http://www.complinet.com/ Compliance Complete Asia RSS feed en THOMSON REUTERS GRC en THOMSON REUTERS GRC http://www.complinet.com/global/news/news/article.html?ref=152187 Feb 9 (Reuters) - More than a dozen traders and brokers in London and Asia have been fired, suspended or put on leave by their employers as part of a probe into the alleged manipulation of global lending rates, the Financial Times reported. The newspaper, citing people familiar with the probe, said traders had been suspended, fired or placed on leave in recent months at Deutsche Bank, JPMorgan Chase & Co, Royal Bank of Scotland and Citigroup. All four banks declined to comment, it said. Officials had also expanded their enquiries to both hedge funds that place big bets on movements in the rates, and the interdealer brokers that serve as go-betweens with the banks, the paper said. It said Icap, the world's largest inter-dealer broker, had suspended one employee and put two more on administrative leave in the past six weeks. Regulators since late 2010 have been investigating banks that help set interbank lending rates known as LIBOR and TIBOR in London and Tokyo, which Thu, 09 Feb 2012 06:25:34 GMT http://www.complinet.com/global/news/news/article.html?ref=152187 2012-02-09T06:25:34Z http://www.complinet.com/global/news/news/article.html?ref=152189 SAN FRANCISCO/MACAU, China, Feb 8 (Reuters) - It's never good for the candidate when a big donor runs afoul of the law - as President Barack Obama learned this week: his campaign returned large donations from Chicago's Cardona brothers after it was reported that a third brother is a fugitive from U.S. drug and fraud charges. Some Republican candidates for president could find themselves similarly embarrassed if criminal investigations against casino mogul Sheldon Adelson's Las Vegas Sands for violating the Foreign Corrupt Practices Act come to fruition before November. Probes by the U.S. Department of Justice and the Securities and Exchange Commission focus on the casino company's operations in Macau, the world's biggest gambling hub, court documents show. A former executive in Adelson's empire, whose allegations are believed to be central to the probe, cites potential illegal dealings with a public official, as well as a tie to an organized crime figure. (That link was first Thu, 09 Feb 2012 03:34:25 GMT http://www.complinet.com/global/news/news/article.html?ref=152189 2012-02-09T03:34:25Z http://www.complinet.com/global/news/news/article.html?ref=152188 SHANGHAI, Feb 9 (Reuters) - The People's Bank of China (PBOC) appears to be waiting for coordinated liquidity action from global central banks, possibly in late February, before moving to cut bank reserve requirements. Beijing moved early to cut banks' reserve requirement ratio (RRR), the world's highest, in late November as its economy sagged under the weight of slowdowns in its key export markets. But it is now treading a fine line in pursuing measured easing, baffling markets that had confidently predicted it would cut RRR before the Lunar New Year in late January. A second Long Term Refinancing Operation (LTRO) by the European Central Bank (ECB) could flag the PBOC's first cut in RRR this year, which will infuse some liquidity into the domestic market and boost China's clout on the global stage. The PBOC has defied market hopes since mid-December that it would shift toward easier monetary policy. The delay has put a firm floor on China's money market rates and Thu, 09 Feb 2012 03:29:29 GMT http://www.complinet.com/global/news/news/article.html?ref=152188 2012-02-09T03:29:29Z http://www.complinet.com/global/news/news/article.html?ref=152156 The Securities and Exchange Commission (SEC) of Thailand has implemented a new set of rules governing infrastructure funds, a new form of mutual funds aimed at supporting the country's infrastructure developments. According to Thawatchai Pittayasophon, director of corporate affairs of the SEC office, the funds will have the benefits of helping to ease the country's budgetary burdens while offering a fundraising alternative for the private sector, as well as being a new product to investors. The infrastructure funds, a brainchild of Thirachai Phuvanatnaranubala, previously secretary-general of the SEC and now the country's minister of finance, is the first such fund permitted under the Thai securities law. Thawatchai said as the country's infrastructure continues to require improvement, the SEC is now seeking private sector participation in public projects, previously undertaken mostly by the governments. "In Thailand, we still need to improve the infrastructure, and investments in infrastructure Thu, 09 Feb 2012 01:24:40 GMT http://www.complinet.com/global/news/news/article.html?ref=152156 2012-02-09T01:24:40Z http://www.complinet.com/global/news/news/article.html?ref=152182 The Indian capital market regulator has decided to share with the Ministry of Corporate Affairs the names of about 500 companies that allegedly garnered money from investors in violation of its Collective Investment Scheme (CIS) rules. The Securities and Exchange Board of India would also give the names of the directors of such entities to the ministry so that necessary action can be taken to prevent these companies and persons from associating with any new company, a senior official says. The Collective Investment Schemes, where an entity pools in money from investors for certain pre-specified purposes and later distributes the profits or income, come under SEBI's