CHESS
REGISTRATION DETAILS
CHESS
Subregister | Issuer Sponsored
Subregister | Broker Participants
| Non-broker Participants
Registrations through CHESS
can consist of transfers or conversions to holdings on the CHESS subregister
or to the Issuer Sponsored subregister.
1.
CHESS Subregister
The SCH Business Rules state
that to establish a holder record the controlling participant must transmit
a valid message to SCH that specifies, in addition to other items, the
current registration details for a holder in accordance with the standards
specified by SCH from time to time.
No complete validation of
these details is carried out by CHESS therefore, it is necessary for
all new CHESS subregister holding name and address details to be carefully
checked by the registry to ensure compliance with the CHESS and SRA
standards.
If the registration details
of a CHESS subregister holding do not comply with the specified standards
it may be appropriate for the registry to complete a "REQUEST FOR
CLARIFICATION OF REGISTRATION DETAILS" form, or alternatively contact
directly the relevant controlling participant and instruct them to modify
the registration details.
Refer to Form
3 "REQUEST FOR CLARIFICATION OF REGISTRATION DETAILS"
and to SCH Business Rules requiring reply from participants within 48
hours.
If changes are agreed, the
controlling participant will subsequently transmit details of the change
to all companies for which that holder has a current balance.
Registries should follow up all changes requested in this manner to
ensure that the holding details are correctly amended.
2.
Issuer Sponsored Subregisters
No complete validation of
these details is carried out by CHESS.
Therefore, it is necessary for all name and address details of new holdings
created by participants to be carefully checked by the registry to ensure
compliance with the CHESS and SRA standards.
Registration of transactions
can by processed by the broker and non-broker participants but with
different procedures necessary by registries for each type of controlling
participant.
(a)
Broker Participants
Transfers or conversions
of holdings to an issuer sponsored subregister processed by broker participants
are transmitted electronically through CHESS to the registry computer
system where they are applied to an existing holding if the name and
address details are identical and if a valid SRN is quoted.
Some registry computer systems
provide for items which cannot be automatically applied to be stored
or suspended in a computer "pending" file. This allows the
registry to progressively access this file during the day and process
these "pending" items before the end of each day.
Items are usually processed by vetting the name and address registration
details transmitted through CHESS with the existing holder details.
If an existing holder is located with only minor differences, then the
entry can be accepted into this holding via a screen instruction. Minor
cosmetic changes to registration details advised through CHESS can be
effected by the registry when establishing a new holding. When processing
these "pending" items each registry should ensure that the
name and address registration details comply with the CHESS and SRA
standards.
Transactions may be received
through CHESS until 7.00pm Sydney time or as otherwise defined in the
SCH Business Rules and registries should endeavour to process all transactions
received on the same day.
Should a registry fail to
process any "pending" items before the end of the day, some
registry computer systems will automatically create new holdings for
those outstanding. The registry could then be faced with possible duplicate
holdings being created or unacceptable registration details being registered.
In the case of a conversion
from an issuer sponsored subregister holding to a CHESS subregister
holding and a registry fails to process any "pending" items
before the end of the day, some registry computer systems will automatically
reject back to the originating participant those "pending"
conversion requests. e.g. When the registration details do not identically
match.
If the registration details
of Broker Participant CHESS to Issuer Sponsored subregister transactions
do not comply with CHESS and SRA standards the following action should
be taken by the registry.
· Despatch a facsimile
advice to the CHESS participant notifying them of the unacceptable details
and advising the correct details if these can be ascertained. Details
of the registry requirements to enable correction of the registration
details should also be advised.
· Hold the resultant
issuer operated statement or certificate and facsimile to ensure that
the required Registration Correction Indemnity - Brokers form is promptly
received, which under the SCH Business Rules is within 2 business days.
· Upon receipt of
the required Registration Correction Indemnity - Brokers form from the
participant, the registry should amend the details on the holding as
requested, provided the new details are acceptable.
· Care should be exercised
at the time of a "record date" to ensure correction is effected
before any corporate actions items are despatched.
Refer to : Form
4 "REGISTRATION CORRECTION INDEMNITY - BROKERS"
(b) Non-Broker Participants
All supporting documentation
of Issuer Sponsored or Certificated to CHESS transfers which have been
previously electronically processed through CHESS by Non-Broker Participants
must always be forwarded to the registry for verification and validation
of the securityholder/s authorisation.
Upon receipt of these documents
(which must be within three business days of the originating transaction
message date) the registry should check the transfer details and any
certificates (if applicable) if the transfer is from an issuer sponsored
or certificated holding to ensure that the transaction is in order.
Refer to : Form
15 "TRANSFER REQUEST FORM"
If the documents are in order
the registry can access the details input by the non-broker participant,
processed through CHESS by keying the CHESS transaction number marked
on the relevant documentation.
If the information input
is correct and the documents are in order, the acceptance of the transaction
is processed via a screen instruction and the details are listed on
registry reports for subsequent audit.
Rejected incorrect items
should be immediately returned by the registry to the lodging party.
The non-broker participant
will receive an electronic rejection message through CHESS for any rejected
incorrect items.
Any rejection of these non-broker
participant issuer sponsored subregister transfers will require a completely
new CHESS message to be processed by the participant, if they are to
be resubmitted, and each will then have a new CHESS transaction number.
Any message not accepted
or rejected within three business days from the day of input will automatically
be rejected by the registry computer system without any action from
the registry.
Therefore, careful control
should be exercised by registries to avoid this situation.
Examples of acceptable name and address registration details are outlined
in the section:
"Acceptable Registration Details"
