Registry services need to keep innovating
The current shareholder registry service duopoly is holding for providers Computershare and Link, but the quality of product and innovation are becoming far more important determinants in outsourcing registry services according to the JP Morgan/Governance Institute of Australia’s Australian Registry Service Provider Survey 2015 released today.
In its 7th year, the survey of S&P/ASX200 companies shows that while ‘service provider
expertise’ remains the primary reason to outsource registry operations, almost half (45 per cent) of listed companies now view ‘quality of product’ (for example, online differentiation) as an important determinant, rising from a quarter (25 per cent) in 2009.
However, against this backdrop, there has actually been limited improvement in quality of product or innovation by providers. “Innovation is a key consideration when selecting share registry service provider and is becoming more prominent when reviewing their performance, particularly as more shareholders interact with the registrars online,” explained Tim Sheehy, chief executive, Governance Institute of Australia.
“More investors now make self-service enquiries, update their holder details through registry websites, cast direct votes and even accept offers online so the industry needs to concentrate on this and deliver their services in an ever-improving manner.”
With corporate activity strengthening to $29bn IPO capital raised in 2014 from $24bn in 2013, it is imperative that the markets continues to develop.
On this front, the majority of respondents indicated either an improved cost structure or no change to cost structure, indicating that providers have introduced efficiencies they have passed on to customers.
Full results of the survey can be found at /shareregistrysurvey
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For further information contact Louise Nealon at CallidusPR on 02 9283 4114 or Tim Sheehy at Governance Institute of Australia on 0419 490 594.
About the Survey
The 7th annual J.P. Morgan and Governance Institute of Australia Australian Registry Service Provider Survey provides an overview of the current state of the Australian registry services industry, and the future direction and competitive dynamics within the industry. The report collates data from surveys of companies in the S&P/ASX200 conducted from December 2014 to January 2015.
About Governance Institute of Australia
Governance Institute of Australia is the only independent professional association with a sole focus on the practice of governance. We provide the best education and support for practising chartered secretaries, governance advisers and risk managers to drive responsible performance in their organisations.