Portugal: Prohibition of issuance of bearer securities
On 3 May 2017, Law no. 15/2017, which imposes the prohibition on the issuance of bearer securities, was published in the Portuguese Republic official journal, Diário da República.
According to Law no. 15/2017, which entered into force on 4 May 2017 bearer securities must be converted into registered securities within six months, from the entry into force of the law, that is by 4 November 2017.
If the conversion does not take place within this transition period, the settlement of bearer securities and the ability to participate in income distributions from bearer securities will be suspended as from the end of the sixth month following the day the law entered into force.
The set-up of the transition regime, to govern the mandatory conversion of the existing bearer securities into registered securities, is subject to regulation that must be issued by the Portuguese Government within 120 days of the entry into force of the law in question.
Clearstream Banking continues to follow up on the above mentioned legislative initiative, namely on the regulation that will govern the transition regime and will communicate further details of the impacts on customer portfolios of bearer securities.
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