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This paper aims to provide a critical comment on complex funding systems.

This is a critical comment written in the form of a poem. The poem is in the style of the English light opera composers Gilbert and Sullivan, and is a variation on their song “I Am the Very Model of a Modern Major General”, from The Pirates of Penzance.

The poem spotlights financial failure.

The poem spotlights the crazy names and poor transparency of special purpose vehicles.

This article provides an analysis of the economic incentives and financial reporting for Special Purpose Entities (SPEs) over the last four decades. The analysis explains economic factors motivating business use of SPEs and the origins of SPEs in lease accounting and securitization transactions. Related financial reporting standards are identified and discussed, including the historical shift from a traditional control viewpoint to a primary beneficiary viewpoint for financial reporting for consolidation for SPEs (recently renamed Variable Interest Entities (VIEs) in U.S. Financial Accounting Interpretation 46R). The article also includes illustrative journal entries explaining SPE transactions from both the viewpoint of the creating company(s) and the SPE. Actual financial reporting examples and/or journal entries for SPEs created by Bank of America, General Motors Acceptance Corporation, Lucent Technologies and Alza Pharmaceuticals Corporation are also provided.

To explain the benefits and the regulations pertaining to Jersey as a domicile for investment funds.

Provides an overview of Jersey as an international financial center followed by a detailed description of Jersey regulations applying to private funds, expert funds, listed funds, regulated investor funds, retail and other collective investment funds (CIFs), and notification-only funds. Explains fund vehicles including unit trusts, limited partnerships, and companies. Discusses taxes and fund service providers.

Jersey is one of the world’s major international finance centers, offering location and time-zone benefits; stability and reliability; tax neutrality; a stable political, fiscal and regulatory infrastructure; and highly-skilled financial-service providers.

Expert guidance from experienced investment-funds lawyers

The purpose of this paper is to study financial vehicle corporations (FVCs) and other special purpose vehicles (SPVs) in Ireland.

The paper is based on a database of FVCs that are a central part of the shadow banking sector in Ireland. The database is derived from a European Central Bank (ECB) list of securities and from filings in Company Registration Office, Dublin.

Tax concessions are very valuable and has resulted in zero or close-to-zero effective tax rates. Although described as “bankruptcy remote”, FVCs/ SPVs in Ireland are associated with several banks that failed. Central Bank data are inconsistent with revenue data and have resulted in regulatory gaps. The main economic benefit to Ireland consists of payments to certain service providers.

A complete population of FVCs/SPVs has not been used. Ownership of FVCs/SPVs has not been identified with consequent implications for identifying risk to the sponsoring firm or guarantor.

The study indicates data deficiencies in Central Bank data, with consequent implications for regulation and measuring the size of the shadow banking sector, and failure of FVCs/SPVs described as bankruptcy remote.

The shadow banking sector has been a key source of instability and risk transference in the recent past. Research and understanding is vital to prevent a future occurrence.

There are no publicly available databases of individual FVCs/SPVs in Ireland. Hence, research on granular data is limited. The study develops a database derived from lists of securities published by the ECB. The study also relies on a database derived from company house records.

Securitisation is the process of raising finance by the issuing of bonds or commercial paper. In many cases the originator of the arrangement will, in return, be selling a package of existing loan assets in the form of debt instruments. The first of these arrangements is known as ‘primary securitisation’, the second as ‘secondary securitisation’. There is no generally accepted legal definition, though Feency provides a useful one:

Corporations face new imperatives to reduce occupancy costs for both investment and corporate properties and to eliminate redundancies in their holdings. After mergers or acquisitions pressure to ‘rationalise’ the corporate portfolio are even more intense. This paper will explore an Eight Step Strategic Plan to evaluate alternative structures for corporate assets which are no longer contributing to return on equity or which may be considered surplus. It will also recommend a Special Purpose Vehicle to move assets off the corporate balance sheet.

In a public-private partnership (PPP), the private sector is represented by a company termed the special purpose vehicle (SPV), which combines different stakeholders including designers, contractors and service providers under one umbrella. Correct SPV team selection is critical to ensure PPP success as the SPV must act as an integrated entity. In fact, unless the SPV takes an active role in developing trust and promoting integration principles, segmentation of interests, highly adversarial atmospheres, loss of value and economic inefficiency will prevail. Absence of awareness of such principles among stakeholders and the scarcity of literature investigating SPV stakeholder integration create great risks that jeopardize project success. Accordingly, to mitigate the aforementioned risks and provide stakeholders with both the knowledge and the tools to instigate and maintain integration, this paper aims to develop and test a framework to measure SPV stakeholder integration, inspired by the correlation between integrated project delivery (IPD) and SPV operations.

