Best pricing incl. Paying Agent
Client case (09.12.2020):
My prospect signaled that he would proceed with us for a 4-5yr EMTN / USD 5-10mio AUM case, if we offer: Setup EUR 35k (incl. ISP Paying Agent fees) - The competitor quoted EUR 40k Running EUR 35k min 50bps (incl. ISP Paying Agent fees) - Same as the competitor
Milo respond (10.12.2020):
- on the structuring, as things stand at the moment ISP would charge 5K CHF with a min. of 10 bps on issuance. For a, say, 5mm EUR issuance this would be 5K EUR. Plus the administrator charges a set-up fee of approximately 2.5K EUR. So with your proposal below the net to divide between Abalone and Gessler would be 27.5K EUR, i.e. 13.7K EUR one-off each; - on the maintenance, as things stand at the moment the ISP cost would be 7.5K CHF p.a. with a min. of 10 bps p.a. for paying agent services + 6K CHF p.a. maintenance fee at umbrella level (Abalone would absorb the other 6K p.a. that is charged by ISP at umbrella level) + the administrator would charge another 10K EUR p.a. (if the accounting is not complex, potentially more if it is, so far we know little of the investment portfolio so cannot confirm). So with your proposal below the net to divide between Abalone and Gessler would be no more than 12.5K EUR p.a., i.e. no more than 6.75K EUR p.a. each.
Vincent (10.12.2020):
If Roberto agrees, we can use this leeway for our talks if absolutely necessary and would not have to ask again in this constellation. We are still oriented to the commission structure agreed. If we are obviously in competition with others, we can only win by offering better prices as long as there is still enough profit to share.
Roberto (10.12.2020):
If you guys are in agreement ok for me.