Banking and Finance Law Articles

Bankruptcy can have immeasurable benefits for individuals who are challenged with overwhelming or out of control debt. It is important for debtors to be cautious of making particular mistakes that can complicate or otherwise thwart their efforts to file for bankruptcy protection.

A Sovereign Investment Authority (Establish, Etc.) Act, 2011 has established for Nigeria a Sovereign Investment Authority. This Authority is charged to receive, manage and invest in diversified portfolios the excess of the medium and long term revenue of the Federal, States, Local Governments and Area Councils. The Proceeds of these investments are statutorily required to create a savings base for the country, develop infrastructure that will attract local and foreign direct investments.

Finance ministers and Central Bank governors of European Union Member States debated during the last informal Economic and Financial ECOFIN Council of September 17, the current condition of the economy and the situation in sovereign bond markets. The debate on the European Union’s financial stability was also attended by representatives of European financial oversight authorities.

All European Union countries have been affected between 2008 and 2010 by the economic and financial crisis and after a contraction in 2009 in every EU country, except Poland, growth returned in 2010 in all but five peripheral countries. While in 2010 several countries continued to support their economies through discretionary measures, other countries had less room for maneuvers given their underlying public finance situation trying to consolidate them.

Do you want to know about areas of investment permitted for investment according to Ethiopian law?

QROPS are Pillar II pension schemes established outside the UK and which are recognized as such by Her Majesty’s Revenue and Customs (HMRC). The administrators of a pension scheme established in Malta may apply to HMRC for formal acceptance of the scheme as a QROPS. Once approved as a QROPS, the Maltese scheme could accept funds/assets transferred from existing UK pension schemes.

Recent amendments to the Financial Institutions Act (Chapter 376 of the Laws of Malta) (the “Act”) have effectively brought the regulation of EMIs in Malta, previously regulated under the Banking Act (Chapter 371 of the Laws of Malta), within the remit of the same Financial Institutions Act. The change has undoubtedly led to a much more attractive regime for operators looking to set up an EMI in Malta.

The year of 2010 was marked by a number of loans, both foreign and domestic, raised by Ukrainian companies or their foreign affiliates or parent companies. As a rule, foreign and Ukrainian creditors provide loans to Ukrainian debtors subject to proper security of debtors’ obligations. In this article we provide a brief practical overview of the most common types of security instruments in Ukraine.

Whether it’s a start-up project or a successfully running company, at some point in time every business faces a need to raise money for a variety of reasons. There are two basic ways to raise capital: either debt or equity. This article focuses on comparative analysis of primary disclosure requirements for debt and equity offerings.

The fundamental transformation in Turkish economy has been observed during the massive privatization process since 1994. The investment opportunities in Turkey are particularly attractive in the framework of country’s ongoing attractive privatization agenda. The involvement and participation of international investors is highly encouraged by the law in course of current privatization program.

As you probably know, beginning January 1, 2010, Washington loosened rules for converting traditional IRAs (with taxable withdrawals) to “Roth” IRAs (with tax-free withdrawals). The full amount you convert (minus any “basis” in nondeductible contributions) is taxed as ordinary income now when you convert. However, future withdrawals will be tax-free.

Fund managers don’t like surprises. And it is this aversion to anything unknown that has caused the more “traditional” financial centers like London, Luxembourg, Ireland and Switzerland to boom as financial centers towards which fund managers have gravitated and established themselves over the past 20-odd years.

Malta has established itself on the map of domiciles of choice for alternative investment funds and continues to build its reputation as a financial services hub – a brief overview of the key ingredients for Malta’s success.

On 17 December 2010 the European Council agreed on the need for a Eurozone area and on the establishment of a permanent stability mechanism which will intervene by providing financial assistance to the Eurozone Member States after June 2013.

The Council concluded on 12 July 2011 the first European Semester which has been implemented this year, for the first time, as part of a broader reform of the EU’s economic governance. Based on the European Council’s decision a recommendation has been adopted on the implementation of the Eurozone Member States’ economic policies as well as a recommendation on its National Reform Program 2011 and the Stability Program 2011-2014 for each Member State.

If you purchased real estate as part of a business purchase, if you inherited real estate, if you are retired and own properties you want to turn into rental properties, the organizational engineering you do is not just to save on taxes. The cheapest form of insurance you can buy may be the limited liability you gain when you keep your property in a limited liability company (“LLC”) or limited partnership designed to protect you from the liability associated with property.

