Briefing Note: Pensions related escrows
Context: Escrow arrangements can provide simple and efficient solutions where a shortfall exists in a pension scheme and the sponsor has agreed to set funds aside to cover that shortfall; they can also provide solutions in the context of concerns around surplus - and specifically, a trapped surplus.
LawDeb’s Corporate Trust team frequently engage with law firms and other advisers and have established good relationships in this area, but are keen to develop more.
Most recent mandate: a pension scheme shortfall was addressed by the company setting up an escrow arrangement to enable it to put aside funds over a period of 18 months by way of regular payments in to an escrow account.
After the expiry of that 18 month period the company will determine the shortfall and a single payment will be made to the pension fund from the escrow account on the written instructions of the parties. Any balance on the escrow account will then be returned to the company.
This structure is very straight forward; efficient and easily dealt with by LawDeb as Escrow Agent.
Do you know what escrow services are available to your clients at LawDeb?
Capability: In view of LawDeb’s domestic and international reputation as a unique provider of financial and professional services, we are frequently approached to act as a trusted independent third party to hold cash, documents, shares or other assets in escrow pending a particular outcome, milestone, delivery or other contingency.
LawDeb has a suite of market standard agreements ready to use. We also have a dedicated treasury team to deal with receipts and payments of cash and, where appropriate, the placing of funds on an interest-bearing basis.
Following the challenges that law firms now have using client accounts to hold funds in escrow, demand for our services has further increased.
We are valued for our independence and best in class service:
- We have documentation available for use
- We can open escrow accounts without delay
- Our KYC on-boarding process is efficient and quick
Please do contact key team members with any questions:
Eliot Solarz, Head of Corporate Trust
Richard Rance, Director
Nigel Letheren, Assistant