The document discusses data gaps and shadow banking activities related to special purpose vehicles (SPVs) in Ireland. It finds that in 2012 there were approximately 1,300 SPVs and financial vehicle corporations (FVCs) located in Ireland, with 700 classified as FVCs and 600 as SPVs. FVCs engage in securitization activities and report to the Central Bank of Ireland, while SPVs have a wider range of activities but do not report. The document aims to help address data gaps by analyzing the activities of both FVCs and SPVs registered in Ireland.
Hedge Funds & AIFMD - what you should be doing to comply - Part 2 GECKO Governance
This is the second of our two part white paper covering AIFMD and what fund managers should be doing to comply. It is available here - http://lnkd.in/A4VeHz
The first part of this white paper (available here http://lnkd.in/ti3S37) examined many of the main areas fund managers should be reviewing to comply with AIFMD. This included identifying the AIFM, leverage calculations, fund manager authorization, depository selection, remuneration policies, and the requirements for non-European managers.
The second part of this white paper will look at the other important areas of the directive and what is required. These include fund domiciliation, manager liability, reporting requirements, managing illiquid investments and opportunities presented by the legislation.
Chambers Global Practice Guide to Banking and Finance in IrelandMatheson Law Firm
This document provides an overview and summary of banking and finance law and practice in Ireland, contributed by the law firm Matheson. It discusses key topics such as:
- The Irish loan market, including the impact of economic cycles and regulation, high-yield markets, and alternative credit providers.
- Requirements for authorization to provide financing to companies in Ireland.
- Structuring considerations for loans in Ireland, including any restrictions on foreign lenders, controls on foreign currency exchange, and acceptable uses of loan proceeds.
- Common mechanisms for loan transfers, debt buybacks, and public acquisition finance deals.
- Tax implications including withholding tax and other duties or charges.
- Common forms
IDFC is a major provider of infrastructure financing in India. Over the past 5 years, it has tripled its project approvals and nearly doubled its disbursements. It offers a wide range of financial products and services including project finance, private equity, asset management, and investment banking. IDFC has grown significantly in recent years, with its net worth increasing over 2.5 times and total assets growing nearly 3 times from 2005 to 2010. It aims to further support the development of infrastructure across India.
IDFC is a major provider of infrastructure financing in India. It offers project financing, equity financing, structured products, and advisory/investment banking services focused on key sectors like transport, energy, telecom, and industrial infrastructure. IDFC has expanded from primarily financing power and roads to also include energy, IT, urban infrastructure, food, and agribusiness. It manages funds, provides investment banking services, and develops and finances infrastructure projects to support growth of the Indian economy.
The committee was constituted to rationalize the definition of foreign direct investment (FDI) and foreign institutional investment (FII) based on an announcement by the Finance Minister. The committee met several times and studied conceptual frameworks for FDI and portfolio investment. It recommended merging various portfolio investment forms under a single foreign portfolio investment (FPI) definition. Investments of less than 10% would be considered FPI, while those of 10% or more would be FDI. The committee also provided other recommendations regarding foreign venture capital investors, non-resident Indian investors, and concluded that the classifications should ultimately be simplified to FPI and FDI investors.
The document discusses the increasing interest in RMB-denominated private equity funds in China and recent regulatory developments. It notes that many international PE firms are now setting up onshore entities and raising local capital in RMB to invest in China, as the number of RMB fundraising cases has been climbing since 2006 while foreign currency funds have declined. Some of the key drivers include difficulties with offshore structures, competition from domestic funds, access to local limited partners, proximity to deal sources, and development of domestic capital markets. Recent regulations have provided a basic framework but lack a national-level legal framework, which has slowed further development.
The Export-Import Bank of India was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. It aims to promote India's international trade by functioning as the principal financial institution for organizations involved in financing exports and imports. Exim Bank provides a wide range of financing programs, advisory services, and research to support all types of exporters and importers in India.
Hedge Funds & AIFMD - what you should be doing to comply - Part 2 GECKO Governance
This is the second of our two part white paper covering AIFMD and what fund managers should be doing to comply. It is available here - http://lnkd.in/A4VeHz
The first part of this white paper (available here http://lnkd.in/ti3S37) examined many of the main areas fund managers should be reviewing to comply with AIFMD. This included identifying the AIFM, leverage calculations, fund manager authorization, depository selection, remuneration policies, and the requirements for non-European managers.
The second part of this white paper will look at the other important areas of the directive and what is required. These include fund domiciliation, manager liability, reporting requirements, managing illiquid investments and opportunities presented by the legislation.
Chambers Global Practice Guide to Banking and Finance in IrelandMatheson Law Firm
This document provides an overview and summary of banking and finance law and practice in Ireland, contributed by the law firm Matheson. It discusses key topics such as:
- The Irish loan market, including the impact of economic cycles and regulation, high-yield markets, and alternative credit providers.
- Requirements for authorization to provide financing to companies in Ireland.
- Structuring considerations for loans in Ireland, including any restrictions on foreign lenders, controls on foreign currency exchange, and acceptable uses of loan proceeds.
- Common mechanisms for loan transfers, debt buybacks, and public acquisition finance deals.
- Tax implications including withholding tax and other duties or charges.
- Common forms
IDFC is a major provider of infrastructure financing in India. Over the past 5 years, it has tripled its project approvals and nearly doubled its disbursements. It offers a wide range of financial products and services including project finance, private equity, asset management, and investment banking. IDFC has grown significantly in recent years, with its net worth increasing over 2.5 times and total assets growing nearly 3 times from 2005 to 2010. It aims to further support the development of infrastructure across India.
IDFC is a major provider of infrastructure financing in India. It offers project financing, equity financing, structured products, and advisory/investment banking services focused on key sectors like transport, energy, telecom, and industrial infrastructure. IDFC has expanded from primarily financing power and roads to also include energy, IT, urban infrastructure, food, and agribusiness. It manages funds, provides investment banking services, and develops and finances infrastructure projects to support growth of the Indian economy.
The committee was constituted to rationalize the definition of foreign direct investment (FDI) and foreign institutional investment (FII) based on an announcement by the Finance Minister. The committee met several times and studied conceptual frameworks for FDI and portfolio investment. It recommended merging various portfolio investment forms under a single foreign portfolio investment (FPI) definition. Investments of less than 10% would be considered FPI, while those of 10% or more would be FDI. The committee also provided other recommendations regarding foreign venture capital investors, non-resident Indian investors, and concluded that the classifications should ultimately be simplified to FPI and FDI investors.
The document discusses the increasing interest in RMB-denominated private equity funds in China and recent regulatory developments. It notes that many international PE firms are now setting up onshore entities and raising local capital in RMB to invest in China, as the number of RMB fundraising cases has been climbing since 2006 while foreign currency funds have declined. Some of the key drivers include difficulties with offshore structures, competition from domestic funds, access to local limited partners, proximity to deal sources, and development of domestic capital markets. Recent regulations have provided a basic framework but lack a national-level legal framework, which has slowed further development.
The Export-Import Bank of India was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. It aims to promote India's international trade by functioning as the principal financial institution for organizations involved in financing exports and imports. Exim Bank provides a wide range of financing programs, advisory services, and research to support all types of exporters and importers in India.
This document provides an overview of foreign portfolio investment (FPI) in India. It discusses the origin and composition of FPI flows, including foreign institutional investments, depository receipts, and offshore funds. It explains that FPI consists of passive investments in stocks, bonds, and other securities, as opposed to foreign direct investment which involves ownership and management of firms. The document outlines the benefits of FPI to India's economy as well as trends in FPI over time. It also analyzes the determinants and impacts of FPI flows, including both risks and benefits. In summary, the document serves as a comprehensive introduction to the topic of foreign portfolio investment in the Indian financial market.
