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The Letter of Indemnity process is required to minimise potential financial loss caused by any misuse of the original certificate(s) and indemnifies our client companies, and us, against this risk.
Countersignature and Administration are key components of the Letter of Indemnity service. The fee that we will charge you will depend on a number of variables such as: the value of the shares; whether we are able to provide and offer you the countersignature service, and the company in which the shares are held.
The countersignature on the letter of indemnity needs to be completed by an authorised UK bank or insurance company that is a member of the Association of British Insurers. They will need to underwrite any possible liability, of the certificate being used fraudulently, and protects the issuer against any potential losses. This is why a Countersignature Fee is often charged.
Equiniti can arrange for the countersignature to be waived on the Letter of Indemnity form by payment of a Countersignature Waived Fee. This will be quoted within the letter that we send to you or when quoting on the telephone call.
Equiniti’s Countersignature Waived Fees are shown below:
Please note: We are unable to provide the countersignature waiver service if the shares are valued over £100,000. If this is relevant to you, the options will be given in the letter that we send to you.
The Administration Fee is the amount we charge for the administration work involved in producing the Indemnity, and for placing a restriction on the original certificates and the issuance of a new certificate. If an Administration Fee is required, this will be detailed in the Letter of Indemnity form, and the accompanying letter, or will be quoted on the telephone call.
The current standard Administration Fees are shown below:
Please note: The value of shares is calculated at the time that the Letter of Indemnity is issued. This value determines the cost of any required fee.
For any of our Jersey registered clients, no VAT will apply.