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The latest legislative change prompting discussion is the Financial Services Reform Bill 2001 (FSRB) which is at present before the Federal Parliament. Now that the new federal Corporations Act 2001 has come into force, as of July 15 2001, the way has been paved for the FSRB to commence on October 1 2001.

On July 16 2001 the Argentine Commercial Court No. 15 ruled on the opening of preventive proceedings (concurso preventivo) to restructure over $900 million in debt of the flag-carrier Aerolíneas Argentinas and the appointment of receivers following a voluntary petition filed by the company to avoid a declaration of bankruptcy. Aerolíneas Argentinas is owned by the Spanish state holding company SEPI, which has been negotiating with the Argentine government over the airline's future.

The Privy Council (with judgment delivered by Lord Millett) has overruled the Court of Appeal decision of In re New Bullas Trading Limited [1994] I BCLC 449 by stating that it is not possible to obtain a fixed charge on uncollected book debts by treating the uncollected debts and their proceeds as two separate assets and creating a fixed charge over the uncollected debts with a floating charge over the proceeds.

The Federal Act on Investment Funds (IFA) is to be revised in view of certain changes to pertinent EU directives. At present, the investment companies quoted on the Swiss stock exchange and incorporated as joint stock companies (Aktiengesellschaften) pursuant to Article 620 et seq Swiss Code of Obligations do not fall under the scope of the IFA. The Federal Banking Commission (FBC) intends that this revision should be taken as an opportunity to enlarge the scope of the IFA. The IFA governs assets which are managed under a collective investment contract and excludes assets that are managed in a different form, particular in corporate form (Article 3 para 1 and 2, IFA). The FBC takes the position that this provision contradicts the principle of "same business, same rules". Furthermore, the existing legislation contains an unequal treatment of Swiss closed-end investment funds on the one hand and foreign funds on the other hand. Pursuant to Article 3 para 3, foreign investment funds whose units are distributed in Switzerland are governed by the IFA regardless of their legal structure.

The offering of stock options by foreign companies to their employees in Portugal has raised a series of questions under the new Portuguese Securities Market Code. The main question is whether the stock options are negotiable securities. If they are, they must be qualified either as a public or a private offer of securities and will have to comply with the public or private offering rules, which involve different procedures and requirements in Portugal.

The post-handover rollercoaster ride for Hong Kong looks like it is heading for another dip as economic growth stalls. Nick Ferguson reports on the divergent strategies taken by law firms in the territory and assesses their likely success in cushioning the landing and preparing firms for when the ride takes off again

Following Telecom Italia’s securitization of fixed-line telephone bills, Thomas Williams reports on how a new market is opening up for European telecommunications companies, and their legal advisers, who are struggling to raise finance now the TMT bubble has burst

In the wake of the collapse in dot.com shares, regulators in the US are attempting to promote increased independence among analysts and greater openness about their interests. Diane Mage Roberts of O’Melveny & Myers, London, looks at the new guidelines and argues that it is time for analysts to assert their neutrality or lose relevance in the market

The UK’s Court of Appeal ruled last month that a bank can avoid payment on a performance bond if it has been acquired fraudulently. Paul Friedman and Philip Young of Baker & McKenzie, London, review the case and assess its implications for banks and bondholders

Latham & Watkins and Davis Polk & Wardwell have structured the $1.1 billion limited recourse financing for the Hamaca heavy oil production and upgrading project in Venezuela. The deal is the first heavy oil project since the Sincor-sponsored transaction in mid-1998, and marks renewed interest and confidence in the country.