Holders

Holders

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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. It will also publish a notice of the termination of accounts in daily newspapers. For more information, account holders can contact KDD at info@kdd.si.

Will KDD inform holders of securities in terminated registry accounts of further actions?

All holders of securities in registry accounts were notified in 2016 of their obligations and possibilities regarding the securities in registry accounts. Further direct notification of holders by KDD is not anticipated. They shall, however, be notified through courts that must observe the adversarial principle in their proceedings regarding the transfer of securities to a deposit-in-court account.

For more information, do not hesitate to contact KDD at e-mail address info@kdd.si.

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.

What is the value of my securities in the terminated registry account?

KDD does not keep a record of securities market prices. If you are a holder of securities that are traded on the Ljubljana Stock Exchange, you can learn about the price of securities from the price list published on the website of the Ljubljana Stock Exchange www.ljse.si. For information about the value of securities that are not traded on the stock exchange, you should directly contact the issuer. Annual reports of issuers are namely the source where KDD acquires information on the value of unquoted shares.

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.

What do I have to do if upon the expiry of the deadline for the termination of registry accounts securities are still in this account?

Actions that you need to take depend on your interests regarding your securities:

  • if you wish to keep your securities, you can make all the necessary arrangements with the selected KDD member (»Settlement members that are also system members«), where you will open an account to which you will transfer your securities from the terminated 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 with an attested signature (more: Dereliction of Securities).

If you decide to do none of the above, the securities will be transferred to a deposit-in-court account pursuant to a legally binding decision of a competent court.
 

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 are registry accounts?

Registry accounts were accounts with KDD that were not maintained by any bank nor brokerage firm. The Dematerialized Securities Act (ZNVP-1) brought about the decision to terminate these accounts, while holders of securities in registry accounts were given a relatively long period of time to transfer these securities to accounts maintained by brokerage firms or banks. Legal entities had to transfer their securities by 30 September 2016, while natural persons had to do so by 1 January 2017.

With the expiry of the above deadlines, KDD terminated the registry accounts.

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.

I would like to sell my securities. I live in Argentina. Can I do it by mail?

KDD runs central registry of securities and does not act as broker. To sell securities, you need to contact a broker in one of the Slovenian brokerage firms or banks who are authorised market participants. A list with contact information is available here.  Please, contact them directly to get detailed information on required documents, procedure and related costs.

I have received the annual statement of my securities accounts. I can see which securities I have and how many of them. However, I would like to know if I can sell them and how much they are worth.

KDD runs central securities registry in Slovenia and maintains balances on holders’ securities accounts. KDD does not act as a broker and does not publish market prices for securities. To find out if you can sell your securities and their price, you need to contact a broker in one of the Slovenian brokerage firms or banks who are authorised market participants. A list with contact information is available here. Please, contact them directly to get detailed information on required documents, procedure and related costs.

Prices for securities that are traded on the Ljubljana Stock Exchange are published daily in their price list here.

How do I know which securities are in the terminated registry account?

Holders of registry accounts received a notice of the account termination as well as the account balance statement free of charge. Nevertheless, natural persons can still obtain the account balance statement free of charge. It is evident from the account balance statement whether the securities are registered in the terminated registry account or already in the trading account with one of the KDD members (more: Account Balance Statement).

Contact

KDD d.d.
Tivolska 48
1000 Ljubljana

Telephone +386 1 307 35 00
Fax +386 1 307 35 08
Email info@kdd.si