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In the IMF letter of intent dated April 26 2005, the Turkish government undertook to introduce a new banking law that would improve the sector's supervisory and regulatory framework. Parliament first approved the new banks act on July 2 2005. Although president Sezer previously exercised his veto right against three provisions of the new act, the parliament passed it on October 20 2005 without any amendments.

On September 24 2005, the new Competition Protection Law (CPL) took effect in Serbia. While protecting market competition is an important goal, and anti-monopoly legislation has been long-awaited in Serbia, the law might unfortunately lead to investor uncertainty resulting in a backlog of deals that cannot be closed for lack of anti-monopoly clearance.

In 1999, Korea abolished the so-called positive list system and adopted the negative list system with respect to capital transactions, thereby regulating only such transactions as listed in the Foreign Exchange Transactions Law of Korea (FETL). Simultaneously, lawmakers passed a sunset provision requiring the advance approval of the Ministry of Finance and Economy (MOFE) or the Bank of Korea (BOK) for certain capital transactions (restricted transactions). That sunset provision will terminate on December 31 2005 and as a result, beginning on January 1 2006, MOFE (or BOK) approval requirements in respect of restricted transactions will automatically cease to be effective and be changed to reporting requirements.

Takeovers in Slovenia are regulated by the Slovenian Takeover Act (the STA, Zakon o prevzemih, Official Gazette RS No. 47/1997, 56/1999), which became effective on August 15 1997.

Competition issues in Portugal have gained momentum since a new competition act was passed in June 2003. The act empowers a new supervisory body, the Competition Authority, to tackle, what was until recently, a dormant issue. The recent application of an €16 million fine against five drugs and diagnostics multinationals forms the most striking example of how seriously competition issues are taken in Portugal. The fine is the largest ever and was imposed for concerted practises in 36 different public tenders to supply 22 hospitals. Although the rules are not radically different from those established by the 1993 Competition Act, the Competition Authority has been awarded the statutory independence, and the resources, to pursue a serious and comprehensive competition policy that was previously lacking. Apart from public-sector supplies, the Competition Authority has been showing a steadfast approach to its duties, tackling such different markets and sectors as telecoms, energy, construction and pharmaceuticals.

Pursuant to Bank Indonesia Regulation No. 7/15/PBI/2005 dated July 1 2005 and Circular Letter of Bank Indonesia No. 7/48/DPNP to all commercial banks in Indonesia (dated October 14 2005), all commercial banks are obliged to adjust their minimum Tier 1 capital. This capital consists of paid-up capital and disclosed reserves.

While Greece missed the July 1 implementation deadline, a first draft bill for implementing the Prospectus Directive (PD) into Greek law was published in mid-July. Following a two-month consultation period with market participants, the bill was then presented to the Hellenic parliament in early September and approved on September 28 2005. The new law (Law 3401/2005) came into force on October 17 2005, following publication in the government gazette, repealing the pre-existing legal framework. Since the PD is a maximum harmonization directive, the Greek implementing law closely follows the wording of the Directive.

The Brazilian Securities Commission (CVM) has recently issued its interpretation regarding trades with foreign securities and offerings of the same to Brazilian residents. The interpretation establishes certain restrictions applicable to activities that might configure intermediation in Brazil with securities admitted to trade only in jurisdictions outside Brazil.

On January 1 2006, Bosnia and Herzegovina (BiH) begins implementing the new state-level Value Added Tax (VAT) Law, marking the start of a new tax regime in the country. The law establishes a single, simplified tax collection system that will apply in the whole of BiH, under which taxes will be paid into a single account at state level. At the same time, sales tax is set to disappear. The new system is the culmination of five years of investment by the international community towards a fairer, clearer and more efficient system of tax administration in BiH.

Ken Willman, Goldman Sachs Kenneth Willman, general counsel of Goldman Sachs (Asia), used the opening address at IFLR's Asia Capital Markets Forum last month to call for greater liberalization of the region's securities markets.