Frequently Asked Questions - Termination of Registry Accounts

  • What are the costs of transferring securities from a terminated registry account to relatives (other persons) and is it possible to do so without a trading account?

    A terminated registry account is not a transaction account and does not enable any transfers between different persons. Costs of transferring securities from one account to another person's account depend on the type and quantity of securities that are being transferred. These costs differ among individual KDD members.

  • What will be the annual costs of a trading account?

    The Book Entry Securities Act (ZNVP-1) stipulates that the annual cost of keeping an account and the compensation for the balance maintenance on the trading account kept by a KDD member for a natural person should not exceed 0.5 % of the average value of securities in the account. These, however, are probably not the only fees that the account holder will need to pay. In any case, they represent a significant proportion of the tariffs charged differently by each KDD member.

  • In what manner will KDD submit proposals for court deposits?

    KDD shall submit proposals for transfer of securities to deposit-in-court gradually, taking into consideration the capability of courts, the principle of cost-effectiveness and the following criteria or rather an appropriate combination thereof:

    1. transfer for legal entities shall have priority over transfer for natural persons;

    2. transfer of lower individual value portfolios shall have priority over transfer of higher value portfolios;

    3. transfer of unencumbered securities shall have priority over transfer of encumbered securities;

    4. transfer of securities of those issuers that have a higher share of non-transferred securities in issue;

    5. transfer of securities of passive holders or rather issuers shall have priority over transfer of securities of active holders or rather issuers (active holders or issuers are those that acceded to processes and procedures with the purpose of compliance with legal requirements if such compliance can be expected in a relatively short period of time)."

    The listed criteria are not necessarily final, since they still need to be considered by the regulator.

  • What does the termination of registry accounts mean for those securities that were still in those accounts upon the expiry of the deadline?

    The termination of registry accounts does not cause the termination or deletion of securities held in these accounts. However, the range of legal options regarding these securities changes, providing the additional option of transferring these securities to a deposit-in-court account.

    The existing options (transfer of securities to accounts maintained by banks or brokerage firms; dereliction of securities) are not eliminated by the termination of registry accounts. They will, however, be disabled at the moment when securities are actually transferred to a deposit-in-court account.

  • Will KDD inform the account holders of the transfer to court deposit prior to doing so?

    The court deposit of securities that have not been transferred by their holders from registry accounts to accounts maintained by KDD members within a legal deadline will not happen automatically. Every account holder will be notified of the court deposit prior to the deposit. Moreover, KDD is already informing account holders of the termination of registry accounts on its website. For more information, account holders can contact KDD at info@kdd.si.

  • What are the costs if I decide for a court deposit?

    It should be emphasized that securities deposited with court will no longer be made out in the name of their earlier owner but in the name of the court. Therefore, the exercise of rights arising from these securities will be impaired for their previous holder. Moreover, if the securities are not acquired from deposit-in-court in five years, they will belong to the Republic of Slovenia.

    Costs related to the court deposit will depend on the value of deposited securities and will be assessed as other costs in non-litigious civil procedures in court (thus taking into account the court fees, attorney's fee and other applicable sources).

    ZNVP-1 stipulates that the transfer of securities to an account held by a competent court should in some cases be free of charge - when the securities are transferred to a deposit-in-court account from a registry account held by a natural person, whereby the value of all dematerialized securities in the registry account that will be deposited with the court does not exceed 100 EUR and none of the dematerialized securities in the registry account are listed on the organised market. The service shall also be free of charge when the holder of the registry account has not received any payments from dematerialized securities kept in the registry account. Nevertheless, certain costs will incur due to other procedural tasks.

  • What do I need to do prior to the date of the termination of registry accounts?

    Actions that you need to take prior to the date of the termination of registry accounts depend on your interest regarding your securities:

    • if you wish to keep your securities, you can make all the necessary arrangements with the selected KDD member (see Settlement members ), where you will open an account to which you will transfer your securities from the registry account;
    • if you no longer wish to hold the securities and would like to waive them, you are to inform KDD thereof on a form (more: Dereliction of Securities);
    • if you will not do anything of the above, your securities will be transferred to a court deposit. Should you later wish to acquire your securities from the court deposit, you will need to do so through a judicial proceeding (as stipulated by the Non-litigious Civil Procedure Act governing court deposits).

Telephone

+386 1 307 35 00

E-mail

info@kdd.si

Location

Tivolska cesta 48, 1000 Ljubljana

Office Hours

Mon - Fri: 10:00 a.m. - 12:00 noon
Wed: 10:00 a.m. - 12:00 noon and
          2:00 p.m. - 3:30 p.m.