The State Administration of Foreign Exchange ("SAFE") issued the Notice on Relevant Issues in Perfecting Foreign Exchange Control in Mergers and Acquisitions by Foreign Investors ("Notice 1") on 24 January 2005 and the Notice on Relevant Issues in the Registration of the Offshore Investments of Individual Domestic Residents and Foreign Exchange Registration of Mergers and Acquisitions by Foreign Investors ("Notice 2") on 21 April 2005 ...
The Ministry of Commerce ("MOFCOM") promulgated the Measures for the Administration of Foreign Investment in the Leasing Industry on 21 January 2005. The Measures superseded the 2001 Provisional Measures for the Administration of the Examination and Approval of Leasing Companies with Foreign Investment when they entered into effect on 5 March 2005 ...
The Ministry of Commerce, the National Development and Reform Commission and the State Administration for Industry and Commerce jointly promulgated the Implementing Measures for the Administration of Branded Automobile Sales on 21 February 2005. The Measures, which entered into effect on 1 April 2005, are aimed at bringing more order in the Chinese automobile market ...
The General Office of the Ministry of Commerce issued the Notice on Transmitting and Issuing the Letter of Reply of the General Office of the State Council on the Issue of the Detailed Applicability of the Capital Contributions of Investors in, and the Liquidation of, Foreign Investment Enterprises ("the Reply") on 18 March 2005 ...
The China International Economic and Trade Arbitration Commission ("CIETAC") has recently updated the Arbitration Rules of CIETAC 中国国际经济贸易仲裁委员会仲裁规则 ("Rules"). The revised Rules came into effect on 1 May 2005. Specialist arbitration rules The revised Rules provide for the possibility of using rules, which have been tailor-made for specific industries ...
The China International Economic and Trade Arbitration Commission ("CIETAC") also updated its financial arbitration rules, the Arbitration Rules for Financial Disputes of CIETAC. The revised Financial Arbitration Rules replace the 2003 rules (as discussed in the July 2003 Issue of China Legal Update - http://www.deacons.com.hk/eng/knowledge/knowledge_156.htm) and took effect on 1 May 2005 ...
The Ministry of Finance and the State Administration of Taxation jointly issued the Notice on the Issue of the Levy of Individual Income Tax on Income Derived by Individuals from Stock Options on 31 March 2005 ("Notice"). The Notice, which entered into effect on 1 July 2005, provides a number of guidelines regarding the taxability of such schemes. Taxable event The Notice applies to stock options granted to employees of listed companies or their holding companies ...
The State Administration of Taxation ("SAT") issued the Notice on Relevant Issues in Adjusting the Method for Calculation of Individual Income Tax Annual Lump Sum Bonus Etc. Received by Individuals on 21 January 2005. The Notice, which took effect on 1 January 2005, repeals two SAT Notices issued in 1996 and addresses the issue of the calculation of individual income tax ("IIT") on annual bonuses ...
The Taiwan Financial Supervisory Commission ("FSC") on 2 August 2005 promulgated new rules governing the offering of overseas funds in Taiwan ("the New Rules"). The New Rules take immediate effect and significantly change the existing rules and landscape for overseas funds being offered in Taiwan ...
On 27 April 2005, the People’s Bank of China ("PBOC") promulgated the Measures Governing the Issuance of Financial Bonds on the National Inter-bank Bond Market ("the Measures"). The Measures entered into force as of 1 June 2005 and represent an attempt by China’s central bank to standardise the activities of issuing financial bonds on the national inter-bank bond market ...
In 2005, China’s State Administration of Foreign Exchange ("SAFE") released the Circular on Verification of Quotas for 2005 on Short-term Foreign Loans of Overseas-funded Banks ("Circular") and its Supplementary Circular on Questions Related to Renminbi Loans with Guarantees in Foreign Exchange ("Supplementary Circular", and together the "Circulars"). The Circulars are intended to facilitate the enforcement of loan registration requirements on renminbi loans with guarantees in foreign exchange ...
