Magazine
May 2011

Magazine Archive

Speakers confirmed for European Capital Markets Forum

Over 35 speakers have been confirmed for the IFLR European Capital Markets Forum 2011 at the Andaz hotel, Liverpool Street on April 13 and 14
Cleary and Kirkland lead at IFLR Americas awards

The full list of winners from IFLR's Americas awards is here
HK in-house call for quarterly reporting

As speculation grows over HSBC’s HK office moving to quarterly financial reporting, other in-house counsel have called for authorities to make it mandatory
India in-house react to ISE-Bombay exchange tie-up

The launch of index-based derivatives on the Bombay Stock Exchange (BSE) has been heralded as a positive step
Citic case creates uncertainty over limited purpose waivers

Hong Kong counsel must think twice before agreeing to waive privilege on behalf of clients for a limited purpose in investigations by regulators and the police
Orderly Liquidation plan ‘not fair’ to executives

Clawback of executive compensation under FDIC rules for its receivership of systemically important financial intuitions places an unfair burden on executives
Premium recapture rules threaten securitisation structures

Proposed rules requiring sponsors to retain 5% credit risk in securitisations have lawyers in the US concerned about two things
Greater clarity needed on renminbi trading facility

Lawyers in Hong Kong have called for greater clarity on operational details following HKEx's establishment of a general framework for the renminbi Trading Support Facility
Unilever Rmb bond reveals PBOC approval sensitivities

Unilever's renminbi-denominated note has highlighted the sensitivity over prioritisations given by the People’s Bank of China regarding remittance approval
Hong Kong FDI jeopardised by US fund lawsuit

The rejection of a US investment fund’s HK lawsuit against the Democratic Republic of the Congo could have a harmful impact on FDI into the region.
HK counsel call for US-style regulatory model

Lawyers in Hong Kong have called for the introduction of a US-style market-driven regulatory incentive model
Canadian Regulators plot beefed up securitisation regime

The Canadian Securities Administrators has proposed a tougher regulatory framework for securitisation. It would boost disclosure and narrow the exempt market
The realities of ring-fencing

The legal realities of ring-fencing UK bank’s retail operations suggest that implementing the proposal will be a near impossible task
ICB report exposes UK’s Europe blindspot

One of the key complaints regarding the ICB's report on the UK’s financial sector has been its failure to recognise the growing role of the EU in banking regulation
Retail arms’ capital ratios could hit “mid teens”

UK retail arms' capital ratios could hit “the mid teens” following the UK Independent Commission on Banking’s (ICB) interim report
Asia lawyers welcome lighter touch UK Bribery Act

Asia-based lawyers have welcomed the lighter touch guidance on the UK Bribery Act
ICB: what now for living wills?

The Independent Commission on Banking report on UK reforms has created disagreement over the legitimacy of living wills
ICB capital ratios raise arbitrage questions

The UK’s move towards increased capital ratios creates a “slightly unfair playing field” compared to the EU and US
ICB report raises competition issues for banks, regulators

The Independent Commission on Banking proposals may create competition issues not only for banks, but for the regulators
Lawyers react warily to ICB report

UK lawyers cautiously welcome the Independent Commission on Banking's interim report
More renminbi facilities expected to deepen offshore market

Lawyers working on Hong Kong's first renminbi IPO expect the introduction of renminbi-type facilities to deepen liquidity in the offshore equity market
Italy’s protectionist regime latest to avoid EU laws

An Italian court has upheld one of the government’s recent anti-takeover decrees, sparking concern about protectionist regimes skirting EU competition law
Cocos need clarity on index and ratings

CoCo bonds are expected to grow in 2011. But the products need clarity over rating and index eligibility in order to progress
What next for hybrids?

Issuers of older-style hybrid capital need to carefully consider how to move towards new-generation hybrid Tier I, a bankers’ counsel has warned
Hybrid capital market tipped to grow in Europe

Europe’s hybrid capital market will grow despite continuing structural uncertainties
Standard listings’ ‘unique selling point’ missed

Sponsors have not picked up on the benefits of a Chapter 14 standard listing, introduced into the UK listing regime last year
Liability management: refinance now

Companies should take advantage of relatively open market conditions and refinance now. Macro imbalances and the end of quantitative easing will means firms don’t have long
European debt crisis: simpler solutions than CACs

Presumptions in the Prospectus Directive about sovereign information have been proved ‘spectacularly wrong’ during the European debt crisis. But investors must share the blame for their losses
Bookrunners: stop the ‘strut’

Private practice lawyers must reassess how they manage multiple bookrunner-deals, a bankers’ counsel has warned
Esma’s goals are “very optimistic”

The European Securities and Markets Authority is too understaffed, underfunded to meet its overambitious goals, say lawyers
EU regulators' difficult balance revealed

European regulators need to find the right balance between disclosure regulation, intermediary regulation, product regulation and investor responsibility and education to promote an efficient market
Risk retention rules could create arbitrage

EU and US divergence on the 5% risk retention rules have missed an opportunity for harmonisation – it could lead to regulatory arbitrage
The rise of CMBS 2.0

The commercial mortgage-backed securities market is returning to Europe, but successful deals require new standards in structuring, underwriting and servicing
Japan’s first Rule 144A high yield bond explained

Counsel on Japan’s first-ever Rule 144A high yield bond have revealed the innovation required to close the deal amid the country’s unprecedented natural disasters
CBA: Oz RMBS market needs more offshore interest

