Crest Share Custody Service for Employee Benefits Trusts

• Share options (CSOP, ESOP, EMI) 
• Long term incentive plans (including RSP, DFB) 
• Sharesave

Once the decision has been made on the share plan, the company will need to decide how to satisfy the shares requirement when the options are exercised or released.

• The most common is to get a block listing and issue new shares when called upon. However, this will dilute current shareholders and may not pass shareholder approval
• Depending on cash, a company may seek to purchase shares in the Market and engage an Employee Benefit Trust (“EBT”) to assist with the efficiency of holding shares in an unallocated Trustee account
• There are important statutory and tax exemptions which apply to EBTs. Ordinarily shares held in an EBT, normally offshore, are protected from Irish and UK capital gains tax
• The Trustee operating the EBT can only be used in connection with employees, former employees, and family members, but family members are at the Trusts discretion

We provide CREST Custody accounts to the Trustee to hold the shares until called upon to cover the shares requirement for the share plan exercise/release. We work closely with most Trustees and can offer an introduction to our panel of Trustees, 
including: 

• CREST dematerialised share custody
• Dividend waiver facility or full dividend payment against a mandate
• AGM voting
• Corporate action work
• Purchase and/or sell shares on behalf of the Trustee, as Trustee
• Undertake share sales to cover participant tax withholdings