Decrease in Value (DECR)

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y>

Status: Best Practice Finalised, Last Updated: 24/05/2021

SFTR Report - NONE | Corporate Action Cluster - Economic outside SFT | Cash Move - Y

Description:
Reduction of face value of a single share or the value of fund assets. The number of circulating shares/ units remains unchanged. This event may include a cash pay out to holders.

Best Practice:
For cash payments which do not affect the open SFT, the beneficial counterparty is contractually due payment in full on pay date. If payment is not received, counterparties should raise a query on pay date + 1.

A claim needs to submitted via email as soon as possible after announcement date in order for a payment to be made, the minimum field list for claims can be found https://www.islaemea.org/isla-best-practice-handbook/subsection/COAC-141/" target="_blank">here.

If payments are not made on pay date the recipient counterparty should provide a valid reason for non-payment.

In addition to reviewing Contract Compare prior to and on pay date, Contract Compare should be checked on pay date+1 to ensure newly created positions are reconciled. Any differences need to be escalated to counterparties immediately. (COAC-32)