Magazine
June 2015

Magazine Archive

Deutsche Bank’s Libor settlement signals harsher penalties

Deutsche Bank is the latest international bank to reach a settlement with over Libor manipulation, but its legal troubles – and benchmark-related investigations – are far from over
EM issuers look beyond eurobonds

More bespoke capital market instruments are being sold out of emerging markets, despite dropping volumes caused by instability
Asifma releases standard documentation for Asian equities

The industry body is releasing standard documentation for equity capital markets deals to increase market efficiencies
UK judgment shines light on loan premiums

A UK Supreme Court judgment on the treatment of loan premiums under the LMA's standard terms and conditions has given much needed certainty to the deal feature
UK corporates’ debt preferences revealed

A recent survey has confirmed that banks will remain UK corporates’ favoured funding source in the short term, but that public capital markets will gain traction
China’s onshore securitisation market to evolve

The structured finance market is diversifying in China, but the development of an offshore market will require regulatory change
Virtu IPO shows benefits of waiting

After postponing for a year to allow negative market sentiment to die down, high-speed trading firm Virtu has finally entered the market
Europe Women in Business Law Awards 2015 – shortlist announced

The nominees for the fifth annual Euromoney Legal Media Group Europe Wibl Awards have been announced
China defaults signal rising risks

The Chinese government’s economic retreat has undermined its implicit backstop of SOEs. Investors have emphasised the importance of credit research
How Bond Connect could open China’s onshore markets

International investors’ only access point until now has been through the RQFII programme. A potential Bond Connect could open the market
Chinese credit enhancements dominate bonds

Chinese corporate issuers are now able to guarantee their bonds, but regulatory restraints mean that support mechanisms remain popular
Indonesia hedging rules confuse bond market

A lack of clarity over the country’s new hedging rules and issuance restrictions for high-yield bonds could stall the market
POLL: What do green bonds need to grow?

This month's quick poll asks what changes are needed to see the asset class truly take off
How to contract with Indonesian counterparties

Foreign investors face difficulties enforcing contractual obligations in Indonesia. But it’s possible to anticipate many issues at the drafting stage
Why IMF currency basket move would boost RMB

This year the fund will decide whether China’s renminbi will join its Special Drawing Rights basket of currencies. Its inclusion could prove vital
Liability risks jeopardise Petrobras asset sale

Buyers interested in business lines and assets being sold by Brazil’s state-run oil company need to beware the corruption liability they may assume
Double voting plans could distort shareholder power

UK and French plans for double voting rights could entrench incumbent management and lead to undue influence for larger shareholders, according to market participants
A new option for Aussie loan-to-own deals

Falling commodities prices have prompted a number of restructurings in Australia. And creditors have developed a new mechanism for maximising value of distressed assets
Private equity risks dry powder in Africa

There are concerns that African businesses are not ready to absorb the growing volume of private equity (PE) funds dedicated to the continent
Why financial institutions need data strategies

Data breaches over the past year have forced financial institutions and corporates to bolster their systems. But they should also be thinking about their broader strategies
Asia’s anti-money laundering focus sharpens

Asian jurisdictions are now meeting – and sometimes surpassing – international expectations on anti-money laundering
Public disclosure for private securitisations?

Mayer Brown's Richard Todd explains why European reforms aimed at improving securitisation transparency could impose unnecessary disclosure requirements on non-public and bilateral transactions
Malaysia sukuk drives Islamic finance diversification

The country's first international shariah-compliant offering since 2011 has signalled a shift to underlying Islamic elements traditionally classified as intangible rights
2015 Bank Capital Report: Austria
BNP Paribas settlement heightens sanctions focus

US regulators have finalised the French bank’s $9 billion settlement. It's hoped that increasingly conservative practices will prevent future cases
Africa’s other infrastructure crisis

Improving legal frameworks and local government processes is key to tackling Africa’s infrastructure shortage, which is hampering foreign investment and the region’s development
Europe's resurgence of hybrid securities

Last year saw hybrids come back with a bang. Cleary Gottlieb's Sui-Jim Ho looks at whether investors are cognisant of the risks and tradeoffs
CoCos in limbo under German insurance law

Allen & Overy's Bernd Geier and Goldman Sachs' Stephan Funck explain why regulatory capital's treatment complicates issuers’ modelling of conversion and write-down mechanisms
Why TLAC and BRRD discrepancies will fade

