Exchanging WSLV for physical silver bullion
WisdomTree is pleased to partner with Metalor Technologies SA (“Metalor”) to expand its range of physical delivery options to allow investors in WisdomTree Core Physical Silver (“WSLV”), issued by WisdomTree Metal Securities Limited, to redeem their investment directly with the issuer in exchange for physical bullion.
WSLV security represents a right to receive the relevant metal entitlement in physical silver bullion (less any applicable deductions).
Investors can redeem WSLV (through the registered holder of the securities) direct the issuer, to deliver the physical silver bullion to a credit institution in such jurisdictions as agreed between the issuer and Metalor – currently being the UK, Germany and Switzerland.
Redemption instructions for different investor types
Select the investor type that best applies to you:
Step 1: Please take time to read the FAQs, Terms and Conditions for the Exchange of physical silver and the exchange form.
Step 2: Confirm who the Registered Holder is. Given that most individual investors hold their WSLV securities through a brokerage account, very few individual investors will be the registered holder. It is best to speak directly to your broker to discuss how your securities are held. If you believe you are a registered holder, you can contact WisdomTree directly at [email protected] to confirm.
Step 3: VERY IMPORTANT: Both you and your client will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, you will be able to submit the exchange form.
Step 4: Ask the Registered Holder in CREST to complete the exchange form. Your broker will need to provide certain details including:
- The Registered Holder’s CREST account details (Part A of the exchange form). This will allow us to match the broker’s trade in CREST when they redeem the relevant WSLV securities;
- The name of the registered holder; this will most likely be the name of a broker’s nominee or depositary account (Part B);
- Your name as beneficial owner (Part C)
- The number of securities you wish to redeem of WSLV. You will need to give this information to your broker and/or the Registered Holder (Part D);
- You will need to make clear which bank you wish to have your bullion delivered and provide relevant account details and a contact name at that bank.
- The Broker and/or the Registered Holder will need to provide a contact number and sign (Parts H and I).
Your Broker and/or Registered Holder can send the exchange form by email or post:
Email: [email protected]
Post:
The Administrator,
WisdomTree Physical Redemption,
IFC 5
St Helier
Jersey JE1 1ST
Channel Islands
Step 1: WisdomTree is offering a service whereby WSLV securities can be redeemed directly for physical bullion. Your client is requesting the direct redemption of WSLV securities in exchange for physical silver by delivery of the bullion to a bank either registered in the United Kingdom, Germany or Switzerland). Please take time to read the FAQs, Terms and Conditions for the exchange for physical silver and the exchange form.
Step 2: You and your client will need to confirm who the Registered Holder is. Given that most individual investors hold their WSLV securities through a brokerage account, very few individual investors will be the registered holder. Most beneficial owners of exchange traded securities hold those securities in brokerage accounts, and their brokers hold the securities through additional accounts (often called “nominee accounts”). As an issuer, WisdomTree Metal Securities Limited can only see the names of these nominee accounts on its register. The registered holder of the WSLV securities may apply for redemption on its own behalf, or as nominee on behalf of the beneficial holder. Additionally, WSLV securities held in settlement systems outside of CREST will need to track the ownership chain through to the ultimate CREST holding. As a result, your client will likely need your help in completing the redemption process.
Step 3: VERY IMPORTANT: Both you and your client will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, we will confirm receipt of the exchange form and commence the exchange.
Step 4: You may need to help your client complete the exchange form and Brokers will generally need to provide the following details:
- Your CREST account details. (Part A) Please note that redemption of the WSLV securities will be free of payment, with the securities delivered to the Issuer and matched in CREST but no cash flowing the other way. The Issuer will provide a confirmation of the transfer of silver to the relevant unallocated account of Metalor who will then deliver to the relevant bank registered in the United Kingdom, Germany or Switzerland.
- Please enter the name of the registered holder (your nominee or depositary account name) (Part B);
- Please enter the name of the beneficial owner (Part C);
- The number of securities of WSLV your client wishes to redeem (Part D);
- You will need to make clear which bank you wish to have your bullion delivered and provide relevant account details and a contact name at that bank (Part E);
- Provide contact details for confirmation of redemption and exchange and sign the exchange form (Parts H and I). It is important the exchange form is signed by the Registered Security Holder.
You or your client can send the exchange form by email or post:
Email: [email protected]
Post:
The Administrator,
WisdomTree Physical Redemption,
IFC 5
St Helier
Jersey JE1 1ST
Channel Islands
Frequently asked questions
General
Q1. Can I redeem my silver securities (WSLV) for physical silver bullion?
Yes, WSLV security entitles the registered holder, within CREST, to payment of silver bullion subject to the Conditions. The relevant amount of silver bullion is referred to as the Metal Entitlement and is published by the Issuer on its website.
Q2. What kind of silver bullion can I receive?
For silver securities an investor can elect to receive silver bullion in amounts as low as 1 kilogram up to the LBMA good delivery bars of ca. 28kg in incremental amounts of as low 100g.
Q3. Is there a minimum number of securities that I have to redeem?
Investors need to redeem sufficient securities to generate more than 1 kilogram of silver bullion.
Q4. What happens if I redeem and there is silver bullion left over after the exchange for the silver securities?
