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Mandatory Cash Distribution

Cash Entitlement Claim - Voluntary

Description

TBC

Best Practice

This section outlines the minimum fields and processes for a cash entitlement claim. (COAC-142 FOR ISLA REVIEW)

Mandatory - Cash Entitlement Claim

Description

This section outlines the minimum fields required for a cash entitlement claim.

Best Practice

Alongside an authorised SSI (see here ] for ISLA best practice regarding SSIs), a standard cash entitlement claim should include the following key fields.

- Country

- Stock

- Sedol/ISIN

- Nominal

- Event

- Record Date (If applicable)

- Pay Date

- Tax Rate (If applicable)

- Election

- Entitlement Rate

- Entitlement Due

For further information concerning mandatory cash entitlements please see here. ] (COAC-141)

Shares Premium Dividend (SHPR)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

This corporate event pays shareholders an amount in cash issued from the shares premium reserve. It is similar to a dividend but with different tax implications.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-38)

Interest Payment wWith Principal (PRII)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

An event which consists of two components, the decrease of the amortized value of a pool factor security and an interest payment.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-37)

Instalment Call (PPMT)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Instalment towards the purchase of equity capital, subject to an agreement between an issuer and a purchaser.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-36)

Interest Payment (INTR)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Interest payment distributed to holders of an interest- bearing asset.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-35)

Cash Dividend (DVCA)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Distribution of cash to shareholders, in proportion to their equity holding. Ordinary dividends are recurring and regular. Shareholder must take cash and may be offered a choice of currency.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-34)

Cash Distribution From Non Eligible Securities Sale (DRCA)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Distribution to shareholders of cash resulting from the selling of non-eligible securities, for example, in the frame of a depositary receipt program.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-33)

Decrease in Value (DECR)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Reduction of face value of a single share or the value of fund assets. The number of circulating shares/ units remains unchanged. This event may include a cash pay out to holders.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-32)

Capital Gains Distribution (CAPG)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

Distribution of profits resulting from the sale of company assets, for example, Shareholders of Mutual Funds, Unit Trusts, or Sicavs are recipients of capital gains distributions which are often reinvested in additional shares of the fund.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-31)

Capital Distribution (CAPD)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description

The Corporate event pays shareholders an amount in cash issued from the Capital account. There is no reduction to the face value of a single share (or the share has no par value). The number of circulating shares remains unchanged.

Best Practice

For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found here. ]

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-30)

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