In November 2004 the Hong Kong Securities and Future Commission (SFC) published its Consultation Conclusions on the Regulatory Framework for Addressing Analysts’ Conflicts of Interest and issued guidelines to form part of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct) which are scheduled to come into effect on 1 April 2005 ...
In November 2004, the Securites and Futures Commission (SFC) published its Consultation Conclusions and Guidelines on Good Disclosure of Securities Services and Related Fees and Charges (Guidelines). The Guidelines, which came into effect on 1 January 2005, supplement the existing Code of Conduct ...
The Securities and Futures Commission (SFC) issued a circular on 21 December 2004 to deemed licensed corporations. Deemed licensed corporations which do not intend to migrate to the new regime under the SFO are expected to wind down their businesses and make arrangements for the return and transfer of client assets before their licences expire on 31 March 2005. The circular also sets out guidance on the treatment of unclaimed client assets ...
This Newsletter describes the latest developments in Trade and Regulation in the Latin American region and the EU ...
The year 2004 saw increased M&A activity in the Ukrainian banking sector. Some of the notable acquisitions include equity transfers in Kredit Bank (to PKO Bank Polski S.A.), Transbank (to Bank TuranAlem of Kazakhstan),Bank Leader (to Renaissance Capital of Russia), and, of course, the benchmark deal of the year — acquisitionby Vilniaus Bankas, a Lithuanian subsidiary of the powerful SEB Group of Sweden, of the Joint Stock Bank Agio ...
In December 2004 and more recently in March 2005, the Superior Court rendered three significant judgments respecting motions for authorization to institute class actions. In the first case, Bouchard v. Laiterie et Boulangerie Parmalat Inc.1, the motion was denied for the absence of interest and of rights of the applicant. In the second case, Citoyens pour une qualité de vie v. Aéroports de Montréal2, the motion was denied for lack of identical, similar or related questions of law or fact ...
On April 29, 2005, the Court of Appeal rendered a judgment in Pharmascience Inc. v. Option Consommateurs et Piro1 on the constitutionality of the amendments made to the Code of Civil Procedure on January 1, 2003 regarding authorizations to institute class actions. Contrary to the arguments of the appealing pharmaceutical companies, the Court of Appeal held that the amendments are constitutional and do not violate the Quebec Charter of Human Rights and Freedoms in any way ...
Amendments to several provisions of the Mexican Mining Law (the “Law”) were recently passed by the Mexican Congress and published in the Federal Official Gazette on April 28, 2005. The amendments to the Law can be summarized as follows: a) A new governmental body called the “Mexican Geological Service” was created in lieu of the previous Mineral Resources Council ...
This article, published in International Corporate Governance Review (published by Euromoney Yearbooks), aims to provide an overview of what the Baltic States are offering to owners of capital in regard of effective control over invested capital, its use, disposal and return. Accession of three Baltic States to the EU and NATO in 2004 proves the reliable status of these countries for foreign partners and makes no doubt regarding the guaranteed protection of investments made in this region ...
The judgment of the Court of First Instance in Chiquita Brands and Others v ...
On the 6th July 2005 Regulations implementing the EU Market Abuse Directive 2003/6/EC (“MAD”) came into force (some aspects of the Regulations came into force on Oct 1). MAD aims to introduce a Euro standard for insider dealing and market manipulation so as to promote market integrity and investor confidence in the financial markets ...
This English law decision not only serves as a timely reminder of a bank’s duty of confidentiality to its clients but is potentially worrying as the case confirms loss of opportunity to earn future profits as a recoverable head of damage following breach of confidence. Jackson v Royal Bank of Scotland (2005) UKHL3, [2005] A ER(d)280 Facts: Jackson (trading under the name Sampson Lancastrian (Sampson)) had entered into a contract to supply dog chews to another UK entity, Economy Bag ...
The English Commercial Court has held that an investment fund was a financial institution under a loan agreement which limited transfer of the loan to “a bank or other financial institution”. The ARGO Fund Ltd v Essar Steel Ltd [2005] EWHC 600 (Comm). Facts; Essar defaulted under its syndicated loan agreement . The loan agreement allowed the participating banks to transfer their rights and obligations to another “bank or other financial institution” ...
Concord Trust v Law Debenture (http://www.lawdeb.com/). Law Debenture House of Lords considered the obligations and liabilities of bond issue trustees in relation to notices of acceleration ...
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 ...
Under Part XV of the Securities & Futures Ordinance (SFO), where a company has an interest (or a short position) in Hong Kong listed shares, its holding company is deemed to have that interest; this attribution is carried the whole way up a corporate chain to the ultimate holding company. This imposes onerous monitoring requirements on financial services groups ...
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) ...
