Magazine
March 2016

Magazine Archive

India CM forum key takeaways

Here are the highlights from last week's IFLR Indian Capital Markets forum in Mumbai
Trading Book Review prompts liquidity concerns

The Basel Committee's framework has led to further liquidity fears among lawyers in the US
Why did the FCA really drop its bank culture study?

Some believe political meddling was the driver. Others say the review's remit was simply too broad
Pressure mounts to ease challenger capital rules

Small lenders have slammed new Basel proposals that could force them to hold five times as much capital as their bigger competitors. UK and German regulators are on their side
Andrew Bailey appointed head of the FCA

The UK's Financial Conduct Authority has a new chief executive, Andrew Bailey, whose appointment was announced today
Myanmar’s forward contract law lacks substance

The introduction of forward contracts for currency hedging has been met with scepticism by counsel in the country
EU STS proposals concern US

European securitisation plans are causing fears in the US that the Capital Markets Union will be insufficiently open to foreign capital
Answering Nigeria’s circuit-breaker critics

The country's authorities have initiated many questionable policies over the last 12 months, but a tripwire on its national stock exchange is not one of them
Americas awards 2016: shortlist revealed

The nominations for this year's ceremony are available now. The winners will be announced at New York's Pierre Hotel on March 31
Trading book review prompts liquidity concerns

The Basel Committee's framework for the FRTB is raising concerns about a potential negative impact on market liquidity
W&I insurance doubts remain despite growth

Use of the feature in M&A rose in 2015. But some are unhappy with high costs, poor record of successful claims and regional discrepancies
Azura-Edo IPP kick-starts Nigerian projects

The $876 million deal is the first fully-financed independent power project in the country since the reform of its energy sector
Qatar moves to attract FDI

Its financial free zone has opened its doors to more than 17 new industries, and more changes are afoot
Distressed assets push Canadian M&A

The commodity crunch is driving opportunistic acquisitions and take-privates
The true motives behind Chinese merger clearance

A deal that boosts PRC growth may be more likely to receive the stamp of approval
Indonesia’s first amended SOA restructure

It took three bankruptcy jurisdictions and 27 schemes of arrangement in Singapore alone to rescue chemical tanker Berlian Laju
Italian plan: the market responds

It doesn't come close to bad bank deals struck by Ireland and Spain, but some have questioned the level of government involvement
CRAs linchpin of Italy’s NPL scheme

A decree implementing the guarantee mechanism has been postponed, leaving the market to speculate over how the fine print will address state aid concerns and entice investors
Basel leverage ratio impacts derivatives

The Committee won’t raise the level of the leverage ratio, but it's still pushing banks out of derivatives clearing, according to counsel in the US
SMR legal function U-turn threatens implementation

The FCA's decision to consult on capturing those with responsibility for a firm’s legal function within the Senior Managers Regime could jeapordise legal privilege
Margin rules for uncleared swaps raise US concerns

While the changes will boost counterparty risk management, they may also impact collateral and boost transatlantic regulatory arbitrage
First RMBS tests risk retention rules

The first deal to comply with both EU and US rules has closed, but it won’t be such plain sailing for others in the family
EU-US agreement on CCPs

The US and EU have announced a common approach to central clearing counterparties. The news has been welcomed
Covered bonds’ EU legislative debut

Market participants breathed a collective sigh of relief last week following Commissioner Hill’s suggestion that he is not seeking a single rulebook for the asset class
IFLR’s 2016 European awards: shortlist revealed

The nominations for this year's European awards have been announced. The winners will be revealed on April 21 at London's Savoy Hotel
Indonesia's FDI liberalisation falls short

Despite the removal of 35 business lines from its Negative Investment List, the government's steps towards deregulation will not have the big bang effect it desires
New employee rights in French M&A

Business owners considering a significant sale must now give staff the opportunity to make a competing offer. Proskauer Rose lawyers explain the practical way to deal with the new rules
Luxembourg's fiducie: a new loan origination tool

Allen & Overy's Paul Péporté explains why the country’s fiduciary regime offers an efficient solution for funds looking to tap Europe's loan market
Certain funds in strategic acquisitions

Debevoise & Plimpton's Alan Davies, Pierre Maugüé and Gregg Young explain the importance of a detailed understanding of the events that can result in a draw stop
Too big to fail, RIP?

TLAC is the strongest sign yet that TBTF has seen its last days. Morrison & Foerster's Oliver Ireland and Jared Kaplan explain why
Argentina makes progress with holdouts

The Macri government has reached an agreement with some of its hardline US creditors. It's a significant step forward for the troubled Latin American economy
Director responsibilities in company sales

This latest instalment of Corporate Governance Quarterly analyses a Delaware ruling that revisits the Revlon rule. It could change the way boards sell their companies
More US banks enter Europe's fund finance market

The transatlantic transition is not always straightforward. But as Travers Smith's Charles Bischoff, Danny Peel and Jamie Parish explain, it looks set to continue
Ukrainian merger control changes comfort and confuse

A new regime that aims to shorten the review process has been welcomed, despite the retention of the seller’s assets and turnover in the merger review test
UAE insolvency framework faces long road ahead

The Gulf state needs a designated restructuring process to boost business. But the pace of legislative reform can be slow
POLL: Will the SMR prevent misconduct?

