Equiniti Ezine May14

EZINE >MAY 2014 INSIDE THIS ISSUE: PERSPECTIVE ● Why Equiniti is the number one share registrar ● Shareholder strategy coming through loud and clear 10 MINUTE GUIDE ● Issues surrounding the Scottish referendum CLIENT FOCUS ● JUST EAT takes a hungry world by storm JARGON BUSTER ● De-coding technical jargon and buzz-words UPDATE ● It’s lights, camera, action for the Operations team ● ICSA Company Secretary’s Handbook ● Developments to ESP Portal extends service ESSENTIALS ● How to write an award-winning submission

PERSPECTIVE

EQUINITI EZINE > MAY 2014

With a host of accolades under our belt, we find out why Equiniti is number one for service in the industry

CUSTOMER SERVICE AND CONTINUOUS IMPROVEMENT Equiniti is the UK’s No.1 Share Registrar based on Overall Satisfaction results in the Capital Analytics UK Registrars Benchmarking Survey 2013. This isn’t down to chance or even luck but it’s down to providing customers with an exceptional level of service, and placing customers at the heart of the business. “Both our clients and the marketplace recognise the strength of our service delivery, and equally, we are proud of what we do and that comes through in the level of service that we provide,” says Stuart Ellen, Managing Director of Equiniti Registration Services.

The Capital Analytics Survey result is just one accolade that Equiniti has picked up in regards to service. “We’ve received a number of awards that acknowledge our service levels, such as the Best Shareholder Services Award and Best Registrar Award, to name but a few,” says Stuart. “This shows that the

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PERSPECTIVE industry as a whole recognises the good work we are doing.”

The key to maintaining such high levels of service lies in Equiniti’s attitude to continuous improvement. “We refuse to be complacent,” Stuart says. “There are always ways to improve what we do and what we deliver to our customers. We constantly look for ways to innovate and make things better.”

The reputation about Equiniti’s service levels is clearly spreading, as recently it has banked a number of wins from competitors, which Mark Bullen, Head of Registrations Development, puts down to Equiniti’s overall service offering. “It is a significant undertaking to move registrar and a decision that an organisation isn’t going to take lightly. Our recent wins are down to our reputation in the marketplace.”

“The added value that customers get with Equiniti is what makes customers come to us,” Stuart says. “We have the expertise and the experience to cater to our clients’ needs. Fast growth companies or companies looking to enter the FTSE100 certainly don’t necessarily get the breadth or relationship and industry support from one of our competitors that they feel they get from us.”

Continuous improvement plays a huge part in Equiniti’s customer offering. Always striving to improve, this is reflected in the lack of

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complaints that Equiniti receives each year. “The number of complaints we get per transaction is miniscule and this is down to our commitment to customer experience,” says Fiona De Antonis, Head of Operational Excellence at Equiniti. “We are constantly looking to enhance our service offering. One of the ways we do this is through staff development. Last year we invested 21,000 hours in training, which helps our staff to provide the best possible service.”

Expertise and excellence are two things that Equiniti is renowned for, but Mark also attributes some of our success to enthusiasm. “It’s not always just what you do but how you do it that plays a big part,” Mark says. “We’ve had some exceptional feedback from both current and prospective clients about how enthusiastic our people are. There’s always a real passion that underpins everything that we do and that definitely has a direct impact on quality output.”

“It’s clear in my mind that to be the number one registrar as voted by customers is down to us adding more value to clients and their experiences,” says Stuart. “That is a key factor in how we differentiate ourselves from our competitors and certainly everyone can see that complacency is not something to fear with Equiniti, but in actual fact it is the absolute opposite.

Equiniti will always do the best for its customers and will always be looking to push things forward.”

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IF YOU WOULD LIKE MORE INFORMATION Please contact your relationship manager.

PERSPECTIVE

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Mark Bullen, Equiniti’s Director of Share Registration Services on evolving communications to get shareholders to take positive action

SHAREHOLDER STRATEGY We have invested a lot of effort into implementing shareholder strategies with many of our clients’ shareholders, which encourage shareholders to embrace ‘good shareholder behaviour’ like e-communication and BACS mandating. But how do you address the challenges that quickly arise once the most willing, early adopters have given their authority?

One such challenge is the public’s changing view of email as their communication channel of choice. Where we were once bombarded with paper junk mail, we now experience a barrage of daily junk emails. But, whereas a letter could simply be torn up and put in the bin, junk email can pose a real threat to an individual’s security, especially those less comfortable with technology.

