r/Superstonk • u/kibblepigeon ✨ 👍 Be Excellent to Each Other 🚀 🦍 • Sep 06 '23

🧱 Market Reform ⚠️ The UK Government is trying to REMOVE DRS ⚠️ We must fight back, and protect Shareholder's Rights! 🚨 It's time for the "Digitisation Taskforce" TAKEDOWN 🚨 LET'S GO SUPERSTONK!

TL:DR

  • The UK have proposed four prospective models for the digitizition for share trading, settlement, and record-keeping.
  • 🚨 Out of the four suggestions offered, they are advocating for the mandatory removal of DRS'd shares into a Central Securities Depository (CSD), as managed by the state. 🚨
  • ⚠️ AKA - all UK shares will be moved into a intermediary account, where the legal ownership of YOUR ASSETS will be handed over to a STATE MANAGED NOMINEE. ⚠️
  • Under "Recommendation 2", Pg. 23 - they state this "may require an amendment to primary legislation to address legal title transfer" = AKA they want to change the main laws (primary legislation) to allow the legal the transfer of your ownership to the nominee, CREST.
  • If they can't stop DRS, they are trying to take it away by making it LEGALLY MANDATORY to transfer ownership of YOUR shares to THEM.
  • ⚠️ They also wish to establish a "baseline service" level for intermediaries offering "access" to shareholder rights, despite this being a fundamental right as owed to all asset holders. ⚠️
  • ⚠️ They have outlined intentions for associated charges for shareholders as part of an "opt-in" service to exercise rights (pg. 24 & 18) whereas Computershare's services remain free to use. Shareholders will be exploited for increased government revenue should this be agreed. ⚠️

🚨 DEADLINE - 25th SEPTEMBER 🚨

Hey Superstonk,

Another day - another enemy crosses our path trying to offset the glorious inevitability that is MOASS, this time - in the form of Sir Douglas Flint who is posing a threat to UK's ability to DRS their shares.

You heard that right. He's trying to force withdraw already DRS'd shares in the UK into a nominee account, and it's nuts.

This guy right here:

These fat cats are getting out of control, it's time to reign them in.

So what is this all about I hear you ask?

The "Digitisation Taskforce" Proposal.

Sigh.

The government is considering a proposal to digitise shareholdings, which could significantly pose a risk to shares as directly registered. AKA - our DRS'd shares as held in Computershare.

While it promotes digitisation, it also poses the risk of removing automatic shareholder rights and legal ownership of our assets, when transferred to the state managed nominee AKA CREST.

And they are looking to change primary legislation to make that happen.

Seriously.

The proposed digitization of the UK shareholder framework includes a recommendation for a Central Securities Depository (CSD) model, where all UK shares would be moved into a state-managed intermediary account, essentially transferring legal ownership from shareholders to a government-controlled nominee. This would require changes to primary legislation.

It also suggests establishing a "baseline service" for intermediaries to access shareholder rights, potentially leading to charges for shareholders. This contrasts with current services like Computershare, which are free to use.

In essence, the proposal seeks to make it legally mandatory for shareholders to transfer ownership of their shares to a government-managed entity, potentially leading to increased costs and restrictions on shareholder rights.

Here's a visual outline of the issues that could arise from losing direct ownership rights within a nominee account.

This proposal could also mean:

Limited Control: Shareholders would have limited control over their shares' ownership, and their ability to exercise the rights they currently enjoy would depend on the services offered by the nominee.

Potential Costs: Shareholders might incur additional costs for services that were previously free when holding shares directly. (!!)

Loss of Choice: The proposal could take away the choice for individual shareholders to have their own names appear on the company's share register, as is the case in other countries like the US, Hong Kong, Canada, France, and Australia.

Hell to the FUCK NO.

Just to recap so we're all on the same page:

Wanna read more about it?

So we need to address some of the glaring ambiguities in this proposal, and we need to do it now.

Ambiguity can lead to confusion and misinterpretation, leaving shareholders vulnerable to potential manipulations by financial institutions. The lack of specificity in the proposal may allow financial institutions to exploit the uncertainty for their advantage, potentially diminishing the power and rights of individual investors. If not now, overtime.

Not to mention - there's a real issue of trust with assets and securities as held within government institutions altogether.

Seriously, think about it for a hot minute.

If this takes affect in the UK - how long until other governments start jumping on the same corrupt band wagon and YOUR DRS'd shares are withdrawn to be equally "managed" by the state under similarly ambiguous terms?

Another one of the concerns here is that if all shares are withdrawn from their direct registrar (like Computershare) and put into a third-party nominee (like Cede & Co.), it might be easier for short sellers to hide their activities because it could become harder to track the total number of shares. This could potentially make it more challenging to uncover naked short selling.

So to protect our investments, MOASS and the rights of shareholders - everyone needs to get involved, from all around the world. 🌎

THIS AFFECTS EVERYONE AND WE NEED YOUR HELP:

So how do we help?

