Support procedure for Corporate Actions (OST) incidents: income events (dividends, coupons), mandatory events (splits, allocations), voluntary events (tender offers, capital increases), client elections, and market claims.
- Event capture (custodian announcement or manual entry) and four-eyes validation of key dates: ex-date, record date, payment date.
- Calculation of entitlements on the settled position as of the record date; comparison against the credit announced by the custodian.
- Client notification (MT564) — for voluntary events, set an internal deadline strictly prior to the market deadline.
- Collection and consolidation of elections (MT565), transmission to the custodian before their deadline.
- Payment and accounting posting, client confirmation (MT566), and market claims processing.
- Entitlements calculated incorrectly: first verify the entered record date (classic event copy error), then check the position base used (settled vs traded). Pending trades as of the record date explain most discrepancies with the custodian → market claims.
- Income event stuck in 'pending funds': verify that the cash credit from the custodian has arrived and that its reference matches the event; manually force reconciliation if the reference format changed.
- MT564 not generated: check the notification flag in the event template and client account eligibility.
- Elections not transmitted: check the consolidation job — an invalid election can block the entire batch. Fix or quarantine the affected instruction, then rerun. NEVER wait for the market deadline to verify transmission.
- Split/allocation not applied: verify event status AND the effective date (announcement time zone); the adjustment job only executes once the effective date is reached.
- MT564/MT566 discrepancies: indicative exchange rate vs actual payment rate, and rounding steps — amounts must align with the actual rate, with final rounding only.
- Transactions traded before the ex-date and settling after the record date → claim against the delivering counterparty.
- Generated from the 'Claims' tab of the event (pre-populated amount and counterparty). Standard market turnaround: 20 business days.
- Ensure that all settlement accounts (including new T2S accounts) are included within the scope of the detection job.
- Any manual event entry requires four-eyes validation of dates before any generation.
- Internal deadline must always precede the market deadline by at least 24 hours on voluntary corporate actions.
- An entitlement discrepancy with the custodian is resolved by analyzing pending trades as of the record date, not by blind adjustment.
- Never pay clients prior to reconciling received funds, unless backed by documented management approval.
Market deadline under 4 hours without confirmed transmission → Corporate Actions Lead + L2 Support immediately. Lapsed elections → Legal and Client Services on the same day. Suspected product defect → SS&C vendor ticket with event export.