Solvency II leaves UK insurers in limbo UK insurers will struggle to sell subordinated debt without regard to the prospective Solvency II requirements, even though they are not yet in place
Korea to relax institutional investor regulations Korea’s financial regulator has confirmed that it is widening the scope of businesses able to access the country’s capital markets
HK bankers’ counsel dismiss mystery shopping report Bankers counsel have dismissed the release of a mystery shopping report by HK's regulators as too vague and ‘soft-paddle’
Regulatory uncertainty hampering China’s domestic Reit market Chinese regulators uncertain approach to the macroeconomic environment is thwarting the country’s domestic Reit market
US whistleblower rules incentivise internal reporting New whistleblower rules might fall short of US business community demands, but incentives to use internal reporting programmes are stronger than in the original
Appeal Court denies rating agency liability A decision by the Second Circuit court to absolve credit rating agencies for investor losses is the latest rebuff to lawmakers’ attempts to clamp down on the agencies
India Awards 2011 – shortlist revealed The nominations for this year’s IFLR/Asialaw India Awards have been announced
Landmark Cameroon IPP explained The first Independent Power Project has closed in Cameroon, involving refinancing the Dibamba Power and Development Company
Non-European ratings face EU requirements European credit ratings issued by non-EU parties will face EU regulatory requirements, says Esma
Esma reveals plans for ETFs and hedge funds More disclosure for hedge funds is on its way, while ETFs can expect more scrutiny on collateral and securities lending
Esma: temporary product bans avoid arbitrage Chairman Steven Maijoor hails temporary product prohibition rules as a key weapon against regulatory arbitrage
Hedge fund: Esma disclosure proposal ‘unnecessary’ A hedge fund counsel has criticised the Esma proposal to require funds to disclose further information to investors, describing it as “unnecessary"
Deutsche head, former SEC official clash over regulatory responsibility Deutsche Bank UK head Colin Grassie and former US SEC director of regulation Gene Rotberg have clashed over the function of the SEC in the market
Deutsche UK head slams US derivatives rules Deutsche Bank London head Colin Grassie has attacked the US’s derivatives rules under Dodd-Frank, claiming they point to a fundamental misunderstanding of the market
How to prevent ChinaCo accounting fraud China’s banks must tighten internal controls to counter damage caused by the latest accusation of Chinese company accounting fraud
Foreign banks pushback on SGX clearing of Asian FX forwards Foreign banks are unlikely to participate in the Singapore Exchange’s new clearing service for non-deliverable Asian FX forwards.
Why Emir and Mifid derivative proposals go too far The global co-head of derivatives at Mayer Brown believes European derivative reform proposals go too far
Indonesian clamp-down prompted by foreign bank misconduct Indonesia's regulatory clamp-down on foreign banks is a reaction to recurring misconduct by international financial institutions in the region
Exclusive: LMA to release distressed debt guidelines The Loan Market Association will release guidelines on distressed debt trading within days, IFLR can reveal
Mandatory clearing interest rate swaps could harm HK business Hong Kong risks driving out business when government plans to require mandatory clearing onshore are introduced in 2012, according to one bank's Asia general counsel
Sox threatens new venture market Stringent Sarbanes-Oxley (Sox) requirements will be the biggest challenge to the success of Nasdaq’s recently announced BX venture market
New IDB facility helps LatAm projects Project-focused countries should benefit from the Inter-American Development Bank’s new flexible financing facility – the bank’s latest step towards market-based products
AIB bondholder action to decide Irish burden sharing A hedge fund’s challenge to Ireland's burden-sharing SLO order could influence how other European countries approach similar schemes
UK Bribery Act compliance tips revealed UK lawyers offer tips on UK bribery Act compliance. It could be cheaper than many suspect
Thai regulator's error clarifies listed companies rules The resignation of Thailand’s Securities and Exchange Commission chairman will help clarify listed company corporate governance requirements
New risk retention method could save CLOs An alternative risk retention structure is circulating among lobbyists of securitisation reform in the US. If adopted it could boost the market
LMA restricts use of borrower confidential information Loans should not be traded based on borrower confidential information, according to guidelines issued by the Association
Cov-lite’s Europe return stuns market After months of speculation and overblown predictions, cov-lites have finally returned in Europe. But lawyers don't expect a flood of new deals
Wheatley hits out over US regulatory criticisms Martin Wheatley, Hong Kong’s outgoing SFC chief executive, has rubbished calls for markets to follow the US lead on regulation
