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Nicholas Chang Linette Zhang Xiao Lin The Singapore central bank has proposed changes to the regulations of the Securities and Futures Act and Financial Advisers Act as part of its efforts to enhance and refine the country's regulatory framework. One of the key changes made by the central bank is the extension of the statutory obligations to ensure effective control and segregation of duties to mitigate conflicts of interest that may arise from the operations of a capital markets services (CMS) licence holder or a licensed financial adviser to the CMS licence holder or financial adviser, respectively. Under the present law, these statutory obligations are imposed on a director and chief executive officer of a CMS licence holder or a financial adviser only. The central bank found that the control failures are often not solely attributable to chief executive officers and directors. The proposed amendments therefore seek to extend these statutory obligations to CMS licence holders, together with their directors and senior management to ensure proper institutions and implementation of risk management and compliance systems.

Mian Muhammad Nazir The compatibility of contemporary insolvency legislation in the context of Islamic financial institutions and Islamic capital markets instruments is an important subject which regulators, courts and other stakeholders must address sooner rather than later to ensure the sustainable and continuous growth of the industry. This issue deserves more serious consideration from the legislatures and regulators as lack of an appropriate and legal and regulatory regime on insolvency in respect of Islamic financial institutions would certainly affect insolvency proceedings and the remedies sought or granted pursuant to such proceedings. Some of the most commonly used Islamic contracts and instruments result in automatic preference for investors and, in some cases, particularly when the competing obligations of an obligor are not shariah compliant, even a contractual waiver (either for a pari passu arrangement or sub-ordination) may not be effective. Considering the unique business model of Islamic financial institutions (IFIs) and the nature of the shariah nominate contracts and instruments, many of the well-drafted laws and regulations on insolvency may not be relevant to IFIs in the event of any insolvency or restructuring proceedings.

Money market mutual funds (MMFs), while benefiting from quality and liquidity floors implemented in 2011, remain a source of vulnerability for the US economy. The Financial Stability Oversight Counsel (Fsoc) should see that fund managers hold enough capital in the event of another meltdown.

Will less stringent regulation boost innovation in China’s securities market?

In Pepsico Puerto Rico, Inc v Commissioner, the US Tax Court found that PepsiCo's 'advance agreements' between Pepsico Puerto Rico (a Delaware corporation) and a Netherlands affiliate were equity rather than debt for federal income tax purposes. This, in turn, permitted PepsiCo to treat payments on the advance agreements as non-taxable returns of capital rather than interest payments for the taxable years in question.

HK’s new sponsor rules could lock up funding as well as sponsors That Hong Kong wants to protect the reputations of its H-share and A-share companies is understandable – particularly following the issues that have troubled US-listed ChinaCos. But while listing location is rarely chosen on the basis of a regulator's vetting process, Hong Kong's new sponsor regulations may have made initial public offerings (IPOs) prohibitively expensive. Hong Kong's sponsor regulations have left small firms with few options. The rules might have noble underpinnings, but their provisions are heavy-handed. The risk sponsors take means that we are likely to see far fewer small IPOs getting done in Hong Kong.

Ten years after its creation, has Hong Kong’s Securities & Futures Appeals Tribunal proved an effective review panel?

Erik Lind On January 1 2013, the Peruvian Controlled Foreign Corporation Regime (Regime) entered into force. The Regime aims to prevent the deferral of Peruvian Income Tax (IT) on foreign source passive income – such as dividends, interest, royalties, and capital gains – earned by Peruvian Tax Residents (PTR) through the use of Controlled Foreign Corporations (CFC) located in low tax jurisdictions. A foreign entity qualifies as a CFC if, by the end of the Peruvian tax year (December 31) it satisfies the following criteria:

The government of Mongolia's recent Regulation S/Rule 144A debt offering marked the first time the country has tapped the sovereign bond market.

Bank of America's $726 million loan to the Brazilian state of Santa Catarina reflects a radical shift by Brazil's states toward major international lenders.