Charter Court Financial Services

Charter Court Financial Services Group plc was a United Kingdom financial-services company focused on specialist lending, retail savings, mortgage administration and credit analysis. The group was established in 2008 with long-term investment from Elliott Associates LP and Elliott International LP. Its original purpose was to provide credit consultancy and mortgage-administration services for pools of mortgage loans owned by third parties, rather than to operate as a conventional branch-based bank. The company developed its mortgage-origination and servicing platforms during its first years. In 2009 it received regulatory permission to act as an authorised mortgage administrator, and in October 2010 it obtained permission to act as an authorised mortgage lender. The group also launched Precise Mortgages in 2010, initially concentrating on buy-to-let lending before expanding into other specialist mortgage products. A major transformation came in January 2015, when Charter Court obtained a banking licence from the Prudential Regulation Authority. This made it one of the first new UK banks to receive a licence after the 2008 financial crisis. In March 2015 it launched Charter Savings Bank, an online retail savings bank serving customers in the United Kingdom. The bank operated without branches and offered products including fixed-rate bonds, notice accounts, easy-access savings accounts and cash ISAs. Customers could apply online, while support was provided through a UK-based call centre. Eligible deposits were protected under the Financial Services Compensation Scheme, subject to the applicable limits. The group operated through three principal specialist brands. Charter Savings Bank served retail depositors. Precise Mortgages provided residential, buy-to-let, bridging and second-charge mortgage products through a nationwide intermediary network. Exact Mortgage Experts provided mortgage servicing, credit consultancy, specialist analytics and portfolio-trading support to institutional clients. Exact administered mortgages originated by Precise Mortgages as well as selected third-party portfolios and held Fitch Ratings servicing classifications for its primary and special-servicing activities. Charter Court used technology-driven underwriting and credit-risk systems to support specialist mortgage decisions and servicing. Its business model combined regulated banking with mortgage origination, administration and analytical services, giving the group exposure to both retail deposits and intermediary-distributed lending. The company was authorised by the Prudential Regulation Authority and regulated by both the PRA and the Financial Conduct Authority. Charter Court completed an initial public offering in September 2017 and received a premium listing on the London Stock Exchange's Main Market on 4 October 2017. It subsequently became a constituent of the FTSE 250 Index. In March 2019, Charter Court and OneSavings Bank announced plans to merge. The transaction completed in October 2019, ending Charter Court's independent existence as a listed group. Its principal activities and brands were thereby brought into the combined OneSavings Bank structure.

Charter Court Financial Services was created in 2008 as a specialist credit and mortgage-services business. It received long-term investment from Elliott Associates LP and Elliott International LP and initially concentrated on credit consultancy and the administration of mortgage-loan pools owned by third parties. This foundation gave the company capabilities in underwriting, servicing and portfolio analysis before it entered retail banking. During 2009, Charter Court built and tested its mortgage-origination and servicing infrastructure. It then obtained permission from the Financial Services Authority, now succeeded by the Financial Conduct Authority for relevant conduct-regulation functions, to act as an authorised mortgage administrator. In October 2010 it received permission to lend against regulated mortgage contracts. That year it launched Precise Mortgages, initially as a buy-to-let specialist lender, and subsequently broadened its lending activity. The group expanded its servicing and analytical capabilities through Exact Mortgage Experts. Exact serviced mortgages originated by Precise Mortgages and selected third parties, while also providing institutional clients with credit consultancy, specialist analytics and mortgage-portfolio trading support. Fitch Ratings assigned and later improved servicing assessments for the group and Exact. The cited ratings history includes a UK Primary Servicer Rating of RPS3+ for Charter Court in 2013, an upgrade of its special-servicer assessment, an improvement of the primary-servicer rating to RPS2- in 2015 and a further upgrade to RPS2 in 2016. Exact's special-servicer rating was upgraded to RSS2 in 2015 and its primary-servicer rating to RPS2 in 2016. In January 2015 the Prudential Regulation Authority approved Charter Court's banking licence. The licence enabled the group to accept retail deposits and led to the March 2015 launch of Charter Savings Bank. Unlike a traditional high-street bank, Charter Savings Bank operated online without branches. It offered UK customers fixed-rate bonds, notice accounts, easy-access accounts and cash ISAs, supported by online applications and a UK-based telephone service. Eligible deposits were covered by the Financial Services Compensation Scheme within its statutory limits. Charter Court's operating model therefore consisted of three complementary specialist businesses. Charter Savings Bank gathered retail deposits; Precise Mortgages distributed residential, buy-to-let, bridging and second-charge mortgages through intermediaries; and Exact Mortgage Experts handled servicing, credit analysis and related institutional services. The group was regulated by the PRA and FCA and used technology-supported underwriting and risk-management processes. The company moved into public markets in 2017. It conducted an initial public offering in September and secured a premium listing on the London Stock Exchange's Main Market on 4 October. It later became a FTSE 250 constituent. Its independent public-company period was relatively short. In March 2019 Charter Court and OneSavings Bank announced a merger, which completed in October 2019. Following completion, Charter Court ceased to operate as an independent listed group and became part of the OneSavings Bank organisation.

