In this case study, we show how IQ-EQ supported a leading European automotive finance platform in establishing a French Fonds Commun de Titrisation (FCT) to finance a €1.3bn+ auto receivables portfolio, covering around 70,000 lease contracts. The engagement combined management company, calculation agent and ESMA Article 7 reporting agent services with IQ-EQ’s Osiris platform to create a scalable securitisation operating model.
At a glance
Leading European automotive finance platform
Establish a scalable FCT structure capable of supporting private and public securitisation transaction tranches while maintaining robust governance, reporting and regulatory compliance
IQ-EQ acted as management company, calculation agent and ESMA Article 7 reporting agent, supported by our proprietary Osiris securitisation platform
A fully operational securitisation platform delivering independent governance, integrated calculations, transparent reporting and scalable funding capacity. The transition gave the client a single, integrated framework for governance, calculations and reporting, replacing a more fragmented operating model with a structure built for scale, transparency and future issuance. The structures support across two issuances the financing of a €1.3+ billion auto receivables portfolio, encompassing approximately 70,000 lease contracts, and provide a foundation for long-term revolving private funding and future public ABS issuances
The client challenge
The client is a leading European automotive finance platform originating vehicle loans and leasing receivables across multiple jurisdictions.
As part of its funding strategy, the client sought to finance a diversified portfolio of auto receivables through a FCT. The programme was designed to provide long-term funding, optimise balance sheet management and create a scalable platform capable of supporting future portfolio growth.
The structure also needed the flexibility to support:
- Private securitisation transactions with banks and institutional funding partners
- Potential public asset-backed securities (ABS) issuances
- Warehouse financing facilities
- Future growth in a large and highly granular receivables portfolio
The client required an experienced and independent partner capable of providing regulated Management company services while overseeing the transaction’s operational, calculation and regulatory reporting requirements.
The key challenge was establishing a governance and reporting framework capable of managing large volumes of loan-level data, supporting accurate transaction calculations and meeting the expectations of lenders, investors, rating agencies, auditors and regulators.
Our solution
IQ-EQ France was appointed as management company (société de gestion) of the FCT. We established the governance and operating framework required to support the vehicle from transaction closing through to final redemption.
Working closely with the originator, servicer, custodian, arrangers, legal advisers, paying agents and other transaction counterparties, we created a coordinated operating model with independent oversight of the vehicle, its portfolio and its ongoing obligations. This brought previously separate governance, calculation and reporting requirements into one integrated framework, giving the client a clearer and more scalable way to manage a complex securitisation programme.
Independent governance and oversight
As management company, IQ-EQ:
- Established and managed the FCT in accordance with French securitisation regulations
- Oversaw compliance with transaction documentation, portfolio eligibility criteria and concentration limits
- Monitored portfolio performance, transaction covenants and key risk indicators
- Coordinated transaction stakeholders and service providers
- Protected the interests of investors and noteholders through independent governance
- Managed ongoing regulatory and operational oversight throughout the life of the transaction
This provided the governance framework required to support both the immediate transaction and the client’s longer-term securitisation strategy.
Calculation agent services
As calculation agent, we performed all calculations required under the transaction documentation, including:
- Available funds and collections
- Monthly payment waterfalls
- Note interest and principal payments
- Reserve funds and liquidity mechanisms
- Transaction triggers and performance covenants
- Portfolio tests and eligibility requirements
- Payment reports and investor calculations
Bringing calculation services together with management company oversight created a connected control environment and supported consistent monitoring of portfolio performance and transaction obligations.
ESMA Article 7 reporting
For transactions subject to the EU Securitisation Regulation, we acted as ESMA Article 7 reporting agent.
Our responsibilities included:
- Preparing and reviewing regulatory reporting templates
- Collecting and validating loan-level information
- Submitting reports to securitisation repositories
- Managing ongoing investor disclosure reporting
- Performing data quality and reconciliation controls
- Supporting information requests from investors, arrangers and rating agencies
For private transactions, reporting was tailored to the requirements of lenders and institutional investors, maintaining transparency while ensuring an efficient reporting process.
Technology-enabled oversight through Osiris
Managing a large and highly granular receivables portfolio required a technology-enabled approach to oversight and control.
To support the transaction, we deployed Osiris, IQ-EQ’s proprietary securitisation and receivables management platform. Purpose-built for structured finance transactions, Osiris supports the efficient processing, validation and monitoring of high-volume receivables data. This gave the client the platform capacity needed to manage a complex securitisation programme and a high number of receivables contracts and assets.
The platform enabled us to:
- Process large volumes of receivables and loan-level data
- Automate data validation and reconciliation checks
- Monitor portfolio eligibility criteria and concentration limits
- Track transaction triggers, performance tests and early amortisation events
- Validate servicing data and collection performance
- Support waterfall calculations and payment processes
- Generate investor, lender and regulatory reports
- Maintain a comprehensive audit trail of controls, calculations and transaction events
- Identify and escalate exceptions through monitoring dashboards
Combining Osiris with specialist securitisation expertise strengthened the control environment and provided stakeholders with greater visibility over portfolio performance, reporting obligations and emerging risks.
The results
The client established a fully operational French FCT supported by independent governance, specialist transaction expertise and a scalable technology platform. The transition gave the client a single, integrated framework for governance, calculations and reporting, creating a stronger base for current funding needs and future growth across private and public securitisation markets.
The engagement delivered three clear outcomes:
- Stronger governance and control through integrated management company, calculation agent and reporting agent responsibilities, independent oversight and clearer transaction monitoring
- Better reporting and transparency through accurate cashflow calculations, ESMA Article 7 reporting, investor disclosures, data validation and exception management controls
- Greater funding scalability through a technology-enabled platform capable of supporting complex receivables management, long-term private funding, warehouse facilities and future public ABS issuances
The result was a well-governed securitisation structure that supported the client’s funding objectives, improved transparency and gave stakeholders confidence in the quality of its management, controls and regulatory compliance.
Why IQ-EQ?
Successful securitisations require more than regulatory compliance. They depend on independent governance, accurate calculations, reliable data and transparent reporting throughout the life of the transaction.
IQ-EQ brings these capabilities together through an integrated securitisation offering that includes:
- French FCT management company services
- Calculation agent services
- ESMA Article 7 reporting agent services
- Investor and lender reporting
- Portfolio oversight and governance
- Dedicated securitisation technology through the Osiris platform
Our teams support a broad range of asset-backed financing structures, including:
- Public ABS transactions
- Private securitisations
- Warehouse financing facilities
- Forward-flow funding programmes
- Consumer loan securitisations
- Auto loan and equipment leasing transactions
- Trade receivables and specialty finance structures
By combining regulatory expertise, transaction management and specialist technology, we help clients access funding efficiently while strengthening governance, transparency and investor confidence.
“Successful securitisations rely on strong governance, accurate reporting and transparent oversight. By combining specialist expertise with our Osiris platform, we help clients build scalable funding programmes that inspire investor confidence.” – Omar Ghannam, Head of Debt and Securitisation, France
Need support with your securitisation strategy?
Whether you’re establishing a new securitisation programme, expanding existing funding structures or enhancing investor reporting and governance, IQ-EQ can help.
Contact us to learn how our integrated approach to governance, transaction management, reporting and technology can support your funding strategy.
