Main Components of Automated Corporate Actions Management

The processing of corporate actions management remains to be source of risk for the global securities industry. Businesses usually take provisions that will protect them against losses because of processing errors. It remains to be one of the most complex, inefficient and manual functions that are still currently in the back office posing high operation risk. Removing such inefficiencies from the daily operations of an organization is critical given the increased volumes and tighter pressure on the margins of the challenging global economic climate of today. Losses, both reputations and financial, are unsustainable from any source.

Integrated Solutions for Corporate Actions Management

Having a technology advanced corporate actions management solution that incorporates automation and workflow plays a central role in both corporate actions processing as well as broader asset servicing activities that are dependent on accurate and timely corporate actions management. This includes unit pricing, valuations and front office position updates. The deployment of corporate actions data cleaning and validation capability, along with flexible response and notification processing, is important to deliver a robust corporate actions processing environment.

Quality Corporate Actions Management System Features

A corporate actions management solution should be able to combine robust and flexible rules that are based on the workflow engine in the process of data cleansing. This is done via the notification and response workflow in delivering validated and cleansed information to downstream systems. At the core of corporate actions management solutions are three key components.

  • Data management and scrubbing. This includes support of numerous vendor interfaces and flexible rules-based workflow engine, along with integrated exceptions processing, corporate actions diary and management reporting tools.
  • Notifications and responses. This includes the support of various delivery mechanisms, including email, print and fax; as well as online election summary reports, electronic capture of corporate action elections. Rules-driven notice creation, supervisory response approval functionality and automated notification and response capability.
  • Entitlement processing. This includes automated entitlement calculation and outbound notification capability as well as detailed transaction file import and fully calculated gross and net entitlement per payout.

Choosing the best corporate actions management solution for a company can be very hard; especially that it comes in so many types. It all boils down to determining the needs of your organization.