Understandably, our customers are concerned about this, which we predict will have an increasingly negative impact on

take-up response rates. To help us move forward, we have undertaken a number of surveys with clients and their shareholders.

Feedback has told us that we need to give our shareholders choice. This makes perfect sense when you consider the following. When shareholders receive separate requests to consider e-communication and BACS sign-up, they are more likely to choose to accept at least one of these options. More often than not, combined requests don’t fare well, and we tend to get a very low response.

We sought the help of a professional communications consultancy and learnt a great deal in terms of the value of intelligent communications can have, when they are clear, focused and use targeted messaging.

The art is in the skill of the design and content management, readers have little time, and in the world where scam threats are increasing, they are on alert perhaps to see the

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EQUINITI EZINE > MAY 2014

negative sooner than the positive.

Of course cost control is important but we don’t need to spend more. Instead, by deploying our analytical capabilities and intelligent segmentation with our improved communication skills, a separated request to shareholders for action can be clearly defined within the same mailing. This way we can avoid the ‘all or nothing’ response. And by doing this,

I am confident we will maintain the momentum we have jointly created in recent years at a time when stimulating shareholders to respond with positive action is getting harder.

Our clients’ take-up of BACS/SCRIP/DRIP/Ecomm and Nominee is at such a level, those who aren’t represented by Equiniti are envious.

What this tells us is that we are experts in implementing shareholder management and

KEEP ME POSTED

The Keep Me Posted campaign is calling for the protection of consumers’ rights to choose how they receive communications.

Keep Me Posted Chair, Judith Donovan, says the campaign was set up because it was felt that the dash to digital, both by private companies and by the government, was in danger of leaving large sections of society behind.

She says: “I saw how important it was for consumers, particularly disadvantaged or disabled consumers, or consumers living in remote areas, to have the reassurance of the postal service and access to communications through the post. I also understand the power paper and post have to protect and build customer relationships. It is in the best interests of a company to give their customers an informed choice.”

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communications strategies and in recent years, we have seen a lot of evidence to back this up.

We are not complacent. We’re investing further in our Management Information and communication capabilities, which is of huge benefit to our clients. With this in mind, we will continue to add increasing value to our customers and shareholders by: ■■ Improved insight and segmentation ■■ Increasing the quality and range of our ■■ Gaining a better understanding of

skills

shareholders’ requirements, recognising their need for choice, education and guidance, and improving their experience so they have trust in every interaction ■■ Positively addressing resistance through better communications.

By continuing to drive for further shareholder engagement now, we are positive that we will protect your future shareholder management cost budgets.

IF YOU WOULD LIKE MORE INFORMATION Please contact mark. bullen@equiniti.com or your relationship manager.

10

MINUTE GUIDE

EQUINITI EZINE > MAY 2014

In less than five months, the people of Scotland will be asked: should Scotland be an independent country? With many clients, shareholders and offices based in Scotland, we guide you through some of the key issues in the referendum debate that may impact the business world

SCOTTISH INDEPENDENCE The economy

The SNP argues that if Scotland becomes an independent country, it would be one of the top 10 richest countries in the OECD. North Sea oil revenues are an important part of the SNP’s economic plans and they predict that oil production could generate £57bn in tax revenues by 2018. Those opposing independence have argued that North Sea oil reserves are depleting and cannot be relied upon. “It seems to me that the Scottish government has based a lot of their forecasts on the most optimistic assumptions they can come up with,” explains Brad MacKay, Professor in Strategic Management at the University of Edinburgh.

“Scotland is a relatively wealthy country, but the fundamental question is – will Scotland be better off outside of the UK? And we just don’t know the answer to that. What we do know is that the debt to GDP ratio would probably be about 81%. For a young country, Scotland would be fairly indebted.”

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The business environment

Scotland’s Future, the Scottish Government’s White Paper, says that an independent Scotland could create a ‘more supportive, competitive and dynamic business environment’ as the Scottish Government will have full control over taxation, business regulation and investment. The SNP is also proposing a reduction in corporation tax of up to 3%. “I think there are opportunities to tailor policies to the sectors that are important in the Scottish economy and business would have closer access to government by virtue of the fact that it would be a smaller country,” says Brad. “There would be a natural rebalancing of the economy. If you are a large PLC that is headquartered in Scotland and 90% of your trade is in the rest of the UK, then independence is an issue as these companies would, in effect, find themselves operating in a separate jurisdiction than 90% of their trade. If you are a large PLC trading primarily globally, then independence

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10 MINUTE GUIDE probably doesn’t have as much as a concern for you. If you are a subsidiary of a global company that’s operating in Scotland, then you are probably trading all over the world anyway and Scotland would just be one more jurisdiction, provided that the investment climate would continue to be favourable. If you are a small business, and you are looking for specific, tailored government support, like subsidies, chances are you are pretty optimistic about the opportunities.”

