Equity Mandates

With equity mandates, a private company’s equity is turned into a bankable asset. This gives investors more investment incentives. ISP Group can support you throughout the whole process, from dematerialising your physical shares to listing your shares on the BX or SIX Swiss exchanges.

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What is an Equity Mandate?

Company shares which are bankable provide more investment incentives for investors.

 

With equity mandates, your private company’s equity is turned into a bankable asset with a Swiss ISIN (through issuance via SIX SIS) that is easy to transfer.

 

A private company must fulfill the following requirements to have ISP service an equity mandate:

  • Open an account with ISP including paying agent mandate
  • Enter into a contract for electronic share register maintenance
  • The private company’s articles of association must allow electronic book-entry securities to be created
What is an Equity Mandate?

How is your company’s equity transformed into a bankable asset?

1. ISP will help the client to dematerialise the company’s shares. By dematerialising the physical shares, ISP creates electronic shares with the respective value and delivers these to shareholders’ custody accounts at their custodian banks.

2. Every additional capital increase after that will be really simple to execute with a corporate action.  

3. In a potential further step, ISP can even help to list your shares on the BX or SIX Swiss exchanges. Learn more about our Liquidity Provision services. 

Advantages of an Equity Mandate

There are many advantages to this process. They can be grouped into three categories:

Advantages of an Equity Mandate

Advantages of Equity Mandates

Advantages of Share Dematerialisation

Advantages of Listing Your Shares on an Exchange

Advantages of Equity Mandates

Company shares which are bankable provide more investment incentives for investors, such as streamlined and electronic handling of corporate actions, capital increases, stock splits, dividends, etc.

Every additional capital increase after that will be very easy to execute with a corporate action. The proceeds from such capital increases can be used for company-related investments and may be transferred to the company’s principal bank.

Finally, shareholders will receive their shares booked into their accounts at their custodian bank.

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Advantages of Share Dematerialisation

  • There is no danger of share theft, fraud or even damage if you hold your shares in electronic format. 
  • It is a paperless process that is highly convenient for clients.  
  • Thanks to share dematerialisation:
    • Share transfers are exceptionally easy and almost instant compared to physical share certificates where transferring shares from one person to another would typically take days. 
    • Trades are settled faster.
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Advantages of Listing Your Shares on an Exchange

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ISP’s Role
in Equity Mandate Βusiness

Paying Agent

We provide Swiss-based companies with Swiss International Security Identification Numbers (ISINs).
We issue the shares on SIX SIS Ltd..
We service these securities during their lifetime (i.e. open accounts, create value rights, execute dividend payments).

 

Custodian

The private company will receive a company account at ISP.

Arranger

We will introduce and arrange contact between the private company and the necessary stakeholders (such as a share registry).

Paying Agent

We provide Swiss-based companies with Swiss International Security Identification Numbers (ISINs).
We issue the shares on SIX SIS Ltd..
We service these securities during their lifetime (i.e. open accounts, create value rights, execute dividend payments).

 

Custodian

The private company will receive a company account at ISP.

Arranger

We will introduce and arrange contact between the private company and the necessary stakeholders (such as a share registry).

Why Work with ISP?
Why Work with ISP?

We have already successfully accompanied numerous private companies on their journey to dematerialising their physical shares.

01

As your Swiss financial services boutique, we are a full-service advisor and the main point of contact for collaboration with SIX SIS Ltd. to facilitate the dematerialisation of your company’s shares. 

02

Our highly experienced professional team has issued more than 1'000 Swiss ISINs, providing cost-efficient services with tailored pricing.

03

Other Forms of Securitised Assets

Apart from AMCs, CLNs and Trackers, ISP can also help to transform assets into:

 

  • Bonds
  • Notes
  • Asset Backed Securities (“ABS”)
  • Exchange Traded Products (“ETPs”)
  • Convertible Credit Linked Notes
  • And Other Forms of Securitised Assets
Other Forms of Securitised Assets

Our Strength. Our People.

Our team consists of experts in the field of securitisation. We take a dynamic, dedicated and tailored approach that enables us to realise our clients’ goals and visions. With our can-do attitude, we strive to serve our clients with the highest level of professionalism in the most efficient way.