The European Commission has faced the challenge of being able to fund a number of policy areas where the EU could be more effective, by acting at EU level, in preparing its proposals for the future budget of the European Union. In its proposal, based on the Europe 2020 Growth Strategy, a new funding potential can be seen attempting to ease the direct impact of the national budgets with the creation of a new Multiannual Financial Framework (MFF).

To create an order in the investment activity, the authorized body needs to set out a line of licensing process before an investor could conduct the investment activity in the territory of Indonesia. Investment Coordinating Board (Badan Koordinasi Penanaman Modal) (“BKPM’) introduced a system, namely Integrated One Door Service (Pelayanan Terpadu Satu Pintu) (“PTSP”) whereby investors can enjoy certain facilities.

A trust is a valuable estate planning tool, but many don’t realize how their estate can benefit by creating a trust.

Independent film financing and tax credits are linked and play a huge role in making a successful film. Understanding where these credits are and how to obtain them is vital. Dunlap, Grubb & Weaver, experienced entertainment lawyers can help with this. This article lists the credits available in the United States by jurisdiction.

The Anti-Monopoly Law (“AML”) opens a new landscape for merger and acquisition practice in China. Regardless where a merger takes place, if the transaction satisfies the prescribed conditions, it must be filed with China's Ministry of Commerce (“MOFCOM”), the agency charged with enforcing the merger control laws in China, for business concentration review.

A brief on new agreement No. 004-2011 of May 4, 2011 on banking transactions.

An article regarding the legal, tax and business aspects of a prudent accounting in Thailand.

On 4 May 2011, China’s Ministry of Commerce (“MOFCOM”) published draft Administrative Measures Concerning Capital Contribution with Equity in relation to Foreign-invested Enterprises for public comments (“Measures”).

The Russian Federation is one of the most important partners for the European Union. A key priority for the EU is to build a strong strategic partnership with Russia based on a solid foundation of mutual respect. Moreover, Russia is the largest neighbor of the EU with a dynamic market for EU goods and services and the EU’s market, on the other hand, is by far the most important destination for Russian exports.

In April 2009, the European Commission issued a Communication on “Good Governance in Tax Matters” with the intention to launch a debate about concrete actions that could be taken to better promote the principles of good governance in the tax area (transparency, exchange of information and fair tax competition). The aim of the Commission to improve synergies between tax and development policies becomes concrete with the Council Directive 2011/16/EU of 15 February 2011.

When issuing securities in private offerings to U.S. investors, issuers (from companies to investment funds) often look to the registration exemptions and safe harbors afforded by Regulation D of the United States Securities Act of 1933 (the “Securities Act”). One of the key components of an exempted Regulation D offering is the “accredited investor” – the individual with significant net worth and deemed to not be in need of the protections afforded by a registered offering.

On 31 January 2011, the General Office of the National Development and Reform Commission (“NDRC”) issued the Circular on Further Regulating the Development, and the Administration on Filings, of Equity Investment Enterprises in Pilot Regions (“Circular”).

Investing in commercial construction projects is an entrepreneurial activity that, according the Article 2 of the Legal Code of the Russian Federation, is undertaken at the investor’s own risk. Herein lies the primary difference in the consequences of a poor monetary investment by a legal entity or a private entrepreneur and the consequences of a developer not fulfilling his obligations before to the investor of the construction project.

Relative quiet conditions in the investment market give time for reconsideration and principle restructuring of the elements of the given market sector. The participants again have a real opportunity to evaluate the efficiency of any given investment mechanisms.

Part XIII of the Investment and Securities (ISA) 2007 creates collective investment schemes in Nigeria.

Filing for bankruptcy is often a confusing and difficult topic for consumers – however, it is also an extremely important solution for those who are seeking financial stability. For this reason, it is very important that those who are considering it make sure that every step necessary is taken to help debunk common misconceptions.

A case study on enforcing a German judgment in P.R. China, showing exemplary pitfalls for foreign clients who intend to realize the enforcement of a foreign judgment in China.

The presentation of a “Pact of Competitiveness” at the EU summit on 4 February by Germany and France was the plan for the Eurozone Member States to agree on a closer economic convergence in order to restore competitiveness to the euro area.

As a general rule, a charge created by a Cyprus company conferring security on the company’s property or undertaking constitutes a charge registrable under Section 90 of the Companies Law CAP 113.

Federal law 7-FZ “On clearing and clearing activity” dated 7 February 2011 and Federal law 8-FZ “On implementation of amendments to certain Russian laws in compliance with the Federal law “On clearing and clearing activity” dated 7 February 2011 (“the new clearing legislation”) have been adopted by the State Duma, approved by the Federal Council, signed by the President and officially published. They will enter into force on 1 January 2012.