The currency union

The SNP is proposing a currency union with the rest of the UK and the Bank of England would be Scotland’s central bank. Critics argue that this would mean the Bank would influence Scotland’s borrowing and spending and the UK’s main parties have already ruled out the union. The SNP argues that this decision is likely to be reversed with a ‘yes’ vote as it would be damaging to the rest of the UK if Scotland could not keep the pound. “The advantage of a currency union is that you cut down on the transaction costs associated with having to trade in different jurisdictions,” says Brad.

“But the reality is, which I think has come to dominate the thinking in London, it is very difficult to make a currency union work when there is no political union. You would have a

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very small Scottish economy attached to a very large UK economy. If the fiscal position in Scotland deteriorated for any reason, the potential is that the rest of the UK would have to bail out a sovereign country. I think most economists are coming to the view that a currency union would be unsustainable in the long term.” Critics believe that Scotland would be forced to adopt the euro as a prerequisite for gaining EU membership. There is still much uncertainty on whether Scotland would be a continuing member of the EU or whether it would need to re-apply. It may not receive some of the exemptions the UK currently receives in negotiations, including exemption from the euro.

“As I understand it, under EU law, you can’t have cross border pensions that are in deficit and the reality is that a lot of them are in deficit so they would have to be made solvent,” says Brad. “So where does the money come from?

If it doesn’t come from the government, then it probably comes from reduced benefits and increased contributions by both employers and savers. Again, it is a huge uncertainty.

Scotland, like the rest of the UK, also has an ageing population and that could be shaped by different immigration policies, but to what extent is difficult to say.”

Pensions

In the White Paper, the SNP is proposing a safe, ‘triple-locked’ pension system where the basic state pension will be increased either by average earnings, inflation or 2.5% - whichever of these is the highest. They have also committed to protecting private pensions and will continue to roll out autoenrolment. Gordon Brown, however, recently said that pensioners will be ‘better protected’ if Scotland remains part of the UK. The SNP believes it will be possible to agree transitional arrangements for existing UK-wide schemes.

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IF YOU WOULD LIKE MORE INFORMATION For more information on this topic please visit www.whatscotlandthinks.org

CLIENT FOCUS

EQUINITI EZINE > MAY 2014

Handling the IPO of one of the fastest growing companies on the market place, JUST EAT, was an exciting time for Equiniti

TAKING A HUNGRY WORLD BY STORM Technology has changed the way we live our lives. We now do almost everything online, from buying our food shopping to booking our holidays and everything in between. One company that has profited hugely from this seismic shift in consumer habits is JUST EAT. Founded in the early 2000s in Denmark, JUST EAT now operates in 13 countries across the globe. Headquartered in London, JUST EAT Group Business Projects Director, Frank McGlade, puts the company’s success down to trends in the marketplace and the quality of the product the company offers. “We’re fortunate in that we are benefiting from the shift in consumer behaviour. As we move our entire lives online, people are continuing to look at new ways to do things via the internet and so ordering takeaway food is just one of those things.

“We also offer a great product that gives customers an easier way to order takeaway food. Our mobile apps mean that you can use

your mobile device to place your order and once you have used our service a couple of times, we store your meal preferences, so ordering becomes even easier,” explains Frank.

JUST EAT’s success saw it enter the High Growth Segment (the first company to do so) of the London Stock Exchange (LSE) in April this year. “The appetite for shares in JUST EAT was incredible,” explains Danny Curran, Business Development Manager at Equiniti.

“As its shares soared on the first day of trading, JUST EAT’s venture capital and private

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equity backers saw there was potential for even further investment and as a result, JUST EAT has now moved into the premium sector of the LSE.” When it came down to choosing an organisation to guide Just Eat through the IPO process, Equiniti stood out for a number of reasons as Frank explains: “We looked at the three main players in the UK in this area, but Equiniti clearly had the best all round offering,” says Frank. “We were impressed by the services that Equiniti could offer beyond handling our IPO. We quickly realised they offered so much more than just a basic share register service, which really suited our needs,” says Frank.

