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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.

In the June 2005 edition of IFLR, the bill implementing Directive 2003/71/EC on the prospectus to be published when securities are offered to the public or admitted to trading was discussed.

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.

Japan's new Company Law, which is expected to be implemented in May 2006, will replace and significantly modify the current provisions of the Commercial Code that relate to companies. The new Company Law will probably have an impact on the type of entities used as special purpose companies (SPCs) in securitization transactions.

The House of Lords' judgment in the Spectrum Plus case in summer 2005 marks an important landmark in settling a much-contested English common law position on book debts. Specifically, the case clarifies the requirement that a secured creditor must have control over a debtor's asset (in this case, the debtor's receivables) for it to have a fixed charge over that asset; and the conceding of control over the asset in question for use by the debtor in the ordinary course of its business is at best compatible only with a floating charge over that asset.

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.

James Rice reveals the locations of choice for law firm expansion and looks at the business reasons underpinning firms' growth strategies

In, AIG Capital Partners v Kazakhstan (October 2005), AIG attempted to proceed against the Kazakh Central Bank's (NBK) assets (consisting of cash accounts and securities) held by a London custodian (AAMGS) in an enforcement action of an arbitral award made in its favour against the Republic of Kazakhstan (RoK).