BEO issuers can meet ownership transfer and registrar requirements and enjoy all the benefits of CDS Clearing and Depository Services Inc.’s (CDS Clearing) reputation for security and reliability when they enter into a Registrar and Paying Agent agreement with CDS Solutions.
CDS Solutions is a subsidiary of CDS Clearing, Canada’s national securities depository. CDS Clearing is a valued partner to securities market participants, providing reliable, cost-effective depository, clearing, regulatory and information services.
The Registrar and Paying Agent service is ideal for new and existing BEO issuers who are looking for a more centralized approach and who:
- have not yet appointed an agent to act as a registrar and paying agent for their issued and outstanding BEO securities
- have issues that are held in CDS Clearing’s electronic depository system
- do not require the full services offered by a transfer agent.
As your registrar and paying agent, CDS Solutions can manage the registry for issues that are:
- fully registered in CDS's nominee name (CDS & CO.)
What is included in the service?
In addition to the many benefits provided by the Registrar and Paying Agent service, issuers will also receive valuable reporting information such as:
- Registrar reports (holders of record reports indicating CDS Clearing participants’ holding positions at CDS for a particular security).
- On-request reports indicating records of exchanges, transfers and registrations of interests in the securities
- Audit confirmations (listing of issuers’ total outstanding securities held by CDS Clearing)
- Report on controls placed in operation and tests of operating effectiveness for CDS Clearing and Depository Services Inc. (5970 report). This report is only distributed to CDS Clearing participants and issuers who have entered into a BEO Registrar and Paying Agent Agreement.
How do I appoint CDS Solutions as registrar and paying agent?
In order to engage CDS Solutions as registrar and paying agent, issuers should:
- Deposit their issues with CDS Clearing as book-entry-only
- Complete a BEO Securities Services Agreement
- Complete a BEO Registrar and Paying Agent Agreement.
What is a BEO Securities Services Agreement?
BEO issues are held by CDS Clearing in the form of a single global certificate (certificated security) or as an electronic certificate (uncertificated security). Issuers wishing to register for the Registrar and Paying Agent service will need to complete the BEO Securities Services Agreement to:
- bring a BEO issue to market
- make a BEO issue eligible for deposit at CDS Clearing
- maintain the eligibility of securities for BEO services.
Issuers will also need to complete the BEO Acknowledgment to advise CDS which securities are eligible for CDS Clearing’s BEO services. Securities that are made eligible using the acknowledgement are deposited as electronic holdings at CDS Clearing.
What is a BEO Registrar and Paying Agent Agreement?
On registration, issuers will be asked to sign a BEO Registrar and Paying Agent Agreement allowing CDS Solutions to act as the registrar and paying agent for their BEO issues. This requires one hundred per cent of each issue be registered in CDS’s nominee name.