In this article, you will learn about how Class automates the processing of some Corporate Actions, including:
- Overview
- Supported Corporate Action Types
- Criteria for Processing Corporate Actions
- Reviewing automated Corporate Actions
- Deleting an automated Corporate Action
- FAQ
Overview
Class automates the processing of certain Corporate Actions, to save time and increase the efficiency of processing entities.
Class has automated Corporate Action from 01/05/2024. Class collects actionable Corporate Actions on daily basis and process them weekly basis on every weekend.
Once, the Corporate Actions have been collected and process, they cannot be reprocessed automatically i.e. any historical corporate actions cannot be automated. However, they can be processed in bulk at Business level or individually at Fund Level, Corporate Action Console.
Corporate Actions that are automated include mandatory Corporate Actions that are data fed, where the quantity held on the entitlement date of the Corporate Action reconciles with the data feed. This ensures that only Corporate Actions that should be processed are processed automatically.
Supported Corporate Action Types
The following types of Corporate Actions are automated on Class.
| Corporate Action Type | Security Types |
|---|---|
| Capital Return | All |
| Split | Fully Paid Ordinary only |
| Consolidation | Fully Paid Ordinary only |
| Code Change | Fully Paid Ordinary only |
| Accelerated Rights Issue | All |
| Bonus Options | All |
| Bonus Issue | All |
| Renounceable Rights Issue | All |
| Non-Renounceable Rights Issue | All |
Some Corporate Actions will only process investments that are Fully Paid Ordinary shares to avoid potential Period Update errors which may occur if the Corporate Actions were processed before the Tax Statement.
Class automates the first Corporate Action for Rights/Options, the second Corporate Action for 'Exercise/Lapse' is not automated at this stage.
Criteria for Processing Corporate Actions
All of the following criteria must be met for a Corporate Action to be automated:
- The Corporate Action type is supported, as listed in the above table
- The Corporate Action announcement is available in Class
- The investment is data fed
- The quantity recorded in Class reconciles with the quantity from the data feed on the Entitlement Balance date that is listed in the Corporate Action announcement
- The data feed was active on the Entitlement Balance date and not requested historically at a later date
- The Corporate Action is not already marked as processed or ignored for a particular investment
- The Corporate Action hasn't previously processed automatically and then been deleted
- The investment is not a foreign security
Once a Corporate Action has attempted to process for an investment in a business it will not try reprocess for the same Corporate Action announcement again.
Reviewing automated Corporate Actions
Navigate to Business Level>Corporate Actions> Select a Corporate Action
This can also be reviewed at the Entity Level > Investments> Browse corporate actions
The following status type related to automated Corporate Actions:
Auto Processed - This Corporate Action has been processed automatically by Class
Error message- The error message will be detailed under the Messages column if a Corporate Action was unable to process
Deleting an automated Corporate Action
You can delete an automated Corporate Action for a single investment or in bulk in the Corporate Action Consoles.
To delete in bulk Navigate to Business level, Corporate Action Console.
- Sort by status column, right click to filter and include Auto Processed.
- Select all
- Click the Undo button
FAQ
Why are only reconciled data fed investments eligible for automated Corporate Action processing?
This ensures certainty, so that Corporate Action processing doesn't pick up and process investment that were disposed before the entitlement date, which removes the need removing the need for rework.
When can I expect a Corporate Action to be processed automatically?
Weekly after the Corporate Action entitlement balance date has passed, if the above criteria is met for an investment.
How do we avoid duplicating Corporate Actions if we want to process earlier?
By marking a Corporate Action announcement as either ignored or processing it using the announcement in the Corporate Action Console, this will ensure that the Corporate Action is not duplicated through the automation.
Will the audit trail in Browse Events distinguish between automated and other Corporate Actions?
No, it will be the same, however, in the Corporate Action consoles we have introduced new status 'Auto Processed' to indicate that a Corporate Action has been processed automatically by Class.
What do I do if I see the status in Corporate Action console as Processing?
This means that the Corporate Action has been picked up for automated processing and will be completed shortly. This should updated within the next business day and usually will only be visible when processing the Corporate Action overnight.
Why are you only processing the first part of Rights Corporate Action?
At this stage Class automates Corporate Actions that have only one possible outcome. Rights are split into two Corporate Actions on Class, so the first will be automated but the second which requires updating exercise/lapse needs to be manually entered at this stage.