5 reasons to pick the UK to set up an SPV
The UK is not the first market most investors consider when thinking about an SPV. It’s not a country that has a mass market for SPV creation, but we know at Ocorian that the country’s reputation for high standards of corporate governance and transparency has given it significant niche appeal.
What does the UK SPV market look like?
It attracts a need for more complex, high-risk transactions involving multiple counterparties. These are often private-debt securitisation deals. Many involve real estate or infrastructure. A UK SPV is considered a robust vehicle for ring-fencing risk.
We outline five key considerations that show why the UK is worth considering for structures and vehicles that benefit from its set-up.
1. Flexible and swift incorporation
SPVs can be formed as any company type in the UK, but are most commonly a private company limited by shares (Ltd) or a public limited company (Plc). Plc SPVs are mostly used for offering securities to the public. Online filing means SPVs can be incorporated within 24 hours.
2. Global trade hub
London has been financing global trade since the 17th century and the City of London remains the largest foreign-exchange centre in the world. The London Stock Exchange is considered the world’s most international market for the trading of primary and secondary equity, and debt securities.
3. Fair and respected legal system
Company law in the UK is fair, robust and far-reaching in parts. The comprehensiveness of these laws is one of the reasons why the UK is an attractive option for clients who want to advertise their commitment to transparency and compliance. The UK legal system is based on common law and is considered business-friendly and flexible. It tends to evolve quickly with the needs of business.
4. Taxation rules
There are tax exemptions for securitised debt, and compliant organisations have access to the UK’s extensive network of double-tax treaties.
5. Advantageous location
The UK sits in a central time zone and is very accessible and responsive to world markets. This makes it easier to trade in both the global East and West.
Ocorian supports SPV management in the UK
Most companies and funds use a third-party corporate services provider to help establish and manage their SPVs. Outsourcing the administration reduces the burden on employees whilst ensuring all compliance, legal and reporting obligations are met and lets you focus on other tasks.
Ocorian has years of experience keeping structures in good standing across the United Kingdom. We’ll work alongside your legal and tax advisors and combine industry credentials with international and local knowledge, a network of contacts and, essentially, boots on the ground. Ocorian makes SPVs easier to set up, manage and dissolve and is with you every step throughout the lifecycle.
“Some countries have turned SPV creation into something of a cottage industry, but that’s not the case with the UK, which is more of a specialist jurisdiction. The SPVs we see tend to be more complex and involve those who want the reassurance of the country’s reputation for good and transparent governance alongside legal and regulatory certainty,” says Nick Bland, Ocorian’s Head of Capital Markets in the UK.
Contact Nick and the team for more information and to get the support you need.
Download our guide to SPV jurisdictions below:
