Best Practices in Corporate Actions Processing: A Guide for Investment Managers Ten Common Pain Points and Effective Steps to Mitigate Them
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Overview: Improving the efficiency of corporate actions handling can help cut costs, provide competitive advantage through better client service, maintain regulatory compliance, and reduce operational and reputational risks. By the same token, corporate action errors—a mislaid notification, a mistyped data input, a misapplied event—can result in painful financial losses. While precise figures are hard to come by, industry observers estimate that 10 percent of annual corporate actions processing costs are attributable to “write-off” funds reserved for losses, which translates into tens of millions of dollars. This white paper will untangle some of the complexity that exists in the corporate actions arena. It will explain how corporate actions are typically handled today and the challenges investment managers face in processing them. It will then examine ten common pain points and provide guidance on how to tackle them. Finally, it will highlight the role technology can play in improving efficiency and accuracy, and outline a series of best practices for corporate actions processing.