Search results for

In Resolution 658E of June 25 1998, the Central Bank of Chile amended the Compendium of Foreign Exchange Regulations of the Central Bank by reducing from 30% to 10% the mandatory deposit requirement or Encaje on foreign exchange brought into Chile as investments, loans or capital contributions.

A recent decision of the Copenhagen City Court confirms that Danish courts take a strict view on insider trading (see International Financial Law Review, March 1997, page 58). A board member of a Danish company was sentenced to five months' imprisonment plus confiscation of about US$100,000 of profit.

Act No. CXII/1996 on credit institutions and financial enterprises permits the setting up of a centralized domestic electronic database. The passing on and/or accessing of database information on debtors by financial institutions and investment companies does not constitute a violation of banking secrecy. However, this database should not contain information on natural persons. The Act was amended with effect from January 1 1998; it is now permissible to store and provide information on natural persons. The difference between data on private persons and data on non-private persons is that information on private persons is limited to a 'blacklist', ie only those debtors are recorded who have not met their obligations within 90 days of the due date. On the other hand, debtors who are non-private persons are always registered as soon as they conclude a loan or quasi-loan agreement, irrespective of whether they are in default of payment.

Article 22 of Legislative Decree No. 58 (through which a unified text of rules on the financial markets has been approved) sets out basic principles on the segregation of patrimonies of financial intermediaries and clients.

The proposed Council Directive on savings income was circulated by the European Commission on June 4 1998. Its rationale is the perceived scope for tax avoidance created by a lack of coordination of national systems for the taxation of interest payments on savings. It will also tax interest on public debt securities and bonds.

Allen & Overy's Frankfurt office has poached two partners from rival firms. Johannes Bruski was a partner with German firm Bruckhaus Westrick Heller Löber. Reinhard Hermes was formerly a partner in US firm Morgan, Lewis & Bockius's Frankfurt office. Bruski specializes in asset finance and cross-border leasing. He is also experienced in corporate mergers & acquisitions. He joins Allen & Overy's asset finance practice.

Wilde Sapte, the UK firm that intended to link with Arthur Andersen, is encountering further problems after the failure of its merger in June. Lawyers are continuing to leave, including Paris partner Thomas McDonald and assistant Matthieu de Varax. The New York office has closed and the resident partner Diarmuid Brennan and his assistant have left. McDonald, who specializes in asset finance, is to join White & Case's Paris office with two assistants. De Varax is moving to Simmons & Simmons' Paris office with two other lawyers. He will be made up to partner. The moves leave the Paris office with two remaining partners.

Faced with a severe economic crisis, Indonesia has heeded western calls for tighter bankruptcy regulation. It may be the first step to serious systemic reform. By Robert Cartwright of Baker & McKenzie, New York and Catherine Boggs, Baker & McKenzie Consultants, Jakarta

In the last of three articles considering possible changes to bond documentation to ease debt problems, Lee C Buchheit of Cleary, Gottlieb, Steen & Hamilton, New York, considers collective representation clauses

The American Bar Association (ABA) is recommending measures to restrict lawyers making political contributions to get government work. The ABA wants to prevent corruption and uphold judicial independence and integrity. The measures were laid out in a report published by its task force on political contributions at the end of July. Lawyers are alleged to have made political contributions to secure more government contracts, particularly municipal bond offerings. This problem, referred to as 'pay for play', usually occurs at the state and local level. Nancy Cowger Slonim of the ABA says: "We want law firms to get government work on the basis of their experience, expertise and qualifications."