The figures brought forward by our economists and the various statistics demonstrate the brightness of the banking sector in Mauritius. International and local papers usually praise such performance by using the figures as common denominator. On the other hand, is there anybody caring of the well being of the banks’ customer ?

The National Development and Reform Commission (“NDRC”) is the leading regulator of China’s venture capital investment business. Its regulating power was granted under the Provisional Measures on Administration of Venture Capital Investment Enterprises (“Measures”) promulgated in 2005, which authorized the NDRC to regulate the business relating to venture capital investment at the central level.

The author explains how to protect a medium sized estate from bankruptcy without going to the expense of establishing an offshore trust.

Circulars issued by the Russian tax authorities in 2010 clarify their interpretation of certain aspects of the existing Cyprus-Russia double taxation agreement, specifically the presence required to give rise to a permanent establishment, the deeming of excessive interest as dividends and the treatment of the proceeds of liquidation of a Cyprus company in the hands of Russian taxpayers.

The State Council of PRC issued the Regulations on Administration of Registration of Resident Representative Offices of Foreign Enterprises(the "New Regulations") on November 19th, 2010 and the New Regulations will take effect on March 1st, 2011.

The State Council issued the Notice on Unifying the City Construction Tax and Educational Surcharge of the Foreign Invested Enterprises, Foreign Enterprises, Foreign Individuals and Domestic Enterprises (the "Notice") on October 18th, 2010.

The PRC Supreme People's Court issued the Provisions on Several Matters Concerning the Hearing of Disputes Involving Foreign-Invested Enterprises (I) (the "Provisions") on August 16, 2010, which entered into force on the same day. The Provisions provide guidance for certain disputes arising from the establishment and changes in the registration of the foreign-invested enterprise (the "FIE").

Ministry of Commence of PRC issued the Notice on the Transfer of Approval Authorization of Foreign Investment (hereinafter the "Notice") on June 10, 2010.

Several Opinions on Further Improving the Work of Utilizing Foreign Investment (the "Opinions") were issued by the State Council of China (the "State Council") on April 6th, 2010.

The Notice on Further Administration of Registration of Foreign Companies' Resident Representative Offices (the "Notice") was issued by China's State Administration for Industry and Commerce ("SAIC") and the Ministry of Public Security jointly on 4th January, 2010.

Measures for the Administration on the Establishment of Partnership Business by Foreign Enterprises or Individuals in China (the “Measures”) shall come into effect as of March 1, 2010.

In order to encourage and regulate the overseas investment by domestic institutions, the State Administration of Foreign Exchange (SAFE) has issued the provisions, which will be effective on August 1st, 2009.

The “Measures” and the “Implementation” stipulate for the first time that some designated and qualified enterprises are allowed to implement the RMB settlement in cross-border trade in the pilot areas.

As it is well known, one of the key conditions for opening a bank account is to submit a legal entity's constituent documents (subclause b clause 4.1. of the Central Bank Instruction № 28-I dated 14.09.2006 (the Instruction). However, both legal entities (clients) and credit organizations have been often confronted with a question: what are the requirements for copies of constituent documents which are submitted to a bank while opening an account?

On 29 July 2010, President Medvedev, signed the law «On measures against unlawful dissemination of insider information and market manipulation and on amendments to some laws of the Russian Federation” (the Law). The Law strikes as one of the confidence-building measures among investors in the Russian economy. Another aim is to improve the process of market trade. The Law is of particular interest for foreign investors and other players in the financial market.

After the publication of the Annual Growth Survey (AGS) by the European Commission, the Hungarian Presidency undertook to implement the first ever "European Semester" a six-month period of each year in which member states' budgetary and structural policies are reviewed to identify any inconsistencies and emerging imbalances, so as to facilitate coordination before major budgetary decisions are finalized.

Shanghai Municipal Finance Office officially released the Details on Implementing the Pilot Program of Foreign-invested Equity Investment Enterprises [Hu Jin Rong Ban Tong (2011) 38] on 12 January 2011 (“Pilot Program”), which will take effect from 1 February 2011.

On 18 October 2010 the European Commission launched a consultation on electronic procurement in the public sector. In the now standard form of the Green Paper, consultation will seek to gather the views of stakeholders on how the EU can help Member States to accelerate and facilitate the procedures for issuing public tenders.

Following the approval by the European Parliament of a reforms package on European financial supervision, the Council has adopted the legal texts establishing the European Systemic Risk Board and three new supervisory authorities, aimed at eliminating deficiencies in the banking sector, the stock markets and the insurance market.

