Corporate action events
PLAC: Place of Incorporation
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PLAC announces that a company changes its place of incorporation: a new state for a US company or a new country for others. It is mandatory; often purely informative, it can include an exchange into a new ISIN or, where shares must be re-registered, a choice of registrar.
- Code
- PLAC
- Usually announced as
- MAND
What PLAC means
A company may move its legal home, for example to another country or, in the US, to another state. The holders keep the same economic interest, but the law that governs the company, and often the tax treatment of its distributions, changes.
The ECB SCoRE rulebook gives PLAC as MAND, with no movement, or with a SECU option used only when the ISIN changes (old ISIN debited, new ISIN credited). Clearstream states it announces such exchanges as EXOF with SECU. Where shares must be registered after the change, holders may have to elect a registrar, so read the options.
When you see it
- In an MT564 after shareholders approve a redomiciliation, often following an extraordinary meeting (XMET). The new place of incorporation is given in the notification.
- PLAC vs CHAN: CHAN covers changes of name, form or terms; PLAC is specifically the legal domicile. PLAC vs MRGR: some redomiciliations are done by merging into a new company, which is then announced as a merger.
What to do next
- Update the issuer’s country of incorporation in static data and review the withholding tax set-up for future dividends, which usually follows the issuer’s domicile.
- If there is a
SECUoption, reconcile the ISIN exchange on the MT566 and move open trades to the new ISIN.
Where it appears in MT and ISO 20022
MT (ISO 15022)
- MT564 sequence A (GENL),
:22F::CAEV//PLACwith:22F::CAMV//MAND - MT566 sequence A,
:22F::CAEV//PLACwhen securities are exchanged