Non-public joint-stock companies and limited partnerships are required to select an electronic shareholder register operator by the end of June. Only authorised providers of brokerage services, such as brokerage houses, are entitled to operate a register. Asseco Poland has developed PROMAK RA, an IT system for brokers to provide the service. Asseco’s solution is integrated with the Capital Market Blockchain Platform launched by Krajowy Depozyt Papierów Wartościowych (KDPW).
The obligation for non-public companies to ensure that all their shares are in non-certificated (book-entry) form is binding to all joint-stock companies and limited partnerships irrespective of the number of shareholders. There are approximately 14 thousand such entities in Poland. Their certificated shares will expire in 2021. Those companies must use an electronic shareholder register operated by an authorised provider, such as a brokerage house. The purpose of the change is to improve the transparency and efficiency of information exchange in tax matters under the OECD standards.
The modifications open a new business segment for brokers. With a view to their alignment with the new obligations, Asseco Poland has developed PROMAK RA, an IT system for the operation of a shareholder register. The system supports all electronic operations in the shareholder register (register of agreements, issues, transfers, pledges on shares, registration certificates) and the processing of rights attached to shares, including dividends. Companies are required to select an e-register provider by the end of June 2020.
“The idea behind the Capital Market Blockchain Platform is to provide all participants with an infrastructure necessary to jointly create a uniform, secure and trusted business ecosystem. It is an open solution dedicated to innovative post-trade services,” said Sławomir Panasiuk
, Vice-President of KDPW.
KDPW’s objective in developing the concept of the Platform was to minimise the cost of service development in a distributed model. This helps to develop solutions without having to duplicate expenditures for network development and maintenance. The Platform reduces the entry cost of blockchain technology and opens up the potential of the ecosystem developed by capital market institutions. The platform launched in mid-2019. The first available service is eVoting, which digitises the voting process at general meetings.
“It is not possible to operate an electronic register without a dedicated IT system. Asseco has been working with the capital market for many years. With a view to the new obligations of brokers, we have developed PROMAK RA to offer the service according to top standards of technology and security,” said Artur Trunowicz
, Director of Asseco Poland’s Capital Markets Division.
PROMAK RA may be implemented in the existing infrastructure of financial institutions or provided in the cloud as SaaS. As a result, the solution may be deployed with ease and speed without engaging in-house IT resources. Asseco’s system is integrated with the Capital Market Blockchain Platform developed by KDPW.