Securitization involves the separation of the credit risk of one or more assets from the bankruptcy and credit risks of the owner of those assets (hereinafter, the “Originator”)1 and the issuance and sale of securities backed by the cash flow from those assets. The proceeds of the sale of the securities are then used for the purchase of the assets from the Originator ...
News that London had won the race to host the Olympic and Paralympic Games in 2012 was greeted with delight not only in sporting circles, but also in many commercial ones. Businesses up and down the country rubbed their hands with glee at the thought of a raft of new and exciting commercial opportunities. Importantly, these opportunities are not just the preserve of businesses south of the border, but are also available to Scottish businesses ...
As mentioned in our information bulletin of June 8, on June 7, 2005 the Federal Official Gazette published an “Executive Order to Amend the Value Added Tax Law” which altered the procedure for calculating the crediting of valued added tax by removing operations not taxable ...
The Companies (Amendment) Ordinance 2004 (the “Amendment Ordinance”) introduces, amongst other things, major relaxations to the prospectus regime in Hong Kong to facilitate market development. This bulletin summarises some of these changes brought by the Amendment Ordinance (The changes regarding prospectuses brought by the Amendment Ordinance as summarised in this bulletin came into operation on 3 December, 2004) ...
The SFC has recently settled a number of disciplinary cases on the basis of payment by the persons under investigations without admission of liabilities. Below are some examples of the settlement cases. SFC Withdrew Decision to Suspend Licence of a Licensed Representative The licence of a licensed representative was suspended by the SFC for six months by reason of his use of placing schemes to meet the placing requirements of the Listing Rules ...
It is quite common in Hong Kong for employers to arrange an employee's employment by using dual contracts to take advantage of the tax position. Under Hong Kong law, only income derived from Hong Kong is taxable and earnings under a foreign employment contract with non-Hong Kong entity in respect of duties carried out outside Hong Kong are not taxable. However, the benefits under this arrangement may reduce following a recent UK guideline ...
On 30 June 2005, the Hong Kong Monetary Authority (“HKMA”) finalised the self-assessment framework on AML compliance. The self-assessment framework has been introduced for the purposes of facilitating the assessment by authorised institutions’ (“AIs”) of their compliance with the regulatory requirements on AML and to supplement the HKMA’s on-site examinations ...
On 30 June 2005, the House of Lords delivered its judgment in National Westminster Bank plc v. Spectrum Plus Limited & others [2005] UKHL 41. The case has resolved a controversial legal issue concerning the distinction between a fixed charge and a floating charge. Fixed Charges and Floating Charges It may be helpful first to describe the basic difference between the operation of a fixed charge and that of a floating charge ...
On 20 April 2005, the People’s Bank of China (“PBOC”) and China Banking Regulatory Commission (“CBRC”) promulgated the Administration of Pilot Projects for Securitisation of Credit Assets Procedures (“the Procedures”). The enactment of the Procedures has received widespread support since they reflect one of the first attempts at regulating securitisation in China ...
The Securities and Futures Commission (SFC) proposes to amend Chapter 8.7 of the Code of Unit Trusts and Mutual Funds (Code). To date, a total of 13 hedge funds have been authorised by the SFC pursuant to the existing hedge fund guidelines. The SFC has indicated that some applications for authorisation have failed because of the failure of the applicant hedge fund manager to comply with the experience requirements. The revised Chapter 8 ...
The SFC has adopted a split approach in dealing with UCITS III funds. For funds which will adopt enhanced use of derivatives and make changes to their investment policies or objectives in migrating to UCITS III, the SFC requires: • a notice to existing holders explaining the proposed changes and confirmation from the fund or its manager that the home regulator has approved the final version of this notice ...
Following the SFC’s consultation paper in February 2005 proposing to allow SFC authorised collective investment schemes to invest in Real Estate Investment Trusts (REITs), the Code was amended in late April. Chapter 7.14 of the Code has been revised to allow SFC authorised collective investment schemes to invest in listed REITs, subject to compliance with the investment limits as set out in Chapters 7.1 and 7.2. (i.e. 7 ...
