Taking security over uncertificated shares held in CREST
Taking security over uncertificated shares held in CREST

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Taking security over uncertificated shares held in CREST
  • Types of shares
  • Registered shares
  • Registered shares—certificated shares
  • Registered Shares—uncertificated shares
  • What is CREST?
  • Participating securities
  • Transfer
  • How can shares be held in CREST
  • How can security be taken over shares in CREST?
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for lending lawyers?

Shares are commonly offered as security for a loan in commercial lending transactions.

Practice Note: Taking security over shares explains how to take security over shares in general. This Practice Note looks at specific issues relating to taking security over shares held in CREST, the UK's clearing and settlement system.

This Practice Note explains:

  1. the nature of registered shares and the difference between certificated and uncertificated shares

  2. what CREST is and how shares can be held in CREST

  3. how security can be taken over shares held in CREST

  4. the particular issues that arise when taking security over shares in CREST and key considerations when documenting the security

  5. perfection and priority issues when taking security over shares in CREST

  6. how to enforce security over shares in CREST

Different considerations apply where security over shares held in CREST is being taken by a settlement bank—these

Popular documents