How effective can the UK's incoming Senior Managers' Regime be at preventing reckless behaviour? Vote now
Deal of the month: Virgin RMBS

The first securitisation to comply with both EU and US rules on risk retention has closed. But it won’t be such plain sailing for others in the family
ETFs: creator of risk or choice?

Exchange-traded fund volumes are at record highs, and regulatory attention is on the rise. Nuances between product types and regional treatment makes informed debate more important than ever. A battle is brewing between those who do and don't understand the asset class. IFLR journalists in London, New York and Hong Kong investigate
Editorial: Do we need a BRRR?
Americas: What to name the now?
Asia Pacific: Off course
Europe: The great delay
Covered bonds’ EU legislative debut
Margin rules for uncleared swaps spark concern
US fund managers don’t want passports
Indonesia’s FDI liberalisation assessed
Trading book review prompts liquidity concerns
Americas
Asia-Pacific
Europe Middle East and Africa
Poll: biggest risks in post-sanctions Iran

The US’s status as unofficial rule-setter of the world has been reaffirmed. Its sanctions against the newly opened country present the biggest legal risk to investors the world over
Inside China: Fixing the NPL problem

Bank-held bad debts are protected as state assets, and rules are hindering the development of a market-based mechanism for their disposal
European In-house Counsel Summit highlights

Increasing antitrust enforcement and doubt over M&A insurance are top concerns among the region's corporate counsel
India Capital Markets Forum highlights

Behind the headlines and regulatory initiatives, the local markets still have room to develop
The perfect JV for Africa

Multinationals are still pouring into the region. Winston & Strawn's Zoe Ashcroft explains why a joint venture's structural foundation is key to its success
Switzerland’s new transparency rules

Prager Dreifuss’s Andreas Moll and Matthias Bürge on why new transparency rules for Swiss companies could signal the end of the anonymous bearer share
Brazil: Recent banking soft-law

The Superior Court of Justice in Brazil (STJ), the highest court on non-constitutional matters, published 17 summaries of decisions on banking matters on December 30 2015
Colombia: Project finance challenges

Colombia’s fourth generation of toll-road projects, which the government initially launched in 2013, has started to materialise over the past two years
Cyprus: OECD implementation

In December 2015 the Cyprus Ministry of Finance issued a Decree implementing the Organisation of Economic Cooperation and Development’s (the OECD) Common Reporting Standard (CRS) and the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA)
Egypt: Employee/employer rights

Egypt is de facto a socialist country. Despite the removal of references to the terms ‘socialism’ and ‘socialist’ from the 1971 constitution in its 2007 amendments and the absence of these terms in the current 2014 constitution, the laws still adopt the concept
Indonesia: New venture capital rules

In late December 2015, Indonesia’s capital market regulator (Otoritas Jasa Keuangan or OJK) issued several new regulations affecting the venture capital industry in Indonesia
Ireland: Bank crisis report

On January 27 2016 a committee established by the Irish parliament delivered its report on the banking crisis in Ireland (the Report)
Japan: Protecting personal information

On January 1 2016, the Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure (the so-called My Number Act) came into full force
Macau: New budgetary framework

The new law on the budgetary framework was presented before the Legislative Assembly of Macau (the Assembleia Legislativa, or the AL) on January 29 2016
Nigeria: Clarifying tax laws

While adjudicating a dispute between an international oil company and the Federal Inland Revenue Service (FIRS), the Nigerian Tax Appeal Tribunal (TAT) recently held that where there is a conflict between an agreement and statute, the provisions of the statute prevail
Philippines: New securities regulations

On November 9 2015, the 2015 Implementing Rules and Regulations of the Securities Regulation Code (the 2015 SRC Rules) took effect
Qatar: Capital gains tax issues

There have been some recent developments in Qatar in relation to the interpretation and practical application of taxation of capital gains
Slovak Republic: Ensuring contractor performance

A practice has recently been implemented in the Slovak construction market designed to ensure that subcontractors, considered to be the weaker party, get paid for their work
Spain: Restructuring challenges

Reforms made to the Insolvency Act over recent years have brought about significant changes to debt restructuring procedures in Spain
Switzerland: Reporting beneficial ownership

On July 1 2015, a new Swiss law entered into force, which implements the recommendations of the international Groupe d’action financière (GAFI) aimed at preventing money laundering and tax evasion
Turkey: New OTC regulations

In line with the global development in the over-the-counter (OTC) market, the Capital Markets Board of Turkey (CMB) has introduced more regulations covering OTC derivatives
Vietnam: Foreign bank guarantees

The new Law on Real Estate Business (LOREB) stipulates that before selling or hire-purchasing houses to be built in the future, investors in real estate projects (investors) must have their financial obligations for clients guaranteed by eligible commercial banks when the investors fail to hand over houses according to the schedule committed to clients
Closing conditions

The lighter side of the past month in the world of financial law

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