The mandated use of cheques (to the exclusion of electronic payment alternatives) creates inefficiency and risk for institutional investors and their administration service partners (including custodians and registries). Risks and time delays have been amplified by COVID-19 related impacts to the operating environment.
This communique is intended as a general reference and to assist in communicating to clients, listed companies and their corporate advisers on the down-stream implications to investors of mandating the use of cheques to the exclusion of electronic alternatives.
ACSA encourages listed companies to work with their corporate advisers and share registries to offer electronic payment and receipt mechanisms for all corporate event types and avoid the mandated use of cheques.
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