The State Administration of Foreign Exchange issued the Notice of the State Administration of Foreign Exchange on Relevant Issues in the Internal Operational Control of Foreign Exchange of Multinational Corporations on 18 October 2004. The Notice, which became effective on 1 November 2004, relaxes some of the restrictions on foreign exchange transfers between subsidiaries of multinational companies ...
The State Administration of Taxation revised the Rules for the Administration of Tax on Business Transactions Between Affiliated Enterprises (for Trial Implementation) effect from 22 October 2004. The Rules replace a regulation of the same name issued in 1998 (“1998 Rules”). Expanded scope of application The Rules have a wider scope of application than the 1998 Rules ...
The State Administration of Taxation (“SAT”) issued the Implementing Rules for Advance Pricing Arrangements for Business Dealings Between Affiliated Enterprises (for Trial Implementation) on 3 September 2004. The Implementing Rules, which became effective on the date on which they were issued, represent another development in China’s legal framework for transfer pricing (see previous article in this China Legal Update) ...
The Securities Commission of Malaysia released new guidelines on real estate investment trusts (REITs Guidelines) on 3 January 2005. The REITs Guidelines supersede earlier guidelines on property trust funds published in November 2002. The key features of the REITs Guidelines include the liberalisation of borrowing limits as well as the relaxation of restrictions under the old guidelines on the acquisition of leasehold properties and properties encumbered by financial charges ...
On 2 December 2004, the U.S. Securities and Exchange Commission (SEC) published a new rule and rule amendments under the Investment Advisers Act of 1940 (IAA), with significant implications for hedge fund advisers within and outside the U.S. The new rules require investment advisers to “look through” the funds they manage and count investors in the funds as clients for the purpose of determining whether an adviser is exempt from registration under the “private adviser exemption” ...
The Taiwan Securities and Futures Bureau issued an Order on 31 January 2005 increasing the limit on investment in PRC related securities by foreign funds offered by SICEs from 5% to 10% of the fund’s net asset value (NAV). The Order makes no change to the restriction on an offshore fund’s investments in securities issued in Mainland China which remains capped at 0.4% of the fund’s NAV ...
The second consultation on exemption of offshore funds from profits tax ended on 31 January 2005. Section 20A of the Inland Revenue Ordinance (IRO) provides that where a person is a non-resident and carries on business through an agent in Hong Kong, that non-resident can be charged to tax in the name of the agent and that tax can be recovered from the agent. However, section 20AA provides for an exemption whereby qualifying agents (i.e ...
In November 2004 the Hong Kong Securities and Future Commission (SFC) published its Consultation Conclusions on the Regulatory Framework for Addressing Analysts’ Conflicts of Interest and issued guidelines to form part of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct) which are scheduled to come into effect on 1 April 2005 ...
In November 2004, the Securites and Futures Commission (SFC) published its Consultation Conclusions and Guidelines on Good Disclosure of Securities Services and Related Fees and Charges (Guidelines). The Guidelines, which came into effect on 1 January 2005, supplement the existing Code of Conduct ...
The Securities and Futures Commission (SFC) issued a circular on 21 December 2004 to deemed licensed corporations. Deemed licensed corporations which do not intend to migrate to the new regime under the SFO are expected to wind down their businesses and make arrangements for the return and transfer of client assets before their licences expire on 31 March 2005. The circular also sets out guidance on the treatment of unclaimed client assets ...
This article is intended to provide some solutions on how to reduce the amount of parallel imports of your products into Ireland without breaching European law. Parallel trade of products occurs within the European Union (EU) as EU legislation provides for the free movement of goods within the EU. This rule frequently results in products being imported from cheaper countries within the EU (for example Greece) to more expensive countries within the EU (for example Ireland) ...
By Eduardo A Trueba C. January 2005 Corporate subsistence, in an economy that each day becomes more competitive, dynamic and integrated to the global world in which we live, has exponentially increased corporate mergers and alliances, together with similar transactions, such as stock acquisitions from one company for another’s capital, company, know how, and royalties transfers, among others ...
This Newsletter describes the latest developments in Trade and Regulation in the Latin American region and the EU ...
Merger and acquisition activity has increased dramatically in China over the last several years. While such transactions were virtually unknown a mere ten years ago, they are now an increasingly common and important feature of China’s economic landscape. The M&A route now offers foreign investors a viable method of entering the China market. China’s economic reforms and robust growth have fuelled the increased pace of M&A activity ...
The first legal issue to consider is whether your company has the power to carry out non-commercial dealings such as making political or charitable donations. The company's constitution should be reviewed to ensure the company is expressly empowered to make such donations. If no express power exists you could consider putting a relevant amendment of the constitution to a shareholders' vote ...
On 21 June 2004, the European Community (“EC”) submitted its instrument of accession to the Madrid Protocol to the World Intellectual Property Organisation (“WIPO”). The accession took effect from 1 October 2004.The Madrid Protocol is a treaty that facilitates the international registration of trade marks (“the International Registration System”) ...
China has traditionally restricted foreign investment in the retail and wholesale sectors with the aim of nurturing strong domestic players before their foreign counterparts would be let into the country. However, in order to become a member of the World Trade Organisation, China has committed itself to gradually opening up its distribution sector to foreign investment ...
Ukrainian tax authorities are notorious for their practice of failing to return VAT advance payments on time. This problem appears to be of an economic rather than legal nature and persists due to the constant shortage of budget funds, which are most commonly spent for purposes other than proper VAT rebates. Ultimately, the state is unwilling and often unable to refund VAT in the proper way, and so is continuously credited at the expense of local taxpayers ...
On 1 October 2004, two new sets of regulations became effective under PRC Law: • Regulations on Securities Investment Fund Management Companies (FMC Regulations); and • Regulations on Senior Management Personnel of Securities Investment Fund Management Companies (Senior Management Regulations). The China Securities Regulatory Commission (CSRC) also issued two related notices, one in respect of the application of each of the Regulations ...
Prior to 4 November 2004, a Hong Kong authorised scheme could invest up to 10% of its total net asset value in other collective investment schemes (CIS) under the Code on Unit Trusts and Mutual Funds (Code), but it could not invest in any type of real estate or interests in real estate (except shares in real estate companies) ...
Based on the statistics prepared by the Securities and Futures Commission (SFC), as of early November 2004, there are approximately 280 SFC authorised guaranteed funds. This number has continued to grow throughout 2004. Background The early guaranteed funds introduced to the Hong Kong market in late 1999 offered simple investment strategies securing a capital guarantee with a potential up-side linked to the performance of underlying assets ...
In order to reduce the risks imposed on investors and the market by the excessive re-pledging and imprudent lending of securities margin financing (SMF) providers, the Securities and Futures Commission (SFC) has issued a Consultation Paper on the Proposed Measures to Address Risks Arising from Securities Margin Financing ...
