Intermediary Banking
Consortium is an international multi‑currency banking arrangement which provides professional advisors and introducers of business with a highly flexible range of accounts for their private, corporate and trust clients.
Consortium Account
Accounts held under Consortium offer instant access and pay an attractive interest rate by actively tracking key market indices. Consortium’s structure reduces the burden of administration as the underlying accounts can benefit from capital and interest split together with individual account reporting. Importantly, the interest rates applied are based on the total balances under the Consortium structure which means smaller accounts are not penalised.
Features
- An umbrella structure enabling the grouping of an infinite number of accounts within a single solution reducing the burden of administration.
- Premium interest rate, actively tracking one week inter-bank offer rates.
- Instant access accounts in £, US$ and €.
- A choice of flat or tiered rates, based upon total balances maintained by each introducer under the arrangement.
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An execution-only share dealing service available for equities, bonds and most funds or unit trusts, settled directly against your nominated account.
Rate Methodology
Consortium's Rate Methodology, gives the Consortium account the ability to track market indices for Sterling, Euro and US Dollars. This enables clients to take advantage of the movements in short-term money market rates. Previously, this was best achieved by using short-term fixed deposits, however, this severely restricted account access and liquidity. Consortium solves this problem by offering rates which truly reflect market movements whilst retaining the advantage of instant access and daily liquidity to funds.
Many banks calculate the interest rate that they pay to their professional clients using the base lending rate less a margin. We have chosen to link the rates that we pay to our professional clients to LIBOR (London Interbank Offered Rate).
The Consortium Fixing Rate is the one week fixed LIBOR rate as calculated and published by the British Bankers Association each Tuesday, rounded down to two decimal places. We pay our professional clients the Consortium Fixing Rate less an agreed margin.
Interest Rates
Consortium's flexible framework is complemented by a choice of fixed or tiered interest rate structures. In both cases, the actual rate structure offered will depend upon the total balances of all accounts maintained within the Consortium arrangement.
This is known as the Group Balance Value. The Consortium Fixing Rate (CFR) is the one week fixed LIBOR rate as calculated and published by the British Bankers Association each Tuesday.
Interest is paid gross without the deduction of tax, however, tax may be retained in certain circumstances in accordance with the European Savings Tax Directive. Rates are subject to change without notice.
Consortium Fixing Rate as at 14 February 2012
(this is the rate that will be used to calculate the interest rate as detailed below)
| GBP | EUR | USD |
|---|---|---|
| 0.62% |
0.32% |
0.19% |
Consortium Flat Interest Rates
Under the flat interest rate option, all accounts within the Consortium arrangement, irrespective of individual account balance, will receive the same interest rate. This interest rate is calculated on the total Group Balance Value. Where the margin is greater than the CFR a negative rate will not be applied.
| Grouping | Group Balance Value | Interest Rate |
|---|---|---|
| Group A | £50,000,000 + | CFR less 0.25% |
| Group B | £25,000,000 - £49,999,999 | CFR less 0.35% |
| Group C | £10,000,000 - £24,999,999 | CFR less 0.60% |
| Group D | £5,000,000 - £9,999,999 | CFR less 0.85% |
| Group E | £1,000,000 - £4,999,999 | CFR less 1.15% |
Consortium Tiered Interest Rates
Under the tiered interest rate option, interest rates are applied at individual account level based on the balance of the individual account, subject to the total Group Balance Value.
| Grouping | Group Balance Value | £0 - £99,999 | £100,000 - £499,999 | £500,000 + |
|---|---|---|---|---|
| Group A | £50,000,000 + | CFR less 0.90% | CFR less 0.30% | CFR less 0.20% |
| Group B | £25,000,000 - £49,999,999 | CFR less 1.00% | CFR less 0.40% | CFR less 0.30% |
| Group C | £10,000,000 - £24,999,999 | CFR less 1.50% | CFR less 0.70% | CFR less 0.50% |
| Group D | £5,000,000 - £9,999,999 | CFR less 2.00% | CFR less 1.20% | CFR less 0.70% |
| Group E | £1,000,000 - £4,999,999 | CFR less 2.00% | CFR less 1.50% | CFR less 0.95% |
Fees, Terms & Reports
Please find below the latest information regarding the above aspects of our banking products.
Fee Schedule
Terms & Conditions
Reports and Accounts
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