Charlotte GAUCHON
Taxation of securitisation in France: issues for securitisation undertakings and investors
By Charlotte GAUCHON20 July 2025Securitisation is a powerful financial engineering tool, making it possible to transform illiquid assets into marketable securities. While understanding the key mechanism of securitisation is a first step, mastering the tax implications is a determining factor for both securitisation vehicles and investors. Under French law, there are two main vehicles for securitisation transactions, the fonds commun de titrisation (FCT) and the société de titrisation (ST), both of which have significantly different tax regimes. Optimising a securitisation transaction requires a detailed analysis of its legal structure and tax consequences, an area in which Solent Avocats' expertise in banking and finance law brings real added value. Tax treatment of securitisation vehicles The tax treatment of securitisation vehicles depends on their legal form. The fonds commun de titrisation (securitisation mutual fund), the oldest structure under French law,...
Lender remuneration: interest rates, TEG and usury in banking and finance law
Credit and consumer lawTaking out a loan is a frequent stage in the life of a business or an individual. But every loan has a cost: the lender's remuneration. Far from being left to the discretion of the banks, this remuneration is governed by a complex set of legal rules designed to ensure that the lender's...The players in a securitisation transaction: roles, responsibilities and interdependencies
Banking and securities law, SecuritisationBy its very nature and purpose, a securitisation transaction involves a number of players whose roles are distinct but closely interdependent. Understanding who does what, and why, is fundamental to understanding the structure of these financial arrangements. Far from being a simple transaction, securitisation is a veritable ecosystem in which...STS securitisation: simple, transparent and standardised for the European market
Banking and securities law, SecuritisationIn the wake of the 2008 financial crisis, the word "securitisation" has long been associated with opaque and risky finance. Yet this financing tool remains essential to the economy, enabling banks and companies to transform illiquid assets such as loan portfolios into securities...Recovery of securitised receivables: issues and legal developments
Banking and securities law, SecuritisationThe life of a receivable does not end with its transfer. When a company transfers a portfolio of receivables to a financing organisation as part of a securitisation transaction, a key question arises: who is legally entitled to claim payment from the debtor? The answer, far from being...The legal framework for securitisation vehicles in France: securitisation funds and securitisation companies
Banking and securities law, SecuritisationSecuritisation is a sophisticated financial mechanism based on legal vehicles specifically designed to isolate assets and issue securities. For companies seeking to optimise their balance sheet or access new sources of finance, understanding how these entities work is essential. In France, special purpose vehicles...Securitisation: understanding this key mechanism in banking and finance law
Banking and securities law, SecuritisationSecuritisation is a financial mechanism that is often perceived as complex and sometimes associated with past economic turbulence. Yet it is a powerful and structuring financing tool for banks and large companies alike. Understanding its fundamental principles enables us to grasp how assets, such as receivables, can be...The performance bond: a sui generis personal guarantee for the performance of obligations
Guarantees, securities and enforcement lawThe execution surety, a mechanism that is often misunderstood by the general public, nevertheless represents a highly flexible personal guarantee. It forms part of an arsenal of protections available to creditors, as we discussed in our comprehensive guide to creditor guarantees in the law of obligations. Unlike security interests...Set-off, simple delegation and direct action: optimising the security of multi-debtor receivables
Guarantees, securities and enforcement lawWhen a company or an individual seeks to recover a debt, the situation becomes particularly complex when there are several parties involved. In addition to traditional instruments, the law of obligations contains ingenious mechanisms designed to navigate triangular configurations in which debts and claims are intertwined. These tools, although...Joint and several liability and indivisibility of obligations: key guarantees for creditors
Guarantees, securities and enforcement lawWhen a creditor grants credit or enters into a contractual relationship, the main concern is to ensure that the debt is paid. The risk of debtor insolvency is an economic reality that can jeopardise the financial equilibrium of any business. Among the range of intrinsic guarantees available to creditors, such as...Action paulienne: the creditor's recourse against fraud organised by his debtor