Banks’ fears surrounding the contrary requirements of TLAC and provisions in the EU’s BRRD should be eased as the two concepts merge
Legal firewall highlights China risk

US litigation against the Chinese financial services firms has been ineffective at best. A new report has likened legal protection to ‘a great firewall,’ and warned that there will be more issues ahead
Global regulators highlight risks of HFT

A report published by rulemakers outlines the risks of the practice from a global perspective. But an international benchmark is needed
Cautious optimism surrounds Saudi QFI rules

Saudi Arabia’s granting of access to foreign investors has been well received, but is not expected to create a flood of investment in the country
Bitcoin reg standards raised by first NY trust

The first US chartered bitcoin exchange launched last week, allowing customers to trade the virtual currency under US regulation
Exclusive: Volcker ‘covered fund’ tag for Bloomberg terminal

Bloomberg has developed a tag identifier that could offer a solution to secondary trading market issues presented by the Volcker Rule
Germany’s first Islamic bank hopes to boost euro market

Shariah-compliant financial institutions are creeping into the European market – though market participants suggest this should be done with caution
Offshore Chinese structures in dispute

Most outbound Chinese investment is conducted through complex entities structured to protect onshore parties. Randall Arthur and Shaun Wu of Kobre & Kim explain how to enforce judgments
HK bank M&A becomes more sophisticated

The recent takeover of Standard Chartered’s consumer financing business in Hong Kong and China by an international consortium highlighted increasing interest in the special administrative region’s banks
Farc negotiations key to Colombian FDI

For the business community, much hinges on the peace talks between the government and guerrilla organisation Farc. Some compare the strategy to that used in M&A negotiations
DTEK shifts high-yield restructuring options

A Ukrainian company’s successful restructuring of its high-yield bonds could further boost UK schemes of arrangement as a viable alternative to the US Chapter 11 process
Nigerian corporate governance boosted by new code

The IFC’s new national code looks to improve on the country’s previous light touch approach to corporate governance
India’s insider trading rules send mixed M&A messages

The country's new regulations came into force on May 15. Their stricter approach will boost market integrity, but may have an adverse effect on deal-making
Sifi designation threat will determine GE buyers

The same regulatory consideration that drove GE Capital to announce the sale of the bulk of its global assets will also drive who is eligible and willing to buy them
Editorial: Africa’s fightback
Europe: A little initiative
Americas: Moving on, slowly
Asia Pacific: Paying for secrecy
Credit enhancements dominate Chinese bonds
China defaults signal rising risk
Regulators highlight HFT risks
Liability risks jeopardise Petrobras asset sale
A new option for Aussie loan-to-own deals
Germany’s first Islamic bank hopes to boost euro market
Asia’s anti-money laundering focus sharpens
Americas
Asia Pacific
Europe, Middle East and Africa
POLL: growing green bonds

Opaque definitions are preventing the asset class truly taking off. Here's what must change
Deal of the month: Malaysia sukuk

The record-breaking deal signals greater flexibility in the use of underlying assets
Inside China: mutual fund recognition

A scheme based on the mutual recognition of PRC and Hong Kong funds has recently been announced
Latin America quarterly – Q1 2015

Risk and regulatory change have defined private sector dealflow. But sovereign issuance remains buoyant, according to IFLR’s new quarterly Latin America focus
Southeast Asia Forum highlights

Hopes for the region’s biggest economy are tarnished by legacy issues and incoming reforms
Africa Forum key takeaways

In-house and leading private practitioners gathered in London on May 19 to discuss how to encourage and capitalise on the continent’s growth story. Here are their key messages, and most candid off-the-record quotes
Bankers’ Counsel Poll: Volcker Rule compliance

The Volcker rule is coming. European and North American bank counsel speak anonymously – and candidly – about how they plan to comply with its covered fund provisions
The downside of rupiah hedging

The central bank is introducing measures to promote the use of local currency. But new hedging requirements could have unintended consequences
The case against double voting rights

Talk of loyalty-based share structures in the UK has drawn some to query if it would encourage – or potentially damage – long-term ownership
Swiss corporate law reforms critiqued

Daniel Hasler of Homburger analyses and challenges the effectiveness of recent proposals to amend Swiss corporate law
Loan premiums: in whose interest?