Asian LBO market excludes international banks International banks and law firms could be excluded from a large portion of Asia’s burgeoning leveraged finance market
LMA restrictions to discourage non-banks from CoComs New Loan Market Association guidelines may discourage buy-side participants from joining coordinating committees
Australia needs LMA-style intercreditor agreement Australia’s leveraged finance market should adopt a standard intercreditor negotiation agreement, similar to Europe’s LMA agreement
Investor uncertainty over unclear China M&A reviews Lawyers are concerned about the ambiguity of China's incoming security review process
Investor uncertainty over unclear China M&A reviews Lawyers and investors are concerned about the ambiguity of China's security review process
Sebi ruling won’t harm Indian depositary receipt market The Indian depositary receipt market’s long term prospects should not be harmed by Sebi's decision to bar conversion of IDRs to shares of a foreign company
Benchmark high ratios could push US banks overseas Concern has arisen over how far removed the US Federal Reserve's proposed capital ratios could be from banking practicalities
BlackRock reaction: syndication is ruining UK IPOs UK equity lawyers agree with investors’ opposition to aggressive syndication on UK IPOs
Global banks need to better understand Asian clearing houses Bankers’ counsel have called for international banks to be more sensitive to local settlement environments
Muni rules limit dealer roles, spark fiduciary concerns US-based municipal bond underwriters are grappling with new restrictions on their transaction roles
Hong Kong IPO sponsors spread too thin Questions raised over adequacy of due diligence carried out by over-stretched sponsors on Hong Kong IPOs
Aggressive US cov-lite terms revealed Borrowers are getting more flexibility in US cov-lite deals than before the crisis. But changing market sentiment is dictating availability from week to week
Ireland clarifies AIB bondholder positions Ireland's subordinated liability order (SLO) regarding Allied Irish Bank (AIB) is still effective for 16 of its 18 subordinated bonds, a court finds
K-Exim/K-sure project financing explained Lenders explain an unconventional approach to leverage equity structuring in an otherwise orthodox project finance deal
FSA risk transfer crackdown provokes debate The FSA latest drive to subject UK banks to more scrutiny places an increased capital requirement on the banks that have been using the supervisory formula model
US lawsuit could force Chinese sovereign immunity changes The referral of a US investment fund’s Hong Kong lawsuit to Beijing has prompted calls for China to amend its position on sovereign immunity
EC official: Don’t enforce trade repository indemnity rules A senior EC official has suggested that indemnity requirements for swap data repositories might not need to be enforced practically
UK Takeover Code changes being ignored Lawyers say the market has failed to take decisive steps to comply with some of the new takeover rules
UK government sets out new regulatory structure The UK FCA will be given a new primary duty to promote competition and the PRA will have a statutory insurance objective according to proposals
First reaction to Esma Prospectus Directive paper Esma has launched a Prospectus Directive consultation. The paper is seeking comments on the technical advice it proposes to give the EC on delegated acts. Read the first reaction here
PE rebounds, but no repeat of pre-crisis levels Panelists at IBA’s annual M&A conference on Wednesday defended the robustness of today’s private equity market, saying it’s unfair to draw comparisons with the levels seen in 2006/2007
US M&A grows but China cold war continues Investor pressure on companies to put capital to use will continue to push the US M&A market, but China is still a missing component
Former CCI director general rubbishes first case ruling A former director general at India’s anti-monopoly watchdog, the Competition Commission of India has criticised the regulator’s efforts in its first-ever case ruling
Mofcom Anti-Monopoly Law fines imminent The release this week of Mofcom's draft interim Anti-Monopoly Law (AML) measures for public consultation signals the start of a tougher regulatory stance on transgressions
Pan-European contract law draws closer A pan-European contract law is increasingly likely, but uncertainty surrounds questions of jurisdiction and enforcement
Revised Reg AB data excesses set to generate new US industry The proposed Regulation AB II's line item disclosure requirements will create data volumes which will introduce new liabilities and possibly a new industry in the US securitisation market
FSA takes tough line with Listing Rules censure In the first action of its kind, the FSA has censured BDO for failings during a reverse takeover
India calls for OTC close-out netting provisions India’s lawyers have called for close-out netting provisions in India’s over-the-counter (OTC) derivatives market
Exclusive: HKICPA releases comfort letter revisions Proposed amendments to Hong Kong’s comfort letter have prompted calls for greater global harmonisation of comfort letter standards.