An overview of the "same wrongdoer" rule, an important defense that is available to banks in such cases under the UCC as adopted in Massachusetts.

Manufacturing license application - Eligibility and statutory requirement.

Careful reading of the Section 138 of the Negotiable Instruments Act, 1881 provides the steps that is required to be followed with regard to the dishonor of the check for insufficiency, etc., of funds in the account.

The European Commission has recently published a number of new Regulations and Directives regarding UCITS.

This article discusses the concept and regulation of the Cyprus Investment Firm, a Cyprus incorporated company providing financial services in alignment with MiFID and providing forex, portfolio management and brokerage services, amongst others.

The State Council released the revised Administrative Regulations for Registration of Foreign Enterprise Representative Offices on 19 November (“Regulations) replacing previous rules issued in 1983. The Regulations stipulate several new requirements that increase Rep Offices' administrative burdens.

By means and tools of the global information age, terrorist organizations are broadening their reach in gathering financial resources to fund their operations. The proliferation of terrorist websites link for addresses for contributions is at least circumstantial evidence of their usefulness.

Private International Collective Investment Schemes (ICIS), can be established in Cyprus and achieve maximum profitability for their investments in the most tax-efficient manner.

This article will discuss various asset protection planning strategies you should consider incorporating into an asset protection plan of your own.

This article will explore if you are an attractive target to creditors and we will learn that if you wait too long, it may already be too late to protect your assets.

Our financial services law is progressively changing the investment environment in Mauritius. It is apposite to see from where it starts.

Mauritius which is becoming an international financial center eases the way for the enforcement of foreign judgments.

The revelation of the sale of customers’ personal data by Octopus Holding Ltd, the leading electronic payment company in Hong Kong, to third party business partners for direct marketing purposes has sparked widespread public concerns over major privacy breaches by personal data collectors here.

Not too many years ago, this headline would have sounded ridiculous. However, such sentiment seems to be gaining traction outside of the fringe anarchist groups that would normally espouse such behavior. Before the real estate market went haywire, a borrower who did not pay the lender lost his or her home to foreclosure.

In March 2010, Shanghai Government proposed a trial program ("Trial Program"), known as qualified foreign limited partner program, to the central government for its approval. The Trial Program will relax current restrictions on conversion of foreign-currency capital to enable qualified foreign investors to directly invest in a RMB private equity fund. In early October 2010, it was reported that the Trial Program has been approved “in principle” by the relevant departments of the State Council.

What happens if the beneficiary of a bank guarantee or other surety decides to enforce it against a payment default by a debtor who has been declared insolvent? This is a crucial question not only for the beneficiary of the guarantee but also the granter thereof – in many cases a financial institution. Neither one nor the other should be unaware of the consequences if their debtor and guaranteed party, respectively, is declared to be insolvent.

The onus for ensuring compliance with the RESPA revisions falls squarely upon lenders.

The legal framework of the Foreign Direct Investments(FDI) are regulated under the law numbered 4875 and dated 17.06.2003. This law is structured as a legal guideline for investors and consists of 7 articles which includes general rules and principles about FDI. In this article, I would like to explain this law’s articles briefly.

Arbitration as an alternate method of dispute settlement has long been recognized as convenient, efficient and less expensive than the traditional lawsuit in court. These benefits have always been a significant reason for the success of securities industry arbitration. In the USA and many European countries the arbitration is the primary means of resolving disputes in the securities market.

In May 2010, the Hong Kong Stock Exchange (the “Exchange”) released its Consultation Conclusions on proposed changes to connected transaction rules which included a review on the definition of connected person, provided exemptions for connected transactions which are immaterial or involve persons not in a position of significant influence, etc.

Cyprus is definitely on the map as a prominent forum for the establishment of private investment funds, also known as private International Collective Investment Schemes (private ICIS). An ICIS can also be formed as a public fund, however the purpose of this brief is to provide a general overview of the primary advantages of a private ICIS.

Formerly, investment law was regulated in two different regulations. The Law No. 1 of 1967 on Foreign Capital Investment as amended by Law No. 11 of 1970 on the Amendment and Supplement to the Foreign Capital Investment Law No. 1 of 1967, and Law No. 6 of 1968 on Domestic Capital Investment as amended by Law No. 12 of 1970 on the Amendment and Supplement to the Domestic Capital Investment Law No. 6 of 1968.

In the aftermath of the meltdown of Nigeria’s capital market, the absence of strong regulatory framework has been recognized as one of the contributory factors in the unusual downturn in the capital market.

The mechanism of Cyprus International Trusts in Tax Planning.

Mauritius has got a safe banking environment for local and foreign investors.

