SSA presented two educational sessions during its Dec. 5 Regional Event at Verizon Headquarters in New Jersey. The Customer Excellence session featured panelists Michelle Jackson (Broadridge), Jason Stout (Computershare), David Becker (EQ), Mark Gereb (moderator, Verizon) and Chris Paul (Verizon). The Why SSA session featured panelists Tara Altman (moderator, Broadridge), Meghan O’Donnell (Comcast), Sarah El Said (PSEG), and Mark Gereb (Verizon).

 

The Customer Excellence panelist discussed the industry’s transition to a digital self-serve experience, the need for digital environment improvement, security and ease of use, and methods to increase shareholder value.

View the Customer Excellence session:

 

The Why SSA panelists shared how SSA helps shareholder services professionals stay informed, provides resources to help onboard new team members, connects members to a valuable network for information sharing and holds the profession’s most comprehensive annual conference. 

View the Why SSA session:

Environmental, social and governance (ESG) issues have been a hot topic for publicly traded companies in recent years. Amidst evolving ESG reporting requirements, a surge of ESG-related lawsuits and the politicization of ESG, shareholder services professionals need to keep tabs on the latest developments surrounding ESG.

A recent issue of Optimizer Magazine features several ESG-related articles. The issue includes an Ask the Experts article with insight from several experts, including Emmanuelle Palikuca, managing director and head of sustainability advisory at Alliance Advisors and featured speaker at SSA’s ESG Reporting Webinar on August 8, 2024. Palikuca shared her thoughts about preparing for the new sustainability reporting regulations.

“Even with the significant rise in regulation, there is a noticeable lack of specific guidance around how these requirements should be implemented,” she said. “Despite the uncertainty that still looms around these tangible details, companies can still take a few key steps over the course of 2024 to get started and ensure they are adequately prepared to meet these new expectations.”

Read her recommendations and insight on page 23 of the Optimizer digital edition.

On May 28, 2024, the settlement cycle will change from T+2 to T+1 as a result of the final rules issued by the SEC in February 2023.

What does this mean? Currently, the industry settles trades two trading days after the trade takes place – trade date plus two days (T+2). This means the shares and funds are exchanged on the second day after the trade. For example, a trade made on Monday will settle on Wednesday.

Beginning May 28, 2024, trades will settle on the first day after the trade date (T+1).

During SSA's Annual Conference, panelists provided members with suggestions for preparing for this T+1 switch. Members should take an inventory of processes and procedures affected by this change and make appropriate adjustments. Any references to specific settlement dates should be reviewed and updated, including registered plan prospectuses, communications or marketing materials, and published FAQs accessible to external and internal audiences. Firms should review any processes built around the settlement date, such as option issuances, share buybacks and other share movements. Finally, any voluntary corporate actions expiring after May 28, 2024, with a guaranteed delivery period will need the guarantee/protect period reduced by one trading day.

As the industry moved to T+2 in 2017, there was already consideration of a move to T+1, so most firms prepared for this eventuality. They leveraged the development process activities used to prepare for the move to T+2 for this move to T+1. While the transition to a T+1 settlement has been a significant industry shift, the industry is expected to be prepared.

More information regarding the switch to a T+1 settlement period is available on the SEC's website: Frequently Asked Questions Regarding the Transition to a T+1 Standard Settlement Cycle [https://www.sec.gov/exams/educationhelpguidesfaqs/t1-faq]

New “T+1” Settlement Cycle – What Investors Need to Know: Investor Bulletin [http://www.investor.gov/newT1settlement-cycle]

EXAMS Risk Alert: Shortening the Securities Transaction Settlement Cycle https://www.sec.gov/files/risk-alert-tplus1-032724.pdf