The rise of dividend​​ payments using CREST


Since we started supporting the payment of dividends through CREST two years ago, we have seen a positive take up by issuers and a significant value of dividends paid through CREST. There has also been more demand from custodians who hold their securities within the CREST system to have their dividend payments paid through CREST. 
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To meet the demands of the market we are looking to expand the service for all eligible CREST securities. This will become consistent with the payment of gilts and the settlement of cash for corporate actions which have been paid through CREST for a long time. Payment using CREST is available in Sterling, US Dollar and Euro.

Why CREST is now the preferred payment method of your largest shareholders:

The dividend funds will be cleared on the payment date. 

Rather than sending physical dividend confirmation statements to each shareholder, the electronic CREST payment message includes the required payment information.

Allowing the payment of dividends through CREST doesn't affect any of the other payment methods that you may offer to your shareholders, nor does it affect multi-currency payments, dividend reinvestment plans or scrip dividends.

The CREST participant is only required to lodge a single instruction with Euroclear to opt-in to this method of payment, which will apply to all of its shareholdings for their Participant ID. Where other payment methods/currencies are offered by you, the participant will still be able to elect for those options. 

Receipt of payments through CREST also reduces the number of payment channels which the custodians' back office teams are required to monitor for receipt of funds which can be received by cheque, BACS, CHAPS and Swift at different times of the day. ​

Payment by CREST removes the need for the participant to submit individual dividend mandate instructions for each shareholding which reduces the risk of payment error or payment rejection benefiting both issuers and registrars.​​

  • FTSE350 issuers have signed up to pay dividends using CREST

  • Paid by Computershare via CREST since February 2016

  • custodian holdings have the option to receive dividend payments via CREST

  • of cash dividends are anticipated to be paid through CREST (by value)

​If you would like more information about enabling the payment of your dividends through CREST, please contact your Client Manager.