Any excess over the nearest whole integer in 100’s of grams in silver (after deducting for the relevant redemption fee) to be delivered will be a fee payable to the Issuer to cover the cost of the redemption.
Q5. How do I receive my Bullion?
Bullion in respect of WSLV securities will only be delivered to a bank or financial institution registered in Germany, the United Kingdom or Switzerland with whom you have a relationship.
Costs
Q6. How much does redemption and exchange into Bullion cost?
A fee is charged to cover the cost of exchanging the securities into physical bullion. This fee will be deducted from the amount of silver bullion available for delivery to you, and as a result, will reduce the amount of silver bullion the Security Holder will receive. Currently, the fee is equal to the greater of (i) fifteen ounces of Bullion, or (ii) 15% of the total amount of silver bullion being redeemed. Any remaining amounts that are less than one hundred grams will not be delivered or paid out to the investor.
Q7. Why is there a fee to exchange for Bullion?
The market for physical silver bullion is different from the wholesale market for LBMA Good Delivery Bars held by the issuer. Whereas LBMA Good Delivery Bars generally trade at or fairly close to the spot price of silver bullion, physical silver bullion is sold at a premium (and are often repurchased at a discount). The majority of the premium is set by the manufacturer, reflecting its operating cost and profit margin.
Q8. Is there any VAT payable on the redemption and exchange?
There may be VAT due on the delivery of silver, please confirm with your tax advisor as the redeeming security holder would be responsible for paying any VAT due.
Q9. What risks does the exchange for silver bullion involve?
Investors should be aware that physical silver bullion is not as liquid as unallocated silver bullion. As a result, an investor taking delivery of physical silver bullion may not be able to easily sell it, or, if an investor can sell it, the price may be less than the then prevailing spot price for silver bullion.
In addition, investors should note that the silver bullion attributable to WSLV securities is transferred out of the Custodian's allocated Secured Metal Accounts into the unallocated account of Metalor where it is held on trust for the redeeming Registered Holder. This means that the physical silver bullion is no longer under the protection of the Security Deed and title and risk in the bullion will pass to the Registered Holder.
Neither the Trustee nor WisdomTree Metal Securities Limited shall be responsible or liable for any failure by Metalor to effect a delivery of the relevant bullion in accordance with the instructions of the Issuer.
For further information on risks more generally please see the section of the Prospectus of WisdomTree Metal Securities Limited entitled "Risk Factors" and the terms and conditions document in relation to physical delivery.
How to redeem
Q10. What does it mean that only the “registered holder” has a right to elect for exchange for physical silver bullion?
For most securities that are traded on exchange, there is a difference between the holder of record who is registered on the records of an issuer and the beneficial owner who ultimately owns security. Most beneficial owners of exchange traded securities hold those securities in brokerage accounts, and their brokers hold the securities through additional accounts (often called “nominee accounts”). As an issuer, MSL can only see the names of these nominee accounts on its register. The registered holder of WSLV securities may apply for exchange for bullion on its own behalf, or as nominee on behalf of the beneficial holder.
Q11. How do I know if I am the registered holder?
Given that most individual investors hold their WSLV securities through a brokerage account, very few individual investors will be the registered holder.
Q12. So if I am not the registered holder, how do I apply for exchange for physical silver bullion?
While some holders may hold WSLV securities directly, it is likely that most investors will hold it through a broker or other financial intermediary and even in different settlement systems. In those cases, the Security Holder listed on the Register is likely to be the broker’s or financial intermediary’s nominee account. Investors should contact their broker or financial intermediary to ask them to assist in the redemption and exchange process (described in detail below). WisdomTree is happy to speak to the broker to explain the process. For assistance, please direct them to: [email protected].
Q13. What happens if my broker cannot help with the redemption process?
If your broker is unable to help with the exchange process, please contact us at [email protected]
Q14. Do I need to fill out a form?
The registered Security Holder must provide a redemption form specifying the following:
- The name of the Security Holder listed on the Register and appropriate contact details
- The name of the beneficial owner of WSLV securities
- Whether WSLV securities are being redeemed and the number of securities to be redeemed and exchanged for physical silver bullion
- The relevant account details at a bank or financial institution and a contact name at said bank.
The completed form should be sent to the following email address: [email protected].
Alternatively, it can be posted to:
The Administrator,
WisdomTree Physical Redemption,
IFC 5
St Helier
Jersey JE1 1ST
Channel Islands
Q15. Is there any Client Due Diligence/Anti Money Laundering ("CDD/AML") documentation required?
Yes, the beneficial owner must provide appropriate CDD/AML documentation.
We cannot begin the redemption and exchange process until we have received the required CDD/AML information and performed the necessary review.
Once we complete the CDD/AML process, we will confirm receipt of the exchange form and commence the redemption and exchange.
For more detail, investors should refer to the CDD/AML procedures.
Q16. What is the proposed timeline for exchange?
Before the actual redemption and exchange process may begin, we must receive physical CDD/AML documents and perform the necessary CDD/AML checks. Those checks can take a few days. Once we have completed those checks, we will confirm receipt of a valid exchange form; from that point, the redemption of WSLV securities against the delivery of physical bullion can take up to two weeks and is dependent on Metal. Redemptions for large amounts of bullion may take longer as set out in the terms and conditions for physical redemption.