Not Satisfied With Your Transfer Agent? What to Do
A transfer agent is the lifeline between your company and its
investors, but what happens when you are not happy with the
services being provided by your transfer agent or you run into
unexpected problems?
Rather than sending out RFPs (Request For Proposals) and seeking
out another transfer agent, it is a much better idea to try and
work things out with your current agent. This is the preferable
route to take for most businesses, as it is much easier than the
alternatives and should be chosen if at all possible. Seeking
out another transfer agent and trying to make the switch might
not be worth your while if you can remedy the situation with
your current transfer agent.
To fix the situation, you will need to open discussions with
your transfer agent. Before beginning the process, make a list
of items that you would like your transfer agent to improve upon
and specify what level of service you expect them to provide.
Place these points in order of importance - what improvements
are most important to you, your company and top management?
Schedule a meeting with the account manager (and his or her
manager if applicable) to discuss in a clear and coherent manner
what you expect of a transfer agent. Make sure he/she fully
understands the implications of your expectations and can
promise to firmly adhere to them.
Inform the transfer agent of your intention to tour their shop
as a prospective client would. This ensures that you are serious
about working well with the transfer agent and want to be
treated as an important customer. Also, be sure to get all your
expectations, agreements and the promises of the transfer agent
in writing as soon as possible. You can't leave any room for
future misunderstandings.
After the tour decide whether or not the account manager or any
of the staff you observed are adequately qualified or equipped
with the resources to carry out your specific expectations. All
too often an account manager is the root cause of the problem,
due to lack of experience, skill or training. Hiring a new
account manager may be the solution you were looking for.
At this point in the game, if you are satisfied with the
progress you've made with the issue and feel that the transfer
agent both understands your needs and can deliver on its new
promises, there is no need to set a tight deadline for full
compliance. On the other hand, if you've reached the point at
which you don't yet feel confident that the transfer agent will
change its ways without further prodding, it might be a good
idea to consider making a change.
Before sending out the usual RFP, however, make sure ahead of
time that your potential new transfer agent truly understands
what you're looking for - in plain English.
Most importantly, when researching a new transfer agent, pay
little heed to the often erroneous claims many agents make as to
their abilities and successes. Stay focused on the needs
specific to your company and stick to these expectations, making
sure the transfer agent possesses the requisite resources and
track record in the areas that are important to you. The
transfer agent should outline these points in its RFP response
and on the tour, but you should also look for feedback from
other clients who are similar in size, complexity and goals to
your company.