Magazine
June 2010

Magazine Archive

Intrusion will keep FSA ahead of banks

The FSA is preparing to be more intrusive in its supervision of internal banking practices
IPO advisers spark debate

Independent advisers are appearing on more IPOs, and the feedback from underwriting banks has been mixed
Rights issue trends continue in IPO market

Techniques developed in last year’s rights issue market have been adopted in the recent pick-up of Europe listings
Banks must build regulator ties

Why forging relationships with European supervisory bodies should be top of firms’ list of priorities
European dual tracks are back

Dual track deals are re-appearing, but banks are careful to ensure commitment to both portions of the structure
HK exchange divided on criminalising non-disclosure

Hong Kong’s stock exchange is divided on whether disclosure of price sensitive information should be backed by criminal sanctions
Clarify Islamic structures now

Shariah scholars are still giving inconsistent opinions. Pressure is growing to clarify which structures are compliant
No safe harbours for structured products

The SFC has released its conclusions on reforming structured finance legislation. And existing safe harbours will not apply
Banks are ignoring Esma

The European Securities and Markets Authority’s powers will grow dramatically in the next three years, but some worry that banks aren’t preparing for the new regulator
Regulators should focus on triggers

Until a framework for equity-conversion triggers is developed, there’s no guarantee they will work
How to deal with world sky restrictions

Financial institutions should prepare for world sky restrictions in advance, and their outside counsel must give advice that makes sense to banks’ salespeople
Singapore legislation encourages fund licensing

Singapore's regulator is consulting on increasing the regulation of previously exempt funds
Regulators must cooperate

Hong Kong wants statutory backing for the disclosure of price-sensitive information. But the exchange and SFC must work together
Chinese banks’ risk management improves, slowly

Foreign banks in China believe that their domestic competitors’ risk management is only a little more robust than a year ago
India reform will damage securitisation

The Reserve Bank of India (RBI) wants banks to retain loans for a period before securitisation
Competition opinion could limit in-house role

An ECJ opinion on privilege could mean UK banks will have to outsource more legal work, increasing costs and the time spent on deals
Why HK civil sanctions will fail

A civil regime to penalise non-disclosure of information will not work. Hong Kong needs criminal sanctions
HIRE must be refined before it’s introduced

The final structure of the US bill imposing a withholding tax on foreign bond issuers has calmed industry fears, but problems must still be resolved before it can be implemented smoothly
Goldman litigation will spread

Goldman Sachs expects more litigation in the wake of the Abacus CDO investigation. And other banks could face regulatory investigations too
Public JVs could lose pre-emption rights in India

Investors in India may be prevented from exercising pre-emption rights over a listed JV's shares, if a recent high court decision on a shareholders’ agreement is upheld
India: Commission softens competition review

The Competition Commission of India has said that it will restrict Phase One merger reviews to 30 days and inform parties when further investigation is necessary
India’s Takeovers Code wish list revealed

As India reviews its Takeovers Code, counsel would like to raise the threshold for tender offers and make delisting easier
Limited reciprocity hinders Indian disputes

India’s limited reciprocity for foreign judgements and arbitral awards is restricting the ability for Indian disputes to be solved overseas
How to hedge Islamic derivatives

An Islamic framework for derivatives developed by the Isda and the IIFM will help more banks trade with shariah-compliant jurisdictions
Seven-year sukuk pushes Islamic expansion

A seven-year sukuk from Saudi Electricity Company is a sign that the local market is evolving, and will be ready to tap international investors soon
Indonesia may amend material transaction rules

Bapepam plans to alter controversial rules governing material transactions, to the relief of issuers and underwriters doing debt offerings
IFLR1000: Partner moves April 2010

All the latest law firm hires across Europe, Africa, the Middle East, Asia and the Americas, from the IFLR1000
How IFLR1000 and Mergermarket tables compare

See how Mergermarket's quantitative research for Q1 compares to the IFLR1000's qualitative data, in Europe and the America
Spotlight on corporate governance
Know your SEC reviewer

Why it is crucial for listing companies to find out which group at the SEC is likely to review its initial public offering after filing
EU directive will push Asian funds regulation

As EU ministers pledge support for the AIFM directive, Asian regulators are preparing their funds for greater oversight
Aima: Asia should wait for funds directive

As Europe considers the latest two versions of the AIFM directive, Aima believes third-country regulators should resist pre-emptive changes
Pru prospectus unravelled

