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CM Connect

CMConnect

Secured Loans, Managed Risks

CMConnect is an intelligent, easy-to-use, self-service Collateral Management Solution by CSCS PLC for increased value and limited risks in LIEN transactions for you as a credit provider and for your customers using their stocks as collateral to access credit.

CMConnect Features

SELF SERVICE PORTAL

CMConnect grants credit providers online access to initiate, manage and monitor their collateral portfolio while enjoying convenience executing LIEN transactions and receiving updates.

COLLATERAL REPORTING AND MONITORING

Keep a close eye on the performance and status of your assets with full visibility of your portfolio and individual LIEN performance.

ANALYTICS ON ASSETS

Access in-depth analytics on your assets and intelligent reports for more informed and intelligent business decisions.

MARGIN CALLS TO CREDIT PROVIDER & BORROWER

Mitigate loss through real-time margin calls to both credit provider and the borrower when an active LIEN falls below an established threshold.

REAL-TIME NOTIFICATIONS & UPDATES

Keep up with account activities and make prompt decisions with real-time notifications and updates.

CMConnect Benefits

Convenience in executing lien transactions and receiving update.

Business intelligence on active liens and entire portfolio.

Gain traction in your loaning facility due to improved efficiency.

Mitigate loss through real-time margin call when an active lien falls below an established threshold.

Full visibility of your portfolio and individual lien performance.

Improve your customers’ experience through process automation.

Frequently Asked Questions

Lien services, is part of our collateral management solution, which affords investors the opportunity to use their securities such as equities, bonds and other assets available in CSCS Plc Depository and other depositories as collateral for loan facility. CSCS Plc holds assets placed under its lien custody in an efficiently secured manner and provides the lenders with current stocks analytics to enable the lenders re-access investors loans and take quality decision on margin calls for top-ups and asset liquidation.

The cost of registering for Lien Services on securities is cheaper compared with other asset classes. CSCS Plc charges 0.25% for equities and bonds with a minimum lien fee of #20,000. Also a payment of 7.5% Value Added Tax (VAT) on the fee is to be made.

Kindly click here to logon to the collateral management portal (CMConnect). Once you are logged in, you can proceed to request for your asset to be placed on lien by validating your asset, filing, and uploading the required document, and then make necessary payments.

Kindly click here to logon to the collateral management portal (CMConnect) and select, from the active lien list, the asset you want to release. Follow the prompt and upload all relevant documents and your request for a lien release will be processed.

The investor/borrower needs to provide the following documents

  1. Complete and sign the Joint Memorandum for Lien (JML)
  2. Provide broker consent letter
  3. Provide an undated sales mandate in favour of the lender
  4. Issue a letter authorizing the lender to date the undated sales mandate in case of default
  5. Provide evidence of payment
  6. Corporate entities are required to provide a board resolution of minutes extract consenting to the lien.
  1. Approach a lender of your choice and make your request
  2. If approved, obtain a consent letter from your broker
  3. Submits the required documents and payment evidence to the lender
  4. Lender initiates lien
  5. CSCS processes and send confirmation letters

Yes, a third-party’s security or securities could be used as collateral in as much as the investor (owner of the shares) provides adequate authorization and signs the JML

Lien can occur between multiple parties.

CSCS JML can be modified but the modification must be approved by CSCS

Notify the investor and issue an instruction to CSCS to lift the lien for disposal.

Shares placed on lien can be moved to the stockbroking choice of the lender in case of default, when the lender has fulfilled the default procedures. In addition, the investor may wish to change his/her broker after fulfilling his/her obligation to the lender, by issuing a written instruction to CSCS through the lender.

It is only the lender that can instruct CSCS to release shares placed on lien.

Shares placed on lien can be substituted by completing the lien addendum form.

Lien can be placed in perpetuity, but the annual renewal fees must be paid at every anniversary of the lien placement, using the current securities price; However, the fees can be paid upfront.

It is the responsibility of the lender to ensure that the lien fee is timely paid to avoid delay in processing.

The lender is expected to disburse only after it has received a lien confirmation letter from CSCS.

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