Unexchanged or lost shareholders can become a headache in complying with your state’s escheatment laws and regulations, including fines and stiff penalties for non-compliance.
With increasing gaps in state budgets and declining tax revenues, state governments are looking to increase state revenue by targeting unclaimed property by investigating financial institutions. In fact, several states have reduced account dormancy periods while establishing stricter procedures for reporting unclaimed assets, in an attempt to increase revenue. Thus, financial institutions need to have a proactive approach to respond quickly and cost-effectively to these regulations.
Alliance’s Shareholder Asset Reunification Program
Employed by companies after mergers and/or acquisitions, the Alliance Shareholder Communications Shareholder Asset Reunification Program (“ShARP”) ties up the loose ends that remain from the transaction or when a mutual fund finds itself in a situation where it will be filing a significant amount of its holdings to the states as abandoned property. Whether these shareholders are confused, lost, deceased, lost their certificates, etc., the fact is that they have not responded to multiple mailing(s) by the transfer agent or fund group. Our experience is that these holders are unlikely to come forward to claim their assets unless a proactive campaign is undertaken to locate and assist them through the process.
Alliance Shareholder Communications’ ShARP service is designed to locate, contact and assist those shareholders that remain unexchanged or lost. Whether they need legal documents or hand holding through the exchange process, we ensure that your shareholders are aware of the Program and all of the options available to them. While ShARP is voluntary to shareholders, we fully disclose the asset they are due, our fees for assisting them as well as the fact that they still retain their right to exchange for free through the fund or transfer agent.
Hiring Alliance for a ShARP program is a cost-free turnkey solution for the issuer and will require very little, if any, ongoing attention while the program is running. The Program will be managed internally from start to finish, as we do not rely on outside third parties for any component of the program. The program will include a simplified one page LT mailing, an 800 number for phone calls, all processing and paying the participating shareholders, as well as ongoing reports detailing our progress. We typically generate response rates in excess of 75%.
Alliance’s Management Process
Alliance understands the challenges financial institutions face. To navigate our clients through the ever-changing regulatory environment, we design customized solutions that address each unique need, threat, opportunity and objective.
Alliance’s Proprietary Approach
As part of our approach, we evaluate the current situation your firm faces, while establishing policies that need to be set to meet objectives and overcome challenges. We also monitor each one of your strategic models while responding to regulations.
Why work with the Alliance Shareholder Communications team?
- The professionals at Alliance will:
- Identify and locate your lost holders
- Develop and implement customized communications strategies
- Manage and streamline the claim process
- Create detailed status reports informing you of every step we take
Alliance Shareholder Communications Shareholder Asset Reunification Program specializes in asset recovery services for post merger clean ups, mutual funds, and banks. We offer one of the most cost-effective ways to locate and contact shareholders. Whether they need legal documents or guidance through the entire asset recovery process, we ensure that your shareholders are aware of all of the options available to them.
Our services include:
About Alliance Shareholder Communications
- Consulting — A comprehensive evaluation of unclaimed asset liabilities
- Advisory — Guidance on the most effective methods to resolving unclaimed property issues
- Program Management — Start to finish program management by respected industry leaders
Alliance Shareholder Communications is a turnkey solution for unclaimed property. We locate owners of unclaimed property for corporations, banks and brokerage firms. Our process and risk management services ensure compliance with SEC and state rules and regulations, while minimizing costs. Our expertise and top-notch technology allows us to develop solutions to meet each one of our client’s unique needs and budget.
For more information on how we can help streamline your asset recovery process, contact Jonathan Duquette.
New Jersey Corporate Headquarters
Alliance Shareholder Communications
209 Cooper Avenue
Upper Montclair, NJ 07043
Telephone - 973.873.7704
Fax - 973.338.1430
Email – Jduquette@AllianceAdvisorsLLC.com