Dividend payments in Central Bank Money

The dividend payment model in Finland will change as of 1 January 2027. Going forward, dividends will be paid to account operators on a gross basis in central bank money through Euroclear Finland’s book-entry system.

The change will enhance the security of payments, improve transparency, and align market practices with European standards.

The change affects the cash flows and technical processing of dividend payments, as well as the remittance of withholding taxes to the Finnish Tax Administration. It does not impact dividend decision-making or investors’ taxation, and the change will not be visible to investors.

Related information

List of Issuer Agents in Finland

Contact us for more information
commercial.finland(at)euroclear.com

When will the change take effect?

The new dividend payment model will be introduced on 1 January 2027. Dividend payments with a record date and payment date on or after 1 January 2027 will follow the new model.

What will change?

Issuers will be required to appoint an issuer agent
The issuer agent will be responsible for ensuring that the required funds for dividend payments are made available in the settlement system in central bank money
Cash flows will be processed on a gross basis in central bank money
Account operators will withhold and remit dividend taxes to the Finnish Tax Administration during the month following payment
The payment date will always be the fifth business day after the dividend record date

Note

The change in the payment model will significantly affect the technical processing of dividend payments in the book-entry system.
For dividends decided in 2026, the record date and payment date must fall within the same calendar year (either both before year-end or both in 2027).

Who is affected by the change?

Listed and non-listed equity issuers
Issuer agents
Account operators and other market participants involved in the dividend payment process

The change will not be visible to investors.

What happens next

As of 1 January 2027, issuers will be required to appoint an issuer agent to execute dividend payments in central bank money. Payment of dividends in commercial bank money will no longer be possible after this date.

Going forward, the dividend payment timetable will follow Euroclear Finland’s rules, according to which the payment date will always be the fifth business day after the record date.