The AFME has published a very useful briefing on securities law reform, in particular, on the proposed Securities Law Directive. It notes that securities law reform aims to provide legal certainty in respect of:

  • the legal effects of acquisition, holding and disposition of de-materialised securities, given that change of ownership no longer takes place by the physical transfer of certified securities but instead electronically;
  • investor protection in the event of an insolvency of the securities accounts provider, as investors no longer possess certificated securities that are held in book entry form in a securities account with an account provider
  • the determination of applicable law.

The Securities Law Directive includes legal rules in the context of corporate actions for the recognition of holding patterns and the end to end communication to enable investors to exercise rights attached to securities.