Custodian & Trust Operations
Financial Recovery Technologies (FRT) has had many discussions and interactions with custodians and trust companies that highlight the challenges those institutions have in addressing securities class actions. Admittedly, banks are not designed to be class action specialists. In today's environment, as firms come under heightened scrutiny to demonstrate their value and worth to clients while operating in a fiduciary capacity, successfully addressing class actions can provide an opportunity to go beyond the minimum level of service and deliver maximum value.
Watch our on-demand webinar for a discussion about pain points that custodial and trust operations face in addressing securities class actions and present possible solutions to maximize efficiency and recoveries:
Inter-account transfers (free delivers/free receives)
Big data issues/legacy systems & account lineage
Class action settlements are one of many possible end results from law suits filed on behalf of investors who claim a financial loss in a particular stock. Recent trends indicate that the number of securities class actions will continue to rise, with a steady stream of litigation increasing with the pool of available recovery funds.
Every year, millions of dollars in settlement funds are distributed to eligible shareholders as a result of securities class action lawsuits. Institutional investors hold fiduciary responsibility to keep up to date on lawsuits involving investments they made on behalf of their clients.