A failure to elect on a corporate action due to an operational error can hurt the beneficiary financially. This exposes the firm to scrutiny about its operational structure. Firms that give their operations staff the right tools to monitor the required processes will best avoid errors. Proper transparency will lead to higher client satisfaction, optimization of time management, and risk control of CA operations.

Historically, relatively few wealth managers participate in the most optimal option for electable corporate actions. Growing use of CA data for investment insights such as scrip dividend arbitrage, tax optimization, managing currency exposure, and portfolio and risk management suggests increasing awareness of opportunities provided by this data. Capitalizing on this opportunity can be accomplished with the proper investment operations infrastructure and can drive alpha and top-line growth.

Vendors are increasingly using the inefficiencies of CA operations to use and pilot advancements in technology. Whether it is cloud, intelligent automation, or distributed ledger technology, the middle and back office are positioned to lead these advancements. From the wealth manager’s perspective, by leveraging these advancements, the more efficient the firm’s operations can become, leading to headcount reduction and top-line growth.