Securitisation Disclosures and Compliance Under Basel II: Part I - A Risk-Based Approach to Economic Substance Over Legal Form
Journal of International Banking Law and Regulation, Vol. 20, No. 12, pp. 617-627, December 2005
11 Pages Posted: 23 Jun 2008
Date Written: June 20, 2005
Abstract
The Securitisation Framework under Basel II represents a major challenge for participants in the securitisation industry. With hundreds of detailed requirements, exemption from any risk charge requires careful interpretation of the doctrine of economic substance over legal form. This article examines the meaning of this doctrine in light of the legal and equitable tradition, UK tax law and Mahonia (2004), and finds them wanting in practical guidance. The author offers a risk symemtric analysis of the doctrine as a novel and practical method for understanding the essence of the Securitisation Framework.
Keywords: Banking supervision, capital adequacy, risk, risk symmetry, securitisation, symmetry, tax
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