Asset servicing - Russia

10.09.2019

The Russian market does not recognise the concepts of Payment Date or Ex-Date.

Income collection

Debt securities

Service offeredRemarks
Notification to customers
Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer. 

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Income and redemption payments from issuers will be processed on CBL’s RUB cash account opened with Sberbank.  

The standard record date for government, corporate and municipal bonds applied at NSD level is one business day before the date of the payment. Credit of proceeds by the issuer to the nominee holder is to take place within 10 working days from the record date. 

Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

Equities

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

Shareholders decide on the dividend and establish a record date by the same decision, such a record date should be no later than 20 calendar days from the date of the shareholders meeting (and additionally, not earlier than 10 calendar days where the shares are publicly traded). 

Local custodians are the tax agents for dividend income and they request the necessary information to arrange for tax relief at source from its foreign clients. 

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

Corporate actions

CBL provides a standard notification service for predictable and unpredictable events.

For equities, Record Date (set in the past during general meetings) is recognised. Different types of corporate event may have different rules for Record Date determination.

Service offeredRemarks
Notification to customers
Standard reporting. 
Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security.In addition, CBL informs customers, on an “as and if received” basis, of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc.

Power of Attorney (PoA)

No PoA is requested for NSD eligible securities where issuers have a registrar eligible at NSD.

However, where issuers do not have a registrar eligible at NSD, customers and/or beneficial owners are required to provide a PoA for the purpose of exercising corporate action instructions. The template for the PoA is attached below.

The completed PoA must be notarised and apostilled before sending to the following address:

Sberbank of Russia
19 Vavilova Str.
117997 Moscow
Russian Federation
Attn: Custody Services, Mr Y Dubin

Customers need to inform CBL’s Asset Servicing Team via email (OCA@clearstream.com) of the PoA that was sent to Sberbank of Russia by providing a scanned copy of the PoA and details of the Airway Bill.

Note: If the PoA has not been provided by the event deadline, participation in the event will not be allowed.

Proxy Voting procedures

There are no proxy voting events for Russian government bonds.

For equities held in our FNH account, customers participating in proxy voting will be seen as the owners of equities. Split voting is allowed in the name of the same investor only in rare cases.

For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Securities administration page of the Market Profile - Russia.

Entitlement compensation rules

Please refer to Entitlement Compensation Rules - Russia.