insurance special purpose vehicle

an undertaking whether incorporated or not, which has received authorisation in accordance with the UK provisions which implemented article 211(1) or (3) of the Solvency II Directive and:

1. (a) which assumes risks from an insurance undertaking or a reinsurance undertaking; and
1. (b) which fully funds its exposures to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the undertaking's obligations to the insurance or reinsurance undertakings in respect of the risks in (a).

[Note: article 13(26) of the Solvency II Directive]