Export-Import Bank of India is the premier export finance institution of the country.
It commenced operations in 1982 under the Export-Import Bank of India Act 1981.
Government of India launched the institution with a mandate to not just enhance exports from India, but also to integrate the country’s foreign trade and investment with the overall economic growth.
Mutual funds allow investors to pool their money together into a portfolio that is managed by professional fund managers. The key points are:
- A mutual fund is a common pool of money from investors that is invested in different securities according to the fund's objectives. Each investor owns a proportional share of the fund's assets and earnings.
- Mutual funds are operated by an asset management company, held in trust by trustees, and involve other entities like custodians.
- The main advantages are diversification, professional management, low minimum investment amounts, and various purchase and redemption options. The main disadvantages include fees, potential underperformance, and tax complexity.
- A fund's performance is determined by its
The document discusses international arbitration and its role in promoting foreign direct investment in developing countries. It defines key terms like foreign direct investment and the International Centre for Settlement of Investment Disputes. International arbitration offers investors an impartial dispute resolution process compared to local courts. Joining arbitration organizations like ICSID signals a country's commitment to protecting foreign investors and encouraging investment. The document also summarizes the Occidental Petroleum v. Ecuador case which resulted in a $1.77 billion award, the largest in ICSID history.
This document summarizes the categories of foreign portfolio investors (FPIs) and the eligibility criteria for registration as an FPI. It outlines three categories of FPIs - Category I includes foreign government-related entities, Category II includes regulated foreign banks and funds, and Category III includes other foreign investors not covered in Categories I and II. It also describes the types of instruments FPIs can invest in in India, such as listed shares, government securities, and corporate debt. The document notes that FPI regulations prohibit investment in unlisted shares but allow existing holdings to be maintained. It concludes by listing the eligibility criteria an applicant must meet for FPI registration, including experience, competence, reputation, and being from a country with
The document discusses export financing provided by banks and EXIM Bank in India. It outlines various pre-shipment and post-shipment financing options available to exporters, including pre-shipment credit, post-shipment credit, supplier's credit, and buyer's credit. It also discusses working capital financing, term loans, project financing, and other facilities provided by EXIM Bank and commercial banks to support exports.
This document discusses investor protection and the role of regulators in India. It covers the concepts of investor protection, the various types of investors, and the laws and agencies involved in protecting investors, including SEBI, RBI, and various government ministries and committees. It also outlines the compliances required by companies, methods for investor grievance redressal, and securities market awareness campaigns to educate investors. In conclusion, the key roles of regulatory bodies are protecting investor interests, promoting transparency, and maintaining confidence in the stock market through coordinated efforts and investor education.
This document provides an overview of various types of corporate finance, including syndicated loans, project finance, acquisition finance, securitization, and bonds/commercial paper. It discusses key aspects of each type such as common structures, legal documentation, and participants. Syndicated loans involve a group of lenders providing funds to a borrower and are negotiated in three steps. Project finance uses financing instruments for infrastructure projects, with funds repaid from project revenues. Acquisition finance often uses leveraged buyouts involving a special purpose vehicle to purchase assets/shares and merge with the target. Securitization involves transferring receivables to a special purpose vehicle that finances the purchase through bonds or loans.
Türk Eximbank was established in 1987 by the Turkish government to support the country's export growth strategy. It provides various credit, guarantee, and insurance programs to Turkish exporters, contractors, investors, and companies earning foreign currency. These include short, medium, and long-term cash credits as well as non-cash programs. Türk Eximbank works closely with commercial banks in Turkey to encourage export financing. It aims to conform to international standards set by organizations like the OECD.
International financial reporting standards (ifrs)Nikhil Priya
The document provides information about International Financial Reporting Standards (IFRS):
1. IFRS are established by the International Accounting Standards Board (IASB) to develop a single set of high-quality global accounting standards.
2. The objectives of IASB are to develop high-quality understandable global standards, promote their use, and work to converge national standards with IFRS.
3. Adopting IFRS allows multinational businesses to use the same accounting practices worldwide, facilitates comparison of financial statements globally, and enables access to international capital markets.
Legal shorts 25.10.13 including aifmd updates and crd bonus capsCummings
This document provides a summary of recent legal and regulatory developments in the financial services industry from the past week. Key updates include the FCA clarifying timeframes for AIFM full-scope applications, ESMA publishing a table of AIFMD MoUs between EU and non-EU regulators, HM Treasury issuing a call for evidence on the UK-EU balance of competences on financial services, and the FCA setting out its proposed approach to implementing the CRD IV bonus cap.
Presented by Adrian Sarchet, Senior Associate at Carey Olsen, and Alan Bougourd, Registrar of the Guernsey Registry, attendees learnt about the effect of the new amendments to the Guernsey Company Law 2008 (the Companies Law).
Ireland World Investments (IWI) is a leading partnership focused on commercial real estate investment and asset management in Ireland. IWI offers strategic advice and expertise to investors, utilizing a risk-based approach. IWI ensures clients receive appropriate real estate, legal, financial, and tax advice prior to any investment. The company is focused on achieving results for its clients, who are mainly based in Australia, the United States, and the Middle East.
La European Securities and Markets Authority (ESMA), ha rilasciato un documento in cui sollecita il parlamento a studiare una normative comunitaria per I cripto-asset
ECGC was established in 1957 to provide credit insurance and financial support to Indian exporters. It is owned by the government and offers various guarantees and insurance products to exporters and banks to facilitate exports. These include guarantees for packing credit, export production financing, post-shipment credit, and more. ECGC also provides information to help exporters with market research, recovering debts, and ensuring payment. Recently it introduced a non-recourse maturity export factoring scheme to provide working capital financing to exporters based on their receivables.
The Export-Import Bank of India (Exim Bank) is the premier export finance institution of India. It provides a range of export credit facilities such as pre-shipment credit, supplier's credit, export project financing, and buyer's credit. It also extends Lines of Credit to overseas entities to finance the import of Indian goods and services. Exim Bank supports Indian exports through financing, guarantees, and by enhancing export competitiveness. It also facilitates foreign direct investment and outward investment by Indian companies.
It includes EXIM financing - Preshipment and Post shipment Financing, Forfaiting and factoring. In addition to this Interest rate subvention and ECB are also covered
Stephen A. Zeff, Herbert S. Autrey Professor of Accounting de la Rice University
Conferencia: Retos futuros para el IASB
Madrid, 19 de febrero de 2013
Ciclo de Conferencias: La Regulación Contable Internacional (IFRS): Retos e Incentivos
This document is a research report submitted by Sujitha Jesurajan in partial fulfillment of the requirements for a Bachelor of Science in Agriculture degree. The report investigates the influence of different storage temperatures (room temperature vs air conditioned storage) on the quality parameters of three wheat flour samples over a 3 month storage period. Physiochemical, biological, and microbiological properties of the flour samples were analyzed at regular intervals, including moisture content, wet gluten, gluten index, protein content, ash content, color value, falling number, weevil count, bacterial count, and yeast/mold count. The results showed that most quality parameters changed over storage time and were influenced by storage temperature, though no clear influence of initial
El documento describe los componentes principales de una computadora como el gabinete y las memorias extraíbles. Explica que el gabinete es la estructura que alberga y protege componentes internos como la CPU, RAM y placa madre, y que vienen en diferentes tipos como sobremesa, torre y para pantallas integradas. También cubre los diferentes tipos de memorias extraíbles como flash, discos duros portátiles y cintas magnéticas, que permiten almacenar y transportar datos externamente.
