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Soonghee Lee In Korea, most securities, except for electronic short-term bonds, are issued in paper form and managed through a central deposit. As of January 2014, however, 31 OECD (Organisation for Economic Co-operation and Development) countries and China have adopted an electronic securities system, whereby securities are not issued in paper form and registration in an electronic registry is performed instead. Under this electronic securities system, the rights of securities holders are recognised, and the transfer, establishment of security over and exercise of rights are performed. The adoption of the electronic securities system allows cost savings compared with the issuance of securities in paper form, and it also removes risk factors resulting from the custody and management of securities in paper form. Further, through the foreclosure, in principle, of tax evasion, money laundering and other illicit transactions, the adoption of the electronic securities system is expected to result in the adoption of real-name securities transaction and holding systems; it is also expected to contribute considerably to investor protection and the formation of a fair trading order through prompt provision of information on the issuance and circulation of securities. As such, the National Assembly of Korea is discussing legislation for the adoption of an electronic securities system in order to improve capital market efficiency by facilitating the issuance and circulation of, and exercise of rights with respect to, electronic securities.

Yoshihisa Watanabe The amendment to the Real Estate Specified Joint Enterprise Act (Act) took effect on December 20 2013. According to a survey conducted by the government, while the value of securitised real estate acquired in 2012 by vehicles established for a securitisation purpose (Vehicles) was estimated at approximately JPY 3.3 trillion ($32.5 billion), the value of the assets acquired by Vehicles established under the Act was only JPY 0.16 trillion (4.8%). This compares to JPY 1.55 trillion for Japanese real-estate investment trusts (Jreits) plus other major tax-efficient structures known to overseas investors such as the GK-TK, GK-YK structure and the like (JPY 1 trillion) and TMK structure (approximately JPY 0.64 trillion). Based on these numbers, it is obvious that Vehicles under the Act have not been widely used so far. It had been considered that the major reason for this was the Act's permission system and the strict requirements for obtaining permission from the government (for example, a Vehicle had to have a licence under the Building Lots and Building Transaction Business Act and the capital amount of a Vehicle had to be JPY 100 million or more). Practically speaking, only major real-estate companies could be Vehicles under the Act. However, this meant that investors in Vehicles under the Act suffered from the business risks that arose from other businesses that were conducted by such companies. As a result, investors, especially overseas investors, tended to refrain from investing in Vehicles under the Act. However, nowadays Japan faces an increase in dilapidated buildings, particularly in rural areas, and enhanced earthquake safety is required in relation to old buildings. To introduce more funds from overseas and the domestic private sector for the rehabilitation and renovation of such buildings, it came to be believed that the easing of the requirements of the Act was needed. The major point of the current amendment to the Act is to replace the permission system with a notification system and, under a given set of conditions, allow special purpose vehicles (sole purpose companies) which are assured of bankruptcy remoteness, to be Vehicles under the Act. It is expected that investment from overseas and the domestic private sector in the rehabilitation and renovation of buildings will, as a result, be stimulated. Yoshihisa Watanabe

Daniel Futej Rudolf Sivák A new legislative proposal which restricts the acquisition of agricultural land in Slovakia by foreign persons was submitted to the Slovak Parliament. Even though it has not been approved yet (it is a governmental draft and the government has majority in Parliament), it does deserve attention. As of May 1 2014, a limitation on the acquisition of agricultural land by foreign natural persons from EU states no longer applies. In this respect, the Slovak Government prepared a draft with the aim of regulating the acquisition of agricultural land. The new legislation will ensure that agricultural land is acquired for agricultural purposes and not as speculative purchases.

Rodrigo Taboada On September 20 2013, the Superintendence of Banks of Nicaragua approved the Regulation for the Transparency of Financial Operations. The Regulation aims to promote the disclosure of accurate financial terms to users of financial services, allowing them to make a knowledgeable choice between financial alternatives and financial institutions. This also includes insurance services and insurance companies.

The use of UK schemes of arrangement (SOA) by foreign-incorporated companies has been boosted by a decision to allow German company APCOA Parking to utilise a scheme despite minimal connection to the country.

Azleen Mohammed Saleh The central bank of Malaysia, Bank Negara Malaysia (BNM), issued an updated Capital Adequacy Framework for Islamic banks (capital components) on November 28 2012, which took effect on January 1 2013 (Framework). The Framework will be in line with the international standards on capital adequacy promulgated by the Basel Committee on Banking Supervision and the revised Basel Capital Accord. Although the Framework took effect on January 1 2013, there are certain requirements that are subject to transition arrangements, including the minimum capital adequacy requirements and the capital buffer requirements. These will only take full effect on January 1 2015 and in 2019 respectively.

Oene Marseille Emir Nurmansyah The Finance Ministry of Indonesia has issued a new regulation clarifying its internal procedures for selecting foreign lenders in government procurement areas. Under this new regulation, the directorate-general of debt management would invite certain pre-selected international lenders to submit proposals to fund government procurement plans. The directorate would choose the bidder who offered the lowest cost on comparable loan packages. The directorate would initiate the bidding process by sending out requests for proposals to at least five qualified foreign lenders, determined to be the most suitable creditors. These prospective lenders' outstanding loans would have to fall within a permissible limit. In this regard, the government would consider the amount of outstanding loan these creditors have extended to the government's counterparty. The government would also look at the type and origin of the goods to be procured. The prospective lender closest to the goods' location would receive priority. Finally, these prospective lenders would have to have a track record of providing commercial loans to the government.

A new report by the Australian regulator has highlighted concerns over disclosure of material information

Kartick Maheshwari, Khaitan & Co Mabel Lui, Winston & Strawn In Hong Kong, WINSTON & STRAWN hired a four-lawyer team from DLA Piper that included the firm's Asia corporate head Mabel Lui. DLA PIPER is relocating M&A partner Paul Chen from its Silicon Valley office in June to take over Lui's leadership role. Harry Prabawa from Prabawa & Hayya in Jakarta has joined HANAFIAH PONGGAWA & PARTNERS as partner. Prabawa specialises in World Trade Organisation rules and disputes and will head the firm's international trade practice group.

Corporate governance failings, rather than inadequate capital reserves, are shaping up to be banks' biggest vulnerability in future stress tests.