Actions During the Timeline of an Event - Voluntary Corporate Action

Actions to take during timeline of the event>

Status: Best Practice Finalised, Last Updated: 28/01/2022

Actions to take during timeline of the event

Description:
TBC

Best Practice:
If record / entitlement date is on or after instruction deadline, the outstanding positions need to be monitored daily until entitlement date. If the position and deadline has previously been agreed but there is a change to the reconciled position such as a loan or return settlement, then both parties will need to re-agree the new position as soon as possible.

Any pending movements need to be checked for settlement dates to ensure there are no issues with settlement after deadline / being returned after instructions have been sent.

If event details and entitlements cannot be agreed by both counterparties, then the position shall be recalled and returned prior to record date. Firms may identify events as high or low risk depending on internal procedures.

Restrictions for low risk events may be added on the morning of the event deadline by the beneficial counterparty to prevent further movement until entitlement date. This will ensure outstanding positions are final as per agreement between counterparties and will ensure instructions match the positions accordingly. Restrictions for high risk event may be added on an announcement of an event and for a longer period. The deadline should be reasonable in relation to the market deadline.

In some cases, the beneficial counterparty may need to negotiate with recipient counterparties for an extension to the agreed deadline, if instructions are not complete. Instructions are uploaded and checked by the beneficial counterparty before being sent to recipient counterparty via secure email in a pre-determined format as agreed between counterparties. Recipient counterparties should confirm receipt of all instructions received from the beneficial counterparty by email. If an email confirmation is not received, then a phone call will be made to the recipient counterparty to ensure the instruction is received. Some elections are time sensitive (sale instructions, FCFS offer elections). (COAC-106)