• 2019

  Merger with OneSavings Bank completed

  [1]Charter Court Financial Servicesen.wikipedia.org

  The merger announced in March between Charter Court and OneSavings Bank was completed in October, ending Charter Court's independent listed status.

• 2017

  Initial public offering

  [1]Charter Court Financial Servicesen.wikipedia.org

  Charter Court completed an initial public offering and obtained a premium Main Market listing on the London Stock Exchange on 4 October.

• 2015

  Banking licence and Charter Savings Bank launch

  [1]Charter Court Financial Servicesen.wikipedia.org

  Charter Court received a PRA banking licence in January and launched its online retail savings brand, Charter Savings Bank, in March.

• 2010

  Precise Mortgages launched and lending permission obtained

  [1]Charter Court Financial Servicesen.wikipedia.org

  The group launched Precise Mortgages, initially focused on buy-to-let lending, and obtained authorisation to lend in relation to regulated mortgage contracts.

• 2009

  Mortgage-administration authorisation

  [1]Charter Court Financial Servicesen.wikipedia.org

  After developing its origination and servicing platforms, Charter Court received permission to act as an authorised mortgage administrator.

• 2008

  Company established

  [1]Charter Court Financial Servicesen.wikipedia.org

  Charter Court was established with investment from Elliott Associates LP and Elliott International LP to provide credit consultancy and mortgage administration for third-party loan pools.

A UK specialist financial-services group combining online retail savings with intermediary-distributed mortgage lending, mortgage servicing and credit expertise.

• Online retail banking and savings · 2015

  Charter Savings Bank

  Charter Savings Bank was Charter Court's branchless retail banking brand, launched in 2015 after the group obtained its PRA banking licence. It served UK customers through online applications and a UK-based call centre rather than a branch network. Its range included fixed-rate bonds, notice accounts, easy-access savings accounts and cash ISAs. Eligible deposits were protected by the Financial Services Compensation Scheme, subject to the scheme's applicable limits.

• Specialist mortgage lending · 2010

  Precise Mortgages

  Precise Mortgages was Charter Court's specialist lending brand. Launched in 2010 with an initial emphasis on buy-to-let lending, it developed a broader intermediary-distributed offering covering residential mortgages, buy-to-let mortgages, bridging loans and second-charge lending. Its underwriting and credit-risk processes were supported by technology designed for specialist mortgage cases and nationwide intermediary access.

• Mortgage servicing and credit analysis

  Exact Mortgage Experts

  Exact Mortgage Experts provided mortgage administration, servicing and credit-related services. It administered mortgages originated by Precise Mortgages and selected third parties, and offered institutional clients portfolio analytics, credit consultancy and support related to mortgage-portfolio trading. The business held Fitch Ratings assessments for primary and special servicing activities.

• 2019

  Merger with OneSavings BankM&A

  Background

  Charter Court and OneSavings Bank announced a combination in March 2019.

  Action taken

  The merger was completed in October 2019, transferring Charter Court into the OneSavings Bank structure.

  Aftermath

  Charter Court ceased to exist as an independent listed group.

  Source

• 2017

  Initial public offering and premium listingOther

  Background

  After expanding its banking, mortgage and servicing operations, Charter Court pursued access to public equity markets.

  Action taken

  The company conducted an initial public offering and obtained a premium listing on the Main Market of the London Stock Exchange on 4 October 2017.

  Aftermath

  Charter Court became a publicly traded company and later a constituent of the FTSE 250 Index.

  Source

• 2015

  Expansion into retail deposit bankingStrategy

  Background

  Charter Court had previously focused on specialist mortgage lending, administration and credit services. Obtaining a banking licence created the regulatory basis for accepting deposits from retail customers.

  Action taken

  The group launched Charter Savings Bank as an online savings bank offering fixed-rate, notice, easy-access and cash ISA products.

  Aftermath

  The group added a retail funding and savings operation to its existing specialist mortgage and servicing businesses.

  Source

• 2019

  Charter Court Financial Services and OneSavings Bank announce merger[1]Charter Court Financial Servicesen.wikipedia.org

  M&A

  Charter Court Financial Services and OneSavings Bank announced plans to merge in March 2019. The transaction was completed in October 2019, ending Charter Court's independent listed status.

• 2017

  Charter Court Financial Services completes London Stock Exchange listing[1]Charter Court Financial Servicesen.wikipedia.org

  Other

  Charter Court completed its initial public offering and obtained a premium listing on the Main Market of the London Stock Exchange on 4 October 2017. The company subsequently became part of the FTSE 250 Index.

• 2015

  Charter Court receives UK banking licence[1]Charter Court Financial Servicesen.wikipedia.org

  Regulation

  The Prudential Regulation Authority approved Charter Court's banking licence in January 2015, enabling the group to accept retail deposits through its Charter Savings Bank brand.

1. 1Charter Court Financial Servicesen.wikipedia.org