ambit. In some recent crackdowns, SEBI had barred companies including Rose Valley Real Estate, Sun-Plant Agro and Pearl Green Forest from raising public money and from launching any new schemes. Many of these entities and their operators and directors tend to restart similar business under a new name and numerous Thu, 09 Feb 2012 00:44:12 GMT http://www.complinet.com/global/news/news/article.html?ref=152182 2012-02-09T00:44:12Z http://www.complinet.com/global/news/news/article.html?ref=152180 To bring more transparency in capital markets, the Securities and Exchange Board of India (SEBI) today said listed firms would have to disclose details of the utilisation of funds raised through warrants. The new rule, a part of its amendments to the equity listing agreement, will take effect immediately. “In order to enhance disclosure requirements, listed entities have been mandated to disclose utilisation of funds raised upon conversion/exercise of warrants issued along with the public or rights issue of specified securities,” SEBI said in a circular. A warrant is the right, but not the obligation, to buy or sell a certain quantity of an underlying instrument at an agreed price. Experts say this is in continuation of the regulator’s policy to monitor the use of proceeds of money raised through different market instruments. V.K. Sharma, head, private broking and wealth management, HDFC Securities, says, “Already, promoters have to declare the usage of money being raised through Thu, 09 Feb 2012 00:23:19 GMT http://www.complinet.com/global/news/news/article.html?ref=152180 2012-02-09T00:23:19Z http://www.complinet.com/global/news/news/article.html?ref=152178 Feb 8 (Reuters) - The U.S. Treasury Department on 
Wednesday eased the burdens imposed on many banks and other 
financial institutions by a crackdown on Americans' offshore tax 
dodging, and enlisted five European governments to play a key 
role in the global effort. At issue is the Foreign Account Tax Compliance Act, or 
FATCA, a controversial set of measures enacted by Congress in 
2010 that has drawn sharp criticism from the financial industry 
worldwide about costs and legal issues. FATCA is expected to take effect in 2013 but Treasury 
announced some delays in implementing some key details. FATCA  
covers accounts in foreign banks and other institutions held by 
U.S. clients with more than $50,000 in assets. The new proposed regulations from Treasury call for France, 
Germany, Italy, Spain and the United Kingdom to be part of "a 
government-to-government framework for implementing FATCA." These five Thu, 09 Feb 2012 00:00:02 GMT http://www.complinet.com/global/news/news/article.html?ref=152178 2012-02-09T00:00:02Z http://www.complinet.com/global/news/news/article.html?ref=152169 (Reuters) - The U.S. Treasury Department on Wednesday enlisted five EU nations to help crack down on offshore tax evasion by Americans and ease the burdens the effort has imposed on many banks and financial institutions. After complaints from the global financial industry about costs and legal issues, Treasury announced a new multilateral approach to implementing the Foreign Account Tax Compliance Act, or FATCA. Enacted by the U.S. Congress in 2010, FATCA is intended to help the U.S. Internal Revenue Service gather information about Americans' accounts with more than $50,000 in assets in foreign banks and other institutions. Scheduled to take effect in 2013, the new law as drafted calls for banks and financial institutions worldwide to gather the information and directly disclose it to the United States' Internal Revenue Service (IRS) tax collection agency. Under Treasury's proposed new government-to-government framework for implementing FATCA, the governments of Wed, 08 Feb 2012 18:49:43 GMT http://www.complinet.com/global/news/news/article.html?ref=152169 2012-02-08T18:49:43Z http://www.complinet.com/global/news/news/article.html?ref=152150 BEIJING | Tue Feb 7, 2012 8:01am EST (Reuters) - Trade between Asia and Iran is likely to slow as new U.S. sanctions make payments more difficult, traders said Tuesday, although the more determined can still find a route through Middle Eastern intermediaries. Sunday, U.S. President Barack Obama authorized new measures which extend sanctions to all Iranian financial institutions and require financial institutions doing business in the United States to block and freeze transactions having a suspected link to Iran. Previous sanctions had only required American banks to reject those transactions. Asian importers of Iranian crude, fuel oil and iron ore will find the sanctions complicate payment, which already often goes through intermediaries in the Middle East. Iran will be forced to rely more on settlement in illiquid currencies, which raises its cost of trade and adds to pressure on its currency. "Iranian cargoes I can get, that's not a problem. But how to pay is a problem," Wed, 08 Feb 2012 10:00:49 GMT http://www.complinet.com/global/news/news/article.html?ref=152150 2012-02-08T10:00:49Z http://www.complinet.com/global/news/news/article.html?ref=152170 LONDON, Feb 8 (Reuters) - The European Union's top markets regulator signalled on Wednesday that credit ratings from the United States were close to satisfying EU rules, without which banks would face the cost and upheaval of finding alternatives. The European Securities and Markets Authority (ESMA) must decide by April 30 if the rules for compiling ratings in the United States are as strict as those in the 27-nation bloc. If