What makes a Dutch stichting the best choice for the Italian Special Purpose Vehicles (SPVs)?

M&G Trustee Company Limited (MTCL) specialises in the offering of Dutch Foundations, otherwise known as stichting, a unique tool since its implementation in the Dutch law in 1956.

“The simplicity of its structure allows the incorporation of a stichting in a day through a Dutch Notary.”

There are similar models in common law jurisdictions and although players in the Italian market have experimented and implemented alternative solutions, the stichting remains popular and widely used as a key structuring tool for capital markets, corporate or debt restructuring and securitisation, especially in Italy.

A stichting is an independent legal entity, with no shareholders, no share capital, no owners and therefore, defined an orphan entity. The only controlling party is the board of directors. The simplicity of its structure allows the incorporation of a stichting in a day through a Dutch Notary.

How does the stichting become the best option for a SPV?

To protect the SPV assets against a potential bankruptcy, the SPV should be correctly designed as an orphan entity, segregating the assets in a bankruptcy-remote structure, therefore, establishing the SPV with an underlying stichting as quotaholder of the Italian SPVs  provides the bankruptcy-remote status required.

It is important, however, to have expert professionals that have a deep understanding and experience in managing such structures with their complexities. 

“Our stichtingen are always available and ready to be used for SPV incorporations, each of them with an Italian ‘Codice Fiscale’ already assigned.”

We look after all aspects of the formation process both for the stichting and the SPV, liaising with Notaries, preparing compliance documents, arranging for the share capital funding and anything else needed. Our stichtingen are always available and ready to be used for SPV incorporations, each of them with an Italian “Codice Fiscale” already assigned.

At MTCL we provide stichtingen with a tailored and innovative approach depending on client needs. Our stichtingen are registered with a high reputable provider in Amsterdam, regulated by the Dutch Central Bank with whom we sit on the board of directors for each stichting.

To find out more or enquire how the Italian team at M&G Trustee can assist, please contact us.