“The IPO process went very smoothly, and for Equiniti, it is exciting to work with a company like JUST EAT, that is not only growing at a remarkable rate, but that offers an exciting product that is having a real impact on the marketplace,” says Danny.

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EQUINITI EZINE > MAY 2014

As JUST EAT continues to go from strength to strength, what are its plans to build on this in the future? “We have very strong growth aspirations,” says Frank. “We currently estimate that just 20% of takeaway orders are placed online in the UK and if you look at similar businesses that have 60-70% online sales, you can see there is still massive potential.

“We’re also doing some research and development work around collection services.

You place your order when you are 20 minutes away and then collect it on your way home.

This is an exciting market to be in and we are incredibly positive about what the future holds,” says Frank.

IF YOU WOULD LIKE MORE INFORMATION Please contact your relationship manager.

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JARGON BUSTER

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The business world is full of technical jargon and acronyms. In each issue we will be de-coding some of the most common buzz-words.

A PLAIN ENGLISH CRUSADE AIFMD The Alternative Investment Fund Managers Directive If you are a non-UCITS fund, you may need to comply with The Alternative Investment Fund Managers Directive by 22 July 2014. AIFMD is an EU directive that looks to place hedge funds, private equity and other alternative investment firms into a regulated framework, in order to monitor and regulate their activity.

IF YOU WOULD LIKE MORE INFORMATION For more information from the London Stock Exchange Group, please click here.

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EQUINITI EZINE > MAY 2014

UPDATE

ALL OF THE LATEST INDUSTRY NEWS FROM THE EQUINITI GROUP

LIGHTS, CAMERA, ACTION Equiniti’s Operations team has commissioned a short film following a succession of positive feedback from clients who had visited various Operations sites and teams. The film will provide an overview of all the key Operational areas – Employee Benefits & Shareholder Processing, Document Services, IMC, Client Task Delivery (Corporate Actions, Dividends, & Reconciliations), Contact Centre and Operational Excellence. Presented by the Heads of Department, the film showcases the services Equiniti Operations provide and the staff who deliver them. It also serves a further purpose; allowing clients who can’t attend site visits to get an accurate impression of what Equiniti offers and the passion, professionalism and expertise of the staff who always put Equiniti customers first.

A RAVE REVIEW James Robert Anthony Gordon, Assistant to the Company Secretary at Cobham plc, spoke positively about a recent tour

“Thank you for the site tour yesterday. It was an immensely useful and notably impressive experience. I felt that the day was structured perfectly, with adequate time permitted for each demonstration. I was impressed by the level of efficiency and the smooth flow of information across

Look out for further information on the film coming soon.

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the different departments. The day, and the information conveyed, affirmed why Equiniti is regarded as the number one share registrar. I felt that each of the demonstrations were handled well, and provided greater insight into the inner workings of the company. I certainly recommend a site visit for other customers.”

IF YOU WOULD LIKE MORE INFORMATION Please contact your relationship manager.

UPDATE

EQUINITI EZINE > MAY 2014

Developments to ESP Portal extends the service to international employees

GREATER ACCESS NO MATTER WHERE YOU ARE Meeting clients’ needs is the backbone of Equiniti’s business. When clients asked for a comprehensive online solution that would allow employees to view their holdings, access information and carry out transactions from a single platform, Equiniti responded with the ESP Portal.

As clients’ requirements continue to evolve, so does the ESP Portal, and this month an international version will launch. With a phased roll-out starting in May, Equiniti clients with international employees can benefit from the same experience those in the UK currently enjoy.

“The international SAYE service developed for ESP Portal allows clients to offer the same service to their overseas employees as they do to those based in the UK,” says Phil Ainsley, Managing Director, Employee Services.

“Continuous improvement is fundamental to how we run our business at Equiniti and the ongoing evolution of ESP Portal is no different.

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UPDATE We’re always trying to improve our online services, so this is a natural extension of Portal development and it continues to make our customer proposition better.”

Sarah Moore, Project Manager at Equiniti explains that adding international enquiry and transactional pages brings together a variety of existing online services within one ESP Portal environment. “Client feedback tells us that they have wanted the service available for international employees so that all employees have access to a one-stop view of all their equity holdings throughout the year, regardless of their location”.

The service allows international employees to transact online as well as to have access to real-time balance enquiries for their international SAYE plans (whether option or share based plans or phantom plans). As per the UK service, they will also have a link to any other discretionary plans or ordinary share holdings they have.

Development will mean that logging into ESP Portal becomes highly intuitive – it detects what country you are logging in from and employees will find international pages in a language nominated by the client for that location.

