How prepared is your Standby Servicing plan?
Following recent events in the UK, and through our experience working with Global investors, we’re seeing more scrutiny than ever in the standby servicing market. More questions are being asked and there’s a heightened demand for transparency. We welcome it all – everyone working in this space should be fully accountable.
As the largest provider of standby servicing in the UK, and probably Europe, we’re currently protecting more than £45bn of loan assets across more than 200 funding lines. As a result, we believe we’re also one of the few providers to have successfully managed several invocations, across a range of scenarios including insolvency and non-insolvency.
Putting it to the test
That experience has led us to offer clients a forensic Invocation Testing service. In simple terms, you give us an invocation scenario and we then work with you to test it in depth, as if it was real. We our senior team and carry out the process exactly as we would with a genuine invocation process. Every detail is fully documented, together with explanations of how each step is carried out. We also suggest any changes we might make if a similar invocation occurred for real – i.e. what might be sensible to bring forward, and what should be pushed back.
Each test we carry out is bespoke to a specific set of circumstances – but we can also test multiple scenarios individually. Standby servicing can be quite theoretical but, having been through the process several times, we understand the fluidity that’s required as a range of factors dictate what needs to happen next.
Sharing our knowledge
We’ve launched this Lenvi service because it provides investors with extra levels of security, transparency and reassurance in what we all know can be a volatile market. And we also know from the response from existing clients that there’s a significant demand out there. A lot of investors and legal professionals have never experienced invocations. They want to understand how they work in practice and we’re very happy to share our expertise.
Holding ourselves to account
Through our long experience in standby servicing, we maintain a standard in the market that few can expect to match. We have the numbers to back it up, and the relationships with the originators and the funders. But we can never allow any complacency to creep in so, by offering this test, we’re also holding ourselves to account. By showing how we put our plans into practice, we're providing the evidence that, if an invocation happens for real, we’re ready to manage it effectively.
Invocation Masterclass
If you’re interested in Invocation Testing but not quite ready for that commitment, we also offer an Invocation Masterclass for investors and legal professionals. This is where an experienced team of Lenvi colleagues join you on site to walk you through our case studies, explaining what went well, what was challenging and what we learned. The conversation then develops into a bespoke session as the questions we are asked vary widely. It’s a valuable opportunity to explore how well you’re protected, bringing you the confidence that comes from consulting with a highly skilled and experienced team.
If you would like to find out more about Lenvi Invocation Testing or our Invocation Masterclass simply contact our Capital Markets Team
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