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The Economic Expansion Incentives (relief from income tax) Act provides a range of income tax incentives to encourage investment and industry in Singapore, particularly in the engineering and technology sectors. Since the Act was passed in 1967, it has been amended from time to time to clarify and broaden the tax incentives available to various industries.

In response to the sluggishness of the Czech capital markets, the government has launched a series of legislative initiatives with the aim of creating a more stable and transparent environment for investors. Accordingly, the Czech capital markets have been undergoing major changes. However, whether the hoped-for results will materialize remains to be seen.

The Provisional Regulations Banning Entrance into the Securities Industry were promulgated on March 3 1997. The Regulations outline various securities violations for professionals working in the securities industry, including the following:

The Hong Kong Monetary Authority (HKMA) has proposed guidelines for the establishment of a government-owned Hong Kong Mortgage Corporation (HKMC) that will purchase residential mortgage loans from banks in Hong Kong. The objective of this new corporation will be to provide necessary mortgage funding for an anticipated shortfall of HK$788 billion (US$102 billion) by 2005. The HKMC will be structured as a limited liability company with a financial secretary as the chairman of the Board of Directors responsible for appointing other directors of the Board.

A liberalization of US Federal Reserve rules on the securities activities of bank holding company affiliates could be a window of opportunity for foreign banks. By Nancy Jacklin of Clifford Chance, New York

US insurance company Cigna Corporation agreed to acquire managed care concern Healthsource for US$1.4 billion. The deal boosts Cigna's position as a leading provider of healthcare and is part of a trend towards consolidation in the health-insurance industry.

Bermuda-based, New York-quoted reinsurance company Partner Re is to take over French insurer Société Anonyme Française de Réassurance (SAFR). The acquisition was prompted by Swiss Re's Swfr1.1 billion (US$752 million) offer for the remaining shares of SAFR, of which it owns 21%. The outstanding shares belong to rival French insurers AGF and Athéna. Once Swiss Re has acquired these shares, it will sell SAFR to Partner Re.

US firm Milbank, Tweed, Hadley & McCloy is rebuilding its project finance practice in London after the departure of four project finance partners to rival firm Shearman & Sterling last year. Partner Thomas Siebens has returned to London from a three-year residency in the firm's Singapore office. He will develop the global capital markets reach of the firm's project finance and emerging markets group.

Following a review of its international practice, German firm Pünder, Volhard, Weber & Axster has decided to open a Hong Kong office before the July 1 handover to China. Peter Nägele, Frankfurt partner with the firm which heads the Pünder Group, says there will be several partners there concentrating on banking and finance work. "It will not just be a rep office: we will be serving German and European clients and aim to be profitable from day one," he says. Of Pünder's German rivals, only Brückhaus Westrick Stegemann has an Asian presence through its offices in Hong Kong and Tokyo. Pünder managing partner Thomas Gasteyer says the firm had planned the move for some time and hoped to open there before the end of June subject to completing the relevant paperwork. Gasteyer expects the new office will become a joint practice of the six-member Pünder Group. "I think this will be a joint office but we have not yet received replies from all the other firms on our proposal," says Gasteyer. "In all likelihood I expect it will."

French firm Giroux Buhagiar & Associés is to merge with the Paris office of Stibbe Simont Monahan Duhot. On July 1, Giroux Buhagiar's 23 lawyers will move to Stibbe Simont's 70-lawyer office. The merged firm will be known as Stibbe Simont Monahan Duhot & Giroux. Stibbe Simont in Paris specializes in mergers and acquisitions as well as tax, competition and EU law. Giroux Buhagiar concentrates on banking and financial law.