This document provides an overview of foreign portfolio investment (FPI) in India. It discusses the origin and composition of FPI flows, including foreign institutional investments, depository receipts, and offshore funds. It explains that FPI consists of passive investments in stocks, bonds, and other securities, as opposed to foreign direct investment which involves ownership and management of firms. The document outlines the benefits of FPI to India's economy as well as trends in FPI over time. It also analyzes the determinants and impacts of FPI flows, including both risks and benefits. In summary, the document serves as a comprehensive introduction to the topic of foreign portfolio investment in the Indian financial market.
Export-Import Bank of India is the premier export finance institution of the country.
It commenced operations in 1982 under the Export-Import Bank of India Act 1981.
Government of India launched the institution with a mandate to not just enhance exports from India, but also to integrate the country’s foreign trade and investment with the overall economic growth.
Mutual funds allow investors to pool their money together into a portfolio that is managed by professional fund managers. The key points are:
- A mutual fund is a common pool of money from investors that is invested in different securities according to the fund's objectives. Each investor owns a proportional share of the fund's assets and earnings.
- Mutual funds are operated by an asset management company, held in trust by trustees, and involve other entities like custodians.
- The main advantages are diversification, professional management, low minimum investment amounts, and various purchase and redemption options. The main disadvantages include fees, potential underperformance, and tax complexity.
- A fund's performance is determined by its
The document discusses international arbitration and its role in promoting foreign direct investment in developing countries. It defines key terms like foreign direct investment and the International Centre for Settlement of Investment Disputes. International arbitration offers investors an impartial dispute resolution process compared to local courts. Joining arbitration organizations like ICSID signals a country's commitment to protecting foreign investors and encouraging investment. The document also summarizes the Occidental Petroleum v. Ecuador case which resulted in a $1.77 billion award, the largest in ICSID history.
This document summarizes the categories of foreign portfolio investors (FPIs) and the eligibility criteria for registration as an FPI. It outlines three categories of FPIs - Category I includes foreign government-related entities, Category II includes regulated foreign banks and funds, and Category III includes other foreign investors not covered in Categories I and II. It also describes the types of instruments FPIs can invest in in India, such as listed shares, government securities, and corporate debt. The document notes that FPI regulations prohibit investment in unlisted shares but allow existing holdings to be maintained. It concludes by listing the eligibility criteria an applicant must meet for FPI registration, including experience, competence, reputation, and being from a country with
The document discusses export financing provided by banks and EXIM Bank in India. It outlines various pre-shipment and post-shipment financing options available to exporters, including pre-shipment credit, post-shipment credit, supplier's credit, and buyer's credit. It also discusses working capital financing, term loans, project financing, and other facilities provided by EXIM Bank and commercial banks to support exports.
This document discusses investor protection and the role of regulators in India. It covers the concepts of investor protection, the various types of investors, and the laws and agencies involved in protecting investors, including SEBI, RBI, and various government ministries and committees. It also outlines the compliances required by companies, methods for investor grievance redressal, and securities market awareness campaigns to educate investors. In conclusion, the key roles of regulatory bodies are protecting investor interests, promoting transparency, and maintaining confidence in the stock market through coordinated efforts and investor education.
This document provides an overview of various types of corporate finance, including syndicated loans, project finance, acquisition finance, securitization, and bonds/commercial paper. It discusses key aspects of each type such as common structures, legal documentation, and participants. Syndicated loans involve a group of lenders providing funds to a borrower and are negotiated in three steps. Project finance uses financing instruments for infrastructure projects, with funds repaid from project revenues. Acquisition finance often uses leveraged buyouts involving a special purpose vehicle to purchase assets/shares and merge with the target. Securitization involves transferring receivables to a special purpose vehicle that finances the purchase through bonds or loans.
Türk Eximbank was established in 1987 by the Turkish government to support the country's export growth strategy. It provides various credit, guarantee, and insurance programs to Turkish exporters, contractors, investors, and companies earning foreign currency. These include short, medium, and long-term cash credits as well as non-cash programs. Türk Eximbank works closely with commercial banks in Turkey to encourage export financing. It aims to conform to international standards set by organizations like the OECD.
International financial reporting standards (ifrs)Nikhil Priya
The document provides information about International Financial Reporting Standards (IFRS):
1. IFRS are established by the International Accounting Standards Board (IASB) to develop a single set of high-quality global accounting standards.
2. The objectives of IASB are to develop high-quality understandable global standards, promote their use, and work to converge national standards with IFRS.
3. Adopting IFRS allows multinational businesses to use the same accounting practices worldwide, facilitates comparison of financial statements globally, and enables access to international capital markets.
Legal shorts 25.10.13 including aifmd updates and crd bonus capsCummings
This document provides a summary of recent legal and regulatory developments in the financial services industry from the past week. Key updates include the FCA clarifying timeframes for AIFM full-scope applications, ESMA publishing a table of AIFMD MoUs between EU and non-EU regulators, HM Treasury issuing a call for evidence on the UK-EU balance of competences on financial services, and the FCA setting out its proposed approach to implementing the CRD IV bonus cap.
Presented by Adrian Sarchet, Senior Associate at Carey Olsen, and Alan Bougourd, Registrar of the Guernsey Registry, attendees learnt about the effect of the new amendments to the Guernsey Company Law 2008 (the Companies Law).
Ireland World Investments (IWI) is a leading partnership focused on commercial real estate investment and asset management in Ireland. IWI offers strategic advice and expertise to investors, utilizing a risk-based approach. IWI ensures clients receive appropriate real estate, legal, financial, and tax advice prior to any investment. The company is focused on achieving results for its clients, who are mainly based in Australia, the United States, and the Middle East.
La European Securities and Markets Authority (ESMA), ha rilasciato un documento in cui sollecita il parlamento a studiare una normative comunitaria per I cripto-asset
ECGC was established in 1957 to provide credit insurance and financial support to Indian exporters. It is owned by the government and offers various guarantees and insurance products to exporters and banks to facilitate exports. These include guarantees for packing credit, export production financing, post-shipment credit, and more. ECGC also provides information to help exporters with market research, recovering debts, and ensuring payment. Recently it introduced a non-recourse maturity export factoring scheme to provide working capital financing to exporters based on their receivables.
The Export-Import Bank of India (Exim Bank) is the premier export finance institution of India. It provides a range of export credit facilities such as pre-shipment credit, supplier's credit, export project financing, and buyer's credit. It also extends Lines of Credit to overseas entities to finance the import of Indian goods and services. Exim Bank supports Indian exports through financing, guarantees, and by enhancing export competitiveness. It also facilitates foreign direct investment and outward investment by Indian companies.
It includes EXIM financing - Preshipment and Post shipment Financing, Forfaiting and factoring. In addition to this Interest rate subvention and ECB are also covered
Stephen A. Zeff, Herbert S. Autrey Professor of Accounting de la Rice University
Conferencia: Retos futuros para el IASB
Madrid, 19 de febrero de 2013
Ciclo de Conferencias: La Regulación Contable Internacional (IFRS): Retos e Incentivos
This document is a research report submitted by Sujitha Jesurajan in partial fulfillment of the requirements for a Bachelor of Science in Agriculture degree. The report investigates the influence of different storage temperatures (room temperature vs air conditioned storage) on the quality parameters of three wheat flour samples over a 3 month storage period. Physiochemical, biological, and microbiological properties of the flour samples were analyzed at regular intervals, including moisture content, wet gluten, gluten index, protein content, ash content, color value, falling number, weevil count, bacterial count, and yeast/mold count. The results showed that most quality parameters changed over storage time and were influenced by storage temperature, though no clear influence of initial
El documento describe los componentes principales de una computadora como el gabinete y las memorias extraíbles. Explica que el gabinete es la estructura que alberga y protege componentes internos como la CPU, RAM y placa madre, y que vienen en diferentes tipos como sobremesa, torre y para pantallas integradas. También cubre los diferentes tipos de memorias extraíbles como flash, discos duros portátiles y cintas magnéticas, que permiten almacenar y transportar datos externamente.
