Ocorian, a leading provider of independent debt administration services, offer tailored solutions to streamline the escrow process for deal parties. In this interview Sarah Grantham, Associate Director in Capital Markets at Ocorian, provides key insights into the benefits of outsourcing escrow services and how Ocorian sets up and manages escrows across various sectors.
Discover why Ocorian is the trusted partner for law firms seeking reliable and efficient escrow services.
Why are law firms outsourcing escrows?
Law firms that historically held their clients' funds or assets in escrow are now increasingly looking to outsource this function.
The heightened scrutiny and regulation surrounding escrows means that law firms are discouraged from bearing the responsibility of administering them themselves. Outsourcing escrows to independent agents allows law firms to minimise risk and focus on their core legal expertise, thereby enhancing client service.
Along with law firms, banks are also becoming more hesitant to administer escrows. According to Mondaq 'emerging capital frameworks such as Basel III will make it harder for banks to hold such short-dated escrows on their balance sheets'.
They went on to say 'None of this is to say banks will avoid escrow services altogether. But they are getting choosier, and the willingness to extend these services will increasingly depend on the relationship with the client - and the potential for profit'.
What are the benefits of using Ocorian as your escrow agent?
A key benefit of using a third-party escrow provider is that they are not subject to the same regulatory obligations that banks are, thereby allowing them increased flexibility when it comes to the type of transactions and clients they can service.
Ocorian offers a flexible and proactive approach to escrow services across a wide range of transactions, including M&A, restructurings, and litigation.
Ocorian's team of dedicated product specialists have extensive experience in administering escrows for complex and multi-jurisdictional transactions. Ocorian's streamlined process ensures quick and efficient completion of KYC through our dedicated compliance team. Moreover, Ocorian has strong, established relationships with our banking partners, enabling us to open escrow accounts in all major currencies in less than 72 hours.
How does Ocorian set-up an escrow?
There are three steps that all work in tandem to opening an escrow account with Ocorian:
- KYC – We require due diligence on both Party A and Party B. Our experienced transaction managers will act as the conduit between you and our compliance team, and will ensure KYC is completed quickly and painlessly.
- Account opening – Ocorian can open segregated escrow accounts in under 72 hours in all major currencies.
- Documentation – We'll work efficiently with all parties to finalise the escrow agreement and operational mechanics of the deal. We have our Ocorian escrow agreement which can be used as standard or tailored to your needs.
Which sectors does Ocorian specialise in for managing complex escrow transactions?
Ocorian takes a sector-agnostic approach to escrow services and can administer escrows across the majority of geographies and sectors, including aviation and marine finance.
Why choose Ocorian for escrow services?
When it comes to escrow services, Ocorian stands out as a
trusted partner for law firms seeking to outsource this critical
function.
With a responsive and proactive approach, our highly experienced
team can manage both the operational and legal aspects of your
complex transactions across any industry.
You will have a dedicated escrow transaction manager throughout the lifecycle of the transaction, enabling you to focus on your legal practice while Ocorian takes care of your escrow needs.
To learn more about how Ocorian can optimise your escrow services, contact us today.
What is an escrow agent?
The escrow agent is the trusted intermediary responsible for
holding money, securities, or other assets until all contractual
obligations specified in the escrow agreement are fulfilled. Once
the trigger event occurs, the escrow agent is instructed to release
the funds or assets to the predetermined party/parties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
