Special purpose vehicle Definition

GLOSSARY

What does Special purpose vehicle mean?

A legal structure sometimes also used in contingent asset funding strategies under which both the sponsor and the fund achieve a specific objective, eg the employer places assets into an SPV which are loaned back to the employer on specified terms, the returns being shared between the fund and the sponsor.

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Checklist for compromises of FCA-regulated entities: information requirements

Checklist for compromises of FCA-regulated entities: information requirements The Financial Conduct Authority (FCA) is the conduct regulator for financial services firms and financial markets in the United Kingdom. It has a duty under section 1B of the Financial Services and Markets Act 2000 (FSMA 2000) to pursue certain objectives, one of which is the consumer protection objective. The FCA lists its statutory objectives as to secure an appropriate degree of protection for consumers and to protect and enhance the integrity of UK financial markets, with a view to reducing the number of proposed compromises that they do not consider to be appropriate (see FG22/4, para 1.2). On 5 July 2022, the FCA published guidance on compromises of regulated firms (see FCA Guidance FG22/4 July 2022 and updated in January 2024) following their significant concerns about these tools being proposed and used by firms to avoid paying customers redress (see: LNB News 05/07/2022 72). Practitioners will need to take note of the guidance where the proposed compromise involves regulated companies, meaning...

Solvency II—timeline (2007–2023) [Archived]

Solvency II—timeline (2007–2023) [Archived] ARCHIVED: This timeline is archived and is no longer maintained. For key developments relating to the EU’s Solvency II framework (Directive 2008/138/EC), see EU Solvency II—timeline. For key developments relating to the UK's Solvency II regime, see UK Solvency II—timeline. 2023 Date Source Document Description 20 December 2023 Official Journal REGULATION (EU) 2023/2859 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 December 2023 establishing a European single access point providing centralised access to publicly available information of relevance to financial services, capital markets and sustainabilityDIRECTIVE (EU) 2023/2864 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 December 2023 amending certain Directives as regards the establishment and functioning of the European single access point Regulation (EU) 2023/2859 establishing a European Single Access Point (ESAP) providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability and Directive (EU) 2023/2864 amending certain Directives as regards the establishment and functioning of the ESAP was published in the Official Journal of the...

Asset-backed contributions for pension schemes

THIS PRACTICE NOTE APPLIES ONLY TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMESAsset-backed contribution arrangements are a tool, which can be used to help reduce pension scheme deficits. There are risks involved, although these can be mitigated through seeking appropriate professional advice and structuring the arrangement correctly. However, the ultimate question, which will need to be carefully considered by the scheme trustee and its advisers, is whether investing in an asset-backed contribution arrangement puts the trustee and the scheme in a better position than simply signing up to a long recovery plan.Since Marks & Spencer led the way in 2008 with a property-backed contribution arrangement designed to reduce the deficit carried by its pension scheme by £500m, a number of other major names have followed suit, including John Lewis, Sainsbury’s and Whitbread. Today, employers use asset-backed contributions as an efficient way to fund growing deficits in defined benefit occupational pension schemes.What is an asset-backed contribution arrangement?An asset-backed contribution (ABC) arrangement is a contractual funding arrangement by which a special purpose vehicle is...

Structure and key features of a solar project finance transaction

Structure and key features of a solar project finance transaction Introduction and key benefits of solar As the appetite for renewable energy has grown exponentially over the past decade, solar power projects have become increasingly prevalent. Of the two types of solar projects, photovoltaic (PV) and concentrated solar power (CSP), PV is the most common type. The low installation costs and short build times of solar PV projects have made them an attractive option for investors and sponsors in the energy sector. As at the end of March 2024, there was a total of 15.8 GW of solar capacity in the UK. This is an increase of 5.6% (837 MW) since March 2023. In addition, according to the International Energy Agency in Renewables 2023, China commissioned as much solar PV in 2023 as the entire world had done during 2022. On a global level, solar PV alone accounted for three-quarters of renewable capacity additions worldwide. A few of the key advantages of solar power are worth noting...

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Project lawyers’ completion documents list—onshore wind farm and ground-mounted solar projects—template

Project lawyers’ completion documents list—onshore wind farm and ground-mounted solar projects—template PROJECT DETAILS PROJECT NAME: [insert name of project] CLIENT: [insert name of client] [Insert name of firm] PROJECT LEAD: [insert name of client/lead partner] PROJECT PARTIES PROJECT PARTY DETAILS Account Bank(s) [insert name of Account Bank] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Account Bank] Agent [insert name of] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Agent] Architect [insert name of Architect] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Architect] Arrangers [insert name of Arrangers] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Arrangers] Civil Design Consultant [insert name of Civil Design Consultant] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Civil Design Consultant] Construction Contractor [insert name of Construction Contractor] (Company Registration No. [insert number]) whose registered office is at...

