A Service Company, also known as a Servicer, is a specialised back-office service provider of bank-independent, insolvency-protected Securitisation Platforms.
In addition to realising and maintaining intelligent Securitisation Solutions for institutional clients, Administration and Calculation are critical roles in the Securitisation Process.
The Service Company is responsible for managing the day-to-day operations of a Securitisation. This includes maintaining records of the underlying assets, collecting and distributing payments, and ensuring compliance with the terms of the Securitisation. The Servicer acts as a vital link between the issuer, investors and other stakeholders involved in the Securitisation.
Furthermore, the Servicer determines the amounts due to investors under the terms of the Securitisation. This involves calculating interest and principal payments, determining the value of the underlying assets and making any necessary adjustments to the terms of the Securitisation. The calculation agent must be independent and impartial, without any conflicts of interest in their role as calculation agent.
In conclusion, the Service Company plays a crucial role in ensuring the smooth operation and management of a Securitisation and maintaining the integrity of the investment for investors.