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Practical changes to update the Transfer of Undertakings (Protection of Employment) Regulations are likely to facilitate the acquisitions process

Alexei Bonamin Marcus Vinicius Fonseca Exchange traded funds (ETFs) were established in Brazil through instruction number 359 of January 22 2002, enacted by the Brazilian Securities Commission (CVM), but until recently it was only possible to form an ETF backed by variable-income indices. Now, through the enactment of instruction number 537 of September 16 2013, which amended instruction number 359, the CVM has finally authorised the formation of ETFs backed by fixed-income indices. Instruction 537 also provides criteria that should be observed by the CVM when approving indices that may be used as reference by an ETF, which always existed but were not yet detailed. For example, indices should not have parties related to the administrator or manager of the ETF as provider, and must have a widely disclosed calculation methodology that includes predetermined and objective rules.

Elias Neocleous Law 196(I)/2012 regulating companies providing administrative services and related matters, (the ASP Law), which established a licensing and supervision regime for providers of corporate and fiduciary services and transposed the provisions of Directive 2005/60/EC into national law, has been amended. It will now provide for registers of trusts subject to Cyprus law to be maintained by the three bodies responsible for supervising service providers, namely the Cyprus Securities and Exchange Commission (CySEC), the Cyprus Bar Association, and the Institute of Certified Public Accountants of Cyprus (the competent authorities). Section 3(7) of the ASP Law requires trustees and service providers who fall within its scope to identify and verify the main stakeholders in trusts governed by Cyprus law that they establish or administer. They must keep accurate and up-to-date information and documentation regarding the trustee, settlor, beneficiaries or class of beneficiaries, any protector, fund manager, accountant, tax consultant, and any other person exercising effective control over the trust, and on the activities of the trust.

Carlos Fradique-Mendez Laura Zarzur In an effort to improve the quality of collateral guarantees in Colombian stock lending, the Colombian Stock Exchange introduced the ability for the originator to discretionally elect the type of collateral from a new set of more liquid guarantees. Formerly, the receptor of the security was authorised to choose the collateral among a particular set of less liquid securities, which caused a lack of market penetration of temporary transfer of securities (TTVs), a problem exacerbated by the low quality of collateral used in TTV transactions.

Christos Christou The sovereign debt crisis in Greece has resulted in an unprecedented plunge of the GDP by 25%, whereas prices in the local real-estate market have fallen as much as 50% since the crisis hit the country at the end of 2008. As a result, huge investment opportunities have arisen, as both the Greek state and the private sector are trying to liquidate as many assets as possible in order to repay their debts. Still, until recently, foreign investors were reluctant to enter an ill-performing economy, despite the impressive adjustment fiscal programme implemented by the Greek Government and the sweeping structural reforms adopted during the last years, which resulted in a public finance surplus for the first time since Greece joined the eurozone in 2002. One of the main reasons for this was the unfavourable taxation status for real estate investments. Two very interesting recent deals, however, show that the country is again open for business. Canadian Fairfax Financial Holdings invested €200 million ($272 million) within the last year in EFG Eurobank Properties, raising their share from 5.7% to 42%. Prem Watsa, Fairfax's CEO, called the deal "a vote of confidence to the prospects of the Greek economy". A few weeks ago, Dutch private equity Invel Real Estate and BGS Real Estate of the Israeli diamond mogul Beny Steinmetz announced a joint purchase of 66% of Pangea real estate investment company (REIC), Ethniki Bank's real estate unit for €653 million, "betting on a recovery in the country's economy". Both deals have one thing in common: they both relate to an investment in a Greek REIC and this should be no surprise.

An overview of financial risk management developments in post-crisis China

The announcement of JP Morgan Chase's $13 billion settlement with the US Department of Justice has caused many to question what it means for the wider market.

A recent judgment by Germany's Federal Supreme Court that makes it easier for public companies to delist is tipped to facilitate take-privates and spur new public takeover tactics.

Asia needs a more joined-up approach to bank resolution Although bank resolution has remained a key topic in the aftermath of the global financial crisis, solutions in Asia seem to be focused on local rather than international concerns. Panellists at a recent Latham & Watkins restructuring seminar in Hong Kong agreed that although Asia was less impacted by the 2008 global financial crisis than other areas, the default of Lehman Brothers' structured notes affected retail investors in Hong Kong and Singapore.

Navigating the similarities and differences between US and European intercreditors