Pre-qualification questionnaire [Archived]

Pre-qualification questionnaire [Archived] Introduction The Authority intends to award a [contract OR framework agreement] for [requirement OR project] The procurement is subject to the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102. This pre-qualification questionnaire (PQQ) is based on the standard PQQ recommended to all contracting authorities in statutory guidance issued under PCR 2015, reg 107(1). The Authority will use the information provided in response to this PQQ to make an assessment of the Supplier’s economic and financial standing, technical and professional ability, and general good standing, and to decide who will be invited to [tender OR negotiate] to participate in a [competitive dialogue OR innovation partnership] procedure for the [contract OR framework agreement]. The background to the [requirement OR project] is set out in the accompanying Information Memorandum together with information on how the requirement is structured and the conditions of participation. PQQ responses will be assessed in accordance with the accompanying Evaluation Model. In this PQQ, ‘Authority’ means the...

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What is the position of a security holder if the company that created the security is dissolved?

What is the position of a security holder if the company that created the security is dissolved? This Q&A focuses on the impact the dissolution of a security provider can have on the ability of a security holder to effectively enforce its security. It also considers the position of a receiver appointed by the security holder prior to the dissolution of the relevant company. Summary If a security provider is dissolved as a matter of English law it is normally still possible for the security holder to enforce the security it holds by exercising the mortgagee’s power of sale. There may be circumstances in any particular case that make an application to restore the dissolved company to the register desirable to protect the security holder’s position. Circumstances where this issue commonly arises The problems associated with a security provider being dissolved while security is in force occur most often in real estate finance and other asset finance transactions. Typically, these issues arise where a special purpose...

In what circumstances do I really need to worry about commercial (or corporate) benefit?

In what circumstances do I really need to worry about commercial (or corporate) benefit? This Q&A explains when it is necessary to analyse whether an obligor in a banking transaction is receiving a commercial benefit (also called a corporate benefit) for participating in the transaction and why that might be important. For an explanation of how this matter arises in connection with guarantees which is the most common context in which the issue of commercial benefit arises in finance transactions, see Practice Note: Guarantees—commercial benefit. Summary Assessing whether an obligor in a finance transaction is receiving a commercial benefit is necessary where guarantees, third-party security or some other form of co-payment obligation is imposed on a party and that party is not the recipient of any funds being advanced either directly or indirectly eg by way of the borrower on-lending the money advanced to it. A lack of commercial benefit can invalidate a transaction or lead to it being challenged by shareholders or an insolvency officeholder. Consequences of...

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Insurance & Reinsurance weekly highlights—12 December 2024

This week's edition of Insurance & Reinsurance weekly highlights includes: Case analysis written by Sarah Prager KC, barrister at Deka Chambers in relation to the interaction between the Civil Liability (Contribution) Act 1978 and the Third Parties (Rights Against Insurers) Act 2010; Insured losses from disasters to top US$135bn, Swiss Re says; Insurers set to see boost from UK discount rate change; Insurance giant Allianz warns of rising insolvencies in 2025; PRA consults on liquidity reporting reforms for insurers; FCA outlines Consumer Duty focus areas and priorities for 2024/25; FCA issues updated perimeter report of December 2024; UK insurers post leadership diversity gains; FSB publishes inaugural list of insurers subject to resolution planning standards; IAIS adopts global insurance capital standard; cases and decisions; key dates for your diary; and other news highlights reported over the past week.

Insurance & Reinsurance weekly highlights—5 December 2024

This week's edition of Insurance & Reinsurance weekly highlights includes: EIOPA consults on proposed natural catastrophes awareness tool; Government revises UK personal injury compensation rate; Severity of cyber risk 'widely underestimated' in UK; MHCLG consults on permitted insurance fees for landlords and freeholders; PRA modification by consent for Solvency II firms with US-parented groups; EIOPA publishes second round of consultations on Solvency II review implementation; IAIS and FSI release joint note examining parametric insurance for natural catastrophe risks; IAIS releases 2024 Global Insurance Market Report; cases and decisions; key dates for your diary; and other news highlights reported over the past week.

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GLOSSARY