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A recent Court of Appeal decision (Russell McVeagh McKenzie Bartleet v Tower Corporation) provides a useful indication to New Zealand law firms of the judiciary's approach to Chinese walls in large firms.

For some years money laundering prevention measures of considerable effectiveness have applied to banks in Switzerland. These measures did not, however, cover the rest of the financial sector, and as a result the regulatory framework had large gaps. One of these was filled on April 1 1998 when the Federal Statute for the Combating of Money Laundering entered into force. It extends the standard of care exacted in the banking sector to financial intermediaries operating in the non-banking sector. If an attorney-at-law chooses to act as a financial intermediary within the meaning of the statute, he or she is fully subject to its regulatory requirements and may not, in particular, invoke professional secrecy if requested to disclose details of his or her financial activities.

The equities markets have seen some interesting deals despite the cold Russian winds spreading the Asian flu across the emerging markets. Nick Ferguson reports

Under Article 22 of Legislative Decree No. 58 of February 24 1998, securities and cash belonging to third parties and held for whatever purpose by investment firms or by financial intermediaries and banks, constitute an autonomous patrimony separate from that of the intermediary and from those of other clients. No attachment by or on behalf of creditors of the intermediary, as well as by or on behalf of creditors of a possible depository or sub-depository, can be levied on the patrimony.

Simmons & Simmons, London is representing First Active, due to be listed on the London and Dublin stock exchanges in early October. First National Building Society became First Active, a public limited company, in preparation for the share issue. The price range prospectus gives First Active a potential market capitalization of between IR£387 and IR£510 million ($552-$718 million). Simmons & Simmons is representing First Active in the UK. The team is led by partner William Charnley, head of corporate finance. He is assisted by partners Alan Karter (corporate) and Nick Cronkshaw (tax).

French/UK firm Salans Hertzfeld & Heilbronn will merge with New York's Christy & Viener on January 1 1999. Given that previous mergers have effectively been takeovers of small boutiques by much larger firms, it is the first transatlantic merger of equals. The combined firm will have 85 partners and 193 other qualified lawyers. The Paris office has a total of 103 lawyers, with 84 in New York and 31 lawyers in London. "The firm is a different paradigm to the largest firms," says Robert Starr, a partner in the London office of Salans Hertzfeld. "This merger is unique not only in being transatlantic but also in the character of the firm. We are not now a Paris-based firm nor a London-based firm, and we will not be a New York-based firm."

Dutch employment services company, Randstadt, is acquiring Strategix from its Florida competitor Accustaff. The deal, valued at $850 million, will increase the temporary staffing business of Ranstadt's operations in the US. Ranstadt is being advised from New York by Davis Polk & Wardwell. The team of lawyers is headed by partners David Ferguson (tax), Michael Mollerus (tax) and Gail Flesher (environmental).

Paris electronics company Framatome Connectors is buying its US competitor Berg Electronics, St Louis, for $1.85 billion. The deal will make Framatome the second–largest manufacturer of electronic connectors. Framatome will pay cash for Berg's shares and will also assume $400 million of debt. Framatome is being advised by New York law firm Davis Polk & Wardwell. The partners assisting on the transaction are John McCarthy Jr (corporate), Winthrop Conrad Jr (corporate), Paul Kingsley (corporate) and Patrick Bradford (antitrust).

Spanish law firm Cuatrecasas has acquired Alicante law firm Dura and plans further mergers with firms in Glaizia, Majorca and Portugal. It is expanding its activities in an attempt to become the prominent law firm in the Iberian peninsula. Dura is a small firm specializing in commercial law and tax law and has special links with the European trade mark office in Alicante. Enric Picañol, head of international operations at Cuatrecasas in Barcelona, says: "We have clients in the major cities and now we want to go to the smaller places. We want to provide our clients with local advice but give them a full range of services."Cuatrecasas already has offices in Madrid, Barcelona, Bilbao and Valencia.

German firm Gleiss Lutz Hootz Hirsch & Partner and Benelux firm Stibbe Simont Monahan Duhot are considering merging. Partners at the two firms will take a vote in December and, if approved, the German firm will continue business as Stibbe Gleiss Simont Duhot on January 1 1999. The move follows the merger last year of Stibbe and French firm Giroux Buhagiar & Associés in Paris. Frans Corpeleyn, managing partner of Stibbe, says: "We will have French, Belgian, Dutch and German lawyers and these are the major jurisdictions in Europe. We want to be one truly integrated European law firm."