Corporate Event Management
The lifecycle of a corporate action will need specific controls in place at each stage depending on the event type. This section provides a basic overview of best practice that should be considered when processing corporate actions for lent positions. The purpose of managing corporate entitlements is to ensure the beneficial owner received all shareholder rights as they would if no SFT had taken place (and assets were in a custody account). For the purposes of this section: Recipient counterparty is the counterparty receiving the entitlement due to and outstanding loan or collateral transaction. Beneficial counterparty is the counterparty (or agent of counterparty) who is would have received the entitlement if a loan or collateral position was not outstanding. This is the party who is contractually entitled to receive the entitlement. Corporate event management should include a robust use of contract compare and automated processing to ensure positions are actively reconciled and to assist with efficient processing. (IBP-142 AGREED IN 2017)
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