This document discusses concerns about avian fatality data and mitigation efforts related to the proposed Altamont Winds Repowering Project. It notes that company officials have denied that turbines kill birds and have provided faulty, manipulated, or inconsistent fatality data. It also questions the sufficiency of search areas, mitigation measures like power pole refitting, decisions by elected officials against expert advice, and reductions to the avian monitoring budget. The document raises doubts about claims that repowering with larger, more efficient turbines will be more bird-friendly and calls for more rigorous scientific studies.
Yordi Peña Cardona es un asistente de inteligencia artificial creado por Anthropic para ser útil, honesto y honesto. Puede resumir documentos de forma concisa y proporcionar información relevante de manera respetuosa.
Este diseño de grifería para baños se basa en una tendencia minimalista que extrae formas geométricas simples como rectángulos. El diseño es sencillo e innovador y está dirigido a la clase social media alta, siendo futurista pero sin perder la simplicidad del minimalismo. El material propuesto es aluminio fundido.
Este documento presenta los planos y especificaciones técnicas de un diseño de memoria USB inspirado en la arquitectura de la ciudad de Cali. El diseño fue creado en el software de modelado 3D Inventor y representa elementos arquitectónicos característicos de los edificios de Cali a través de su forma y esquema de colores.
Este documento presenta los resultados de 4 parámetros (turbiedad, pH, color y coliformes totales) en 3 muestras de agua tomadas de fuentes de abastecimiento en Popayán, Colombia. Adicionalmente, describe brevemente que Popayán obtiene agua de 4 subcuencas, incluyendo la subcuenca Río Piedras donde viven más de 2,000 personas, y que el acueducto de Popayán cuenta con 3 plantas de tratamiento de agua que usan procesos convencionales como tamizado, aireación y filtración
Gestor de proyecto grupo A - SANTIAGO VILADIPLOMADO6
Este documento presenta la caracterización de 5 docentes y su institución educativa Santiago Vila en Ibagué, Colombia. Incluye un diagnóstico inicial de los estudiantes basado en pruebas estandarizadas que muestra necesidad de elevar su nivel académico. Finalmente, propone el proyecto educativo "Manos Creativas" que busca promover la creatividad de los estudiantes usando materiales reciclables como botellas plásticas.
- The document discusses a presentation made to the Alameda County EBZA regarding a wind turbine repowering project that proposes to increase blade area in avian habitat. It notes several repowering projects in the Altamont Wind Resource Area that increased, rather than maintained, blade sweep areas, resulting in increased avian mortality. It provides data showing the original and increased blade sweep areas and number of turbines in several repowering projects.
- It expresses concerns that increasing blade sizes in repowering efforts may increase risks of fatal avian collisions, as larger turbines provide more efficient energy generation but also larger blades that increase strike potential. Proper search protocols and monitoring are needed to accurately assess avian mortality.
Discounting of Reinforcers as a Function of Self-ControlRandi Hovey
This study examined delay discounting of hypothetical monetary and food rewards to determine if primary reinforcers like food are discounted more steeply than generalized reinforcers like money. Participants made choices between immediate and delayed rewards of money or food. Results showed money was discounted less than food, supporting the hypothesis that primary reinforcers are more susceptible to delay discounting. The findings provide further evidence that impulsivity varies based on the type of reinforcer and have implications for understanding behaviors related to substance abuse and overeating.
Gestor de proyecto grupo B - SANTIAGO VILADIPLOMADO6
Este documento presenta un proyecto educativo TIC para docentes de la institución educativa Santiago Vila Escobar en Ibagué, Colombia. El proyecto busca fortalecer los procesos de enseñanza-aprendizaje sobre el tema del sistema solar utilizando herramientas TIC. Se caracterizan a 5 docentes participantes y se presentan 3 recursos educativos digitales identificados. El proyecto tendrá una duración de 20 horas académicas y abarcará estudiantes de preescolar, con énfasis en las áreas
La formación in company ofrece clases de inglés en el lugar de trabajo impartidas por expertos, lo que permite aplicar los conocimientos directamente en el entorno laboral. Esto beneficia tanto a las empresas, que pueden mejorar las habilidades de sus empleados enfocadas en sus necesidades, como a los trabajadores, que adquieren nuevas destrezas para mejorar su desempeño. Los interesados deben comunicarse con el proveedor del servicio para coordinar las clases con su empresa.
This document contains the resume of Sayan Sarkar. It summarizes his educational qualifications including completing a B.Tech in Mechanical Engineering with a CGPA of 7.5, projects undertaken including constructing a multi-cylinder stirling engine, industrial trainings, software skills in CATIA and SolidWorks, extracurricular activities in painting, and personal details. It also provides his contact information, career objective of working in an organization to improve his skills and prove himself as a valuable asset, and references.
This document presents a simple indicator to monitor fragmentation in euro area sovereign bond markets. The indicator is a moving average cross-correlation of bond yield log returns between Germany and other euro area countries. A lower correlation implies greater market fragmentation. The estimates from 2000 to mid-2014 show that core countries decoupled from Germany during the crisis but then reattached, while peripheral countries remained fragmented throughout. A bivariate dynamic conditional correlation GARCH model, which accounts for changing volatility, produced similar results regarding trends in market fragmentation.
Gestor de proyecto grupo G - SANTIAGO VILADIPLOMADO6
Este documento presenta la caracterización de 5 docentes y el diagnóstico inicial de estudiantes de tercer grado de la Institución Santiago Vila Escobar, con el fin de estructurar un proyecto educativo con TIC que mejore los resultados en pruebas saber de matemáticas. Se exploraron recursos digitales y se diseñó una secuencia didáctica. El diagnóstico mostró bajo desempeño de los estudiantes en aplicación de estrategias numéricas. El proyecto busca superar las deficiencias históricas mediante el
This document summarizes research on implicit or unconscious bias and racism. It discusses early studies from the 1940s that found evidence of internalized racism, even in black children. Modern tests like the Implicit Association Test continue to show widespread implicit biases across races. Studies have found that identical resumes or patients receive different treatment based solely on race. The conclusion calls for openly discussing implicit bias to address institutional racism without apportioning blame, and to move past denial and become aware of destructive biases that affect society.
Evan tuvo una gran sorpresa. El documento no proporciona más detalles sobre Evan o la sorpresa. Finaliza abruptamente después de solo mencionar que Evan tuvo una gran sorpresa.
This document is a green paper from the European Commission on shadow banking. It provides context on shadow banking and outlines some of the key risks and challenges related to its oversight and regulation. Some of the main points include:
- Defining shadow banking as credit intermediation involving entities and activities outside the regular banking system.
- Identifying potential shadow banking entities like special investment vehicles and money market funds.
- Noting the growth of shadow banking and estimating its global size at €46 trillion in 2010.
- Describing some of the risks shadow banking can pose like runs, leverage, and circumventing rules.
- Highlighting challenges for authorities in monitoring shadow banking given its complexity and lack of data.
Islamic Finance and Law Conference - UCD May 2015Martin Moloney
This document provides a summary of Martin Moloney's speech on Islamic finance and securities regulation in Ireland. Some key points:
- Ireland has authorized over 10 Sharia-compliant funds and approved 35 Islamic financial instruments, showing its ability to facilitate Islamic finance.
