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Regulation No. 13086 of April 18 2001 of the Commissione Nazionale delle Società e della Borsa (CONSOB) has amended Regulation No. 11971 of May 14 1999. The aim of the amendment is to provide an alternative instrument for listing admissions of programmes for covered warrants with the clear benefit of simplifying listing procedures.

In December 2000, the Ministry of Finance and the Ministry of Social and Health Affairs appointed a working group to prepare legislative amendments that could be implemented urgently. The report of the working group was delivered to the two ministries in June 2001. Under the existing provisions, the supervisory duty divided between the Finnish Financial Supervision Authority (FSA) and the Finnish Insurance Supervision Authority (ISA) is not clearly determined. It is possible that newly created banking and insurance groups could operate in the Finnish market without belonging to the area of responsibility of either of the above supervisory authorities.

The Federal Act on Investment Funds (IFA) is to be revised in view of certain changes to pertinent EU directives. At present, the investment companies quoted on the Swiss stock exchange and incorporated as joint stock companies (Aktiengesellschaften) pursuant to Article 620 et seq Swiss Code of Obligations do not fall under the scope of the IFA. The Federal Banking Commission (FBC) intends that this revision should be taken as an opportunity to enlarge the scope of the IFA. The IFA governs assets which are managed under a collective investment contract and excludes assets that are managed in a different form, particular in corporate form (Article 3 para 1 and 2, IFA). The FBC takes the position that this provision contradicts the principle of "same business, same rules". Furthermore, the existing legislation contains an unequal treatment of Swiss closed-end investment funds on the one hand and foreign funds on the other hand. Pursuant to Article 3 para 3, foreign investment funds whose units are distributed in Switzerland are governed by the IFA regardless of their legal structure.

On May 21 2001 the Indian government revised existing sectoral guidelines and equity caps on foreign direct investment (FDI) including investment by non-resident Indians (NRIs) and overseas corporate bodies (OCBs). FDI of up to 26% of a company's share capital is permissible, subject to licensing in the defence industry where foreign investment was previously not permitted. Similarly, in banking, FDI of up to 49% of a company's share capital from all sources, including investments by NRIs and OCBs, is permitted under the automatic route without requiring prior approval of the Foreign Investment Promotion Board (FIPB) subject to conforming with guidelines issued by the Reserve Bank of India from time to time.

On July 4 2001, the People's Bank of China (PBOC) took another significant step in reforming China's banking sector by issuing the Tentative Provisions on Commercial Banks' Other Businesses. The Provisions broaden the activities of Chinese banks to cover businesses that are investment in nature, a landmark development in the Chinese banking industry. With China's WTO entry imminent, Chinese commercial banks will face fierce competition from their foreign counterparts operating in China and the Provisions will help to create a level playing field.

Europe's lawmakers and regulators stepped away from the harmonization of financial legislation last month after German, Spanish and Italian politicians sunk a last-ditch compromise on pan-European takeover legislation. Corporate lawyers are dismayed at the European Parliament's failure to ratify the deal, hammered out in June after last-minute German objections to the restriction of defensive measures.

French company law has for a long time been the source of some confusion over the differing roles of management groups. The New Economic Regulations Law has now been passed with the intention of clearing up the mess and giving greater rights to works councils. Olivier de Précigout of Lovells, Paris, and Arnaud Latscha of Siméon & Associés look at the reforms

On July 18 2001 Hong Kong’s telecoms regulator published the information memorandum and auction rules that will govern the auction of four 3G licences. Applications to participate in the auction must be submitted on September 17 or 18 2001. Vivianne Jabbour, Gabriela Kennedy and John Hartley, of Lovells’ Hong Kong office, consider some of the most important issues raised by the rules

Clark Randt, a Shearman & Sterling partner, has resigned from his firm to take up one the toughest diplomatic posts in the world. US president George W Bush announced his intention to appoint "Sandy" as US ambassador to China at the end of April, but his official appointment did not take place until July. Randt and Bush met as students at Yale University and have remained friends since then. "Sandy Randt has spent most of his professional career working with China in the foreign service and in business matters," says the president. "His expertise in the Chinese language and culture, international business, and foreign affairs will help us strengthen our important relationship with China as he serves as our next US ambassador."

In the wake of the collapse in dot.com shares, regulators in the US are attempting to promote increased independence among analysts and greater openness about their interests. Diane Mage Roberts of O’Melveny & Myers, London, looks at the new guidelines and argues that it is time for analysts to assert their neutrality or lose relevance in the market