Best Practices in Corporate Actions Processing: A Guide for Investment Managers
Download the white paper.
The accelerating pace of mergers, acquisitions, divestitures, and entity changes has put new attention on corporate actions. Long regarded as tedious and risky, corporate actions processing is increasingly being recognized as a critical operational issue. Improving the efficiency of corporate actions handling can help cut costs, provide competitive advantage through better client service, maintain regulatory compliance, and reduce financial and reputational risks.
This informative, 20-page white paper untangles the complexity that exists in the corporate actions arena. Packed with real world examples and expert guidance, it explains how corporate actions are typically handled today and the challenges investment managers face in processing them more efficiently. It then analyzes ten common corporate actions pain points and provides specific guidance on how to tackle them:
- Ex-Date Versus Pay Date Processing Considerations
- Ex-Date Versus Record Date Entitlement
- Confirming Tax Compliant Cost Basis and Fair Market Value
- Avoiding Recycled Ticker Errors for Delisted Securities
- Taxable Versus Non-Taxable Stock Dividends
- Return of Capital Misnomer
- Return of Capital Reclassification
- Exercising Rights Issues
- Custodial Rounding at the Rate of Proration
- Tax Consequences of Combination Mergers
Finally, the white paper explores the role that technology can play in improving efficiency and outlines a series of best practices for improved corporate actions processing. It’s a must-read for anyone involved in investment management in today’s complex, fast-changing environment.