“If you are based in Spain, the system will pick up from login criteria that you are logging

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in from Spain and that you would like to view the ESP portal pages in Spanish,” says Sarah.

“However if you happen to be an ex-pat working in Spain you have the ability to change it back to English or another language. It is a very flexible and user-friendly system.”

Equiniti have been working in partnership with APT Transtelex Limited (APT) to translate the new pages. With over 40,000 words for each language to translate, the relationship and processes set up with APT have been key to the success of the project. To ensure that translations are accurate, two native speaking linguists are used on each piece. One to translate and then a second one to proof read and edit. As with the ESP Portal, international plan pages can be branded to complement an organisation’s existing brand structure. “We can make international pages fit a company’s existing brand,” says Sarah. “Not only can we incorporate colours, logos and anything else the client wants to brand it as they see fit, they can also choose which languages their site is translated into.

“It’s a great product and we are really excited that the first phase of development will launch this month, with the roll-out continuing through the year. It’s something our clients have asked for and being able to meet their needs is incredibly exciting.”

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IF YOU WOULD LIKE MORE INFORMATION For further information please contact your relationship manager.

UPDATE

EQUINITI EZINE > MAY 2014

The new 10th edition of the ICSA Company Secretary’s Handbook is completely updated for 2014

ESSENTIAL READING ICSA Publishing is delighted to announce the publication of the 10th edition of the ICSA Company Secretary’s Handbook.

This is a practical guide, written by Doug Armour, MD of Equiniti David Venus, and covers the legislation and regulation governing companies and company secretarial procedures. Coverage is comprehensive and details the procedures associated with boards of directors, company meetings, reporting, shares and share registration. The book also contains chapters on listed company compliance, corporate governance, company investigations, takeovers and mergers and insolvency. This new edition has been thoroughly revised and updated for 2014.

And for the first time the 10th edition will include access to an online resource of useful documents, precedents and forms.The new edition of The ICSA Company Secretary’s Handbook costs £79.95. To receive a 10% discount, insert the code EDV10.Order online at https://www.icsa. org.uk/products-and-services/bookshop/books/ icsa-co-sec-handbook-10th

The 10th edition of the ICSA Company Secretary’s Handbook covers legislation and regulation governing companies and company secretarial procedures

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ESSENTIALS

EQUINITI EZINE > MAY 2014

Our in-house awards writer and Marketing Manager Kathryn McCartney shares her top tips for turning your submission into a winner.

HOW TO WRITE AN INDUSTRY AWARD-WINNING SUBMISSION There are a lot of great reasons to put your business forward for an award. It’s good practice to go through the process of preparing and editing an entry, as it enables you to focus on the top level strategy and essentially what your product or scheme has achieved. If you are shortlisted, or even lucky enough to win, the PR opportunities long outweigh the shortterm euphoria when you win. So start writing, and you never know, you might even collect a trophy!

1

Read the question properly – what do the judges really need to know about your company and your plan? Are you entering the correct award category? This will allow you to give more direct and concise answers.

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2

Don’t cut and paste existing documents and think it will fit the criteria. Start from scratch, be original and it will pay off.

3

Highlight what makes you different from your competitors. Imagine you are a judge and are faced with a number of entries to read – you need to make your entry stand out. For example, is there a complex or challenging situation you have faced and overcome? Or do you have innovative technology or a new idea you have introduced that you could talk about to wow them?

4

Clearly state the plan objectives and prove how you have met them. This is a simple and effective technique for getting straight to the point without getting lost in the detail.

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ESSENTIALS

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5

Stick to the word count – you don’t want to be taking out text last minute as this can lead to mistakes. Some awards criteria will penalise you for going over the word count and online entries often simply won’t allow it. An easy way to get your point across is to use bullet points. They are both simple and effective.

6

Start early so you have time to re-draft.

I like to work backwards from the final submission date and stick to key deadlines.

During the process, I will liaise with the relationship manager and/or the service delivery manager until we get to final client sign off.

7

Use a template. Do your homework and look at the award criteria to find out what judges want to know. It’s helpful to either come up with a template or use one that Equiniti has created. This will help you to pull all of the information into one place.

8

Use quantitative and qualitative data to substantiate your entry. Showing changes year-on-year can be really useful. Quotes and feedback from surveys, focus groups, and customers can also help to really bring an entry to life.

IF YOU WOULD LIKE MORE INFORMATION Please contact your relationship manager.

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