The insolvency remote SPV in structured finance
The insolvency remote SPV in structured finance

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • The insolvency remote SPV in structured finance
  • Introduction to SPVs
  • Aspects of insolvency remoteness
  • Limited permitted activities and outsourcing of functions
  • Accounting treatment of SPVs
  • Use of offshore SPVs
  • Securitisation Regulation requirements for SSPEs

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. 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.

Introduction to SPVs

What is an SPV?

'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