As part of LuxCSD’s initiative to support the dematerialisation of securities of all types, LuxCSD announced custody fee cuts for equities by 50%, effective from 1 April 2014. This fee reduction results in an alignment of the equity and bond custody fees.
The aim is to encourage corporations to dematerialise existing physical securities and to newly issue securities in dematerialised form. Custody of equities in dematerialised form significantly reduces inefficiencies, risks and costs for the industry and increase the level of transparency regarding the chain of holders of a Luxembourg security.
In March 2014, LuxCSD has successfully handled its first dematerialisation of physical shares – the BIP Investment Partners Luxembourg equities with a volume of EUR 400 million.
Patrick Georg, General Manager of LuxCSD, said: “By cutting the custody fees for equities by 50% we aim to attract more corporates to dematerialise physical shares and to follow the example of BIP Investment Partners. We strongly support dematerialisation as best practice in securities custody and issuance.”
The change in Luxembourg law governing the dematerialisation of physical securities adopted in April 2013 is expected to further enhance the appeal of securities issued and dematerialised in Luxembourg.