Guarantees, securities and enforcement lawWhen a debtor organises his insolvency in order to escape his obligations, the creditor may feel powerless. However, French law offers specific and powerful protection against such fraudulent manoeuvres: the action paulienne. Often overlooked by non-lawyers, it can render acts of wilful impoverishment ineffective. This article explains...Actions for rescission and derivative actions: creditor remedies for debtor inaction
Guarantees, securities and enforcement lawWhen a contract is not honoured, creditors often find themselves at a loss, faced with the debtor's inertia or default. The law of obligations, far from being a mere compendium of theoretical principles, offers powerful practical tools for protecting creditors' interests and punishing contractual non-performance. These mechanisms are...The defence of non-performance and the right of retention: mechanisms for the creditor's self-defence
Guarantees, securities and enforcement lawWhen a business partner, supplier or customer fails to honour its commitments, the first instinct is often to suspend its own obligations in return. While this reaction is legitimate in principle, it is governed by precise legal mechanisms that enable creditors to protect themselves without putting themselves at risk.Creditor guarantees in the law of obligations: mastering the mechanisms to secure your claims
Guarantees, securities and enforcement lawWhen a creditor enters into a contractual relationship, there is a risk that the debtor will not honour its commitments. The law of obligations, well aware of this reality, has developed a series of mechanisms designed to protect creditors and secure payment of their claims. In addition to securities...Sale with right of repurchase: practical applications and risks of requalification
Banking and stock exchange law, repurchase agreementsAn ancient legal tool, the sale with right of redemption has surprising and sophisticated applications in today's financial world. Originally designed for real estate transactions, it has been rediscovered by the capital markets for its flexibility. This mechanism allows for the temporary transfer of ownership of securities, offering solutions for...Tax optimisation of sale with right of repurchase: understanding the system and its specific features
Banking and stock exchange law, repurchase agreementsSale with right of redemption is an old legal mechanism, but its subtlety offers financial and asset structuring possibilities that are still relevant today. However, its handling requires a precise knowledge of its tax implications, which can be complex. Far from being a simple, temporary transfer of ownership, this transaction is...The legal regime of the sale with right of repurchase: conditions of validity and detailed effects
Banking and stock exchange law, repurchase agreementsThe sale with right of repurchase of financial securities is an old legal mechanism, provided for in the Civil Code, which offers remarkable flexibility for financing or portfolio management transactions. It is a contract of sale with a specific clause: the seller reserves the right to take back the securities...The legal nature of sale with right of repurchase: definition and essential distinctions
Banking and stock exchange law, repurchase agreementsSale with right of redemption is an ancient legal mechanism, often misunderstood, which offers remarkable flexibility for certain asset or financial transactions. Although it has been governed by the Civil Code for more than two centuries, its exact nature and implications are often the subject of confusion, although it is clearly distinguishable...Sale with right of redemption: a legal and practical guide for professionals
Banking and stock exchange law, repurchase agreementsSale with right of redemption (vente à réméré) is an ancient legal mechanism, often unfamiliar to the uninitiated, which enables the temporary transfer of ownership of an asset while retaining the possibility of buying it back. Although provided for in the French Civil Code, its application in the business world, particularly for financial securities, raises a number of...Transfer and contribution of undivided or stripped shares: legal and tax rules
Equities, Banking and stock market lawThe ownership of shares is not always individual. Inheritance, transfer of assets or joint acquisition can lead to situations where ownership is shared, whether under the joint ownership system or under ownership stripping. Managing these securities is complex enough, but selling or...Undivided shares: rules for exercising rights and impact on company management
Equities, Banking and stock market lawHolding shares in a company can take more complex forms than simple individual ownership. Joint ownership, which frequently arises as a result of inheritance or joint acquisition, is a perfect example. In this form of ownership, several people hold the same shares together, but their rights are not...
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