Our team can support clients in providing advice and assistance in the setting up of a securitisation vehicle which may take the form of a private or public limited liability company, a securitisation cell company, a partnership, a trust or any other legal entity permitted by the Malta Financial Services Authority (MFSA).
A securitisation transaction consists of a transaction or arrangement whereby a securitisation vehicle, directly or indirectly:
– acquires securitisation assets from an originator by any means, or
– assumes any risks from an originator by any means, or
– grants secured loan or other secured facility or facilities to an originator,
and finances any or all of the above, directly or indirectly, in whole or in part, through the issue of financial instruments, and includes any preparatory acts carried out in connection with the above.

The originator/assignor is that person who transfers the securitisation asset to the securitisation vehicle. The term originator or assignor shall also include all its subsidiary undertakings or affiliates. A securitisation asset may be any asset, whether existing or future, whether movable or immovable, and whether tangible or intangible, and where the context so allows, includes risk.

As such this type of securitisation vehicle would not require applying and acquiring any form of licence from the MFSA unless the vehicle set up is considered a public securitisation vehicle (that is issue financial instruments to the public on a continuous basis). However, on setting up a securitisation vehicle the MFSA are to be informed accordingly.