Angela Fleming
Partner & Head of Financial Services Tax, BDO Dublin
Special Purpose Vehicles (SPVs) are legal entities created for specific, often narrow, temporary purposes. They are commonly used in various financial transactions, such as securitisation, asset-backed financing, mergers and acquisitions, and structured finance. SPVs serve to isolate and protect the assets and liabilities associated with a particular transaction or project, providing a degree of legal and financial separation from the sponsoring entity or entities.
SPVs are typically established as separate corporate entities, often with limited liability, to undertake specific activities or hold particular assets. By ring-fencing these activities or assets, SPVs help manage risk and facilitate complex financial arrangements. They can also provide tax advantages and regulatory benefits, depending on the jurisdiction and the nature of the transaction.
Overall, SPVs are a versatile tool used in a wide range of financial and commercial transactions to achieve specific objectives, such as risk mitigation, capital raising, or asset segregation. However, their use requires careful consideration of legal, tax, and regulatory implications to ensure compliance and achieve the desired outcomes.
At BDO, we offer tailored solutions to navigate the challenges of SPV management. From structuring and formation to regulatory compliance and tax optimisation, we empower clients to leverage SPVs effectively while ensuring compliance and maximising benefits.
Aircraft Leasing SPVs are specialised entities established for the sole purpose of leasing aircraft. These Special Purpose Vehicles entities acquire, own, and lease aircraft to airlines or other lessees, facilitating the financing and management of aircraft fleets. Unlike generic SPVs, Aircraft Leasing SPVs focus exclusively on aviation assets, requiring specific expertise in aircraft financing, leasing structures, and regulatory compliance.
Managing Aircraft Leasing SPVs entails unique challenges, including regulatory compliance with aviation authorities, maintenance of airworthiness standards, and adherence to lease agreements. Additionally, the cyclical nature of the aviation industry and geopolitical factors can impact the profitability and stability of aircraft leasing portfolios.
At BDO, we offer comprehensive support tailored to the intricacies of Aircraft Leasing SPVs. Our specialised team provides expertise in aircraft finance, tax structuring, regulatory compliance, and lease management. From structuring efficient financing arrangements to navigating complex regulatory requirements, we empower clients to optimise their aircraft leasing operations and mitigate risks effectively.
Securitisation, within the Corporate Service Provider (CSP) sector, involves the transformation of illiquid assets into tradable securities, such as asset-backed securities (ABS) or mortgage-backed securities (MBS), to raise capital. This process typically requires structuring Special Purpose Vehicles (SPVs) to hold the securitised assets and manage various administrative and regulatory aspects. Challenges in this sector include navigating complex regulatory frameworks, ensuring compliance with accounting standards, and effectively managing investor communication throughout the securitisation process.
BDO offers tailored support to clients in the securitisation sector by providing expertise in structuring transactions, establishing and managing SPVs, and navigating regulatory requirements. Our services encompass compliance assistance, regulatory reporting, and investor communication, ensuring that clients can execute securitisation transactions efficiently and effectively. With BDO's guidance, clients can maximise the benefits of securitisation while mitigating risks and ensuring compliance with regulatory standards.
BDO currently act as auditors and tax advisors to a large portfolio of Securitisation Companies including:
- Aircraft Leasing Securitisations
- CLOs
- CDOs
- Residential Mortgage-Backed Securities (RMBS)
- Collateralised Mortgage-Backed Securities (CBMS)
- Loan origination
- Bond/Debt issuance
- Life settlement assets
- Investment fund SPVs
We have close working relationships with all major corporate service providers and are a member of the Irish Debt Securities Association, with team members sitting on both the Audit Constituency Group and Tax Committee.
.jpg.aspx?lang=en-GB&width=362&height=259&ext=.jpg)