Following a design science research approach, a structured review is conducted to develop the SPV integration metrics and framework. The framework is then validated through face validation by a panel of industry and academic experts to assess its applicability in measuring SPV integration. Finally, the framework is tested on a well-recognized international PPP project to measure the SPV integration level, and the outcomes are discussed and analyzed.

The framework was able to assess the integration level of the studied SPV highlighting several areas of low-integration settings and providing guidance for achieving better integration.

This research is the first that develops a model to investigate the SPV’s integration level, from a holistic IPD perspective, to enable successful relationship management and enhance collaboration success. This study inspires practical recommendations for PPP practitioners to reduce the risks of segregated SPVs and their contribution to PPP failure.

Leading developers and providers in the modern space launch market note a splash in the development of ultralight launch vehicle (LV), driven by the growing demand for small satellites for large constellations in low Earth orbits. One of the promising ways to solve the problem of the quick launch of such satellites is to use a new type of ultralight launch vehicle with a plastic body. The project of such a launch vehicle was proposed by Oles Honchar Dnipro National University (Ukraine). Along with that, there is a need for appropriate research studies on the thermal resistance of the plastic shell, as the physical, mechanical and thermophysical characteristics of polymers significantly differ from traditional aerospace materials. The purpose of this study is to validate the design and ballistic parameters of such a launch vehicle in terms of providing an acceptable thermal environment at the atmospheric phase of the trajectory.

The workability of a new type of propulsion system is being investigated experimentally in bench conditions. To study the process of aerodynamic heating of a plastic shell, numerical modeling based on the integration of the flight dynamics and heat transfer equations is used.

Brief information about the design of a new type of ultra-light autophage launch vehicle with a plastic body is presented. A mathematical model for the movement of the launch vehicle at the atmospheric phase of the trajectory, and for the heating of the polyethylene body of the launch vehicle, taking into account the dynamic change in the atmospheric parameters is proposed. The influence of the motion trajectory on the thermal environment of the rocket body is investigated, rational motion trajectories and corresponding permissible g-loads are determined.

The fundamental possibility of using plastic (polyethylene) as a structural material and fuel for bodies of a new type of ultralight launch vehicles has been substantiated. It is shown that to ensure acceptable thermal conditions of a plastic body, it is necessary to use thermal insulation. It is proposed to use a polymeric Teflon coating as such thermal insulation. The results are important for the development of technologies for launching small satellites into orbit, as the use of plastic as the main structural material of the rocket body will significantly reduce the launch cost.

This paper considers key factors which have an impact on the development and implementation of innovations in the public sector and explores how beneficial elements of private sector governance can be utilised and incorporated into approaches to support innovation in the public sector. It discusses a number of concepts which could be important for innovation in the public sector; these include overt and covert innovation, primary and secondary innovation and organisational equilibrium. The relationship between risk and trust is considered and the importance of accountability is addressed. The utilisation of special purpose vehicles is discussed, highlighting how private sector governance can be utilised to support innovation in the public sector. The value of this approach is supported by an example which has been in operation for seven years; the special purpose vehicle operates using private sector governance but is essentially owned by a group of large public sector organisations.

The Government of Sierra Leone has launched a strategic plan 2019–2022 that includes a large focus on new large infrastructure. This plan includes the Lungi Bridge project, a 7-km bridge for connecting the capital city Freetown with the Lungi airport, procured with a public–private partnership (PPP) model. This study aims to reflect on seven issues regarding the plan implementation and the procurement of the Lungi Bridge project.

This study uses case study analysis (Sierra Leone’s infrastructure plan), in which existing literature and expertise is applied to discuss/reflect the implications for the future.

Among other reflections, this study addresses the benefits and risks of using a PPP option with non-sovereign guarantee, off-balance sheet treatment and a special purpose vehicle for multiple projects; this study also discusses the social risk of misperceiving the bridge as a basic essential transport option (non-voluntary).

The reflective process can contribute significantly to policymakers in Sierra Leone and its neighbour countries, as it is a contextualised analysis for the country.

Many studies have addressed existing PPP projects and contexts for low-income countries. However, to best of the author’s knowledge, the analysis of a single government infrastructure plan has not been addressed. Moreover, for the Sierra Leone’s context, this is unique.