Confirming Notifications - Mandatory Corporate Actions
When a notification of a mandatory corporate action is received, the recipient counterparty should adhere to the following best practice.
Recipient counterparty should confirm receipt of the election via email as soon as possible after receipt and before close of business on the same day.
When confirming receipt of elections, the recipient counterparty should also confirm whether or not they agree with the entitlement.
If the entitlement ratio is not announced until pay date or a couple of days before, the recipient counterparty should send an email to the beneficial counterparty confirming the entitlement to be recorded. The beneficial counterparty should check and confirm agreement. Any discrepancies should be raised immediately.
If a counterparty's SSI's are not already in the payee's system, then a signed signature list will be required.
It is essential that recipient counterparties include contact details on email correspondence when agreeing deadlines so the beneficial counterparty can reach the relevant person handling an event if necessary.
No returns should be made by the recipient counterparty after receipt of instructions unless communicated and agreed directly with the beneficial counterparty. (COAC-147)
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