Spin Off (SOFF):

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Spin Off (SOFF)

Status: Finalised Last Updated: 24 May 2021

SFTR Report – NEWT | Corporate Action Cluster – Addition Sec on Loan | Cash Move – Y

Description:
Spin off. A distribution of subsidiary stock to the shareholders of the parent company without a surrender of shares. Spin off represents a form of divestiture resulting in an independent company. E.g. demerger, distribution, unbundling.

Best Practice:
When booking a Spin Off a new contract should be created to cover the additional distribution of shares. (COAC-41)