Lender/target relationship toughens in US private equity Lenders are showing more interest in limiting the rights of targets in private equity leveraged buyout financings
LMA defends transparency guidelines The LMA dismisses claims that its transparency guidelines discourage non-banks from restructuring coordination committees
Why EC antitrust reforms are merely cosmetic EU antitrust reforms aim to reduce uncertainty for parties subject to cartel investigations
HSBC’s groundbreaking sukuk explained HSBC Middle East’s updated $5 billion sukuk programme and a $500 million issuance has successfully navigated the UAE’s real estate laws by adopting the mudaraba concept
Increase debt issues to €100k denominations now, say lawyers Debt issuers should move to the new €100k minimum denomination now to allow for future tap issuances under the amended Transparency and Prospectus Directives
Regulatory confusion deters European retail issuers Uncertainty surrounding the retail regime in Europe is putting off issuers from accessing the Euromarket
PD final terms may cause banks MTN rethink Esma's position on prospectus final terms may lead banks to rethink their MTN programmes altogether
Indonesian currency bill forces banks to redraft contracts Foreign banks with onshore operations in Indonesia must redraft contracts to include Indonesian rupiah settlement provisions or risk potential criminal liability
US covered bond bill exposes lawmaker-investor 'disconnect' Approval of the US’s latest covered bonds bill by the House Financial Services Committee has been heralded as a crucial step towards restarting the mortgage backed securities market
UK FCA’s wholesale role signals ‘aggressive change’ The widening of the FCA's focus to include wholesale market behaviour indicates a more aggressive role than previously expected
Esma’s prospectus directive paper critiqued The European Securities and Markets Authority’s (Esma) Prospectus Directive consultation raises several major concerns in its treatment of final terms and summaries, according to ICMA
Inaugural Women in Business Law Awards: Winners announced Over 200 of Europe’s leading female lawyers, politicians and barristers descended on London’s Claridges last night for Euromoney Legal Media Group’s inaugural Women in Business Law Awards
New tactics driving US hostile M&A Speed, shareholder activism and regulatory gaps are behind the upswing in hostile M&A in the US over the past year
Whistleblower rules to spawn collateral litigation The new US whistleblower rules could create an “enormous” amount of collateral litigation, according to some counsel
UK Takeover Code implementation date announced The amendments to the UK Takeover Code will come into effect on September 19, it was announced on Friday
US securitisation: first lien “held hostage” by second lien Securitisation participants are demanding limits be placed on the rights of second lien holders to stop them interfering in workouts
AIB result leaves Irish bondholders in the dark Aurelius' ‘amicable resolution’ with the government in a dispute over the state’s buyback scheme has left the market with no more clarity than before the outcome
Panama’s capital markets internationalise Citibank has set up a a custody platform in Panama to facilitate foreign investment in locally issued securities
Blackstone: India acquisition decision-making more professional Indian businesses are becoming more proficient in board level decision-making, according to a senior Blackstone figure
How Indian counsel can improve due diligence Legal and patent landscape assessments need to replace less effective quantitative due diligence, say lawyers
India’s private equity future explained Lawyers in India expect slow development of traditional private equity models in the domestic market
Long-term focus key to Africa investment A long-term outlook is essential when investing into Africa, say domestic and international lawyers.