The fee riddle solved by standby financing, and the underwriting agreement without termination rights
Pru’s liquidity clause appeases HKEx

A unique liquidity provision in the prospectus for Prudential’s rights issue will allay HKEx concerns over price volatility when the group lists in Hong Kong
US regulatory reform bill criticised

After months of arguments and amendments, the US Senate finally passed its regulatory reform bill late last night. But this does not signal the end of the process and the language of the bill is still unclear
New rules encourage HK minerals listings

Hong Kong’s stock exchange has released new rules for listing minerals companies that will encourage more offerings from international resources companies
Demand disclosure from sovereigns

Sovereign issuers can no longer rely on reputation alone when selling bonds. They must face up to industry disclosure standards, and investors should demand more too
Bafin ban highlights in-house grievances

The results of this year’s IFLR Bankers’ Counsel Poll have revealed that in-house lawyers are fed up with regulators’ lack of coordination, and concerned that national bodies are taking matters into their own hands
CDOs in the spotlight

CDO investigations have prompted concern over civil claims by investors. They could test UK precedents, which have so far favoured arrangers
First foreign listing in Taiwan explained

In a development that will internationalise Taiwan’s stock exchange, Integrated Memory Logic has become the first foreign company to list on the main board
Restructuring a nation’s debt

Greece’s sovereign debt could still need to be restructured. Lawyers must learn the lessons of previous national crises if they are to succeed
The uncertain conclusions

The SFC will still remove safe harbours for structured products in the reformed offering regime. And confusion lingers over definitions
The stakeholders have spoken

The Competition Commission of India’s Kaushal Sharma explains how India reworked its merger regulations
Banks’ US derivative fears revealed

The push-out provision for spinning derivative portfolios and difficulties in managing new and old transactions are among US banks’ biggest worries
Volcker threat increases

Despite derivatives reform being the primary cause for debate, the private equity industry is concerned about the impact of the Senate bill
Global coordination missing on US reform

Concern is growing among lawyers that the importance of a worldwide effort to regulate is being forgotten
AIFM: industry favours Econ draft

With the AIFM directive now into trialogue discussions the treatment of non-EU funds is still dividing opinion. Lawyers say funds favour the Econ draft
AIFM drafts split on disclosure and capital rules

Disclosure thresholds and capital rules differ in the two AIFM directive drafts. But neither is ideal
US covered bonds: listen to Europe

The US needs covered bond rules. Following Europe’s lead would make them cheaper to sell and remove the need for an issuing series trust
Mining the market

New rules will help pre-production minerals companies list in Hong Kong
Force them into disclosure

Should the Prospectus Directive be amended to ensure more disclosure from EU sovereigns selling bonds?
A new night to celebrate

India’s most innovative deals have finally been recognised, in the country’s first IFLR-dedicated ceremony
Restructuring a nation’s debt

Greece’s sovereign debt could still need to be restructured. Lawyers must learn the lessons of previous national crises if they are to succeed
An odious reality

The possibility of governments disclaiming debts incurred by past regimes is more relevant than ever. The answer lies in salt bonds, revolution and war
Listen to Cesr

The SEC is more favourable to non-Gaap measures, but it would benefit from following European recommendations too
Big but frail

European proposals raise many questions, particularly whether the powers being given to the new authorities are legal
The stakeholders have spoken

The Competition Commission of India’s Kaushal Sharma explains how the regulator reworked its merger regulations
A smooth transition

Glen Rae, global head of capital markets at Bank of America in New York, on how to build a team out of a merger
Public debt restructuring
Change to Concessions Law
Enterprise Bankruptcy Law
Credit card protection
The merger of companies and tax effects in El Salvador
Revision on buy back shares of public company
Japanese Eurobond taxation
Proposed amendments to Competition Law
General banking conditions updated
The Payment Services Directive
Bankruptcy of credit institutions
The Corporate Restructuring Promotion Act of Korea
Securitisation of the electricity tariff deficit
Trends in Turkish wind energy
Restoration of the 180 Day Rule
Dubai’s decree
Dividend equivalents
Stand up to sovereigns

Sovereign issuers can no longer rely on reputation alone when selling bonds. They must face up to industry disclosure standards, and investors should demand more too. Plus, why the FSA is better than the Bank of England and predictions on the overdue IPO boom

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