Dealmakers on the largest Australian-dollar RMBS think increasing offshore participation is crucial to the country’s growing securitisation market
Local lawyer shortage tops emerging market challenges

As emerging market work grows, the shortage of local lawyers has become obvious
Exclusive: Euro u-turn on OTC clearing revealed

IFLR can reveal that the power has shifted over which body decides which over-the-counter (OTC) derivatives are mandatorily clearable in Europe
UK covered bond changes to boost confidence

Proposed changes to UK covered bonds regulation will increase investor confidence in the asset class, according to a securitisation partner
First Japanese HKEx listing paves way for copycat deals

Regulatory breakthroughs triggered by the first Japanese listing on the HKEx should lead to future copycat deals, say lawyers working on the transaction
Asia bankers counsel claim exotic products’ return

Exotic products sold pre-crisis are returning to Asia
SGX outlines lessons learnt from failed ASX merger

The Singapore Exchange (SGX) will avoid Asia’s fragmented financial markets following the failed merger with Australian Securities Exchange (ASX), and focus instead on core businesses, SGX chief Magnus Bocker has said
Government accounting standards attacked

Hans Hoogervorst of the Netherlands Authority for Financial Markets has attacked sovereign accounting standards, describing them as “sloppy”
Cooperation and better understanding key to mitigating systemic risk

Cooperation between regulators and a better understanding of the connections between the financial markets and the wider economy is the key to limiting systemic risk
Systemic risk oversight “exacerbated” crisis

Mario Albert from Québec Autorité des marchés financiers has admitted that confusion over cross-border responsibility helped exacerbate the recent financial crisis
Non-bank Sifis pose challenge for regulators

Regulators have admitted that they are still unsure how to correctly resolve non-bank systemically important financial institutions (Sifis) should one get into trouble
Regulators admit HFT deficiency

Regulators have admitted they don’t have the technology or the resources to effectively monitor high frequency trading
CEPS: Euro bank resolution scheme must be piecemeal

A common European bank resolution scheme would have to be targeted and piecemeal or not at all, says Centre for European Policy Studies CEO Karel Lannoo
Would the ICB report really breach EU law?

The ICB interim report has been criticised for being fundamentally irreconcilable with EU Law because it aims to ring-fence national markets and subject UK branches to a distinct national regulatory regime
Revealed: letter that could change high yield forever

IFLR can reveal the letter that could dramatically change Europe’s high yield market.
A fair fight?
Asia: Chinese private equity: Where do we go from here?
Americas: Avoiding the Sifi list
Europe: The reality of the ICB report
Asia-Pacific
Americas
Europe, Middle East & Africa
Where will UK capital ratios end up?

Will the ICB’s suggestion of 10% equity capital reserves rise in the final rules? Lawyers are split
Paul Koster, DFSA: Cooperate or fail

Paul Koster, chief executive of the Dubai Financial Services Authority, discusses the priorities and challenges of the region’s key financial hub
Americas awards 2011

This year’s IFLR Americas awards saw around 200 in-house counsel and private-practice lawyers gather at the Waldorf Astoria in New York on March 31 to watch Cleary Gottlieb scoop US law firm of the year. Kirkland & Ellis picked up the restructuring and private equity teams of the year, while Mayer Brown, Morrison & Foerster and Skadden secured a team award each. Bruce Alan Mann from Morrison & Foerster was presented with the lifetime achievement award by Bill Hambrecht, while Brooksley Born awarded Gary Cohen IFLR’s regulatory achievement award.
Americas deals of the year
Americas teams of the year
It’s in the post

European high yield is booming. But a letter obtained by IFLR reveals that the largest investors are unhappy, believing senior secured structures to be unfair. Banks have a fight on their hands.
How super is your senior?

What are the negotiation hot spots on super senior intercreditor terms? This table sets out the key battlegrounds
Illiquid lunch

Should issuers and investors think more about offshore renminbi currency risk?
It takes two to tango

Due diligence is a good thing, but it can be dangerous to expect your lawyers to do everything
Going straight

Following the release of guidance by the Ministry of Justice, it is important to plan for the Act’s implementation now
Investors fight back

New Finra rules may mean the end of spinning and quid pro quo allocations, but will also create significant burdens for broker dealers and fund managers
A confused industry

Uncertainty regarding extraterritorial application of Dodd-Frank leaves foreign swap dealers in legal limbo
Read the rules carefully

Recent investigations highlight the importance of compliance with external commercial borrowing regulations
Financing after Fukushima

Despite worries following Japan’s earthquake and tsunami, there is a strong appetite for nuclear projects across Asia
Simplification of corporate restructurings
The rise of restricted purpose companies
Liberalisation for payment system operators
The Colombia-US free trade agreement
Amendments to the Monetary and Financial Law
Big Brother must watch the employees
Revision of cabotage rule for foreign flag vessels
Abuse of law in sale and lease-back transactions
English-language disclosure developments
Kuwait’s new capital markets authority
The Financial Reporting Council of Nigeria Bill
To benefit from FTAs: a pending task
Exchange listing rules for Reits
Extraordinary bank tax
Amendments to the Commercial Code
Applicability of the law on collective investment schemes
New Syrian company law
Luxury tax bill passes into law
Anti money-laundering laws
Neither a borrower nor a lender be
LLC ownership interests: is a pledge or a mortgage better?

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