not, banks will have to obtain alternative ratings, a costly and time-consuming process. "We fully understand how important it is that we get to a solution here," ESMA Chairman Steven Maijoor told a conference organised by the Association for Financial Markets in Europe, a banking lobby. "We know the U.S. is very far ahead, and very far with getting close to the European requirements in this area," Maijoor said. ESMA has to reassure itself that the U.S. system for regulating credit rating agencies is "broadly similar" and that U.S. supervisors will Wed, 08 Feb 2012 08:12:50 GMT http://www.complinet.com/global/news/news/article.html?ref=152170 2012-02-08T08:12:50Z http://www.complinet.com/global/news/news/article.html?ref=152154 WASHINGTON (Reuters) - Foreign and U.S. banks plan to warn lawmakers on Wednesday that broad application of U.S. swaps rules could undermine U.S. competitiveness abroad, increase the cost of hedging and even provoke brinkmanship among international regulators. The 2010 Dodd-Frank law, which aims to curb excessive risk-taking on Wall Street, gives the Commodity Futures Trading Commission new oversight powers for the opaque $700 trillion derivatives market. That includes broad authority to regulate any swaps activities overseas so long as it has a "direct and significant" impact on U.S. commerce. The CFTC has been mostly silent on the reach of its new swaps rules. But concern over swaps jurisdiction gained momentum last April when banking regulators proposed a rule on margin and capital for uncleared swaps that appeared to impose tough Dodd-Frank rules on U.S. bank branches in other countries, while exempting their foreign competitors. Such a framework Wed, 08 Feb 2012 07:45:00 GMT http://www.complinet.com/global/news/news/article.html?ref=152154 2012-02-08T07:45:00Z http://www.complinet.com/global/news/news/article.html?ref=152179 By Aswathy Varughese The insurance regulator has come down heavily on players accepting premium payments months and years in advance of the due date on life insurance policies. Per a draft circular sent to the chief executive officers of life insurance companies by the Insurance Regulatory and Development Authority (IRDA), insurers can now accept premiums only 15 days before the renewal date from those paying monthly and only 30 days before the due date in the case of non-monthly payments. Currently, a policyholder can make a lump sum payment of premium before the due date and even avail a nominal interest or some discount on it. Life Insurance Corporation of India, the country's largest insurer, in fact, allows premium payments five years in advance, for traditional policies. IRDA has asked insurers to refund the advance premium collected by them and not adjusted with the due dates so far to the policyholders within seven days of the date of this circular. "The objective Wed, 08 Feb 2012 03:43:08 GMT http://www.complinet.com/global/news/news/article.html?ref=152179 2012-02-08T03:43:08Z http://www.complinet.com/global/news/news/article.html?ref=152134 Feb 8 (Reuters) - The Financial Services Agency will ask Japanese banks with operations abroad to strengthen their equity reserves from next fiscal year to meet the 7 percent capital ratio requirement, the Nikkei daily reported. The plan would ensure that the banks fulfil requirements of the new international regulations known as Basel III, according to which core capital should account for a minimum 4.5 percent of risk-weighted assets by the year ending March 2015, the newspaper said. Institutions which are crucial to the financial system's stability would be asked to set aside an additional 1 percentage to 2.5 percentage points to their capital ratios from the year ending March 2016, though this is not included in the FSA's plan, the Nikkei said. Japan's financial regulator plans to allow banks that purchased shares as financial assistance to temporarily include the holdings in their core capital. For instance, funding provided to institutions during the 2008 financial Wed, 08 Feb 2012 03:08:01 GMT http://www.complinet.com/global/news/news/article.html?ref=152134 2012-02-08T03:08:01Z http://www.complinet.com/global/news/news/article.html?ref=152096 Hong Kong's Court of First Instance has overturned a criminal sentence imposed on a former responsible officer at a local securities house, after regulators and magistrates erred when submitting evidence in the first trial. Local lawyers said the case demonstrated that the Securities and Futures Commission (SFC) may have overreached itself. On February 3, the Court of First Instance overturned a lower court's judgment after hearing an appeal by Pan Ming, the former responsible officer at Guotai Junan Securities. Pan had argued in his appeal that the Eastern Magistracy had accepted evidence during his trial which was not relevant to the case against him. In March last year, Pan was convicted on one count of market manipulation and sentenced to five months' imprisonment for allegedly helping a client manipulate the closing price of IRICO Group Electronics Co Ltd, a company listed on the Stock Exchange of Hong Kong. The SFC brought the charges against Pan, arguing that he had helped Wed, 08 Feb 2012 01:22:39 GMT http://www.complinet.com/global/news/news/article.html?ref=152096 2012-02-08T01:22:39Z http://www.complinet.com/global/news/news/article.html?ref=152130 In a move to make buybacks more small-investor friendly, the Securities and Exchange Board of India (SEBI) announced on Tuesday that 15 