03 Oct MiFID II: Reporting on Corporate Action Decisions
FinOps Report published an article quoting SCORPEO Analytics on 28 September highlighting the current lack of clarity on the MiFID II reporting requirements for Corporate Actions.
While the article highlights the real issues of compliance facing asset managers, they cannot ignore their primary obligation to maximise returns for their investors. While it might be easier from a reporting perspective for asset managers to decide to elect cash from corporate action elections or to take no action, fund managers need to consider that picking the stock option will often be economically better for the fund. Now that transaction reporting on corporate events is mandated, investors could rightfully ask their fund managers or pension board to report and justify the actions they have made on corporate action elections.
As well as advising our clients on Corporate Action requirements for MiFID II, SCORPEO offers technology to help fund managers and custodian banks with their reporting requirements as well as analyzing the economic difference between the payment choices selected and the optimal choice.