Transfer Indemnity Bonds

Indemnity Bonds are a form of guarantee issued by an Australian insurance company in favour of the company in which the securities are held.
They indemnify that company against any claims which may result from permitting securities to be transmitted to the legal personal representatives of the estate without requiring the persons claiming to be the legal personal representatives to obtain a grant of probate or a reseal of probate in Australia.

These bonds have evolved in recent years to be more shareholder focused and are now readily accepted by most Australian public companies/registries as they give the company protection against the risks associated with the transmission or transfer of the securities in question to a wrong party.
This alternative to obtaining probate or a reseal of an overseas probate, helps to speed up the registration process by eliminating the months of waiting for the Grant of probate to be processed therefore allowing the securities entitlements to be dealt with much quicker and usually at a lower cost.

Transfer Indemnity Bonds can also be of benefit where the probate is issued by an overseas country and probate in that country cannot be resealed in Australia.

Most Australian companies/registrars will accept a bond based on the market value of the securities plus an additional margin which may vary according to the securities involved. This provides a buffer against future share price increases.
Where the value of the bond would be greater than A$100,000 the company/registrar will usually insist that probate or a reseal of probate be obtained.

The cost of these bonds is governed by the value of the bond on a sliding scale.

We are aware that bonds, acceptable to companies/registrars, are issued by Australian Probate Bonds Underwriting Agency and a copy of the Application Form is included in our forms on this site.

Registry Services Australia Pty Ltd would be pleased to assist with the obtaining a Bond.