# Special purpose entity (SPE)

- Canonical URL: https://www.gerhardmerk.de/special-purpose-entity-spe
- Post ID: 589859
- Modified: 2023-07-25T21:14:22+00:00
- Language: en

## Definition

Generally, a company with a precisely defined, narrow line of business according to its articles of association. It is founded solely with the intention of generating certain off-balance-sheet revenues. This is achieved by a founder (initiator) transferring assets to the special purpose company, such as construction machinery or pension claims, which the special purpose company then leases or manages. The risks arising from the activities of the special-purpose company are borne solely by the special-purpose company, because the initiator generally does not hold a capital interest in the special-purpose company and therefore, according to the previously prevailing voting control rule, did not have to consolidate the special-purpose company, i.e., did not have to disclose it in its accounts. - A holding company legally established in Switzerland with very few employees - not infrequently with as few as two employees - which is wholly foreign-owned and whose assets consist mainly of The company is a conduit company or special-purpose entity. - A conduit company or special purpose entity in which a bank - usually called an originator - transfers asset-backed securities to the off-balance sheet company. The special purpose vehicle then places these securities with investors in various tranches. - See Absence capitalism, End investors, Reintermediation, Shadow banking, Structured investment vehicle, Securitized securities retention, Special purpose vehicle. - Cf. Annual Report 2012 of BaFin, p. 67 f. (comprehensive revision of the EU Commission's Financial Conglomerates Directive: SPEs to be included) and the respective BaFin Annual Report, chapter "International." Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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