October 6, 2015

SPV reporting to mirror FVC requirements

The Central Bank of Ireland, in a statement to Finance Dublin, has said that the incoming reporting requirements for special purpose vehicles (SPVs) will mirror those currently in place for Financial Vehicle Corporations (FVCs). However, the Central Bank has said that there are currently no plans at an EU level to extend reporting requirements to SPVs. The Central Bank said that the new requirements are being introduced as part of its focus on activities on ‘the regulatory perimeter’.

Since Q4 2009 the European Central Bank has required FVCs to report statistical data, including information on deposits and loans; debt securities issued and held; securitised loans; derivatives; quarter end transactions; total assets/liabilities and annual profit and loss. Smaller FVCs have a derogation from some of the reporting requirements and are only required to report debt securities issued, total assets/liabilities and annual profit and loss. It is as yet unclear if the Central Bank of Ireland will offer a similar derogation for small SPVs when it introduces its standalone reporting requirements for SPVs.

The statement from the Central Bank of Ireland said: ‘In light of the shifting focus of international bodies like the FSB and ESRB, a team of economists at the Central Bank has been looking at the regulatory perimeter. This includes activity that is not quite in the regulatory spotlight but is in the penumbra. In order to assist in the mapping of international linkages of Special Purpose Vehicle (SPVs) reporting requirements are being extended to these entities. This information will assist the Central Bank to better understand the activities of these SPVs. These reporting requirements will mirror those currently in place for Financial Vehicle Corporations (FVCs) and are expected to be rolled out in the coming months. While there is no plan at present to extend reporting requirements at an EU level, work is on-going internationally and in Europe to assess regulatory reporting requirements across the board to ensure authorities have the fullest picture possible when ascertaining the stability of the system.The Central Bank continues to analyse financial intermediation activities which may potentially lead to financial stability or consumer protection risks.’

This article appeared in the October 2015 issue of Finance Dublin