The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—financial services, Brexit—impact on finance transactions—Key issues for securitisation transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.
'SPV' stands for 'special purpose vehicle'. An SPV is a body corporate, usually with limited liability, which is specially-incorporated for the purpose of a structured finance transaction in a jurisdiction and with an ownership structure which for tax, regulatory and/or accounting reasons result in favourable treatment for the transaction for which it has been set up. SPE (special purpose entity) and SPC (special purpose company) refer to essentially the same concept. (SPV, SPE and SPC can also to refer to the terms 'single purpose vehicle', 'single purpose entity' and 'single purpose company' respectively.)
SPVs are most often used as financing vehicles (typically, issuers of securities) in securitisation and structured finance transactions and therefore 'issuer' and 'SPV' become somewhat interchangeable terms as a matter of market practice. For a general introduction to securitisation transactions, see Practice Note: What is securitisation?
Insolvency remoteness refers to the result of the structural and
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234