Garry Wynne outlines the Central Bank of Ireland's additional guidance on determining whether your company is an SPE.
Both Irish-resident (i) securitisation vehicles (FVCs) and (ii) Section 110 companies (SPVs) (together referred to as special purpose entities (SPEs)) are required to report data quarterly on their assets and liabilities to the Central Bank of Ireland (Central Bank). On 5 March 2020, the Central Bank published updated guidance on SPE reporting requirements.
The Central Bank’s updated guidance can be found as follows:
The primary update is additional guidance on how to determine whether your company is an SPE. There are also some technical changes to how the SPE’s data is reported.
Irish-resident companies with securitisation activities accounting for more than 50% of their balance sheet are required to report as FVCs. The Central Bank’s SPE Registration – FAQs define “securitisation” as:
“a transaction or scheme whereby an entity that is separate from the originator, or insurance or reinsurance undertaking, and is created for or serves the purpose of the transaction or scheme, issues financing instruments to investors, and one or more of the following takes place:
All companies that are availing of the special tax treatment as “qualifying companies” under Section 110 of the Taxes Consolidation Act 1997 (as amended) are required to report subject to the following exceptions:
If you are unsure of your reporting obligations to the Central Bank, our experienced Financial Services structured solutions group is on hand to provide advice and assistance.