Issuance of securities in dematerialised form
LuxCSD advises customers that in context of the law on dematerialised securities of 6 April 2013, applicable as from 19 April 2013, we will provide services for the issuance in dematerialised form and the conversion of physical securities into dematerialised securities. LuxCSD is fully supporting the new law on dematerialised securities as this will significantly reduce inefficiencies, risks and costs for the industry.
Securities eligible for dematerialisation
The law creates a new category of securities, in addition to the existing securities in physical bearer form or registered form.
Securities eligible for dematerialisation are limited to:
(i) equity securities (for example shares, founders’ shares, subscription rights or units of UCI) issued by Luxembourg public companies; and
(ii) debt securities governed by Luxembourg law.
Customer benefits
Based on LuxCSD’s issuance process in Central Bank money, issuers now benefit from more transparency regarding the holders of their securities, lower administration costs and the more favourable treatment of dematerialised securities under foreign laws (for example, tax).
Impact on operational process
Dematerialised securities will be integrated into the operational processes with small changes only. In addition to customer documentation changes which will be communicated shortly.
New issues through a single account
In practice, issuers may issue listed securities of same type in dematerialised form exclusively through a single issue account held with a Securities Settlement System (organisme de liquidation), such as LuxCSD as defined by the law dated 10 November 2009 on payment services.
LuxCSD offers its services as well for non-listed securities under dematerialised form.
Conversion of existing securities
Existing securities in bearer or registered form may be converted upon fulfilment of certain conditions, on a voluntary or compulsory basis, at the discretion of issuers.
Once issued or converted, dematerialised securities may be held in one or more securities accounts and then transferred by book-entry between securities accounts.
Pursuant to the law on dematerialised securities, issuers may ask intermediaries in the custody line of securities to disclose information about the identity of the final investor(s) and, in case of non compliance, may suspend the relevant voting rights until disclosure.
For additional information please contact newissues@luxcsd.com.