Corporate actions are a critical component of asset management and financial markets, but they are also notoriously complex and prone to errors. Whether it’s managing mergers, shareholder approvals, or fund liquidations, the process often involves multiple parties, each interpreting data in different ways. This fragmentation leads to inefficiencies, errors, and increased costs for financial institutions.
At a recent TURN-hosted event, experts from major industry players such as S&P Global, Fidelity, Six Financial, SWIFT, and others gathered to discuss the challenges in corporate actions and how technology and collaboration could help solve them. The session was a step forward in aligning the industry on a shared vision for the future.
A Growing Need for Standards in Corporate Actions
Corporate actions have long been handled using outdated processes, with various parties—such as asset managers, custodians, and platforms—playing key roles. However, the lack of a standardised framework means that data is often interpreted and processed differently, leading to confusion, delays, and errors. As one expert noted, “Corporate actions processing still relies heavily on manual intervention, which opens up the door for mistakes.”
One of the primary topics discussed during the session was the need for an industry-wide template to address these issues. TURN has been working diligently to develop a blockchain-based solution that can standardise the way corporate actions are managed, making them more efficient, transparent, and compliant with regulations.
By adopting a standardised template, the industry can ensure that all parties involved in corporate actions—regardless of their size or location—receive the same information in a consistent format. This approach would simplify the process and significantly reduce the risk of errors that currently plague the industry.
Why Blockchain and Data Standardisation Are Essential
The session also highlighted the importance of leveraging blockchain technology to solve the corporate actions problem. TURN, with its expertise in blockchain-based solutions, is advocating for an open industry standard that will allow firms to share data seamlessly and securely. Blockchain technology provides a transparent, immutable record of transactions, which reduces the potential for errors and fraud.
Experts from SWIFT and Six Financial emphasised that standardising data through blockchain is the most effective way to ensure that corporate actions are processed correctly and efficiently. “Blockchain is not just about reducing costs—it’s about creating transparency and trust in the data,” said a SWIFT representative.
The goal is to create a framework where data is shared across the industry in a way that benefits all stakeholders, from asset managers to custodians. With more accurate and timely data, firms can make better-informed decisions, improve customer service, and mitigate regulatory risk.
The Role of Collaboration in Industry Change
The session concluded with a call to action: industry players need to collaborate to build the necessary standards and frameworks for corporate actions. As one participant put it, “The solution lies in working together, not in silos.” TURN’s mission is to bring together a diverse set of stakeholders, including regulators, asset managers, custodians, and technology providers, to create a unified solution that addresses the challenges of corporate actions.
As the financial industry moves towards a more digital and standardised future, TURN is leading the charge in driving innovation and creating solutions that will help reduce the operational and regulatory risks associated with corporate actions. The path forward is clear: industry-wide collaboration, the adoption of standardised templates, and the use of blockchain technology will make corporate actions more efficient, secure, and transparent for all.