- The Central Bank of Ireland reviews Islamic funds and instruments to ensure appropriate risk disclosure but does not assess Sharia compliance. It relies on independent Sharia supervisory boards for that.
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Data Gaps and Shadow Banking Profiling Special Purpose Vehicles Activities in Ireland
1. 48
Data Gaps and Shadow Banking:
Profiling Special Purpose Vehicles’
Activities in Ireland
Brian Godfrey, Neill Killeen and Kitty Moloney1
Abstract
The role of shadow banking and securitisation has gained increasing national
and international attention since the start of the global financial crisis in
2007. Ireland has a sizeable non-bank financial sector with a number of key
components including money market funds (MMFs), investment funds (IFs)
and other financial intermediaries (OFIs). This Article focuses on the activities
of financial vehicle corporations (FVCs) and special purpose vehicles (SPVs)
within the OFI sector. The main features of these vehicles and their linkages to
the Irish and international economies are examined. The Article also discusses
recent regulatory developments and potential financial stability issues arising
from their activities. In order to address data gaps and to improve oversight
of the SPV sector, the Central Bank of Ireland will extend quarterly reporting
requirements to SPVs.
1 The authors are Economists in the Statistics Division and the Markets Supervision Directorate of the Central Bank of Ireland. The
views expressed in this Article are solely the views of the authors and are not necessarily those held by the Central Bank of Ireland
or the European System of Central Banks (ESCB). The authors would like to thank Kenneth Devine, Anastasios Matopoulos and
Naoise Metadjer for excellent research assistance. We are grateful to John Flynn, Brian Golden, James Leen, Joe McNeill, Gareth
Murphy and David Owens for helpful comments on earlier drafts of the Article.
2. 49Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
1. Introduction
The role of shadow banking and securitisation
has gained increasing national and international
attention since the start of the global financial
crisis in 2007. In November 2010, the G20
called for the Financial Stability Board (FSB)
to develop recommendations to strengthen
the oversight and regulation of the shadow
banking system. The FSB defines shadow
banking as ‘credit intermediation involving
entities and activities fully or partially outside
of the regular banking system.’2
Various
definitions of shadow banking comprise some
or all of the entities in the non-bank financial
sector.3
Ireland has a sizeable non-bank financial sector
comprising money market funds (MMFs),
investment funds (IFs) and other financial
intermediaries (OFIs). This paper focuses on
the activities of financial vehicle corporations
(FVCs) and special purpose vehicles (SPVs)4
within the OFI sector. These vehicles are set up
as tax neutral in accordance with Section 110
of the Taxes Consolidation Act 1997 (Section
110).5
Since the fourth quarter of 2009, the
Central Bank of Ireland has collected data on
Irish FVCs. These data feed into the European
Central Bank’s (ECB) FVC data and gives an
indication of the level of securitisation activity
across the euro area. However, at present
there is no comparable Irish or euro area
dataset for SPVs.
This data gap presents challenges for financial
authorities engaged in mapping and monitoring
the shadow banking sector in Ireland and
Europe.6
The main contribution of this paper
is to fill in some of the data gaps for the Irish
shadow banking system, thereby improving
the transparency and oversight of this sector.
To that end, this paper examines both the
activities of Irish FVCs engaged in securitisation
activity and the activities of other SPVs
registered in Ireland.
Section 2 discusses the definitions of
FVCs and SPVs and outlines our research
methodology. Section 3 examines the FVC and
SPV industry in Ireland and briefly describes
the development of this sector in Ireland. The
main findings on the activities of FVCs and
SPVs are discussed in Section 4. Section
5 focuses on the new and existing financial
services regulations, which can shed light on
FVCs’ and SPVs’ activities in Ireland and briefly
discusses potential financial stability issues.
Section 6 concludes.
2. Definitions of FVCs/SPVs and
Methodology
2.1 Definitions of FVCs and SPVs
FVCs and SPVs are legal entities that are
originated by a sponsoring firm, usually a
bank, finance company or insurance company.
Irish FVCs and SPVs engage in a wide range
of activities which may include investment
transactions, securitisation transactions,
distressed debt transactions, balance sheet
management, and fundraising. FVCs are
securitisation vehicles and are obliged to report
to the Central Bank of Ireland under an ECB
Regulation.7
2 See FSB (2014).
3 The FSB, in its annual mapping exercise defines shadow banking as the total assets of the non-bank financial sector. FSB (2014)
also produce a narrower measure of shadow banking, which is constructed by filtering out non-bank financial activities that have no
direct relation to credit intermediation (e.g. equity investment funds, intra-group activities of non-financial groups and retained
securitisation). In the academic literature, a number of alternative definitions of shadow banking have been proposed. For example,
Claessens and Ratnovski (2014) define shadow banking as “all financial activities, except traditional banking, which rely on private or
public backstop to operate.”
4 For the purpose of this Article, SPVs refer to those vehicles which do not meet the ECB’s FVC definition, see Section 2.
5 See Section 3 for an overview of the Section 110 framework in Ireland.
6 See Godfrey and Golden (2012).
7 Regulation ECB/2008/30 concerning statistics on the assets and liabilities of FVCs, which are engaged in securitisation type
transactions. An entity would qualify as an FVC if their principal activity meets the following criterion: ‘it intends to carry out, or
carries out, one or more securitisation and is insulated from the risk of bankruptcy or any other default of the originator’. On the
issuance side, an entity must ‘issue or intends to issue, securities, securitisation fund units, other debt instruments and/or financial
derivatives’ in either a public or private issuance. Furthermore, if the vehicle is part of a multi-vehicle structure where one of the other
vehicles is an FVC then it would also be considered an FVC even if it was not directly involved in securitisation itself.
3. 50 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
An entity is an FVC if its main activity is
securitisation8
as defined by the ECB FVC
Regulation. The FVC Regulation seeks to
collect data on securitisation vehicles’ linkages
with the banking system. The financing
arrangement supporting a securitisation
transaction should result in the issuance of
some form of marketable debt instrument.
Securitisation involves the transfer of credit
risk from a bank’s balance sheet to a FVC’s
balance sheet. This transfer of credit risk is
funded by the issuance of debt securities,
which in some cases, can be brought back on
to the balance sheet of the bank (i.e. retained
securitisation) and used as collateral with the
ECB in monetary operations. Alternatively,
the debt securities can be sold on to other
investors (e.g. other banks, insurance
companies, pension funds, hedge funds).
SPVs have many characteristics of FVCs
but fall outside the ECB definition. The main
activity of Irish SPVs is loan origination even if a
minority of its activities pertain to securitisation.
SPVs can also issue debt securities or they
may be set up for the purpose of financing
a group or part of a group through the
use of loans. One of the key challenges of
analysing SPVs incorporated in Ireland is
the categorisation of these activities owing
to the complexity and opaqueness of their
transactions.
2.2 Methodology
To examine this sector we construct a unique
firm-level dataset of FVCs and SPVs registered
with the Companies Registration Office (CRO)
in Ireland. This dataset is based on 2012
financial accounts. A number of variables are
chosen to review the activities of these entities.
These include firm-level information such as
total assets under management, the date
and address of incorporation, the number of
direct employees and the fees paid to Irish
corporate service providers (e.g. legal fees,
administration fees, audit fees). Information is
also collected on relevant counterparties such
as the name, location and sector of the FVCs’
and SPVs’ creditors and debtors. In addition
to collating the dataset, a series of meetings
were held with the directors of 26 SPVs. The
meetings took place from January to March
2015 and assessed to what extent the vehicles
were within scope of existing and forthcoming
financial services regulations.
