Corporate Actions - An Introduction

The world of corporate actions is generally regarded within financial institutions as a mystery area requiring specialist knowledge in order to comprehend what lies beneath. In reality, like many other aspects of securities processing, corporate actions work to a set of logical rules which, if followed, will result in controlled and risk-free processing.

This course is provided through a partnership between ICE Education and the International Capital Markets Association (ICMA) Executive Education.

Course Information

Price £1850.0 + VAT
Duration 2 days
Location London
Available Dates
2018-06-05 00:00:00.0  Register Now

Who Should Attend

This course is designed as an introduction to corporate actions and is suitable for those that are familiar with the securities trade lifecycle, but wish to understand the more challenging aspects of the securities business. No prior learning is required.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

The course content is divided into several topic areas, which are then broken down into multiple subtopics:

1. Fundamental Concepts

  • Definition & purpose
  • Impacts on securities & cash
  • Processing lifecycles: An overview
  • Responsibilities of the corporate actions department: An overview

2. Corporate Action Event Types

  • In each case stating: issuer's objective, scheduled or announced, mandatory or voluntary, effect on holder's securities & cash
  • Including dividends (3 types) & coupons (fixed, floating)
  • Odd-lot offers, bonus issues, stock splits, reverse splits
  • Bond conversions & bond redemptions (various types)
  • Rights issues
  • Takeovers

3. The Generic (Mandatory Event) Lifecycle

  • Lifecycle overview
  • Declaration of event terms
  • Capturing event terms
  • Ascertaining entitlement
  • Informing relevant parties
  • Calculating resultant entitlement
  • Updating books & records
  • Receiving & crediting resultant entitlement

4. The Optional & Voluntary Event Lifecycle

  • Applicable event types
  • Communication with holders
  • Monitoring & controlling responses
  • Acting within deadlines

5. Tax on Income Events

  • Withholding tax: Definition & purpose
  • Treaty & non-treaty concepts
  • Ensuring correct rates are applied
  • Domestic tax