Corporate actions are essential financial events that impact investors, asset managers, custodians, and regulators. They include mergers, stock splits, fund liquidations, and shareholder meetings—any event that requires regulatory notification and shareholder communication.
Yet, despite their critical nature, corporate actions remain one of the most inefficient, manual, and error-prone aspects of financial operations. The lack of standardisation means firms rely on outdated processes like emails, PDFs, phone calls, and even faxes to distribute critical notifications.
This inefficiency has real consequences:
- Delays in regulatory compliance
- Higher operational costs for asset managers and custodians
- Lack of transparency for investors
- Errors and missed deadlines leading to financial and reputational risks
TURN is leading the way in modernising corporate actions using cutting-edge blockchain technology to create a transparent, standardised, and automated solution for the financial system.
This blog explores what corporate actions are, why they’re broken, and how TURN is fixing them—saving firms time, money, and regulatory headaches.
What Are Corporate Actions?
A corporate action is an event initiated by a company or a fund that affects its capital structure, governance, or financial instruments. These actions require regulatory notifications and shareholder disclosures.
Corporate actions can be classified into three main categories:
1. Mandatory Corporate Actions
These occur automatically without requiring shareholder intervention. Examples include:
- Stock splits – A company increases the number of shares, reducing the price per share.
- Mergers & Acquisitions (M&A) – Companies combine or one company acquires another.
- Liquidations – A fund or company winds down and distributes remaining assets.
2. Mandatory with Options
Shareholders must choose an option, but the event still takes place regardless. Examples include:
- Cash or stock dividends – Investors can choose whether to receive dividends in cash or additional shares.
- Mergers with cash/stock options – Shareholders can select whether they receive cash or shares in the new company.
3. Voluntary Corporate Actions
Shareholders must actively respond to participate. Examples include:
- Tender offers – A company offers to buy back shares at a set price.
- Rights issues – Shareholders are given the right to buy additional shares at a discount.
These actions have serious implications for fund managers, investors, and custodians—missing a deadline or failing to notify stakeholders can lead to severe compliance penalties and financial losses.
The Challenges of Corporate Actions Today
Despite being central to financial markets, corporate action processing is a logistical nightmare. Here’s why:
1. Lack of Standardisation
There is no single global standard for corporate action notifications. Firms rely on PDFs, faxes, and emails, often containing unstructured information that requires manual intervention.
Current state:
❌ Asset managers manually compile regulatory notifications
❌ Distributors receive inconsistent formats (emails, attachments, PDFs)
❌ Custodians scramble to interpret details before deadlines
2. Inefficient Communication & Delays
Asset managers must notify custodians and investors at least 90 days in advance. However, because information is distributed via non-standard methods, custodians often receive notifications too late to process efficiently.
Result:
- Custodians rush to meet deadlines, increasing errors.
- Distributors struggle to ensure investors receive accurate information.
- Firms risk non-compliance with regulatory reporting.
3. Manual Reconciliation & Compliance Risks
Corporate action notifications involve dozens of data points, including:
✅ Type of action (merger, liquidation, etc.)
✅ Effective date
✅ Shareholder rights and voting details
Manually tracking this information across multiple systems creates errors and compliance risks.
Current workflow issues:
- Asset managers have no visibility on whether notifications were received.
- Custodians struggle with inconsistent data formats.
- Regulators demand audit trails that many firms cannot easily provide.
TURN is solving these problems by introducing a structured, standardised, and automated approach—powered by blockchain technology.
How TURN is Revolutionising Corporate Actions
TURN has developed a first-of-its-kind corporate action platform that:
✅ Standardises data fields – No more PDFs, emails, or faxes. TURN’s corporate action format ensures that all firms receive notifications in a structured, machine-readable format.
✅ Automates notification workflows – Asset managers can instantly notify all stakeholders and track responses in real time.
✅ Provides a single source of truth via blockchain – Every corporate action is recorded on an immutable ledger, ensuring transparency and regulatory compliance.
Key Features of TURN’s Corporate Action Solution
1. A Standardised Template for Corporate Actions
TURN has created a corporate action template that captures all critical data points.
- Developed with input from Fidelity, Deutsche Bank, and major industry players.
- 18 key data fields ensure all stakeholders receive consistent, structured information.
- Regulatory compliance built-in – ensures FCA, SEC, and EU regulations are met.
2. Real-Time Notifications & Confirmation Tracking
With TURN, asset managers can:
- Issue corporate actions instantly
- Track distributor engagement (who received, opened, and acted on notifications)
- Ensure custodians get timely updates
Instead of waiting for manual email confirmations, TURN provides real-time status tracking.
3. Blockchain-Powered Compliance & Audit Trails
Every corporate action notification is recorded securely on TURN’s blockchain ledger, ensuring:
✅ No lost records – Immutable audit trail for regulatory reporting.
✅ Elimination of fraud risks – Ensures data integrity and authenticity.
✅ Automated deadline enforcement – Ensures firms meet the 90-day notification requirement.
4. API Integration for Seamless Data Flow
TURN integrates directly into existing asset management systems via APIs. This allows:
- Automated corporate action submissions from asset managers.
- Instant notification delivery to distributors and custodians.
- Real-time response tracking for regulatory compliance.
The Future of Corporate Actions with TURN
TURN is setting a new industry standard for corporate action management.
🔹 No more PDFs, faxes, or last-minute notifications
🔹 Real-time regulatory compliance & audit trails
🔹 Standardised data fields ensuring industry-wide consistency
The financial industry has struggled for decades with corporate actions. TURN is finally providing the solution: a secure, automated, and transparent platform that transforms the way asset managers, custodians, and investors handle corporate actions.
If your firm is ready to move beyond outdated corporate action processes, TURN is here to help.
Get in touch with us today at www.tisaturn.com to learn how we’re shaping the future of financial data management.