Termination of Registry Accounts

Due to the European integration process common European standards were implemented in the Republic of Slovenia with regard to the implementation of corporate actions on securities. KDD was integrated into a common European platform for securities settlement T2S (Target2-Securities) owned by the Eurosystem (the European Central Bank and the national central banks of the member states whose currency is the euro), which requires the introduction of uniform standards for payments from securities (CASG/CAJWG). In accordance with this standards information and cash flow runs through contractual links between the issuer and the central depositary (KDD), the central depositary and financial intermediaries (KDD registry members) and between financial intermediaries and their clients (final holders).

THE STATUS OF HOLDERS WHO DID NOT ARRANGE THE TRANSFER OF THEIR SECURITIES FROM THE TERMINATED REGISTRY ACCOUNTS, HAS CHANGED SIGNIFICANTLY.

The Book-Entry Securities Act (ZNVP-1) set out a long period of time for holders to transfer their securities from their registry accounts at KDD to accounts at KDD system members, which was required due to the establishment of the aforementioned contractual links via which corporate actions are carried out.  The deadline for legal entities expired on 30 September 2016, and on 1 January 2017 for natural persons. With the expiry of the above deadlines, KDD terminated the registry accounts. However, to protect their holders the securities on these accounts were not deleted. The holders were just limited in exercising their rights from these securities.

IMPORTANT: WITH THE ZNVP-1B AMENDING ACT, THE STATUS OF BENEFICIARIES WHO DID NOT ACT ACCORDINGLY IN RESPECT OF THEIR SECURITIES OR NEGLECTED TO ACT AT ALL IS CHANGED ADDITIONALLY SO THAT BENEFICIARIES LOSE THEIR SUBSEQUENT RETURNS IRREVERSIBLY, AND FROM 31 DECEMBER 2021 WILL ALSO LOSE THEIR SECURITIES.

In the period 1 September 2019 to 31 December 2021 beneficiaries will still be able to transfer the securities that were once entered on registry accounts to accounts at system members. However, beneficiaries will have to accept the securities in the state in which they were in (excluding any further returns and other payments), also needing to certify (via a notary or an administrative unit) their signature on the request for the acquisition of securities. The terms and conditions set out by KDD's applicable rules of operations and valid pricelist will apply regarding the details of the transfer.

The holder can use the following form for the transfer of securities from the KAD joint special account  (KAD = Kapitalska družba d.d., eng: Pension Fund Management) to the client's account at a system member:

Request for the transfer of securities from the KAD joint special account 

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