India Outbound Forum: the best quotes Some controversial opinions were on display at IFLR's India Outbound Forum on July 7. Here's a selection
IFLR India Awards 2011 – Winners revealed Around 200 in-house counsel and private practice lawyers gathered in Mumbai’s ITC Grand Central Hotel last night to see Amarchand Mangaldas scoop Indian firm of the year.
Cocos should not be eligible Most lawyers believe that Basel Committee are right to allow CoCos to be endorsed in capital rules for systemic banks
A hard line Disclosure rules for foreign private issuers on the Shanghai Stock Exchange will be out soon. In the first of a two-part series on the changes, we highlight what to watch out for
European Women in Business Law Awards 2011 Over 200 of Europe’s leading female lawyers, politicians and barristers descended on London’s Claridges on June 29 for Euromoney Legal Media Group’s inaugural Women in Business Law Awards.
Esma opens up Steven Maijoor, Esma’s new chairman, explains his position on investor responsibility, the regulator’s resources and its relationship with the EC
A distressed market The treatment of final terms and summaries in Esma’s Prospectus Directive consultation paper have raised several concerns, and may lead to a rethink of MTN programmes
A road paved with good intentions The EU Prospectus Directive aims to remove barriers to a Europe-wide capital market, but many of Esma’s proposals will do just the opposite
Breaking the deadlock Dodd-Frank’s requirement for trade repositories to receive indemnities before sharing information is confusing But an EC official has a solution – don’t enforce the rules
Setting the battle lines Esma chairman Steven Maijoor outlines a tougher stance on hedge funds, ETFs and non-European ratings agencies at the ICMA annual general meeting
The employee strikes back Recent US amendments, combined with longstanding UK protections, will lead to more whistleblower activity
Out of the frying pan The UK’s new Bribery Act will have a big impact on businesses worldwide. But corporates must not ignore their obligations under existing anti-money laundering laws
In the crosshairs EU Commission initiatives require financial institutions to focus on antitrust rules
Hands across the water The US securities regulator is making use of new ways to encourage international cooperation with its enforcement efforts. Foreign issuers need to pay attention
Does money mind if we say it’s evil? The UN Human Rights Council has declared that business must respect human rights. Banks need to take a good hard look at themselves, before somebody else does
A brave new world With hostile takeovers on the rise this year, we reveal the new tactics being used to drive them
The clock is ticking The UK Takeover Code implementation date has been confirmed. But market participants are still ignoring the changes
A private move Going-private transactions are becoming popular with US-listed, China-based companies. A pattern now seems to be emerging in the way they are conducted
A fresh start A new agreement provides hope for companies in trouble in Portugal, but everything rides on its implementation
Welcome changes Revised legislation may spell the end for schemes of arrangement as the legal mechanism of choice for takeovers of listed Cayman Islands companies
A safe seat Hong Kong’s highest court has held that absolute sovereign immunity applies in the territory. Yet the city remains one of the most attractive arbitration venues in Asia
Open for business Recent changes to South Africa’s corporate regime provide new opportunities for foreign companies
How to make CoCos safer Conversion triggers are open to manipulation, but there are ways of mitigating this risk
Reduce your risk There are ways to reduce the risks of secured parties’ reliance on US account collateral
The road less travelled Foreign issuers face numerous hurdles in financing Chinese ventures. But there are alternatives to listing on the domestic stock market
A narrow interpretation The ECJ’s rejection of a derivatives counterparty’s ultra vires argument provides clarification for future cases
Back, and scarier The US has embraced cov-lites once more. And some terms are riskier than pre-crisis
Shining a light The LMA has released guidelines on transparency of loan information. However some are concerned it will discourage non-banks from restructuring committees
New regimes expected for LatAm renewables sector Government activity will spur Latin America's renewable energy sector. Mexico’s energy banking system could become a precedent regimes
Australia banks ignoring controversial netting rules Banks must not overlook the ramifications of proposed amendments to close-out netting contracts, released last week by Australian parliament