A recent judgment has reinforced the LMA’s assertion that its documents are only a starting point for loan negotiations
Discrepancies in global benchmark penalties

A review of rate rigging investigations and fines reveals potential discrepancies in global enforcement
Radio Banana’s lessons for finance

A recent EU ruling on illicit information exchange is of particular resonance for banks and brokers
Brazil: Securities portfolio changes

Following a period of public consultations dating back to November 2011, the Brazilian Securities Commission (CVM) issued a new ruling dealing with the professional management and administration of securities portfolios
Colombia: New wealth tax difficulties

Recently enacted Law 1739 of 2014 (effective as of January 1 2015) introduced various changes to the Colombian tax system, including the creation of a wealth tax
Cyprus: New insolvency laws

On April 18 2015, the Cyprus parliament approved a new package of insolvency laws, aimed at streamlining and modernising the existing system and promoting a rescue culture
Egypt: After the new Suez Canal

To kick-start mega development projects, the government is using one of Egypt's cornerstone resources: the New Suez Chanel Project
Indonesia: Regulating rupiah use

The central bank of Indonesia, Bank Indonesia (BI), has issued a new regulation requiring individuals and corporations to generally use rupiah in transactions in the territory of the Republic of Indonesia
Ireland: Modernisation of companies legislation

The Companies Act 2014 (Act) was recently passed by the Irish parliament and most of its provisions will come into force on June 1 2015
Japan: Tightened QII exemption

Investment funds handling funds from Japanese investors need to be aware of the proposed changes to the so-called QII exemption
Macau: Updating labour laws

Law 2/2015, which was approved last April 20 2015 by the Macau Legislative Assembly, amended Article 70 of the Labour Relations Act
Malaysia: Lodge and Launch Framework

On March 9 2015, the Malaysian Securities Commission (SC) issued the Guidelines on Unlisted Capital Market Products (Guidelines) under the Lodge and Launch Framework (Framework)
Mauritius: Privy Council upholds FSC decision

Rainbow Insurance (RIC) had been providing insurance services in Mauritius. In 2004, the Financial Services Commission (FSC) carried out an inspection of RIC and finalised a report where it expressed major concerns over RIC's solvency
Nicaragua: New Investment Companies Law

Nicaraguan Congress recently approved law 899, the Investment Companies Law, which was published in the official Gazette 76 (April 27 2015)
Nigeria: Demutualisation of securities exchanges

Recently, the Nigerian Securities and Exchange Commission (SEC) published the new Rules on the demutualisation of the country's securities exchanges, effectively moving away from non-profit member-owned mutual exchanges to investor-owned limited companies
Peru: Regulating investment banks

The Peruvian Banking Statute, issued in 1997, intended to regulate investment banking activities and established that a licence was required to conduct such activities in Peru
Philippines: Electronic tax return controls

The Philippine Bureau of Internal Revenue (BIR) recently required the mandatory use of electronic tax return forms by the non-electronic Filing and Payment System
Qatar: Wage payment protection

On February 18 2015, Qatar issued Law 1 of 2015, amending certain provisions of the Labour Law 14 of 2004
Slovak Republic: Company in crisis regulations

A recently adopted amendment to the Commercial Code, effective from January 1 2016, will bring about some changes relating to corporate governance
Spain: Promoting finance and entrepreneurship

With our economy finally showing clear and consistent signs of recovery, the Spanish legislator has responded to an old demand from entrepreneurs and representatives of some of the most relevant SMEs in the country
Turkey: Interest on foreign reserves

In its recent press release of May 2 2015, the Central Bank of Republic of Turkey (CBRT) changed its policy of not paying any interest on foreign exchange denominated reserves, which was previously adopted with the Communiqué on the Amendment to the Communiqué on Reserve Requirements
Vietnam: The investment conditions list

Both foreign and domestic investors who wish to engage in highly-regulated business in Vietnam must satisfy certain statutory conditions in order to be licensed
Closing conditions

The lighter side of the past month in the world of financial law
Switzerland: Interpretations of beneficial ownership

On May 5 2015 the Swiss Federal Supreme Court (SFSC) decided on a leading case relating to the reclaim of Swiss withholding tax (WHT) on Swiss dividend distributions

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