Avenir Registrars expands operation to support Irish securities issuers
Corporate registrar Avenir Registrars is expanding its operation in Ireland operations to allow the business to better cater for the growing number of Irish entities who will be required to ensure they can migrate listings away from CREST, the London Central Securities Depository (CSD), in the coming months.
One consequence of Brexit, the UK’s decision to exit the European Union, is that Irish businesses that have previously maintained securities registers through CREST will no longer be permitted to do so. EU law mandates that all securities issued within the European Union must be held by securities depositories in the same jurisdiction.
Dr Hardeep Tamana, Managing Director of Avenir Registrars, says: “Issuers of securities in Ireland, whether they are funds, debt or equity, now have just four months to pass the necessary corporate resolutions and ensure their registers can be accommodated on the new Euroclear system. Avenir has developed software which accommodates issuers switching seamlessly to the new CSD, with registers then being maintained for a single low annual fee and without the need for any expensive set up costs.”
Once the transition has been completed, Ireland will be positioned as the EU’s premier financial services jurisdiction. Those who choose to issue securities in Dublin will obtain direct access to Euroclear Bank’s global CSD infrastructure, offering the highest levels of security combined with a truly global reach. At present, every six days, Euroclear settles transactions with a value equivalent to the EU’s total GDP.
Avenir was established to provide issuers with a more streamlined and cost-effective option when it came to maintaining their securities register. Built using the latest technology, Avenir’s systems can update registers in real time and offer a range of self-serve options for issuers, as well as providing 24x7 support where necessary. By applying this same philosophy, Avenir can deliver a convenient, cost effective solution to Irish issuers who are now obliged to move away from CREST, both in terms of the migration process and the subsequent maintenance of the register.
A number of Irish issuers have already started to ensure the appropriate corporate resolutions have been passed and third party infrastructure systems have been upgraded to facilitate a smooth transition to the new CSD.
John Ferguson, Chairman and Executive Director of Audacia Capital says: “Our business reached a point where we needed a Registrar that could meet our wider needs in this fast-developing space. Our considerations were based around technology, reputation, service, and the ability to meet our ongoing needs to keep evolving and be at the forefront of the issuer/settlement/registrar mechanism. Since engaging with Avenir we have been impressed with every aspect of the service. Our dealings to date with Avenir have been both highly efficient and professional, and we would not hesitate to recommend them.”
The entire Irish securities market, including the UCITS funds, ETFs, bonds and equities which are currently settled through CREST, will be impacted by this move. Issuers are obliged to advise Euronext that the appropriate corporate resolutions have been passed by 24 February 2021 so that migrations can be completed on 12 March, 2021. Failure to meet these deadlines will result in securities no longer being eligible for electronic settlement or trading on an regulated exchange within the EU.