The Law Commission has asked all stakeholders for their views on how well the current system of intermediated securities works. Its call for evidence, which ends on 5 November, is in response to a request from BEIS to look at how the increasing move towards investors holding securities through computerise entry systems and not being the legal owners might have effects on corporate governance and transparency, and on investors’ rights if issues with the securities arise.
The Law Commission notes the large chain involved in intermediation, and asks a number of questions, such as:
- whether owners of intermediated securities find voting harder than those who own them directly;
- how easy it is to get redress where required;
- the impact on an investor of the intermediary becoming insolvent; and
- how new technologies could make things easier for investors