Glossary

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Term Definition Legal instruments

Solvency II special purpose vehicle

08/12/2017

means an undertaking, whether incorporated or not, other than a Solvency II undertaking, which has received authorisation in accordance with Article 211(1) or (3) of the Solvency II Directive and which: 

(1) assumes risks from Solvency II undertakings; and 

(2) fully funds its exposures to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the undertaking’s obligations to the Solvency II undertaking in respect of the risks referred to in (1).

Additional Notes

[Note: Art. 13(26) of the Solvency II Directive]