Outsourced Corporate Actions Validation
Industry leading financial institutions are reaping operational benefits and avoiding significant unnecessary financial exposures by ensuring the quality and the timeliness of their corporate actions data. As well as minimising costs from operational disruption caused by incorrect or incomplete data, these firms are able to reduce the risk of litigation and compensation claims arising from corporate actions errors, allowing them to save on the capital they set aside to mitigate these risks and avoid reputational harm. In many cases, the amounts involved are measured in the millions, of pounds, euros or dollars.
Certainly, broad industry uptake of automated corporate actions processing platforms illustrates a desire to gain control over this unwieldy and potentially costly area of the business, but while corporate actions platforms are a step in the right direction, it’s a myth that the corporate actions story ends there.