presenters bill speirs president terry martinuk director bob mackenzie director
Download
Skip this Video
Download Presentation
Presenters: Bill Speirs – President Terry Martinuk – Director Bob Mackenzie - Director

Loading in 2 Seconds...

play fullscreen
1 / 8

Presenters: Bill Speirs President Terry Martinuk Director Bob Mackenzie - Director - PowerPoint PPT Presentation


  • 146 Views
  • Uploaded on

STAC Recommendations to CSA NI 54-101 Committee. Presenters: Bill Speirs – President Terry Martinuk – Director Bob Mackenzie - Director. January 24, 2008. NI 54-101 Objective: Reasonable Cost. Issue: Mandatory receipt of complete non-objecting beneficial owner (NOBO) files Challenges:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Presenters: Bill Speirs President Terry Martinuk Director Bob Mackenzie - Director' - andrew


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
presenters bill speirs president terry martinuk director bob mackenzie director

STAC Recommendations to CSA NI 54-101 Committee

Presenters:

Bill Speirs – President

Terry Martinuk – Director

Bob Mackenzie - Director

January 24, 2008

ni 54 101 objective reasonable cost
NI 54-101 Objective: Reasonable Cost
  • Issue:
    • Mandatory receipt of complete non-objecting beneficial owner (NOBO) files
  • Challenges:
    • Average NOBO file:
      • 50% want all material
      • 40% want special meeting material
      • 10% do not want any material
  • Impact:
    • 100% average increase in data costs for annual general meetings (AGMs)
  • Solution:
    • Require intermediaries to supply data as per search request
  • Benefits:
    • Immediate reduction in file cost
    • Purchase of non-material data no longer required
    • Enhanced flexibility as issuers can select data as required
    • Possibility of Broadridge being able to reduce suppression fees
    • Reduced fees for non-useful information and move towards reasonable costs
ni 54 101 objective equitable treatment for all shareholders
NI 54-101 Objective: Equitable treatment for all shareholders
  • Issue:
    • Legal proxy
  • Challenges:
    • Complex process
    • Not fully understood by beneficial owners
    • Unduly lengthy process
    • Legal proxies usually received after proxy cut-off – or not at all
  • Impact:
    • Makes it difficult for shareholders to vote their shares
  • Solution:
    • Eliminate the legal proxy concept
  • Benefits:
    • Existing proxy appointee process is more efficient and provides identical rights to legal proxy
    • Proxy appointee process mirrors process for registered shareholders and is more equitable
    • Decreases chance of disenfranchisement due to logistics of paper movement for OBOs and NOBOs
ni 54 101 objective reasonable cost and efficiency
NI 54-101 Objective: Reasonable cost and efficiency
  • Issue:
    • Voting Instruction Form (VIF)
  • Challenges
    • Multiple forms
    • Lack of clarity of voting process
    • Complex process for shareholders who want to attend and vote at AGMs
  • Impact:
    • Increased cost
    • Does not meet the Canadian Coalition for Good Governance (CCGG) goals
    • Disenfranchisement at AGM
  • Solution:
    • Implement use of Omnibus Legal Proxy
  • Benefits:
    • Reduction in costs
    • Enhanced clarity – easier to read, understand and tabulate
    • Improved opportunity for issuer branding
    • Enables NOBOs to effectively become proxy holders with the same status and rights as registered holders
    • Standard process for large groups of beneficial and registered holders
    • More efficient and timely process
ni 54 101 objective reasonable cost and efficiency1
NI 54-101 Objective: Reasonable cost and efficiency
  • Issue:
    • Increased objecting beneficial owner (OBO) delivery charges by Broadridge of issuer mailings directed to non-objecting beneficial owners (NOBOs)
  • Challenge:
    • 25% increase in cost per OBO to about $1.25
  • Impact:
    • Discourages issuers from mailing directly to NOBOs
    • Material waste if Broadridge refuses to mail to OBOs
    • Increase in number of issuers who refuse to pay for delivery to OBOs
      • In 2007, about 800 issuers refused to pay for delivery to OBOs
    • Disenfranchisement of a group of holders
    • Irritation and dissatisfaction among issuers over Broadridge pricing
  • Solution:
    • Beneficial holder data should be available to all service providers at the same cost regardless of issuer elections
  • Benefits:
    • Increased delivery to OBOs
    • Additional retail voting
    • More efficient marketplace and reasonable costs
ni 54 101 objective reasonable cost1
NI 54-101 Objective: Reasonable cost
  • Issue:
    • Lack of control over Broadridge fees
  • Challenge:
    • 81% average increase in Broadridge fees since 2004
  • Impact:
    • Issuers feel forced to use Broadridge to control costs
    • Rising fees act as a barrier to entry
    • Makes it uneconomical for some providers to invest in the necessary technology
  • Solution:
    • Introduce price controls or make data available to all issuers and their service providers at the same rate
    • Look to other jurisdictions for comparable rates
  • Benefits:
    • Enhanced control over fees and more reasonable costs
    • Improved marketplace efficiency through the addition of new vendors
    • Faster delivery times
ni 54 101 objective efficiency and reasonable cost
NI 54-101 Objective: Efficiency and reasonable cost
  • Issue:
    • NI 54-101 provides for the use of an Abridge Time feature to reduce effort and costs of two search processes
  • Challenge:
    • A "special handling" charge is applied by Broadridge to those issuers who choose to use the abridging feature
  • Impact:
    • Small issuers – who could use abridging to reduce costs – often do not use this feature as result of the "special handling" charge
    • Dissatisfaction with the process
    • Higher costs for small issuers
  • Solution:
    • Ensure issuers who are able to comply with the abridging requirements are not financially penalized for doing so
  • Benefits:
    • Reduced costs
    • Improved efficiency as only one search is required
ni 54 101 broadridge price increases 2002 2006
NI 54-101 Broadridge Price Increases: 2002 - 2006

Percentage price increase

Number of beneficial holders for each issuer

ad