Non-renounceable rights cannot be sold on the market or transferred. If not actioned, these rights will lapse.
- Prior to the exercising/lapse of the Rights, the Rights account and number of Rights held by the fund can be created via the Corporate Actions screen using the Non-Renounceable Rights Issue Corporate Action type (see below).
- When the Rights are actioned, refer to Non-Renounceable Rights Issue Exercised/Lapsed.
How to Process
- From the Corporate Actions screen, view the Type column. Confirm Non-Renounceable Rights Issue appears under the column before proceeding.
- Select Process under the Action column.
- The Security will be automatically selected.
- Non-Renounceable Rights Issue will display as the Corporate Actions Type.
- The Ex / Balance Date (the Corporate Action Ex Date) and the Corporate Action Date (Transaction Date) will be selected. Simple Fund 360 will create a purchase transaction in the Transaction List.
Select the Rights Issue Account.
If the Rights account does not exist you will receive a warning. The code appearing in the warning is the ASX code which you can search for when adding the account to the Chart.
Please note that in most cases, Simple Fund 360 will capture the ASX data and have that rights account ASX code ready. In rare cases where that account is not available, users then have to go through the process of manually adding a new investment account for the rights.
If the account is not appearing, select Add New Investment. A new tab will open and you can search for the Rights code to attach the correct security. Once the investment is saved to the Chart of Accounts refresh the original Corporate Action tab and search for the newly added account.
- The number of Rights issued will display.
- Input the Amount Paid for the Rights. Currently this amount is recorded manually and will default to $0.
- Select Process Corporate Action once all information has been input.
- The Rights Issue will be posted to the ledger as a single line transaction unless an amount was paid for the Rights in which the following will be recorded:
DR 77600/DOWR.AX $XX
CR 94910 (Investment Data Clearing Account) $XX
- The Investment Data Clearing Account 94910 will need to be cleared against the bank via the Transaction List.
- These Rights will be held by the fund and ready for users to further process. For instructions on how to have the rights actioned/lapsed, please refer to Non-Renounceable Rights Issue Exercised/Lapsed.
How to Delete a Corporate Action
If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen.
|From the Main Toolbar, go to Investments.
|Select Corporate actions from the list.
Locate the corporate action under the Processed column to delete. Select the check box located next to the transaction and Delete.