Appendix A — Security Trustee Survey
A.1 Which of the following best describes your organisation?*
A
Trust or Foundation
B
Social Investment Fund Manager
C
Bank
D
Credit Union
E
Community Development Finance Institution
F
Individual Investor
G
Family Office
H
Charity
I
Social Enterprise
J
Legal or Investment Advisor
If this = F:
Jump to 3A.2 How many employees does your organisation have?*
A
<10
B
11-25
C
26-50
D
51-250
E
>250
A
100%
B
75%
C
50%
D
25%
E
<25%
A
Yes
B
It’s on a par with other activities
C
No, it’s a small part
D
It’s a new but growing area for us
E
We haven’t made any social investments yet
A.5 Which of the following best describes the type of investments your organisation tends to consider*
Select all that apply
A
Impact Investing - generates a financial return alongside positive social / environmental impact, variable risk profile
B
Venture Investing - high risk, start-ups and innovative models with the potential for growth to generate social / environmental impact at scale, financial return reflects risk
C
Institutional Investing - lower risk, mission-aligned impact
Select all that apply
A
<£10,000
B
£10,001 - £100,000
C
£100,001 - £250,000
D
£250,001 - £500,000
E
£500,001 - £1m
F
£1m - £5m
G
£5m
H
We haven't decided yet
A
0
B
1-10
C
11-50
D
51-100
E
101-250
F
>250
If 1 = J:
Jump to 10A.8 How would you describe your tolerance for financial risk?*
In the context of social/impact investments
If 1 = H or 1 = I:
Jump to 10A.9 What type of entities does your organisation tend to invest in or would consider investing in? *
Select all that apply
A
Charity
B
Community Interest Company
C
Other mission-locked organisations
D
For-profit company with a social or environmental focus
E
We would consider any entity with a social or environmental mission
F
Fund (e.g. as a partnership or a mutual fund)
Select all that apply
A
We would consider any type of investment structure or instrument
B
Security-backed debt instruments only
C
Unsecured debt instruments only
D
Quasi-equity/revenue participation, whether legally debt or equity
E
Equity
F
Community / Cooperative Shares
If this ≠ A and this ≠ B and this ≠ D:
Jump to 30A security trustee is a body appointed to hold and manage security interests on behalf of investors. It is typically needed in financial transactions involving multiple lenders or investors.
A
Very familiar
B
Somewhat familiar
C
Slightly familiar
D
I haven't come across this before
A.12 How confident do you feel that you (and your organisation) understand the role and responsibilities of a security trustee in a default scenario?
Responsibilities may include the level of authority afforded to a security trustee to act on behalf of investors
A.13 From your understanding, what are the core responsibilities of a security trustee? *
Select all that apply
A
Holding security (assets) on behalf of investors
B
Monitoring compliance with the terms of an investment agreement
C
Acting as a single point of contact in all matters between the investors and the borrower
D
Enforcing security in the event of a default
E
Managing the distribution of proceeds following an enforcement action
F
Other
If this = F:
Jump to 14
Always:
Jump to 15A.14 You said that there were 'other' core responsibilities of a security trustee. Please provide further details
A.15 How important do you think it is for investors to understand the role and responsibilities of a security trustee?*
If 1 = H or 1 = I or 1 = J:
Jump to 17This questions assumes the security trustee would be responsible for the interests of all investors
A
My organisation would take on the role
B
One of the other investors
C
A legal firm (or part of a legal group)
D
A financial institution (or part of a financial group)
E
A specialist company providing security trustee services
F
Not sure
Always:
Jump to 18This questions assumes the security trustee would be responsible for the interests of all investors
A
One of the investors
B
A legal firm (or part of a legal group)
C
A financial institution (or part of a financial group)
D
A specialist company providing security trustee services
E
Not sure
Rank the following from most to least important. Please rank at least your top 3.
A
Experience managing default scenarios
B
Expertise in social investment and impact-focused investment
C
Value for money
D
Regulated by the FCA
E
Independent from the investors and the borrower
F
Able to provide/procure legal advice
G
Driven by social mission
H
Sympathetic to the needs and wishes of the borrower
I
Only focused on the needs and wishes of investors
A.20 In the event of a default, where would you place the balance between borrower priorities and investor priorities?*
If 1 = H or 1 = I:
Jump to 22
If 1 = J:
Jump to 23
Always:
Jump to 21A
Yes
B
No
C
Not sure
If this = A:
Jump to 24
Always:
Jump to 30A
Yes
B
No
C
Not sure
If this = A:
Jump to 24
Always:
Jump to 30A
Yes
B
No
C
Not sure
If this = A:
Jump to 24
Always:
Jump to 30A.24 If yes, who was appointed to the role of security trustee?
Select all that apply if your organisation has multiple investments involving a security trustee
A
One of the other investors took on the role
B
My organisation took on the role
C
Financial institution
D
Legal firm
E
Specialist security trustee service
F
Not sure
Select all that apply if your organisation has multiple investments involving a security trustee
A
Secured loan
B
Secured bond
C
Social impact bond
A.26 What sort of assets formed the majority of the security?
Select all that apply if your organisation has multiple investments involving a security trustee
A
Residential property
B
Commercial property
C
Energy assets (e.g. solar panels)
D
Financial assets (shares, loans)
E
Working assets of the borrower (e.g. computers, furniture, etc.)
A.27 Have you, or your organisation, ever experienced a situation where a security trustee was required to act on behalf of investors in the event of a default?*
A
Yes
B
No
C
Not Sure
D
Prefer not to answer
If this = A:
Jump to 28
Always:
Jump to 30A.28 How did you find the experience working with the security trustee in a default scenario?
A
Excellent
B
Good
C
Neutral
D
Challenging
E
Very difficult
If this = D or this = E:
Jump to 29
Always:
Jump to 30A.29 Please elaborate on any challenges or difficulties faced
We understand that these matters are sensitive - please try to focus on challenges or difficulties that could have been avoided knowing what you know now.
A
Yes
B
No
C
Maybe
Always:
Jump to 32A.32 If you are happy to disclose your name and organisation, please enter your e-mail
By entering your e-mail address you consent to us processing it for the purposes of this research. We will not attribute anything to you or your organisation without permission. You can withdraw your consent at any time by contacting [email protected].
If this ≠ :
Jump to 33
Always:
Jump to Thank youA.33 Would you like us to e-mail you when the research results are published?
Yes
No