In the recent past, the State Supervision of Financial Organizations (the "SSFO") has published its guidelines on its official website regarding the possibility of providing financial services in the territory of Hungary by credit institutions/financial enterprises with a registered seat in a Member State of the European Union in the form of cross-border services through agencies by means of the Hungarian Bank Act ...
The recently introduced Pension Protection Act 2006 makes two important changes to the definition of the term "plan assets" for the purposes of ERISA. The new legislation continues to provide that the assets of a fund or other entity will not constitute "plan assets" and will therefore not be subject to the fiduciary obligations under ERISA if less than 25% of the value of each class of equity in the entity is held by "benefit plan investors" ...
By January 2007 all EU members are supposed to adopt MiFID, including its implementation measures published in June 2006. Firms carrying out investment services will then have to comply with it by November 2007. MiFID should greatly facilitate EU cross-border activities since passported firms will no longer be subject to prudential regulation in each country where they provide services but only by their home country ...
In the recent Feedback Statement (FS06/2) from the UK's Financial Services Authority (FSA) to its Discussion Paper entitled "Hedge funds: A discussion of risk and regulatory engagement", the FSA identified the use of side letters as an area of concern where a market failure may be present, thus potentially requiring regulatory intervention by the FSA ...
The SFC has recently published a guide to the information required to be submitted to the SFC in relation to risk management and control processes by fund managers seeking approval to use the expanded investment powers under UCITS III (Guide). The Guide sets out the items and areas relating to the risk management and control process that the SFC normally expects to be provided in order to give the SFC an understanding of the risk management processes of the relevant UCITS III funds ...
The Office of Fair Trading (OFT) announced in June that it was considering launching an investigation into the UK airports market "with a view to establishing if the current market structure works well for consumers". This raised a number of eyebrows in the City, as the European Commission had only just cleared Ferrovial's bid for BAA, confirming that the market (at least for ground-handling services) "is broadly perceived as well-functioning by airlines" ...
There is an argument that in certain circumstances greater prudence is now required from members dividends following the Court of Appeal case It's a Wrap (UK) Ltd (In Liquidation) v (1) Barbara Gula and (2) Anthony Gula [2006] EWCA Civ 544, which reverses an earlier High Court decision. The case involved an insolvent company which had claimed repayment of dividends unlawfully paid to the defendants who were the only members and directors of the company ...
Patent Opinion Letters: Privilege Waivers after Knorr Knorr-Bremse: The Federal Circuit Changes the Role of Options of Counsel in Patent Cases In September 2004, the en banc opinion of the Federal Circuit Court in Knorr- Bremse System Fuer Nutzfahrzeuge Bmbh v. Dana Corp ...
The Office of Fair Trading (OFT) announced in June that it was considering launching an investigation into the UK airports market "with a view to establishing if the current market structure works well for consumers". This raised a number of eyebrows in the City, as the European Commission had only just cleared Ferrovial's bid for BAA, confirming that the market (at least for ground-handling services) "is broadly perceived as well-functioning by airlines" ...
The People's Bank of China, the Chinese central bank, recently announced principle policies for the financial services sector on outbound investments in overseas markets by Chinese nationals and corporations. These policies are generally regarded as the Qualified Domestic Institutional Investors (QDII) program in the market ...
On 1 March 2004, the Provisional Administrative Rules Governing Derivative Activities of Financial Institutions were implemented by the China Banking Regulatory Commission (the "CBRC") and constituted the first set of substantive regulations governing the derivatives business in China ...
Shareholders with a substantial interest in a listed company are required to disclose their shareholdings in order to improve market transparency, prevent insider trading, and facilitate informed investment decisions. In most countries in Asia, initial disclosure is required once a shareholder acquires an interest in 5% of a listed company’s voting shares. In Taiwan and Sri Lanka it is 10% ...
Further to the recent amends to the Portuguese Securities Code arising from the implementation of the EU Directives on the prospectus to be published when securities are offered to the public or admitted to trading and on insider dealing and market manipulation, the Portuguese Securities Exchange Commission (“CMVM”) approved a set of rulings and guidelines1 now creating an overall framework on the new Inside Information regime. I ...
Last March 15th was published Decree Law nr. 52/2006 implementing Directive 2003/6/CE, of the European Parliament and the Council, dated January 28th, on insider dealing and market manipulation, and Directive 2003/71/CE, of the European Parliament and the Council, dated November 4th, on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/CE ...
In April last year, companies were given greater flexibility in protecting their directors against certain liabilities as a result of changes to the law. The changes recognised increasing concern over directors' exposure to liability arising from legal proceedings brought by third parties. The Companies Actprohibits a company from exempting directors in respect of liability if negligent, in default or in breach of duty or trust ...
The Bangko Sentral ng Pilipinas (BSP, the Philippine Central Bank) recently issued Circular No. 518, s. 2006, which authorizes banks to enter into joint venture agreements (JVA) with real estate development companies for the development of properties acquired by banks in settlement of loans and other advances, either through foreclosure or dacion en pago (ROPAs) ...
On 17 February 2006, The Stock Exchange of Hong Kong Limited (the "Exchange") announced various minor and housekeeping amendments to the Main Board and GEM Listing Rules. The amendments came into effect on 1 March 2006. They relate to the following matters: Disclosures of "advances to entities" and "financial assistance and guarantees to affiliated companies" Rules 13.13 to 13.16 of the Main Board Listing Rules and rules 17.15 to 17 ...
The considerable publicity surrounding the new Bankruptcy Act has focused on the impact of the legislation on individuals seeking bankruptcy relief under Chapter 7 of the Bankruptcy Code.1 There are also important changes that will have a significant impact on business bankruptcy cases. The new provisions will require suppliers, lenders, debtors, landlords and other constituents to rethink strategies that have previously been routinely employed in business bankruptcy cases ...
Recently, in Clark v. DaimlerChrysler Corp., the Michigan Court of Appeals ruled that an employee’s lawsuit for age discrimination under the Elliott-Larsen Civil Rights Act (ELCRA) was timebarred because of the six-month limitations period contained in the employee’s job application. The court upheld the contractual limitations period at issue even though the ELCRA explicitly provided that an individual has three years to bring a claim under that statute ...
SEC and PCAOB To Take Action on Section 404 Internal Controls Reporting Matters The SEC recently announced a series of actions it and the PCAOB intend to take to improve the implementation of the internal control reporting requirements of Section 404 of the Sarbanes-Oxley Act of 2002. These actions include: • Providing Guidance for Companies ...
Things To Think About This Proxy Season Prior to Drafting Update director and officer questionnaires, including “independence” criteria for directors Most public companies follow the “best practice” of having all directors and executive officers complete a standard form of questionnaire each year to verify the accuracy of information about the person that is reported in the 10-K Report and proxy statement ...
features 1. Modification of the Requirements for banks'shareholders. 2. Fiscal incentives for the development of the Forest Sector. 3. The unconstitutionality of the Bankcruptcy process in Nicaragua. 4. Right of priority. 5. Modernizing Legal procedures in Real Estate transactions. 6. Closing activities in the acquisition of properties. 7 ...
The European Commission published its Recommendation on the role of non-executive directors in February 2005. Member States are invited, but not required, to promote the application of the Recommendation's principles by 30 June 2006. The principles are applicable to listed companies, although Member States are allowed to extend the ambit to unlisted companies. The Recommendation adopts the comply or explain approach utilised by the UK Combined Code ...
