The Law of Securitisation in Ireland

Abstract

The process of securitisation is a new and innovative financing method that enables capital utilisation, improves market efficiency and allows a better allocation of risk. Evolved over the last few decades, securitisation represents a substantial and established part of Irish and global capital markets. Despite its importance to the economy, the considerable market share that Ireland has achieved in the European securitisation market and the fact that it was one of the factors which exacerbated the financial crisis, the Irish legal framework for securitisation has not been the focus of comprehensive academic research. To bridge this gap, this work will present a focused analysis of the diverse areas of laws and the numerous layers of regulation which affect financial transactions in Ireland. In doing so, it will first strive to elaborate a working definition of securitisation with a solid theoretical grounding, then it will dissect the structure of securitisation transactions and, finally, it will examine the legal and regulatory implications resulting from such review. It should provide comprehensive guidance on the most common securitisation structures used in Ireland that may assist regulators and provide sound foundations for further research in the field. This work will deal primarily with true sale securitisation, however, also whole business and synthetic structures will be discussed. This will entail a discussion of the legal and regulatory issues which affect a securitisation transaction in Ireland.