3.35.6.2 Fund Split/Reverse Split

This topic provides information on fund split/reverse split.

During execution, the corporate actions procedure picks up all splits (or reverse splits, as applicable) whose corporate action date is the same as the current date, and with status as Unprocessed or Error. Subsequently, the pre-processing checks are performed.

A Fund Split results in change of unit holders balance quantity based on the change in face value of the fund. This is based on Split Parent Ratio and Split Resultant Ratio defined in the Corporate Action Maintenance Detail. The holdings in a fund post split will be Execution Only Business and Advised Business based on the classification in the source fund. Same is the case for Reverse Split.

Note:

If RDR and MIFID regulation co exists and corporate action is declared, the transaction category will continue in the individual transaction category for MIFID and RDR for each of the CA types. For instance, if there are holdings in legacy as per RDR, the system will move the holding accordingly.

The split (or reverse split, as applicable) procedure is then executed, which performs the actions as shown below, in the appropriate scenario:

• When the new fund is the same as the old fund
  This topic provides information on when the new fund is the same as the old fund.
• When the new fund is not the same as the old fund
  This topic provides information on when the new fund is not the same as the old fund.