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Entering into an arbitration agreement, the parties sometimes provide for various alternatives. This happens quite often for example in loan contracts between Russian borrowers and UK based international financial institutions. In an attempt to bargain a favorable position in jurisdictional terms, the lender may want to reserve its right to go to a court of law. This is usually attained by supplementing the arbitration agreement with such opportunity, that is, by specifying that besides the option of having their dispute arbitrated the parties may initiate legal proceedings in, say, a UK court. Pursuing this bargaining path, the lender may also seek that a borrower unilaterally waive its right to challenge the jurisdiction chosen by the lender in case of a dispute. However, a lender should carefully exploit its bargaining power, since not all options will necessarily be viable.

On July 1 2004 the new Swedish Financial Advice Consumers Act will enter into force. The act has been established on the basis that there is a need for special consumer protection legislation regarding financial advice and will apply to financial advice that a business provides to a consumer and that involves the placement of a consumer's assets in financial instruments (for example shares, fund units and bonds) or in life assurance where the capital is placed in financial instruments selected by the consumer itself (so-called unit-linked policies). Compliance with the act is mandatory for undertakings providing financial advice to consumers.

The Indonesian central bank, Bank Indonesia, has issued one regulation and three circular letters to enhance the legal certainty of its administrative duties, particularly those related to Bank Indonesia's scripless securities settlement system (BI-SSSS). This is used in the administration of Bank Indonesia certificates (sertifikat Bank Indonesia or SBI), securities issued in rupiahs by Bank Indonesia as short-term acknowledgment of indebtedness, and sovereign debts (surat utang negara or SUN) consist of treasury bills and government bonds (securities issued by the government of Indonesia as long-term debt instruments in rupiahs or other foreign currency denominations). All of the issuances are dated February 16 2004. They are:

In Japan, three statutes primarily regulate matters regarding trusts. The Trust Law sets out the rights and obligations of parties under a trust, the Trust Business Law regulates trust businesses and the Law Concerning Concurrent Trust Businesses of Financial Institutions (Concurrent Trust Business Law) regulates trust businesses operated by financial institutions. The current session of the Diet is considering a complete revision of the Trust Business Law, which will apply to trust companies and, certain provisions of which will also apply to financial institutions operating trust businesses. It is also likely that the Trust Law will be substantially revised soon.

Paul Weiffenbach assesses proposed reforms affecting asset-backed deals

US law firms were among those celebrating the first international initial public offering (IPO) from a Mexican issuer in almost five years last month.

Consolidation in the US financial sector is proving to be a valuable source of work for law firms this year. The arrival of two new multi-billion dollar deals last month confirmed that banking mergers are a hot area for mandates. Several firms have benefited from the trend so far, but Wachtell Lipton Rosen & Katz has been most successful, with a series of assignments advising target banks.

Three Spanish banks have successfully securitized a new class of asset-backed notes, creating a legal and transactional framework for Spanish electricity companies to securitize revenues from customer bills.

Internet search engine provider Google could open the door to new types of initial public offering (IPO) if its flotation, which filed last month, is a success later this year.

Rating agency Standard & Poor's is issuing new ratings on the chances of lenders recovering their capital in the event of a default on a European secured loan.