Dubai financing creates novel receivables technology One of the year’s most innovative Middle East project financings has closed, incorporating receivables-based technology usually found in securitisation deals
Russian onshore market risk first for energy project A Russian project financing has closed with international banks accepting full onshore market risk for the first time
SEC's Schapiro sparks hope for Reg AB rethink SEC chairman hints at possible withdrawal of proposed requirement for third party reviews of repurchase obligations under Reg AB II’s shelf eligibility criteria
Basel III set to boost US mortgage securitisation Restrictions on the capital-eligibility of mortgage servicing rights (MSR) under Basel III could bolster the US securitisation market, and lead to the development of a new servicing charges asset class
Cambodia’s new exchange will fail without listing incentives Cambodia’s new stock exchange will flounder without the introduction of long-term incentives to encourage domestic corporations to list
German SME high-yield retail platform criticised Stuttgart Börse’s fledgling BondM platform has worried lawyers due to its ability to issue non-investment grade debt direct to retail investors
Dodd-Frank’s first derivatives rule could be politicised The first substantive derivative rule passed under Dodd-Frank does not reflect industry warnings against lowering the scienter standard
Basel clarifies FAQ dividend stopper confusion The Basel Committee has clarified to IFLR its inconsistencies over allowing dividend stops on hybrid capital
Thai inflation-linked bond to prompt copycat issues The first inflation-linked bond by the Kingdom of Thailand should spark copycat deals. But slow buy-in from regulators was just one of the challenges of bringing the deal to market
DECO: Precedent-setting European CMBS unravelled The first de-linked European CMBS since the start of the financial crisis will be viewed as a standard for future CMBS deals. Clarification on the role of servicers and bondholder meetings are especially helpful
Philippines court judgment to slow foreign investment A Supreme Court judgment on the sale of shares in Philippine Long Distance Telephone Company to foreign entities could slow down foreign investment into the country
Prepare for the Sifi trickle-down effect US counsel have warned that the country’s systemic risk regime will filter into the mid-market
Capital charges: international arbitrage is just “shopping” Forget the international arbitrage mantra - the real risk is the domestic movement of capital from regulated sectors to the shadow banking system
Concern over rumoured Ucits reclassification As the Ucits V review approaches, there is concern that new proposals could lead to too many funds being excluded from the retail market.
Mifid II commissions uncertainty could create split Huge discrepancies between European member states over the treatment of commission payments to distributors is likely to lead to another EU split
CRD 4 limits minimum capital requirement flexibility EU member states will not be able to set their own minimum bank capital requirements, but can raise countercyclical buffers on individual banks where appropriate
UK Takeover Panel introduces final form changes The UK Takeover Panel has today published the final form changes to the Takeover Code. The rules will come into force on September 19, with no material amendments to the rules proposed in March
In-house attack India PE private company rules A proposed revision of private placement guidelines for India’s unlisted public companies has been criticised by bankers counsel in the country
Experts disagree on validity of say-on-pay lawsuits Disagreement has broken out over the legitimacy of US shareholder litigation spawned by failed say-on-pay votes during this year’s proxy season
Mecca battle highlights necessity of Takeover changes The highly unusual solution offered by the Takeover Panel in the Rank saga has highlighted the importance of the incoming changes to the City Code
Dodd-Frank fatigue hampering PE investment structures The Dodd-Frank rulemaking burden may have dampened the Federal Reserve’s willingness to consider creative bank acquisition structures
Indian banks to benefit from relaxed FDI policy India’s bankers' counsel have welcomed government plans to liberalise the country’s foreign direct investment policy
In-house: too early for high yield retail issues The market is not ready for high-yield bonds to be sold to retail investors in Europe
Why international banks shun Asia high yield Immaturity in Asia’s high yield market is prompting some international banks to walk away from deals