The methodology outlined above has a
number of limitations. Firstly, there is significant
heterogeneity regarding the information
reported in the financial accounts. For
example, some financial accounts include
information on the name and location of the
debtors, creditors and derivative counterparties
while other accounts do not disclose this level
of granularity. Secondly, the heterogeneous
nature of the activities within this sector means
it is difficult to categorise the vehicles within
our dataset. Finally, the analysis is based on
data collected from a one-off exercise of 2012
financial returns.
3. The FVC and SPV Industry in
Ireland
Based on our analysis of financial accounts of
FVCs and SPVs, we estimate that there are
approximately 1,300 vehicles located in Ireland
at the end of 2012. These vehicles are set up
as broadly tax neutral under Section 110.9
Of this total, approximately 700 entities are
FVCs, while the remaining 600 entities can be
classified as SPVs. Since the fourth quarter of
2009, data on Irish FVCs has been collected
by the Central Bank of Ireland.10
The most
recent FVC data shows that there are 779
FVCs resident in Ireland in the first quarter of
2015 (Chart 1).
Within the euro area there are ten countries
which have resident FVCs. Ireland has
the largest proportion of domiciled FVCs
by numbers and assets of any euro area
country (Chart 2). Other jurisdictions such as
Luxembourg and the Netherlands also have
8 Securitisation is defined as a transaction(s) where the credit risk of an asset is transferred to the balance sheet of an entity, either
through the economic transfer (purchase) of the asset or through the use of derivatives.
9 Section 55 of the Finance Act 1996, http://www.irishstatutebook.ie/1996/en/act/pub/0009/print.html#sec55
10 See Godfrey and Jackson (2011).
4. 51Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
sizeable FVC populations. However, at present
there is no comparable euro area dataset for
SPVs who fall outside the FVC definition.
Certain taxation provisions in Ireland allow
FVCs and SPVs to be structured as broadly
profit- and tax- neutral. These provisions were
originally introduced in 199111
to facilitate the
securitisation of mortgages. These provisions
were extended to transactions outside the
IFSC with the implementation of Section 110
(effective in 1999). The Section 110 regime
was expanded by the Finance Act 200312
, the
Finance Act 200813
and again in the Finance
Act 201114
to broaden the range of financial
assets a Section 110 company can hold,
manage or lease.
A company must meet a number of
conditions to qualify under the Section
110 framework. Firstly, the company must
be resident in Ireland. Secondly, it must
acquire “qualifying assets” which include
shares, bonds, investment in money market
funds, commodities, leases, hire purchase
agreements, greenhouse gas emissions,
contracts for insurance and reinsurance, and
the ownership, management and leasing of
plant and machinery. Thirdly, the market value
of the qualifying assets must be at least €10
million on the date the assets are first acquired
by the newly incorporated Section 110
company. Finally, the company must notify the
Irish tax authorities if it wishes to avail of the
Section 110 framework.
In addition to the Section 110 provisions,
other reasons for FVCs and SPVs locating in
Ireland include an extensive double taxation
treaty network, a common law environment, a
corporate administration support network, an
efficient listing of securities on the Irish Stock
Exchange (ISE), and Ireland’s membership of
the OECD and European Union.
11 Section 31 of the Finance Act 1991, http://www.irishstatutebook.ie/1991/en/act/pub/0013/print.html#sec31
12 Section 48 of the Finance Act 2003, http://www.irishstatutebook.ie/2003/en/act/pub/0003/sec0048.html#sec48
13 Section 36 of the Finance Act 2008, http://www.irishstatutebook.ie/2008/en/act/pub/0003/sec0036.html#sec36
14 Section 40 of the Finance Act 2011, http://www.irishstatutebook.ie/2011/en/act/pub/0006/sec0040.html#sec40
0
100
200
300
400
500
600
700
800
900
MaltaBelgiumPortugalGermanyFranceItaly SpainNetherlandsLuxembourgIreland
0
50
100
150
200
250
300
350
400
450
Numbers Assets bn
Chart 2: Q1 2015: Number and Assets of FVCs
in Euro Area
Sources: Central Bank of Ireland and European Central Bank (ECB).
Total Number of FVCs (LHS) Assets(EUR Billions) (RHS)
Chart 1: Overview of Section 110 vehicles in
Ireland
779 FVCs
Main activity: Securitisation
Reporting since Q4 2009
AUM €415bn (Q1 2015)
Approx. 600 SPVs
Other activities
Non-reporting
Approx. AUM €150bn
(2012)
Section 110 vehicles:
a tax neutral framework
Sources: Central Bank of Ireland, Companies
Registration Office (CRO) and authors’ calculations.
Note: FVCs include NAMA vehicles.
5. 52 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
4. Main Findings
This section presents the main findings of our
research which is divided as follows: technical
features, domestic linkages, international
linkages and a series of case studies. The case
studies are generic but reflect some of the
business models employed by FVCs and SPVs
incorporated in Ireland.
4.1 Technical features of FVCs and SPVs
Our analysis of firm-level financial accounts
found that many of these vehicles are set up
using an orphan entity ownership structure. As
noted by BIS (2009), one of the consequences
of this ownership structure is that it ensures
that the entity is not owned by the originator,
but rather by a charitable trust. These trusts
are usually set up by a corporate service
provider or a law firm. This structure ensures
that the entity should not be affected by any
legal claims against the originator (BIS, 2009).
In addition, our analysis found that the majority
of FVCs and SPVs incorporated in Ireland have
no direct employees.
Other legal protections used by the industry
include the use of “limited recourse” and “non-
petition” covenants within the legal contracts.
"Limited recourse" means that creditors of the
vehicle only have a claim on what the entity
is paid. “Non-petition” refers to a situation
whereby creditors give up the right to petition
for liquidation of the vehicle. Many of the
contracts underpinning the incorporation and
activities of these vehicles are governed by
UK or US law even though the entities are
registered in Ireland. In this way, the industry
continues to use the legal frameworks of
jurisdictions where the main legal tenets
have generally been tested, even though
the vehicles are registered outside of these
jurisdictions.
The lifecycle of a FVC or SPV is dependent
on the motivation and nature of its activities.
Based on our discussions with industry, the
average lifecycle of a vehicle can range from
approximately five to ten years. Using financial
account information for FVCs and SPVs
that are active in 2012, we found that most
vehicles were established in 2006 (Chart 3). It
is noteworthy that the number of new vehicles
incorporated in Ireland falls significantly in 2009
which coincides with the global financial crisis
and the collapse in the securitisation market in
Europe.
Irish domiciled FVCs are usually funded
through a number of different types of debt
issuance depending on the nature of the
securitisation that the FVC is involved in. This
can range from commercial or consumer asset
backed securities, commercial or residential
mortgage backed securities, commercial
paper, profit participation notes and different
types of floating notes. Debt securities issued
by FVCs have to be marketable and are
usually issued in multiple tranches depending
on the level of subordination of the security
issued. The more senior notes would have first
claim on any cash that a FVC receives, while
the more junior notes would have more risk
exposure but would receive a higher rate of
interest in compensation.
0
50
100
150
200
250
Number of newly incorporated SPVs
2012201120102009200820072006200520042003200220012000
Numbers
Chart 3: Number of new FVCs and SPVs in Ireland
by year of incorporation, at end-2012
Sources: Companies Registration Office (CRO) and authors’
calculations.
6. 53Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Irish domiciled SPVs can be funded via the
issuance of different note types including, for
example, profit participation notes, loan notes,
index linked notes, floating rate notes and limited
recourse notes. The risks and characteristics
associated with these notes vary widely. For
example, the returns from a profit participation
note relate to the profits of the SPV. The number
of investors can also vary significantly, for
example, depending on whether it is a privately
issued loan note or a publically listed note.
