UK: High earners reporting for limited licence/limited activity IFPRU firms – action required by 10 November

Limited licence/limited activity firms subject to the requirements of the Capital Requirements Directive (CRD IV) will have received email correspondence from the FCA requesting information in relation to their high earners in 2013.  This information has not previously been collected by the FCA from such firms and we have received a number of queries as to why this is now being requested, and whether firms are required to comply by the 10 November deadline.   Continue reading

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European Bank Stress Tests and Asset Quality Reviews

The European Central Bank (ECB) and the European Banking Authority (EBA) have published the results of the latest stress tests and asset quality reviews (AQR).  As foreshadowed from the outset, a number of institutions did not pass the ‘unique and rigorous’ tests, which were designed to be more severe than in previous EU exercises.

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Filed under Banking, EU, Europe, France, Germany, Italy, PRA, Spain, UK

EU sanctions update: EU extends sanctions against Syria, amends sanctions against Libya and Somalia; further developments relating to Ukraine/Russia

Our latest ebulletin summarises recent developments in various international sanctions regimes.  At EU level these are relatively limited:

  • The EU has announced additional sanctions in respect of the situation in Syria, extending the designated persons list and announcing an imminent restriction on the export of jet fuel to Syria;
  • Minor amendments have also been made to the EU sanctions against Libya and Somalia; and
  • The EU has published two new sets of conclusions on the situation in Ukraine, but these do not discuss possible changes to the sanctions regime.

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Filed under British Virgin Islands, Cayman, EU, Europe, Russia, Ukraine

USA: Delaware Chancery Court finds bank’s “unclean hands” bar contribution from co-defendants, orders payment of $76 million damages

On October 10, Vice Chancellor J. Travis Laster of the Delaware Chancery Court issued an opinion ordering RBC Capital Markets LLC (“the Bank”) to pay USD $75.8 million of a $91.3 million damages award to a class of former Rural/Metro Corp. shareholders.  The damages opinion was preceded by the court’s finding in March that the Bank, along with Rural/Metro’s directors, and their other financial advisor Moelis & Co. LLC, were liable for breaches of their respective duties in connection with the sale of the company to Warburg Pincus LLC.  The Bank was found to have deliberately undervalued the company, advising the board to accept Warburg’s offer, without disclosing that it was simultaneously seeking to finance Warburg’s takeover.  Continue reading

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Hong Kong Market Misconduct Tribunal imposes a 4 year ban on Tiger Asia and Mr Hwang

On 7 October 2014, the Hong Kong Market Misconduct Tribunal (MMT)  made “cold shoulder orders” and “cease and desist orders” against New York-based asset management company, Tiger Asia Management LLC (Tiger Asia) and Bill Hwang Sung Kook (Mr Hwang), pursuant to s.257(1)(b) and (c) of the Securities and Futures Ordinance (SFO).  The effect of the orders is that both Tiger Asia and Mr Hwang have been banned from the date of the order from dealing in any securities in Hong Kong for 4 years (5 years being the maximum period that the MMT may order) and are bound not to engage in any form of market misconduct in the future.

The MMT’s report considers, inter alia, the nature and purpose of “wall crossing” which the MMT considers to be an important tool in ensuring the efficient operation of financial markets and one built on trust. Continue reading

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Filed under Banking, Hong Kong, Investment banking, Investment Funds

UK: The EBA clamp-down on role-based allowances: behind the headlines

As has been widely reported, the European Banking Authority has stated that many role-based allowances should now be treated as variable remuneration, which will result in many banks being in breach of the “bankers’ bonus cap”.  Continue reading

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Filed under EU, Europe, France, Germany, Italy, Spain

Hong Kong regulators issue guidance for the protection of customer data in the financial services industry

The Office of the Privacy Commissioner for Personal Data (the PCPD) and the Hong Kong Monetary Authority (the HKMA) have recently published guidance notes regarding the obligations of financial institutions and, in the case of the HKMA, Authorised Institutions, to protect their customers’ data.

The HKMA has indicated that it expects Authorised Institutions to complete a critical review of the adequacy of their existing controls for protection of customer data by the end of the first quarter of 2015. Continue reading

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Herbert Smith Freehills launches new legal guide to “Financial Services Regulation in Asia Pacific”

Herbert Smith Freehills officially launched its new legal guide to “Financial Services Regulation in Asia Pacific” on 9 October 2014 in Hong Kong and in Sydney on 13 October 2014.

The guide, which covers 14 jurisdictions in the Asia Pacific region, has been compiled by our network of Herbert Smith Freehills regulatory specialists and local counsel, led by Will Hallatt and Valerie Tao, and including: Continue reading

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Filed under Asia, Australia, Banking, China, Hong Kong, India, Indonesia, Insurance, Investment banking, Investment Funds, Japan, Korea, Macau, Malaysia, Philippines, Regulatory Reform, Singapore, Thailand, Vietnam

Corporate Crime Update – October 2014

Welcome to the October 2014 edition of our corporate crime update – our round-up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. Our update now covers a number of jurisdictions. For the full update on each jurisdiction, please click on the name of the jurisdiction below. Below we provide a brief overview of what is covered in each update. Continue reading

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Filed under Americas, Asia, Asset management, Australia, Bribery and Corruption, Cambodia, China, Corporate Crime, Dubai, EU, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Middle East, Russia, Singapore, Spain, Thailand, UAE, Ukraine, US, Vietnam

EU: ECON vote in favour of Lord Hill as EU Commissioner for Financial stability, Financial Services and Capital Markets Union

After a second confirmation hearing on Tuesday, Lord Hill’s membership of the College of Commissioners was approved by 45 votes to 13, and by 42 votes to 16 in the vote for the Financial Stability, Financial Services and Capital Markets Union portfolio, in a vote by the Economic and Monetary Affairs Committee (ECON) of the European Parliament (EP). Continue reading

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Filed under EU, Europe