RDR Intermediate
Unitholder Obligations

Investor communications and voting rights for the underlying investor

Download ‘RDR Intermediate Unitholder Obligations - The Developing Landscape for Nominees and Retail Investors’ and discover:
Contact our specialist RDR team for further information:

Imogen Cook
Manager, UK Nominations & Voting
Investor Communication Solutions, International
+44 (0) 207 551 3844

Jon Ford
Director, Head of UK Business Development
Investor Communication Solutions, International
+44 (0) 207 551 3798

An insight into preparation for upcoming UK regulatory change

The Retail Distribution Review (RDR) is legislation motivated by the FSA’s desire to inform and empower retail investors and it will require many firms in the UK to make fundamental changes to their business models. Chapter 5 of the RDR, Investing in authorised funds through nominees, places new regulatory requirements squarely on the shoulders of the nominee. The rules demand that certain mutual fund information and notifications of voting events will have to be communicated to all underlying investors.

The challenges for intermediaries in complying with these regulatory changes are numerous and meeting the legislation is expected to have a substantial impact on nominee resources and costs. Sourcing and displaying the most up-to-date information available across a diverse range of funds, as well as notifying underlying investors of voting events, providing a summary of such events and potentially allowing these underlying investors to exercise their voting rights, all provide significant challenges and extra cost for brokers. The timeframe in which to become compliant is currently under review, but nevertheless, the regulation will be enforced in the near future.

Are firms ready?

Broadridge presents a white paper, RDR Intermediate Unitholder Obligations - The Developing Landscape for Nominees and Retail Investors, produced in association with UK specialist benchmarking and research organisation, ComPeer Ltd. The paper offers a detailed insight into the potential impact this new legislation may have on those holding nominee accounts – banks, brokers, mutual fund holders and fund platforms – and delivers a comprehensive overview of the challenges, concerns, cost implications, opportunities and compliance strategies that firms may face.

Why Broadridge?