Executive Summary 

Despite broad adoption of digital technology across investment operations, corporate actions processing remains one of the most manual, error-prone functions in the industry. Complexity, fragmented data, and outdated systems contribute to inefficiencies, heightened risk, and strained collaboration between operations and portfolio management teams. As the demand for timely elections and accurate reporting grows, modernizing the corporate actions lifecycle is no longer optional; it’s a necessity. 

The Problem: Manual, Risk-Prone, and Costly 

Corporate actions are inherently complex and require precise execution. However, many asset managers still rely on outdated, manual workflows, particularly for voluntary events, which creates friction across operations, compliance, and investment teams. 

Key challenges include: 

• Fragmented data sources and inconsistent formats 

• Manual intervention, increasing the risk of human error 

• Tight response deadlines for CHOS and VOLU events 

• Limited visibility into elections and entitlements 

• Outdated IBOR systems lacking Straight Through Processing (STP) capabilities 

These challenges result in missed opportunities, operational bottlenecks, and poor user experiences.

Understanding the Lifecycle: One Process, Many Complexities 

The corporate actions lifecycle spans from event announcement to election and settlement. Each event type introduces unique operational considerations: 

• Mandatory – No Instruction Required (MAND)
  Processed automatically but still requires data validation and reconciliation. 

• Mandatory – Instruction Required (CHOS)
  Requires a timely election by the portfolio manager and communication with the custodian. 

• Voluntary (VOLU)
  Most complex due to tight deadlines, portfolio-level discretion, and the need for precise tracking and oversight. 

While MAND events can often be supported through STP, by using IBOR systems with complete and good notification events information from custodians (Silver Copies) or Corporate Actions Notification Service Provider, which is called the Corporate Actions Master Data (Golden Copies).  The other two events, CHOS and VOLU, present real operational hurdles, especially when systems lack automated workflows, reliable golden copy data, or SWIFT capabilities. 

What’s Driving the Conundrum? 

1. Data Fragmentation: Even with access to golden copy sources, inconsistent delivery, poor normalization, and lack of integration lead to gaps, delays, and errors in processing. Complex events amplify the issue, particularly when tight deadlines require rapid decision-making. 
2. Legacy Systems: Traditional IBOR platforms are often incapable of handling diverse event types or enabling end-to-end automation. Many rely on manual processing and fragmented views, compounding inefficiencies.
3. Custodian Diversity: Global asset managers typically work with multiple custodians, each with different election processes, communication methods, and data structures. Without SWIFT connectivity or automated instruction capabilities, firms must rely on manual FTP uploads or custodian portals.

Modernizing Corporate Actions from the Ground Up 

To overcome these challenges, asset managers must design a future-state operating model built on accurate data, modern technology, and end-to-end workflow visibility. 

Key Components of a Modern Corporate Actions Architecture: 

1. Corporate Actions Master Data: A golden source for corporate actions event notifications, typically ISO 15022 MT564 or ISO 20022 MX messages, delivered by custodians or third-party data providers. High-quality, timely, and normalized data is the foundation of automation. 
2. IBOR System Capabilities: Modern platforms should support – All event types (MAND, CHOS, VOLU), Event enrichment and validation, STP workflows and audit trails, Dashboards for operations and PM
3. SWIFT Messaging Integration: Inbound and outbound capabilities enable automated – MT564 message capture, MT565, and seev.033 instructions, Acknowledgments (MT565 Ack/Nak, MT567) 
4. Centralized Event Management: A central platform improves transparency and control – Unified dashboards for operations and investment teams, Quick drill-down into elections, status, and historical records, Custom views tailored to role-specific needs
5. Automated Reconciliation & Control: Implement daily reconciliation for CHOS and VOLU events, establish 4-eyes reviews, and track dividend payments to reduce errors and maintain confidence in election accuracy. 

15022 vs 20022 message format

Beyond Technology: Process and Collaboration

Modernization isn’t just about technology; it’s about designing streamlined workflows across teams:

• Integrate with trading platforms to avoid impacts on strategy execution.
• Enable consistent communication between analysts, portfolio managers, and operations.
• Automate instruction delivery to custodians, minimizing manual touchpoints and risk.

Ask Yourself: Do You Have the Right Tech Stack?

Due to the nature of global asset management business, firms don’t always have a single custodian for all the funds due to regulations and data policy rules. Instead, funds are custodied under a broad range of custodians, which makes the election automation process more difficult due to multiple direct custodian integrations. In addition, firms may not be part of the SWIFT network, which would prevent them from exchanging messages with custodians in an automated process. In such cases, the firm would then rely on the data layer or FTP to exchange corporate actions messages with custodians. Lastly, firms sometimes leverage a corporate actions notification service vendor as the golden data master source, which requires additional integration to consume data to service holding securities across all funds.

Consider:

• Can your IBOR system support complex CA events and SWIFT messaging?
• Are your data feeds consistent, normalized, and timely?
• Do you have centralized oversight across custodians?
• Are portfolio managers empowered to act quickly on elections?

If the answer to any of these is “no,” your operations may be more vulnerable than you think.

Conundrum to Control

The complexity of corporate actions isn’t going away, but the risk and inefficiency can. By investing in the right technology stack, standardizing data flows, and building centralized, role-specific workflows, firms can transform the corporate actions process from a persistent pain point into a competitive advantage.

Why Meradia

Corporate actions represent one of the most complex and convoluted processes within investment operations, touching both front and middle-office professionals. Voluntary elections, tight deadlines, and fragmented data require a workflow that is not only accurate, but efficient enough to support rapid decision-making by portfolio managers.

Meradia brings over 25 years of industry experience and deep expertise across operations, system platforms, and industry best practices. We help firms navigate the intricacies of corporate actions by:

• Assessing the current-state environment to uncover operational risks and inefficiencies
• Designing customized solutions that align with investment objectives and organizational structure
• Streamlining workflows across front and middle-office teams for faster, more confident elections
• Integrating technology, data, and automation to reduce manual processing and increase scalability

Our team delivers specialized expertise across investment operations, technology integration, and front-to-back transformation. Whether you’re building a future-state roadmap or modernizing existing processes, Meradia partners with you to deliver results.

Download Thought Leadership ArticleExpertises: All Meradia, Performance, Risk & AnalyticsClients: Asset ManagersAuthors: Cogan Wybranski, Jose Michaelraj