Corporate action instruction handling - New Beneficial Owner validation flag
Effective
immediately
Clearstream Banking1 introduces a new beneficial owner validation flag via code FULL – “Full beneficial owner breakdown” used in combination with qualifier CETI – “Certification type”).
If received, this new code will be provided, at the option level, to indicate that the related MT565 Corporate Action Instructions are to be instructed at beneficial owner level.
For all voluntary corporate action event types, if present in the MT564 Corporate Action Notification sent to customers by CBL, in subsequence E - Corporate Action Options, under :22F::CETI//FULL, customers will have to instruct at beneficial owner level as illustrated in the below examples.
Note: The new indicator implies changes to the processing of the following messages:
- MT565 Corporate Action Instruction
- MT567 Corporate Action Status and Processing Advice
Examples of correctly formatted MT565 instructions:
Sequence C - Beneficial Owner’s Details - optional, repeatable - BENODET
- Beneficial Owner details sequence - BIC, Country of Domicile and Instrument denominated in Unit
:16R:BENODET
:95P::OWND//CEDELULL
:94C::DOMI//LU
:36B::OWND//UNIT/200,
:16S:BENODET - Beneficial Owner details sequence - Name and Address, Country of Non-Domicile and Instrument denominated in Nominal
:16R:BENODET
:95V::OWND//Name and address
Name and address
Name and address
Name and address
:94C::NDOM//US
:36B::OWND//FAMT/100000,
:16S:BENODET
Processing rules
When an MT565 related to an MT564 event that requests to instruct at the beneficial owner level, is received, via ClearstreamXact or CreationOnline, Clearstream Banking will apply the following rules.
If the beneficial owner information is not present in the MT565 or not yet received:
- An MT567 is automatically sent to the customer with the status code PEND//FULL.
- When the beneficial owner data has been received from the customer, Clearstream Banking will approve the instruction. Based on the approval, an MT567 will be sent with the status code IPRC//PACK.
- When the beneficial owner data has not been received in due time, Clearstream Banking can reject the instruction at any time by sending a new MT567 with the status REJT//FULL.
The new reason code FULL will be reported in MT567 Corporate Action Status and Processing Advice messages, in subsequence A2a – Reason, as follows:
- PEND//FULL - Pending Beneficial Owner Details:
:24B::PEND/FULL - REJT//FULL - Missing Beneficial Owner Details:
:24B::REJT/FULL
Further information
For further details, please refer to the ClearstreamXact and CreationOnline documentation.
For further information, please contact the Clearstream Banking Connectivity Helpdesk or your Relationship Officer.
------------------------------------------
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.