CrestCo announced today a rebate of GBP 7.5 million – or around 10% of fees received in 2006 - to its clients.
The rebate will be paid in a lump sum to each client in early 2007, based on the transactional fees paid by the client in 2006.
Tim May, Chief Executive Officer of CrestCo, said: "Due to very high transaction volumes settled by Crest in 2006, we are able to close the year living up to our commitment to reduce costs to clients whenever possible. The rebate is a true reflection of the economies of scale that are realised with increased use of the Crest system. Taking into consideration this rebate and the tariff reductions implemented in April 2005 and May 2006, we will have saved clients more than GBP 25 million."
Fees that will be eligible for rebate are those that were paid by clients for using the Crest system, such as for transaction settlement and custody related services. It is expected that all CrestCo client segments, including the wholesale and retail markets, custodians and registrars, will benefit from a rebate of up to 10%, in proportion to the transactional fees paid to CrestCo.