19. March 2016

Introduction of the Record Date-Principle in Germany

The German legislator passed an amendment of the German Stock Corporation Act (the “AktG”, “Aktienrechtsnovelle 2016”) in December 2015. The Amendment contains numerous changes and clarifications of the AktG. With respect to stock trading the amendment contains a new regulation on dividend payment date (introduction of record date for dividend payments) with effect of 1 January 2017. The postponed force date of the new regulation on dividend payment date avoids administrative problems in 2016.

As a result, in 2016 the German market will execute all corporate actions in German instruments with the current timeline general meeting date (entitlement date) and ex-date (payment date).

However, with the introduction of the Record Date in 2017 there will be a new sequence of event dates (ex-date – record date – payment date) for the processing of income distribution events in the German market. The entitlement for e.g. a dividend will be determined on the announced record date, which will be generally one business day after the ex-date. The payment date will be one business day after the record date.