ICELAND: Icelandic Securities Depository to Distribute Dividend Payments

Wednesday April 1 2015

Icelandic Securities Depository (ISD) has announced that changes have been made to Regulation no. 397/2000 on electronic registration of rights of title to securities. One of the changes relates to dividends procedures.

After Article 4. of the regulation, a new Article 4. a. has been added:

If a company has decided to pay dividends through a Central Securities Depository it shall pay the total dividend amount through the Depository. The purpose of the amendment is to improve and coordinate the implementation of dividends procedures to standard market practices and prevent issuers from paying shareholders dividends directly instead of paying through a financial institution.

Click on the link above for further details.