There are a number of different corporate actions that may lead to the change in ownership of an account:
A merger occurs when legal entities join together to become a single entity. One entity may be absorbed into the other or both entitles may be merged into an entirely new entity. Often, the Certificate of Merger provided by the client will provide sufficient information in updating their accounts when a Merger has taken place.
A divestment is the sale of assets. A divestment may involve the sale of specific accounts or the sale of entire legal entities or companies.
Assignment and assumptions is the formal transfer of ownership to another firm.
A novation is a transfer of ownership of accounts and possibly agreements from the existing entity to another entity. In strict legal terms, a novation does not transfer rights and liabilities; it cancels an existing contract and replaces it with another. The Novation Agreement must be signed by all three parties: A Limited (the existing, exiting Client), B Limited (the new incoming Client) and Citi.
Currently, partial novation is only available in Citi London.
© 2018 Citibank, N.A. Confidential and Proprietary Citi Client Use ONLY