Glossary

Special Purpose Vehicle

A Special purpose vehicle (also known as a ‘conduit’ or ‘structured investment vehicle’) is a shell company established to take lending off the balance sheets of banks or other financial institutions. These off-balance sheet companies are generally set up in offshore tax havens (also called ‘secrecy jurisdictions’), both to avoid taxes and as a means to circumvent regulation (a process sometimes referred to as ‘regulatory arbitrage’).