“We have recently been advised by Equiniti as to the extent of the “contribution” they require in respect of system development costs to meet the Euroclear harmonisation requirements.
Equiniti state that they have apportioned the initial charge for 2010 based on market capitalisation, the level of CREST activity and the number of CREST accounts.
This is capped irrespective of any further development work required in the year – but we have been told that for us this represents an additional £30K. This figure equates to approximately 30% of our annual fee. Further charges are also anticipated in 2011 and possibly 2012 but these remain unquantifiable at present.
We understand that Capita and Computershare have already approached clients in respect of similar charges and would be interested to know in respect of all registrars:
a) the manner in which they have calculated charges;
b) the value of the charge as a percentage of the annual registrar’s fee; and
c) the stance companies are taking in respect of these charges.”