Harmonisation of Clearstream Banking’s asset services - German choice dividend event - New process - Update
Note: This announcement, originally published on 17 October 2022, has been updated to provide customers with a new date for Clearstream Banking's asset servicing offering harmonisation. Changes have been highlighted.
Further to Announcement C22009, Clearstream Banking1 informs customers, that as part of its asset servicing offering harmonisation, effective
3 July 2023
processing changes for German Choice Dividend Event will become applicable for Clearstream Banking S.A. (CBL) customers.
The current CBL asset servicing will be amended to streamline the processing of DVOP CHOS for CBF-issued securities in line with German market practices.
The German Choice Dividend Event will be processed via the following multiple events:
- If there is a taxable dividend payment based on the parent line, it will be paid via DVCA/MAND event.
- An RHDI/MAND event will distribute CASH interim line.
- A DVOP/CHOS event will be issued on the basis of the CASH interim line and will provide possibility to opt for the SECU option distributing a SECU interim line; the default option paying the non-taxable dividend.
- An EXOF/MAND event will be issued on the basis of the SECU interim line to receive the final security.
For more details and message examples please refer to the attachment.
The German Choice Dividend Event gives shareholders the possibility to choose between three options:
- to receive the full cash of the tax free dividend or
- to receive their tax free dividend in form of additional shares;
- to receive their tax free dividend in a combination of cash and additional shares.
The default set up is payment in cash.
The Customer Handbooks will be updated in due course.
For further information, customers may contact OneClearstream@clearstream.com, Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.