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The example of a recent case involving PERLS shows the dangers for financial institutions of new investment products. Particular care should be taken to manage the legal and regulatory risks. By Jonathan Kelly of Simmons & Simmons, London

The principle of banking confidentiality has traditionally also protected the fraudsters. The strong confidentiality jurisdictions have taken measures to discriminate. By Franco Taisch of Liechtensteinische Landesbank, Vaduz

Hong Kong market regulators have acted to promote Hong Kong as an international financial centre while protecting the interests of local retail investors. By Richard A Drucker and Timothy A Steinert of Davis Polk & Wardwell, Hong Kong*

A New York Court of Appeals case in May suggested that the US may introduce a system like the UK Mareva injunction to protect assets in insolvency. By Ronald L Cohen of Seward & Kissel, New York

The Singapore Law Society has issued a new code of conduct for lawyers in an attempt to provide greater transparency. The code, which came into force on June 1, formalizes the Society's existing Practice Directions, a series of guidelines for lawyers covering ethics, client-lawyer and lawyer-lawyer relationships, and conduct of business. Lawyers must now ensure clients are aware how much they will be charged, and on what basis, before work is started. They must also keep clients 'reasonably informed', making sure they see all relevant documents, and are now expected to respond promptly to telephone calls from clients and keep appointments unless they have good reasons. Lawyers found guilty of misconduct can be fined up to $5000, reprimanded, suspended or even struck off.

Freshfields and Baker & McKenzie advised on more privatization deals than any other firms in 1997. In what was a record year both firms advised on 117 transactions; more than double that of third-placed firm Linklaters & Paines. Last year the total value of privatizations topped US$160 billion, according to league tables published in Privatisation International. Freshfields, which heads the table because of the higher value of its transactions, benefited from a bumper year in Asia, despite the slowdown towards the end of the year.

In early March 1998, the German federal government published a draft statute for the implementation of EC directives on deposit guarantee schemes (94/19/EC) and investor compensation schemes (97/9/EC). The statue will create a whole new system of compensation schemes. The existing (private and voluntary) deposit protection scheme of the association of private banks in Germany (Einlagensicherungsfonds), offering an exceptionally high degree of protection (ie each deposit is insured up to an amount equivalent to 30% of the bank's liable capital) will remain in place with the new compensation schemes.

Decree 3119 of 1997 regulated, for taxation purposes, the amounts allowed as deductions from net income when associated with articles imported massively as contraband.

The draft Directive on settlement finality, incorporating amendments proposed by the European parliament, was approved by the Council of Ministers at the end of April 1998. It provides for legislation to deal with the position of cross-border payments when a bank or securities firm cannot meet its obligations. It aims to cut the systemic risk in payment and securities settlement systems and to minimize the disruption to a system caused by insolvency proceedings against a participant in the system.

On April 15 1998, the Chilean Central Bank amended certain exchange rules on the issue of Eurobonds and American depositary receipts (ADRs) to cut restrictions and increase flexibility.