On 10 October, Euroclear made a key announcement. From early 2024, when an Issuer has chosen to offer CRESTPay as a dividend payment channel, all CREST Member Accounts will mandatorily receive their dividends that way. It’s therefore timely to have a reminder of how CRESTPay works for you as an Issuer, and for your shareholders, and consider why you should join the rapidly growing number of companies offering the service to their shareholders.
What is CRESTPay and why should I be interested?
CRESTPay is the distribution of dividend/interest payments and tax confirmations through CREST, transmitted electronically in a single message. The benefits of this include:
- Safe and secure transmission of payments which land with the recipient CREST Member on payment date.
- Avoids the upper payment value limit of BACs (£20m).
- It’s an alternative to large cheque and CHAPS payments; and the associated risks of potential fraud.
- Payments can be made in USD, EUR, as well as GBP.
- There is the potential for speedier onward payments to beneficial holders by their nominee providers.
Enhanced Security Measures
The CRESTPay functionality employs robust encryption techniques and multi-factor authentication protocols to protect user data and prevent unauthorized access. Users can enjoy peace of mind knowing that their financial information is safeguarded from potential threats.
CRESTPay replaces making these often-large value payments via BACs (where the £20m BACs limit is reached), or via CHAPs or cheque. EQ prides itself in being able to handle non-CRESTPay activities with decades of strong governance and controls. However, we embrace the reduced risk and simplicity associated with CRESTPay as a method for delivering these high value payments.
International Transactions Made Easy
With CREST payments, geographical barriers no longer pose a challenge for international transactions in GBP, EUR and USD. Payments via CREST leverage the network of partner banks and financial institutions to facilitate fast transactions. This makes it an ideal dividend distribution choice for international investors who are CREST Member participants.
EQ and CREST Payments
EQ has a well-established process and methodology to support our clients in the use of CRESTPay. If you do not already have CREST payment distribution enabled for your dividend, it’s simple to start.
By collaborating with our banking partner Lloyds Banking Group, EQ is ready to make payments using CRESTPay easily and efficiently on your behalf as an additional payment channel within the administration and distribution of your dividend. All you have to do is confirm that your Articles allow for this payment method and let us know you wish to offer it to your shareholders from your next dividend payment.