ACF Academy
Operations and IT Training Training
Category:
 Operations and IT Training
Targeted Audience:
 This course is targeted at an existing corporate actions audience, and is designed to develop their basic level understanding to the next level. The course deals with two advanced aspects; 1) the complex end of corporate action events (e.g. takeovers), 2) trading strategies (e.g. short selling) which have an impact on corporate actions.
Prerequisites:
 Fundamentals of Corporate Actions
CPE Credits:
 14 hours
Course Level:
 Advanced
 

Advanced Corporate Actions

The principal objectives of this two-day seminar, viewed from an operations perspective, are to:
 
  Become familiar with a variety of complex corporate action events
  Become familiar with trading strategies & operational actions that have a complex impact on corporate action processing
  Raise awareness of the possibility that the details of some corporate action events can change during the event
  Appreciate the risks and associated controls employed in the processing of complex corporate action events
  Emphasise the need for complete internal control when processing complex corporate action events
   

 
Course Outline
   
 Introduction
   
Impact of failed trades on corporate actions
Definition of failed trades and partially settled trades, highlighting the required treatment of fails when a corporate action event arises
Short Selling
  • Definition
  • Purpose
  • Overview of hedge funds & prime brokers
  • Impact on corporate actions
Securities Lending & Borrowing
Securities Lending
  • Definition
  • Benefit to lender
  • Ownership of lent securities
  • Lending methods
  • Impact of securities lending on corporate actions
Securities Borrowing
  • Reasons for borrowing
  • Ownership
  • Borrowing methods
  • Impact of securities borrowing on corporate actions
Special-Cum and Special-Ex Trading
  • Definition
  • How such trades are identified
  • Impact on corporate actions
Negative Accrued Interest
  • Definition of accrued interest
  • Calculation of normal accrued interest
  • Impact of normal accrued interest 
     on coupon payments
  • Definition of negative accrued interest
  • When negative accrued is applied
  • Impact of negative accrued interest 
     on coupon payments
Australian Dividend Tax
  • Definition of withholding tax
  • When withholding tax is charged
  • Treaty and Non-Treaty rates
  • How correct tax rates are applied
  • Withholding tax in Australia
  • Fully franked, partially franked and
     unfranked dividends
  • Impact on non-resident shareholders
Depositary Receipt Issuance Fees
  • Definition of ADRs
  • ADR creation
  • Benefits of ADRs
  • Definition of issuance fees
  • Circumstances under which issuance fees are charged
UK Stamp Duty (on New Stock)
  • Definition of stamp duty
  • Why charged
  • Circumstances when charged for trading
  • Circumstances when charged on corporate actions
   
   
 
   
 Introduction to Takeovers
   
Introduction to Takeovers
  • Fundamental Takeover Concepts
  • Takeover bids & takeovers
  • Controlling interest
  • Characters in a takeover
  • Differences compared with other 
     corporate action events
  • Stages involved in a takeover
The Offeror’s Perspective
  • Types of offeror
  • Reasons for takeovers
  • How a controlling interest is gained
  • Offers to the offeree’s shareholders
  • Communication of offer details
Regulation
  • Regulatory approval
  • Current regulation
  • Regulatory control
  • Regulators powers
The Offeree’s Perspective
  • Causes of successful takeovers
  • Friendly vs. hostile takeovers
  • Avoiding hostile takeovers
  • Eligibility of offeree’s shareholders
The Offer Document
  • Definition
  • Information contained
  • Publication rules
  • Changes to offer terms
Takeover Types & Characteristics
  • On-market and off-market offers
  • Full offers and partial offers
  • Over acceptances
  • Compulsory acquisition
  • Competing offers
  • Conditional & unconditional status
   
 The Takeover Lifecycle
 
This section combines a case study of the RBS Consortium’s takeover of ABN Amro (using extracts of the offer document and actual press releases) with a highly structured walk-through of the internal processing steps.  Delegates will be required to perform calculations, update internal records, and communicate with owners and custodians at multiple points throughout the lifecycle. 
 
The RBS Consortium takeover of ABN Amro
  • Announcement of takeover bid
  • Publication of offer document
  • Communication of event terms (to holders)
  • Opening of offer period
  • Voluntary acceptance by offeree’s shareholders
  • Close of offer period
  • Unconditional status
  • Subsequent offer opening & offer period
  • Settlement of offer acceptances
  • Close of subsequent offer period
  • Announcement of 98.8% acceptances
  • De-Listing of offeree’s securities
  • Compulsory acquisition.
 
   

 

NB All practical sessions are highlighted like this:
means a Workshop or Simulation
means a Case study
 
Accreditation


 

"Detailed and thoroughly covered the features of derivatives, and the virtual trading simulation gave me good understanding."

– Shoko K.