4.2 Domestic linkages
There are 22 FVCs with approximately €39
billion linked to Irish banks in the first quarter
of 2015. The remaining FVCs and SPVs have
limited direct links to the Irish economy as
the majority of their assets and liabilities are
located outside of Ireland. The main benefit to
the Irish economy comes through fees paid
to Irish corporate service providers, law firms,
auditors and the ISE. Based on our analysis
of FVCs’ and SPVs’ financial accounts, we
estimate that the average set up fees paid
to Irish service providers is approximately
€50,000 and the average annual administrative
fees paid to Irish service providers ranges in
broad terms between €40,000 to €80,000.15
While these vehicles have little interaction
with the domestic economy, they can have
a significant impact on Irish macroeconomic
statistics. This is due to the fact that these
vehicles are recorded as residents, meaning
there is a sizable impact on external sector
statistics.
4.3 International linkages
FVCs and SPVs are connected to the wider
global financial system as the majority of their
creditors and debtors are located outside
15 Fees depend on the complexity of the vehicles (number of debt securities issued etc.) and stage in the life cycle of the vehicle (e.g.
fees are higher in year 1 with start-up fees). The financial accounts are not consistent in the treatment of fees and thus our estimated
range is a guide only.
Chart 4: Top 20 Cross-Border Linkages – FVC/
SPV Debtor Links
Source: Companies Registration Office (CRO) and authors’
calculations
Chart 5: Top 20 Cross-Border Linkages – FVC/
SPV Creditor Links
Source: Companies Registration Office (CRO) and authors’
calculations
Note: AU = Australia; BE = Belgium; BM = Bermuda;
CA = Canada; CH = Switzerland; CN = China; DE = Germany;
DK = Denmark; ES = Spain; FI = Finland; FR = France;
GB = United Kingdom; GE = Georgia; IE = Ireland; IT = Italy;
JE = Jersey; JP = Japan; KY = Cayman Islands; KR = Korea;
LU = Luxembourg; NL = Netherlands; NO = Norway;
PT = Portugal; RU = Russia; SE = Sweden; US = United
States.
7. 54 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
of Ireland. Charts 4 and 5 present the top
20 cross-border linkages of Irish domiciled
FVCs and SPVs. The charts are un-weighted
networks and therefore the size of the node
represents the number of FVCs and SPVs
linked to that country as opposed to the euro
value of the exposure. Chart 4 shows that the
top 20 locations of debtors to Irish domiciled
FVCs and SPVs. The United States, the
UK, Germany, France, Italy, Russia and the
Netherlands are the top locations of debtors
for these vehicles.
On the creditor side (Chart 5), the top locations
are the UK, the US, Germany, Luxembourg
and the Cayman Islands. The large node for
Ireland in the creditor graph is explained by
FVCs and SPVs that issue debt securities
on the ISE, intra-sector flows and domestic
linkages. Information on the location of the
final investor is not readily available for debt
securities as data are collected on a first
counterparty basis. In addition, financing
linkages between FVCs and SPVs can also
impact the creditor links. As these vehicles
can be part of multi-vehicle structures, an Irish
registered entity may be listed as a creditor to
another Irish registered FVC or SPV. However,
the ultimate creditor may be located outside of
Ireland.
4.4 Case Studies
This section describes some generic case
studies of FVCs’ and SPVs’ activities.
Case Study A: Irish domiciled SPV used as bankruptcy remote funding vehicle
This case study outlines a structure which uses an Irish domiciled SPV to ensure bankruptcy
remoteness. Chart A summarises the transaction and the role of the Irish SPV.
Chart A: Summary of Transactions
Originator
(MNC)
Irish
domiciled
SPV
Shares held on trust for charitable purposes
(orphan vehicle structure)
Senior lenders
Subordinated
lendersTransfer of trade
receivables
Proceeds from transfer
of receivables
Principal and Interest
Loans
The multinational corporation (MNC) transfers its receivables into an Irish domiciled SPV
which uses these assets to attract cheaper funding. The Irish domiciled SPV receives loans
from a syndicate of senior and subordinated lenders and uses these funds to buy the trade
receivables from the originator (the MNC). The MNC would have to pay a much higher rate
if it were to raise finance directly but benefits from cheaper funding by simply isolating the
receivables in an Irish domiciled SPV. In order to ensure bankruptcy remoteness, the Irish
domiciled SPV is set up using an orphan vehicle structure whereby the shares of the SPV are
held on trust for charitable purposes.
8. 55Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Case Study B: Irish domiciled SPV used in a tax efficiency structure
This case study outlines a structure which uses an Irish domiciled SPV to ensure tax efficiency.
Chart B summarises the transaction and the role of the Irish SPV.
Chart B: Summary of Transactions
Investment in
company located
in Country C
Irish
domiciled
SPV
Gains utilising Country A/ Country B
double taxation treaty
Entity located in Country A
(Ultimate Parent)
Entity located in
Country B
(Immediate parent
of Irish SPV)Gains utilising Irish/
Country C double
taxation treaty
Funds
Note redemptions and
note interest payments
Proceeds of the notes
Cross-border payments made by the Irish SPV under a profit participating note to a country
within the EU or with whom Ireland has signed a double taxation treaty are free of Irish
withholding tax. However, in this case study, payments by an Irish SPV to Country A do not
gain this exemption owing to the fact that Ireland does not have a double taxation treaty with
Country A. Country B, on the other hand, has a double taxation treaty with Country A which
allows the payments to be made free of withholding tax. Ireland is often the chosen host
jurisdiction for investment vehicles owing to Ireland’s wide network of comprehensive double
taxation treaties. As illustrated in Chart B, the Irish domiciled SPV is utilised to take advantage
of the Irish tax treaty with Country C owing to the fact that it is a more favourable treaty than
the tax treaty between Country B and C.
9. 56 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Case Study C: Irish domiciled SPV structure and relevant regulations
Chart C presents an example of a simple SPV structure which makes loans to a regulated
European bank.
Chart C: Summary of Transactions
Bank Country A
Irish
domiciled
SPV
Shares held on trust for charitable purposes
(orphan vehicle structure)
Interest rate swap Interest rate swapCross currency swap Cross currency swap
Bank Country B Bank Country C
Stock Exchange –
Note holders not
disclosed
Loans
Principal and Interest
Proceeds of the notes
Principal and Interest
The SPV funds itself by issuing paper which is listed on a stock exchange and must therefore
comply with disclosure requirements and listing rules (e.g. Prospectus and Transparency
Directives). As the SPV hedges various exposures with derivatives it must comply with the
European Market Infrastructures Regulation (EMIR) and report information on its derivatives
trades to a trade repository. SPVs with strong cross-sector and border interlinkages (including
SPVs with strong interconnectedness with the regulated banking system as illustrated in Chart
C), can raise concerns regarding contagion and financial stability.
10. 57Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Case Study D: Irish domiciled FVC structure investing in mortgage backed securities
Chart D presents an example of a FVC structure which invests in mortgage backed securities
and issues different types of debt securities.
Chart D: Summary of Transactions
Mortgage
Portfolio
FVC
(Issuer)
Investment
Manager
Class A
Notes
Subordinated
Notes
Class E
Notes
Class D
Notes
Class C
Notes
Class B
Notes
Asset Swap
Counterparty
Purchase of collateral
Proceeds of
the notes
Notes redemption and
notes interest payments
Euro interest and principal
Principal and interest
payments
Non-euro interest and
principal
This FVC funds itself by issuing multiple “tranches” of debt securities and invests in a portfolio
of mortgages from a bank. These transactions can be cross-border in nature. Each class of
debt security has a different seniority with a credit rating assigned depending on the level of
seniority. The notes are redeemed in order of seniority and any defaults affect the subordinated
notes first which results in the lower rated securities receiving higher interest payments. An
asset swap counterparty can also be involved to hedge any currency risks if the notes have
been issued in a different currency to that of the mortgages held.
