Switching SPV service providers: Why the right partner matters more than ever
In today’s financial markets, special purpose vehicles (SPVs) are the backbone of securitisation, structured finance and investment transactions. But the success of an SPV does not depend on how it's structured at inception – it depends on how it's managed, governed and supported over time.
As transactions evolve and regulatory pressures change, many organisations find that their existing SPV service provider is no longer fit for purpose. Perhaps service quality has slipped, maybe costs have escalated, or perhaps the complexity of your structure now demands deeper expertise and stronger governance. Whatever the reason, changing your SPV service provider can feel like a disruptive step. But with the right approach – and the right partner – it can be a strategic move that unlocks efficiency, compliance, and peace of mind.
Why do companies decide to switch?
Some of the most common drivers for switching providers include:
- Service gaps – Slow response times, missed deadlines, or a lack of proactive advice.
- Cost vs. value – Rising and hidden fees without demonstrable improvements in service.
- Complexity – Growing structures that need multi-jurisdictional or technical expertise.
- Compliance risks – Errors in regulatory filings or weak governance oversight, overdue financial or investor reporting.
- Capacity risk – inability to manage large programmes with multiple vehicles in several jurisdictions.
In a market where reputation and investor trust are very important, these issues can’t be ignored.
Benefits of switching
Enhanced service quality – Switching to a new provider can lead to improved service quality. New providers often bring fresh perspectives, innovative solutions, and a commitment to excellence. They are eager to impress and retain new clients, which can result in higher levels of service and attention to detail.
Cost savings – A new provider may offer more competitive pricing or better value for money. By negotiating new contracts, companies can take advantage of cost savings and allocate resources more efficiently. Additionally, new providers may offer bundled services or discounts that were not available with the previous provider.
Access to advanced technology – Technology is constantly evolving, and new providers are often at the forefront of these advancements. By switching providers, companies can gain access to the latest tools, software, and systems that can streamline operations, improve efficiency, and enhance overall performance.
Increased flexibility and customisation – New providers may offer more flexible and customisable solutions tailored to the specific needs of the company. This can lead to better alignment with business goals and more effective support for growth and expansion. Customisation ensures that the services provided are a perfect fit for your unique requirements.
Fresh insights and innovation – A new provider can bring fresh insights and innovative ideas to the table. They may have experience working with other companies in the same industry and can offer valuable advice and best practices. This can lead to improved processes, new strategies, and a competitive edge in the market.
Better compliance and risk management – Regulatory requirements and industry standards are constantly changing. A new provider may have a better understanding of current regulations and offer more robust compliance and risk management solutions. This can help the company avoid legal issues and ensure that all operations are conducted in accordance with the latest guidelines.
Seamless transitions: best practices for switching SPV service providers
Switching an SPV service provider need not be a disruptive process. With strategic planning and the engagement of experienced professionals, transitions can be executed with minimal operational friction. While standard termination provisions typically require a 90-day notice period, it is entirely feasible—and often advisable – to negotiate shorter timelines to suit the needs of the transaction. For example, the transfer is to be executed at the programme update. For more regulated capital markets, instruments allow for any local regulatory approvals' timelines.
A successful transition includes instructing the outgoing provider to share essential due diligence materials, such as anti-money laundering (AML) and know-your-customer (KYC) documentation and issuing a formal termination notice. Once the process is underway, the substantive transfer of responsibilities should be managed directly between the two professional SPV service providers.
The value of the right partner
The difference between an average provider and the right partner is profound. A trusted SPV service provider will:
- Safeguard compliance across jurisdictions
- Provide independent governance that builds investor trust
- Deliver accurate and timely reporting to auditors, regulators, and stakeholders
- Act as a proactive partner, not just an administrator
This is not simply an operational choice – it’s a strategic decision that impacts the success of your structure.
Why choose Ocorian?
Ocorian is an international provider offering SPV services, with established experience in capital markets, fund administration and corporate services. We offer a complete oversight and administration service from key jurisdictions around the world. Our dedicated local teams will take over the management of your SPV completely or fill in gaps in your in-house provision.