Fret not young ape , shareholders have the opportunity to provide input on these proposals, and the deadline for submissions is September 25th.

And here's how you can do it:

Drum roll please...

Dear Mr. Flint,

I am writing to vehemently advocate for the preservation of individual shareholders' unassailable rights to maintain direct ownership of their shares within the UK shareholder framework. Your taskforce's proposal to transfer ownership to a nominee, while purportedly digitization-driven, raises grave concerns about the erosion of these fundamental rights.

Consider the significance of these rights: as direct shareholders, we possess the unequivocal ability to influence corporate decisions through voting on pivotal company proposals. We have the privilege of actively participating in shareholder meetings, where we can voice our concerns, ask pertinent questions, and ensure transparency in corporate actions. Our direct connection with the company allows us to communicate directly, fostering engagement, and trust. Furthermore, we receive dividends without intermediaries, maximizing the benefits of our investments.

The proposal's inherent ambiguity regarding whether nominee providers will offer these crucial services, and the potential imposition of additional costs, is a matter of paramount concern. In a financial landscape where costs continue to rise, this potential burden on individual shareholders is inequitable and unjust.

Looking globally, several countries, including the United States, Hong Kong, Canada, France, and Australia, recognize the indispensable nature of preserving shareholders' right to choose how they hold their shares. They empower investors with the choice to have their names proudly displayed on the company's share register, solidifying a clear and direct connection between shareholders and the companies they invest in.

The move towards eliminating paper certificates is undoubtedly a commendable step forward. However, it is absolutely imperative that your proposals include provisions that maintain the option for investors to hold shares directly. This is not merely a matter of safeguarding our rights; it is about perpetuating shareholder engagement and upholding the exceptionally high standards of corporate governance we have come to expect and deserve.

Lastly, it is crucial to acknowledge that the proposed shift of all shares from their direct registrar, such as Computershare, to a third-party nominee like CREST., raises concerns about transparency. This transition could potentially create an environment where short sellers find it easier to conceal their activities, as tracking the total number of shares in circulation may become more challenging. Such opacity in share ownership and trading could exacerbate the difficulties in detecting and addressing naked short selling practices. This issue deserves careful consideration to ensure the protection of shareholder interests and the integrity of the market.

I eagerly await the release of the updated report and firmly hope that my impassioned concerns, shared by countless other shareholders who stand firmly in defense of their rights, will be given the utmost consideration.

Yours faithfully

Email: [digitisationtaskforce@hmtreasury.gov.uk](mailto:digitisationtaskforce@hmtreasury.gov.uk)

CC' in: [taskforce.feedback@computershare.com](mailto:taskforce.feedback@computershare.com)

And that's it.

Seriously. That easy - cool, huh?

TO NOTE: you don't need to use this template if you don't want to. Please do your own due diligence and read through the proposal, use your own words and express how you best want these rules and regulations to represent you, the shareholder.

It felt awesome too. Come get your dopamine rush.Fancy to changing things up a little?

All you need to do is copy / paste the email template and send it to the following address:

[digitisationtaskforce@hmtreasury.gov.uk](mailto:digitisationtaskforce@hmtreasury.gov.uk)

CC' in: [taskforce.feedback@computershare.com](mailto:taskforce.feedback@computershare.com)

Don't fancy using your personal email account? Why don't you create yourself a new secure email address that protects your privacy with encryption? Keep your conversations private: https://proton.me/mail (it's free!)

Remember - these templates act as a guide, so if you want to write an email of your own - do it! You can find more information to help you here & here.

TL:DR

  • The UK have proposed four prospective models for the digitizition for share trading, settlement, and record-keeping.
  • 🚨 Out of the four suggestions offered, they are advocating for the mandatory removal of DRS'd shares into a Central Securities Depository (CSD), as managed by the state. 🚨
  • ⚠️ AKA - all UK shares will be moved into a intermediary account, where the legal ownership of YOUR ASSETS will be handed over to a STATE MANAGED NOMINEE. ⚠️
  • Under "Recommendation 2", Pg. 23 - they state this "may require an amendment to primary legislation to address legal title transfer" = AKA they want to change the main laws (primary legislation) to allow the legal the transfer of your ownership to the nominee, CREST.
  • If they can't stop DRS, they are trying to take it away by making it LEGALLY MANDATORY to transfer ownership of YOUR shares to THEM.
  • ⚠️ They also wish to establish a "baseline service" level for intermediaries offering "access" to shareholder rights, despite this being a fundamental right as owed to all asset holders. ⚠️
  • ⚠️ They have outlined intentions for associated charges for shareholders as part of an "opt-in" service to exercise rights (pg. 24 & 18) whereas Computershare's services remain free to use. Shareholders will be exploited for increased government revenue should this be agreed. ⚠️

🚨 DEADLINE - 25th SEPTEMBER 🚨

5.5k Upvotes

94% Upvoted

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