Listing on the Hong Kong Stock Exchange by way of introduction received some attention recently as a result of the suspension of trading in the shares of Asian Citrus Holdings Ltd, China’s biggest orange plantation just 2 hours after trading on the opening day and in June 2010, the listing of London listed insurer Prudential PLC where Prudential added another trading venue in Hong Kong without raising additional funds as no new shares were issued in Hong Kong.

Are you planning to invest in Ethiopia as a foreign investment? If so here is a brief note about the basic requirements of foreign capital registration under the Ethiopian law.

Since most credit institutions (including banks) provide collateral agent services as well as acting as underwriters, the regulation stipulated in the Financial Supervision Authority's latest advisory guideline entitled Generally Recognized Professional Requirements upon Rendering Investment Services and Non-Core Services will introduce some new rules of play.

Although representative offices (“RO”) are legally only allowed to conduct limited activities in China e.g. liaison, research and marketing for their foreign holding companies, it has been a popular form of business entity for foreign companies to set up due to its simple registration requirements and no registered capital payment is needed. Recent changes to the tax rules for ROs may however affect this trend.

Ukrainian companies and companies from the CIS will be among the most attractive IPO investment targets on the Alternative Investment Market of the London Stock Exchange (AIM) in the upcoming year, concluded the participants of the “Ukrainian IPO 2011: pending new billion” round table, held in Kyiv on July 14. The event was organized by Integrites international law firm and the London Stock Exchange in partnership with Rothschild investment bank. Kyiv, July 20th

Your client, a respected real estate attorney, receives a subpoena duces tecum from the Securities and Exchange Commission (S.E.C.) requesting all documents relating to her purchase and sale of the stock of X.Y.Z., Inc.

Litigation Against Lenders and Banks - Is It For You?

The proposal to establish Market-makers in Nigeria has not taken off two years after SEC approval. July 2010 Vol. 23: Issue 7

The full extent of the powers of the CBN Governor and the CBN itself to regulate banks registered in Nigeria is contained in two pieces of legislation: the Central Bank of Nigeria Act, and BOFIA, respectively. However, whether these pieces of legislation authorize the CBN Governor to takeover and sell off the banks is a matter of serious legal doubt.

The Estonian Development Fund’s recent foresight report “Financial services 2018: Estonian export opportunities and political implications” studies Estonian prospects for increasing exports of financial services.

The People's Bank of China (PBOC) issued a new regulation called Administration Rules on Non-bank Institutions Payment Service (the Rule) saying that non-bank payment service providers would need a license to conduct third party payment transactions in the nation.

IRS section 529 or Qualified Tuition Programs (QTP's) are found under Title 26, Subtitle A, Chapter 1, Subchapter F, Part VIII, Section 529 of the Internal Revenue Code or "IRC". It is considered the most complicated and hard to read section of the Code and a good treatment for insomnia. This section deals with special tax breaks for families, hence the "insomnia effect".

The article aims to clarify the conditions of being foreign investor in Turkey and the scope of Turkish Direct Foreign investment law which come into force August 20, 2003.

The truth in Lending Act, loan modifications and recently enacted Civil Code §§ 2923.5 and 2923.6.

In the Hong Kong Court of Appeal case of Wing Hang Bank Ltd v Kwok Lai Sim & Others, the security document signed by the surety/security provider in a “non-commercial” transaction was set aside, the bank’s claim against the security provider was dismissed and judgment was entered against the solicitors acting for both the bank and the surety/security provider for breach of duty of care as solicitors.

The global financial crisis has sparked questions about the conceptual foundations of a financial sector that has grown unwatched during the past three decades fueled by an uncontrollable thrive to accumulate profits, individualism, extreme liberalization and deregulation. Voices worldwide are calling for reforms and for the inclusion of ethical, social, collective, human and ecological dimensions in any financial and economic policy.

China’s State Council issued Several Opinions on Further Improving the Work of Utilizing Foreign Investment, (Guofa [2010] No. 9) (the “Opinions”) on 6 April 2010. The Opinions set out its guideline on the future development of China’s foreign investment policies.

A real estate investor’s projects increase in size and volume as the investor evolves. With the growth, an investor might need more capital for down payments and development costs. The investor might already have exhausted all available debt financing, however.

A company was incorporated in the Cayman Islands and its shares were listed on the main board of the Singapore Exchange Securities Trading Limited.

The term “beneficial owner” has been used in various tax treaties between mainland China and other foreign countries (including the double taxation arrangements with Hong Kong and Macao) and the status is often a pre-requisite for non-resident enterprises claiming preferential tax treatment in the PRC.