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Despite confusion created by a speech made to the IBA by a leading Japanese lawyer, it is clear that reforms to the Japanese legal market will not enable international firms to hire Japanese lawyers (bengoshi). Foreign firms in Japan have been lobbying the ministry of justice commission to fully liberalize the legal system, and the decision to continue restrictions on foreign firms in Tokyo has been greeted with disappointment. Toshiro Nishimura, name partner of Nishimura & Partners and member of the ministry of justice commission, caused the confusion when speaking of the advancement of partnerships between Japanese and international firms. However, he has since clarified that he was referring to the decision to relax the rules on joint enterprises. The few firms which work in a joint enterprise will now be able to work on all areas of international law, including litigation. Work on any domestic law is still forbidden. Nishimura claims the reforms will be beneficial to foreign firms. He says: "I expect the number of firms with cooperation pacts to rise, this should be an incentive for firms."

With the globalization of financial services, New York law firms are adapting their approach for a global market. But traditional relationships remain strong. Richard Forster reports

On October 3 1997, the Commission published a draft Notice on the definition of relevant markets for the purposes of Community competition law. This text is not expected to be amended very substantially.

The German government has launched a three-pronged initiative aimed at overhauling Germany’s antitrust law and making it Euro-compatible. By Wolfgang von Meibom and Jan Byok of Wessing Berenberg-Gossler Zimmermann Lange, Düsseldorf

The Federal Banking Commission (FBC) plans to approve the first hedge fund domiciled in Switzerland in its November 1997 session. Since the FBC approved in its February session this year the first two foreign hedge funds for public marketing and distribution in and from Switzerland, it appears the Swiss investment fund market has gained momentum. The new hedge fund scheduled to be approved is a fund of funds, predominantly investing its assets in offshore hedge funds, whereas the first two foreign hedge funds already approved were Irish investment funds using alternative investment techniques and instruments.

For the first time, the decision of a regulator relating to modifications of a utility's licence has been successfully challenged on the basis that the regulator acted irrationally.

Because Swedish statutory provisions on guarantees date from 1734, court practice has a decisive influence on guarantees under Swedish law.

The Russian government has enacted ambitious new legislation designed to strengthen the enforcement of judicial orders. The new rules are to apply to orders issued by all Russian general courts, the Constitutional Court, the Supreme Court, the High Arbitration Court, all arbitration courts and foreign courts, as well as orders of certain other government bodies. At present, Russia's Civil Procedural Code, and the procedural rules of the various court systems, govern enforcement procedures, including the conversion and seizure of property to satisfy court judgments. In the emerging Russian market economy, identifying, seizing, and converting assets under a court order is often tedious, time-consuming and expensive. Results vary widely. Officials themselves concede that enforcement practices are weak. The new legislation seeks to address these problems by enforcing compliance with court orders and government decisions and clamping down on delinquent debtors.

New and important amendments to the Portuguese Companies Law were enacted at the beginning of this year through Decree-Law 257/96 of December 31. One of the most important changes is that from now on it is possible to set up a limited liability company (sociedade por quotas) with a sole shareholder, individual or corporation owning the entire share capital. Hitherto one-person limited liability companies have only been permitted offshore in Madeira and the Azores.

From September 1 1997, under Decree 153 of May 26 1997, the procedure for informing the authorities of suspected money-laundering transactions has changed. Transactions which may infringe the provisions of Articles 648 bis and ter of the Penal Code must now be reported to the Italian Foreign Exchange Bureau (IFEB) rather than to the police. In accordance with its new administrative role, the IFEB issued a circular letter setting out the basic guidelines for anti-laundering procedures. The circular lays down the criteria by which suspect banking transactions may be identified, such as discrepancies between the character of transaction and the client's financial profile, or its acceptance of inconvenient terms and rates. After being notified of the suspect transaction, the IFEB must forward the relevant evidence to the investigating Anti-Mafia Bureau and to the Tax Police special department dealing with with foreign currency matters, which will pursue the investigation further on the basis of the information received. Should the investigation uncover a link with organized crime, the National Anti-Mafia Procurator will be informed and he will take appropriate steps. To comply with the new anti-laundering provisions, the IFEB has prepared a standard form for financial services firms. In particular, details of the transaction and the reasons for it being considered suspicious must be provided, thus putting the burden of assessing each transaction on the financial operator.