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The Australian Stock Exchange (ASX) is proposing to amend the provisions in its listing rules related to foreign exempt companies. The advantage of foreign exempt status is that companies that satisfy the requirements are not subject to most of the ASX's listing rules. The proposed changes will dramatically raise the threshold for admission into the foreign exempt category. This will have serious consequences for a number of New Zealand companies that are already listed on the ASX as foreign exempt.

The most recent developments at SAir Group and Switzerland's flag carrier SAirLines (Swissair) merit a short outline of the formal proceedings regarding moratorium and composition agreement under Swiss Debt Collection and Insolvency Law. The following three steps are to be distinguished:

On October 3 2001 Standard & Poor's raised the Republic of Ireland's long term sovereign credit rating from AA+ to AAA. Ireland is now one of only six EU countries to have a AAA rating, the others being Austria, France, Germany, Luxembourg and The Netherlands. Although, in comparison with other EU countries, Ireland has a small economy, the diversity and stability of the economy is reflected in this new rating.

The government has recently presented Bill 108 of 2001, which aims to modify and update the Colombian securities market regulations, before Congress. The Bill provides for comprehensive regulation, which the government believes will considerably strengthen and boost the local securities market. In particular, the Bill provides a framework that contains stronger protection mechanisms for investors and incorporates recent international developments in corporate governance. It also includes regulations aimed at guaranteeing efficiency, transparency and adequate disclosure of information related to securities transactions.

In the aftermath of the terrorist attacks in the US, "know your customer" has taken on greater importance for banks. On September 26 the Hong Kong Monetary Authority (HKMA) issued 2 circulars to banks on this topic in reaction to the US President's Executive Order of September 24 aimed at freezing the assets of named terrorist organizations and stopping financial support for terrorists. The circulars predate the Basle Committee's guidance on customer due diligence for banks of October 4. While acknowledging the Order's extra-territorial basis, the HKMA again stressed the importance of banks in Hong Kong cooperating in international efforts against terrorist activities and not becoming involved (even innocently or accidentally) in facilitating such activities.

Article 17 of the Decree on the Protection of the Value of the Turkish Currency was amended on July 26 2001 to facilitate the procurement of loans from foreign financial agencies. Before the amendment, foreign loans with an average maturity of 365 days had to register with the External Debt Log maintained at the Turkish Treasury within 30 days following the execution of the loan agreement. Previously, the borrower applied in person to the Treasury with a petition, accompanied by a copy of the loan agreement, to register their foreign loan.

Trust concepts in China took another step forward under the Administration of Trust and Investment Corporations (TICs) Procedures promulgated by People's Bank of China (PBOC) on January 10 2001.

A new Financial Markets Control Act (Finanzmarktaufsichtsgesetz) establishes a financial regulator with comprehensive competence, supervising all types of banks, insurance companies, and other financial services companies. The idea of having the concentration within one authority is primarily motivated by the international trend towards all-finance groups. It also looks to the potential synergies to be realized by consolidating separate supervisory authorities for the various branches of financial services in Austria. The new authority will have the status of an independent agency.

In order to meet the objectives of the Financial Services Action Plan, on March 27 2001 the European Commission introduced a proposal for a Directive on financial collateral arrangements. The Belgian presidency wishes the definitive text to be put on paper by the end of 2001.

The nations of central Europe are queuing up to join the EU’s rich club. But in their haste they risk tripping over themselves and catching the west’s economic cold. Ben Maiden and Thomas Williams report from Prague, Warsaw and Budapest on how laws firms are coping