Article by Sam Ellis and Charles Leahy FromMaples and Calder

The UK has one of the deepest capital markets globally covering all manner of products, giving investors a varied universe in which to invest. For many years this has included its specialist securitisation regime, which has seen UK SPVs used in structures to securitise a variety of UK assets. Typical portfolios consist of residential mortgages, trade receivables, auto loans, credit cards or personal loans, aircraft leasing or commercial real estate. A current development in the UK market that we are watching closely is the development of a new legal, regulatory and tax framework for Insurance Linked Securities (“ILS”), which if successful will see another product available to investors in the London market.

The UK’s HM Treasury, the Prudential Regulation Authority and the Financial Conduct Authority have published separate consultation papers in the past 12 months, with a view to developing an onshore ILS centre in London that may help expand the ILS market globally by broadening the potential investor base and usage of ILS structures. An implementation date in the first half of 2017 is being targeted for the proposed legislation.

Maples Fiduciary is engaging in the current consultation and ultimately expects protected cell companies (PCCs) and insurance SPVs (ISPVs) to be administered in a similar manner to products administered in Bermuda, the Cayman Islands and the Channel Islands if the product is to be a success.

Maples Fiduciary has an experienced team in London, whose backgrounds are diverse and include experience working with all manner of UK SPV structures over the past 15 years. We provide UK resident directors, registered office, company secretarial support and accounting services to a range of securitisation and asset finance vehicles and are looking forward to extending this to the UK ILS space.

SOURCE: http://www.mondaq.com/caymanislands/x/574406/Investment+Strategy/The+Widening+Use+Of+UK+SPVs