer Agent or Registrar shall provide LuxCSD with a statement of all new transactions that have affected the Position Account of LuxCSD since the previous statement of transactions (if any), and as at the close of a Business Day.
The statements shall be sent to LuxCSD by the Transfer Agent or the Registrar before the end of the day immediately following each statement date. The Transfer Agent or Registrar shall prepare the relevant statements for every date that is a dealing date, also known as trade date, for one or more of the Fund Shares in question.
When there are no new transactions to report, a statement of holdings shall anyway be sent by the TA or the Registrar to LuxCSD. It is recommended that TAs or Registrars provide comprehensive statements for all Fund Shares with a daily dealing or trading frequency.
LuxCSD shall use the statements to reconcile holdings and transactions of Fund Shares with the records in its own books. LuxCSD shall inform the Transfer Agent or Registrar of any discrepancy it discovers without undue delay. The Transfer Agent or Registrar shall react promptly to this information with a view to resolving any such discrepancy.