3.35.6.2.2 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.

• The system checks that the new fund is an authorized fund in the system, with no existing holdings.
• The fund rule of the new fund is amended and the par value changed to reflect the latest split / reverse split ratio values.
• Balances of all unit holders balances in the old fund, as of a date less than the action date, are picked up.
• Unit-based switch transactions are initiated for the unit holders.
• Any underlying standing instructions for the unit holders in the old fund are marked as Expired; if any reversal has been done after original processing, the original SI status is restored.
• Any unexecuted limit orders for the unit holders in the old fund are marked as EXPIRED, and the limit status for underlying limit orders is marked as Ungenerated.
• The corporate action is processed after checking the holiday rules, for all the funds.
• If a reversal or an amendment has been done after original processing, a reversal transaction is generated for all transactions for the day with a reference type indicating split or reverse split.
• Fractional units, if any, that result from the processing of the corporate action, are computed.

Note:

When units resulting from processing of a corporate action are redeemed, the computation of capital gains tax (CGT) in respect of them takes the corporate action into account.