In response to the recent changes in the UK Companies Act with respect to enhanced rights for beneficial shareholders in UK companies, Broadridge's (NYSE: BR) Investor Communication Solutions division is launching a full outsourcing service for brokers that will enable their customers to benefit from those enhanced rights.
Under the service, Broadridge is offering a new, fully managed nominations service that gives brokers' customers the ability to receive shareholder materials directly from the companies in which they hold shares with a simple, efficient one-time sign-up process. Customers can decide at the time of sign-up if they want to receive materials electronically or via paper, and once a customer account is signed-up for the service no further action is required of the customer or the broker, regardless of trading and portfolio changes.
In addition to gaining access to shareholder materials, the service also enables brokers to offer their customers electronic proxy voting for all their portfolio companies. When a company announces a shareholder meeting, nominee-held shareholder customers that have signed up for the voting service will be emailed a secure link to a customer-specific online voting ballot, if they hold the company in their portfolio. Broadridge then tabulates all the votes from the brokers' customers and executes them in the market under the nominee name.
"Broadridge strives to be a leader in product innovation and in meeting our customers' needs. We have worked hard with the aim of ensuring that our nominations service will be fully operational in time for the 2008 proxy season. As a full member of CREST, Broadridge already executes a high percentage of all votes cast through CREST today, giving assurance to brokers and their customers that the service is highly secure and confidential," said Bruce A. Babcock, President, Investor Communication Solutions, International, Broadridge Financial Solutions, Inc.