EALIC European Association of Listed Companies AISBL-IVZW Harmonisation of Corporate Actions Processing in Europe Giovannini Barrier 3: "Harmonize national rules relating to corporate actions processing"

EALIC European Association of Listed Companies AISBL-IVZW Key message: Six European industry associations agreed on a very close cooperation. ECSDA and ESF are drivers.  EALIC- European Association of Listed Companies  ECSDA- European CSD Association  ESF- European Securities Forum  FBE- European Banking Federation  ESBG- European Savings Banks Group  EACB- European Association of Co-operative Banks >>>> All stakeholders are on board! COOPERATION ACROSS THE MARKET

EALIC European Association of Listed Companies AISBL-IVZW UPDATE ON ASSOCIATIONS’ WORK  Without option (e.g. cash and stock dividends): 16 standards agreed. Implementation dates range from end 2006 to end  Optional distributions (e.g. rights issue): ECSDA standards to be published before end Distributions

EALIC European Association of Listed Companies AISBL-IVZW 2. Reorganizations & Voluntary Events  Proposed standards in consultation stage  Considerable market practice fragmentation across Europe and some potential significant legal barriers  Implementation time frame: 3 years after the standards relating to mandatory distributions are implemented UPDATE ON ASSOCIATIONS’ WORK

EALIC European Association of Listed Companies AISBL-IVZW 3. General Meetings Goal is to enhance shareholders’ participation in general meetings in a cross-border environment. Standards are drafted in three areas:  Notice to convene the general meeting  Entitlement / shareholder qualification / record date  Notification of attendance to the general meeting Status:  Draft standards in consultation stage for the first two processes  Work in progress on third process  Final standards expected by mid-2007  Implementation timeframe: to be decided UPDATE ON ASSOCIATIONS’ WORK

EALIC European Association of Listed Companies AISBL-IVZW 4. Market Claims  ECSDA: Market Claims Report published in July The report identifies 10 standards; barriers to implementation (mainly legal!); and a timeline: three years after the standards relating to reorganizations have been implemented.  12 countries have completed their gap analysis so far. UPDATE ON ASSOCIATIONS’ WORK

EALIC European Association of Listed Companies AISBL-IVZW TOWARDS IMPLEMENTATION  To date, the six associations have agreed on a total of 45 common deliverables. More are forthcoming.  Most markets have set up a “Market Implementation Group" under the leadership of one national coordinator.  The Market Implementation Groups include all stakeholders.  National implementation plans are currently drafted.  Strong interdependencies with legal and fiscal constraints, with the removal of other Giovannini barriers, with company law and corporate governance, with market evolution, with the proposed EU Directive on Shareholders’ Voting Rights, with market infrastructure projects…..

CORPORATE ACTIONS PROCESSING IN ASIA  No cross-border harmonization initiatives  Awareness, emphasis and commitment to adhere to international messaging standards (ISO)  Key priority across the region: Establishing electronic links between issuer, CSD and CSD participants, to enable STP and to reduce error rates e.g. in Malaysia, India, Singapore, Japan, Taiwan, Thailand  Markets compare and exchange best practices, but improve processes independently within their own borders