Services to Holders
CSD Services to Holders
Transfer of title
The title of financial instruments whose registers are maintained by the CSD is transferred in the following circumstances:
Transfers resulting from trades taking place on the market. Registration of transacted financial instruments will take place on Settlement Day (T+2).
Off-Market DealsTransfers resulting from trades taking place in accordance with the Financial Markets (Off-Market Deals) Regulations (Legal Notice 332 of 2007) and verified and confirmed through the Off-Market Trade Validation and Reporting System. All off-market transactions are considered to be Free of Payment transactions and may not be settled through MaltaClear, the security settlement system operated by the Exchange. Such transactions are to be settled in any other manner other than the securities settlement system/s operated by the Exchange.
The title of financial instruments whose registers are maintained by the CSD may also transferred in the following circumstances:
Donations of Securities
The transfer of financial instruments by title of donation need not be put through the market provided that the following conditions are fulfilled:
- (a) the relationship between the donor and donee both in the indirect and collateral line does not extend beyond the first degree;
- (b) the donation is finalised by a public deed or private writing;
- (c) an authenticated true copy of the said instrument in terms of law is forwarded to the Exchange for registration.
- (d) payment of the relevant fees as per Exchange Notice 1.
Donations shall be processed by the CSD based upon the information provided in the donation document as described above.
Transfers "Causa Mortis"
- Account Freeze
Upon notification of a death of a holder of financial instruments whose register is held by the CSD, the holder’s MSE Account or other accounts held jointly or co-owned by the deceased and/or the spouse where applicable (as a holding between spouses or between them and other third parties), shall be immediately blocked (“frozen”) and be unavailable for trading pending further clear instructions on the “causa mortis” transfer.
- Release of Estates
Upon notice made on the appropriate forms and in accordance with procedures agreed between the CSD and the Issuer regarding the holdings of the deceased, the CSD will effect the relevant transfer/s from the deceased holder’s account/s to those of the beneficiaries on the appropriate registers. Where the beneficiaries are not registered holders of financial instruments held in the CSD, the CSD will open the appropriate account/s and register the beneficiaries accordingly. The CSD may provide the Issuer with the service of processing and vetting of documentation leading to the final release and transfer of securities.
Should a holder of financial instruments and his/her spouse wish to merge holdings which have been registered individually in separate accounts, the transfer into a joint account can be effected upon the written and signed instructions of both parties and upon the production of the relevant authenticated documentation.
- Direct Holding/Indirect Holding
Should a holder of financial instruments wish to transfers his holdings from a direct holding account (i.e held in his name) into an indirect holding account (client account/nominee account) such transfer may be effected upon the written and signed instructions of the holder concerned and upon confirmation from the operator of the nominee account/client account that the underlying beneficial owner of such account is the same as the holder making the request for such transfer.
- Indirect Holding/Indirect Holding
Should a holder of financial instruments wish to transfer his holdings from an indirect holding account into another indirect holding account (client account/ nominee account, custodial account) such transfer may be effected upon the written instructions of the holder concerned and upon confirmation from the operator/s of such accounts that the underlying beneficial owner/s of such account is the same as the holder making the request for such transfer.
Amendments to static details
Holder details amendments
Amendments to registered holders’ details such as name, surname, address, tax option, direct credit, etc. shall be effected upon the receipt of the appropriate written instructions of the holder which must be accompanied by the relevant applicable documentation such as identity card, civil status certificate or registered company or other partnership documents.
Amendments in static details will be reflected across all the individual’s holdings across all registers in which such individual has holdings of financial instruments.
As part of its obligations to maintain registers of financial instruments on behalf of Issuers, the CSD maintains a record of financial instruments pledges against the respective financial instruments holders’ accounts. The details of a pledge for either registration and/or release, as the case may be, is notified directly by the pledge and/or the pledgor to the CSD in the form of executed pledge agreements and the prescribed form. The CSD records the details of the pledge against the pledgor’s account and acknowledges the action taken regarding such pledge to both parties concerned.
As part of its services to maintain registers of financial instruments on behalf of the Issuer, the CSD may keep a record of Garnishee Orders that may be notified to Issuers, against securities holders’ dividend/interest payments to be issued on the respective securities.
- Recording the payment of any dividend or interest payment due to a holder of financial instruments to be issued either to a third party recipient or usufructuary.
- Recording registered holders' bank account details which are credited with interest/dividend payments.
Notification to Registered Holders
Securities holders are notified by the CSD of any movement in their holdings of financial instruments maintained by the CSD - sales or purchases of fi's credited into or debited from the respective holders' accounts as well as any other market or off-market transfers.
A Statement of Holdings showing details of an investor's holdings in all financial instruments maintained at the CSD will be sent annually to all investors holding a CSD account as at the end of each year. Additional statements may, however, be requested from the CSD throughout the year.