11. 58 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Considering the complexity of these
transactions in terms of the number of
vehicles, securities and jurisdictions involved,
it is possible that these entities may be used
by originators to obscure the true economic
nature of their activities.
5. Regulatory Developments and
Financial Stability Issues
5.1 Relevant securities and markets
regulations
No single regulation covers all of the activities
of FVCs and SPVs. As noted by the Central
Bank of Ireland (2014), various sectoral
financial services regulations are likely to
apply, directly or indirectly, to these vehicles
(e.g. banking, insurance and fund regulations,
investor disclosure and market monitoring
regulations). These regulations will better
inform regulators seeking to assess the
financial stability impact of FVCs’ and SPVs’
activities.
For example, FVCs and SPVs who engage in
derivative trading will be within scope of the
European Union regulation on derivatives,
central counterparties and trade repositories,
the European Market Infrastructure Regulation
(EMIR). EMIR imposes reporting requirements
on all entities entering into derivative contracts.
Our analysis suggests a significant minority of
Irish domiciled FVCs and SPVs are involved in
derivative contracts.
FVCs and SPVs may also fall under the
Prospectus and Transparency Directives should
they decide to publically issue debt.16
The
prospectus must contain all information which,
according to the particular nature of the issuer
(and of the securities issued), is necessary
to enable investors to make an informed
assessment of the investment. Information
includes details of the assets and liabilities,
financial position, profit and losses, and
prospects of the issuer and of any guarantor;
and the rights attaching to such securities.
Publically listed debt issuances have fewer
reporting requirements than equity issuances
under the Regulation. There is, for example, no
public register requirement of debt securities
holders as exists for equity. Regulators may be
able to get information on a first counterparty
basis but this may not identify the beneficial
owner of the debt. If the first counterparty is a
stock exchange, regulators have no information
on the final investor. Our initial analysis shows
that most FVCs and some SPVs are issuing
debt publically but there are a significant
number issuing debt privately.
The Securities Financing Transaction
Regulation (SFTR) is a new proposal by the
European Commission to develop a reporting
regime for securities financing transactions
(i.e. lending and borrowing of securities
and commodities, repurchase or reverse
repurchase transactions, or buy-sell back
or sell-buy back transactions). Our analysis
suggests the use of securities transaction
financing by Irish domiciled FVCs and SPVs is
relatively limited.
In addition to the securities and markets
regulations outlined above, there are
forthcoming requirements under the Credit
Ratings Agencies Regulation (CRA3) for
reporting of financial information on rated
instruments. This will provide some information
on privately issued debt which is rated.
Unrated privately issued debt by SPVs will
continue to fall outside of scope. Risk retention
requirements have also been put in place for
banks and insurers issuing securitisations.17
There have been calls from the Bank of
England and ECB (2014, 2015), European
Commission (2015) and Segoviano et al.
(2015) amongst others, to standardise and
simplify securitisation in order to reduce the
financial stability risks posed by the lack of
transparency in the sector.
Overall, while these existing and new
regulations will improve oversight and
transparency of this sector, some FVCs and
SPVs may remain partially or fully outside the
regulatory perimeter. This presents challenges
for authorities engaged in mapping and
monitoring FVC and SPV activities and the
shadow banking system in general. In addition,
due to the cross-sectoral and global flow of
funds within the FVC and SPV sector (see
16 On a regulated market or make an offer of securities to the public within the European Economic Area.
17 By virtue of Article 135(2) of Directive 2009/138/EC (Solvency II) for insurance undertakings and by virtue of Article 405 of Regulation
(EU) No 575/2013 (CRR) for credit institutions.
12. 59Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
Sections 4.3 and 4.4), good macro-oversight
of this sector will require data sharing and
general co-operation amongst regulators.
5.2 Financial Stability Issues
Securitisation and other non-bank credit
intermediation allow investors to diversify and
manage risk. This allows borrowers to reduce
the cost of capital by ring-fencing assets and
activities or by accessing new pools of credit.
However, despite these benefits, distress in the
non-bank financial sector can also lead to the
build-up of systemic risk and thereby threaten
the functioning of the entire financial system
(Segoviano et al., 2015). Some potential risks
identified by international standard setters
such as the FSB (2011) and others include
the concentration of business models and
assets, high leverage, maturity or liquidity
mismatch, illiquid assets, and imperfect credit
risk transfer. Our analysis, although preliminary
in nature, identified some of these features in
Irish domiciled FVCs and SPVs (e.g. similar
business models, illiquid assets, etc.)
FVCs and SPVs have significant
interconnectedness with the regulated
banking system owing to direct contractual
arrangements such as funding linkages.18
The extent of the interconnectedness is hard
to measure accurately as the linkage may be
implicit rather than explicit.18
This complexity
makes risk assessment more challenging. For
example, it obscures the assessment of the
loss absorption capacity of the vehicle and
makes balance sheet data (e.g. leverage) less
meaningful.
Non-bank entities such as FVCs and
SPVs are subject to both lighter regulatory
requirements and less intensive supervision
than banks. As these entities remain on or
outside the regulatory perimeter, they can also
potentially exacerbate the vulnerabilities within
the financial system. Given the limitations
in regulatory oversight, Constancio (2015)
highlights the need to develop a monitoring
framework for the non-bank financial system
including the expansion of macroprudential
tools for non-bank financial entities.
To fully assess the financial stability implications
of this sector, detailed granular data is required.
As SPV risks are mainly external, these data
are required to map the international linkages
of SPVs and their interconnectedness with the
regulated banking system. In order to fill some
of these data gaps, the Central Bank of Ireland
will extend its reporting requirements to include
SPVs, requiring them to report the same
quarterly data as FVCs.
6. Conclusion
The global financial crisis highlighted the need to
better understand the activities of entities within
the shadow banking system. Owing to limited
granular data for a significant portion of the
shadow banking system in Ireland, it is difficult
to assess fully the financial stability implications
of activities within this sector. Motivated by
these data gaps, we construct a unique firm-
level dataset of FVCs and SPVs which are
incorporated in Ireland and which avail of the
Section 110 framework. Based on these data,
we estimate that there are approximately 1,300
FVCs and SPVs registered in Ireland in 2012.
These vehicles are engaged in a broad array
of activities including investment transactions,
securitisation transactions, distressed debt
transactions, balance sheet management, and
fundraising. Irish domiciled FVCs and SPVs also
have significant interconnectedness with the
regulated banking system.
While existing and new financial services
regulations will improve oversight and
transparency of this sector, some SPVs may
remain fully or partially outside the regulatory
perimeter. This presents challenges for authorities
engaged in mapping and monitoring SPV
activities and the shadow banking system in
general. Some of the characteristics of Irish
FVCs and SPVs could potentially pose risks to
international financial stability (as outlined by the
FSB and others) owing to their activities, their
international financial linkages and the limited
oversight of the sector. Later this year, the Central
Bank of Ireland will extend its FVC reporting
requirements to SPVs in order to improve the
transparency and oversight of this sector.
18 See Gorton and Souleles (2007) and Archarya et al. (2013) for discussions of the importance of funding linkages and sponsor
support in determining the functionality of the SPV market.
13. 60 Quarterly Bulletin 03 / July 15Data Gaps and Shadow Banking: Profiling
Special Purpose Vehicles’ Activities in Ireland
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