Corporate Actions – An Introduction

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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.

Objectives

This course is designed to provide a thorough understanding of the reasons for corporate actions (covering both equity and debt), and the sequential steps in their processing, with particular focus on the various risks and risk mitigation, and on processing efficiency. This course is equally relevant to both the buy-side and sell-side of the business.

Target Audience

This course is designed as an introduction to corporate actions, and is suitable for existing employees that are familiar with the securities trade lifecycle and who wish to expand their securities operations knowledge into a fascinating and challenging aspect of the securities business.

Length and Structure of the Course

The course consists of two days of lectures, case studies and group exercises. Each day typically consists of four 90 minute sessions with coffee breaks in the morning and afternoon and lunch break in the middle. There is no exam for this course but candidates will receive a certificate of attendance.

Course Tutor

Mike Simmons

Mike Simmons – Mike is an independent training consultant and has been involved with capital markets and operations throughout his career, focusing originally upon securities settlement and more recently on the broader aspects of operations (e.g. collateral management, foreign exchange, derivatives). Mike is the author of two books on Operations ‘Corporate Actions: A Guide to Securities Event Management’ and ‘Securities Operations: A guide to Trade and Position Management’ both published by Wiley Finance. Mike is also a regular instructor on the ICMA Operations Certificate Programme.

Course Brochure

Click here to download the course brochure.

Course Outline

Session 1	Contents
Fundamental Concepts	• Definition & Purpose • Impacts on Securities & Cash • Processing Lifecycles: Overview • Responsibilities of the Corporate Actions Department: Overview

Session 2	Contents
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

Session 3	Contents
Corporate Action Event Types - continued	• Including Bond Conversions, Bond Redemptions (various types) • Rights issues • Takeovers

Session 4	Contents
The Generic (Mandatory Event) Lifecycle	• Lifecycle Overview • Declaration of Event Terms • Capturing Event Terms • Ascertaining Entitlement #1

Session 5	Contents
The Generic (Mandatory Event) Lifecycle - continued	• Ascertaining Entitlement #2 • Informing Relevant Parties • Calculating Resultant Entitlement

Session 6	Contents
The Generic (Mandatory Event) Lifecycle - continued	• Updating Books & Records #1 • Receiving & Crediting Resultant Entitlement • Updating Books & Records #2

Session 7	Contents
The Optional & Voluntary Event Lifecycle	• Applicable Event Types • Communication with Holders • Monitoring & Controlling Responses • Acting Within Deadlines

Session 8	Contents
Tax on Income Events	• Withholding Tax: Definition & Purpose • Treaty & Non-Treaty Concepts • Ensuring Correct Rates are Applied • Domestic Tax

Details of the next seminar

Thomson Reuters, London
30 South Colonnade
Canary Wharf
London, E14 5EP

TBC

Please email education@icmagroup.org to register your interest to attend our next publicly scheduled course.

This is an ICMA Executive Education course hosted by Thomson Reuters. Thomson Reuters is the leading source of intelligent information for the world’s businesses and professionals.

Costs

The cost is £1,000.00 for ICMA Members and £1,300.00 for non-members.

The following discount scale is offered:

2-4 candidates – 5% discount each*
5+ candidates – 10% discount each*

*Please note that discounts are applied by way of a refund to the organisation when registration has closed and the final number of candidates from the firm has been determined.

Payment can be made by secure online credit card or by invoice. Please note that the BACS invoice method has an additional £50 admin fee.

Note that anyone requiring accommodation to take the course will be required to arrange this on their own; it is a class-based but non-residential course.

For more information

This course is also available on a group booking basis.
Should you have any queries about this seminar please contact:

Leanne Ley for general administration & finance queries

l.ley@icmacentre.ac.uk
Phone: +44 (0)118 378 6272

For other enquiries, please contact David Senior on +44 (0)20 7213 0329 or email

education@icmagroup.org.