A key focus for regulators and institutional investors is ensuring the systems and processes are in place to ensure an orderly wind down of a financial institution. Having in place a robust wind down service provides comfort for investors and addresses key regulatory conditions.
Our standby service is distinct to others, and includes three key elements:
- accelerated invocation, with invocation being tailored to requirements of funders with potential to invoke within 7 days;
- service can be tailored and bespoke for unique offerings and IT platforms; and
- economic costings and non-invasive.
RSM have been a great partner for AltFi and a very positive friend to the Alternative Finance sector as a whole. RSM have worked closely with many organisations in the sector and their brand really is one of those that is becoming synonymous with Alternative Finance. From our perspective it has been refreshing to work with a very straight forward professional services organisation and particularly one that not only understands the AltFi space but also invests and shows a genuinely active interest as much as RSM have. We look forward to a long, strong working relationship with them.
Example: Failure of a financial institution
RSM was introduced to the business after defaults in its loan book. We rapidly identified insolvency of the institution and to minimise the impact of the institution’s failure we immediately engaged with key stakeholders. Our team:
- implemented a stable closure programme to ensure a managed unwinding of the existing loan book and minimal disruption for investors;
- managed an orderly transfer of the loan book to a new provider;
- established systems to assist in the transfer of the loan book thereby minimised the distress associated with the institutions failure; and
- ensured ongoing service delivery to investors
and borrowers throughout transfer to new institution.
Background to the standby service
The alternative finance sector has grown exponentially since its inception, becoming increasingly mainstream and offering funding solutions to borrowers which previously were difficult to access. Innovative products supported by sound business models has led to significant investment in the sector with the UK’s FinTech industry being recognised as market leading.
During this innovative stage it is important that the appropriate structures are put in place to ensure that Fintechs are best placed to take advantage of the investment being made in the sector. At RSM we offer a range of services to ensure FinTech’s are 'investment ready'. We are experienced in advising on fund raising, compliance, risk and best practice. In addition, we offer a bespoke standby service.