Search

ISLA logo

Actions Before Pay Date - Voluntary Corporate Action

Actions Before Pay Date - Voluntary Corporate Action

Actions to take before pay date

Description

Prior to the pay date of a voluntary corporate actions, certain actions should be taken.

Best Practice

A corporate action confirmation email should be sent to your counterparty. This email should include;

- Nominal Value

- Corporate action details

- Deadline to instruct

The recipient counterparty should notify their respond and confirm the details. (more information here ])

If entitlement ratios / cash rates are known before the response deadline, the beneficial counterparty will include the cash and/or stock entitlements on the instruction sent.

Payment details should be provided to recipient counterparty either manually or on automated claims on pay date-2, to ensure payment can be made promptly on pay date.

For events with withholding tax (WHT) (such as French OSDR's) or subscription costs (rights issues and open offers) the beneficial counterparty will send claims to the recipient counterparty requesting account SSIs and seeking agreement on the cash amount on pay date-2, so payment can be received by the recipient counterparty on pay date. (COAC-108)

Close

Already a member? Login to your account

Interested in Becoming a Member?

ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.

Become a member today