Success Story: Missed recoveries due to custodian change

FRT Admin
Site administrator
December 10, 2012

Previous Provider:  Custodian
Issue: Missed recoveries due to custodian change
Background: A current client of FRT was previously relying on their custodian to process securities class action claims. The client had changed custodians prior to partnering with FRT, which created a period of time when there was a lot of uncertainty as to the filing of class action claims. FRT discovered that as a result of the custodian change and the gap in class action coverage it created, a major filing was missed by both custodians on behalf of the client.

When a firm relies on multiple custodians or moves from one custodian to another, the accuracy of its securities class action coverage can be affected. Transferring funds or accounts between custodians can cause breaks in the overall transaction data picture. The accuracy of a firm’s transaction data directly affects the accuracy of claims. Incomplete or impartial data history can result in completely missed filings or incorrect filings for which the maximum recovery will not be obtained.

Having a comprehensive solution in which all data is aggregated and normalized greatly increases the accuracy of filings. Little is left to question when all transactions are in a centralized location, being handled by a group dedicated to only securities class actions. Incomplete filings or filings missed altogether can result in significant amounts of settlement dollars being forfeited.

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

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