percent of buyback offers will have to be reserved for smaller shareholders. Small shareholders have been defined as those holding shares with a market value not exceeding R200,000 ($4,064). The value of the shares, the regulator said, will be calculated on the basis of closing price of shares on the stock exchange on which the concerned scrip traded the highest volumes, as on the record date. "Fifteen percent of the number of securities which the company proposes to buy back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders," SEBI observed in a circular. Interestingly, merchant bankers while welcoming the move say that the reservation will not lead to any changes on the ground as historically buyback offers have suffered from low participation. "The concept is a sound Wed, 08 Feb 2012 00:59:06 GMT http://www.complinet.com/global/news/news/article.html?ref=152130 2012-02-08T00:59:06Z http://www.complinet.com/global/news/news/article.html?ref=152129 By Niladri Bhattacharya Mumbai The finance ministry is planning to appoint an independent advisor at the Insurance Regulatory and Development Authority (IRDA), to increase coordination between the government and the regulator and to also keep a tab on the latter’s operations. This comes after the ministry held a closed-door meeting with industry representatives last week. “IRDA officials were not present at the meetings,” said chief executive of a life insurance company who attended the meeting. According to sources, there is a growing notion within the ministry that regulatory decisions had played a key role in an unprecedented slide in premium collection in the current financial year. A finance ministry official said the proposed advisor might be appointed from the next financial year if the premium collection does not improve in the last quarter. “It is one of the possible ideas we are working on. He or she will directly report to the government and assist the regulator with Wed, 08 Feb 2012 00:47:58 GMT http://www.complinet.com/global/news/news/article.html?ref=152129 2012-02-08T00:47:58Z http://www.complinet.com/global/news/news/article.html?ref=152127 Indonesia's State Audit Board (BPK) says that its audit on the former Bank Century is already optimal and independent. "If BPK cannot enter all institutions to trace the flows of funds from Bank Century so far it was not because BPK was not independent but because the law forbade it," BPK chief Hadi Purnomo said at a meeting with the House of Representatives` monitoring team of the Bank Century case at the parliament building here on Wednesday. The meeting was led by deputy chairman of the Regional Representatives Council, Taufik Kurniawan, and attended by all BPK executives. Hadi Purnomo said what the BPK had given to the monitoring team was the optimum results of its investigative audit on the bank. He admitted BPK could not unveil all flows of funds from PT Antaboga Delta Sekuritas (ADI) due to banking laws that would not allow it to do it. "PT ADI is put under the supervision the Indonesia Stock Exchange Supervisory Agency [Bapepam] and according to banking regulations Wed, 08 Feb 2012 00:37:58 GMT http://www.complinet.com/global/news/news/article.html?ref=152127 2012-02-08T00:37:58Z http://www.complinet.com/global/news/news/article.html?ref=152121 The Australian and New Zealand banking sectors are still carrying significant exposure to the euro area crisis, despite reducing their reliance on offshore funding in the wake of the financial crisis, according to analysts at Moody's Investors Service. Analysts said that while the banking systems across the Asia-Pacific region were generally robust, Australia, New Zealand, South Korea, and Vietnam would be the most exposed to any further deterioration in Europe's financial position. The ongoing sovereign debt crisis in the eurozone has increased the risk that banking sector contagion could spread across the Asia-Pacific region, according to a new report from Moody's. Despite the "generally robust credit profiles" of banks in the region, the analysts said there was a growing risk that Asia-Pacific banks could suffer from a liquidity squeeze if the situation in Europe continued to worsen. Since the second half of 2011, there has been a broad slowdown in Asian exports, general weaknesses Wed, 08 Feb 2012 00:12:13 GMT http://www.complinet.com/global/news/news/article.html?ref=152121 2012-02-08T00:12:13Z http://www.complinet.com/global/news/news/article.html?ref=152124 (Reuters) - The underperforming global economy should not be allowed to delay financial system reforms, according to a senior official at the Financial Stability Board (FSB), a global watchdog set up by the Group of 20 nations. The official also said that the FSB would propose new rules on so-called "shadow banking" by year-end. Bank of Canada Senior Deputy Governor Tiff Macklem, who chairs a key FSB committee , pushed back against bankers who argue now is not the time to impose tougher new capital standards on lenders due to the recession in Europe and a weak U.S. economy. "The current challenges are not an excuse for delay. Quite the opposite," Macklem said in a speech in Toronto. "In a risky world, the need to make the financial system safer and restore confidence is vital. If there is a reproach to be made, it is that progress has not been faster," he said. The roll-out of the new capital rules for banks around the world, known as Basel III, is the "biggest Wed, 08 Feb 2012 00:08:56 GMT http://www.complinet.com/global/news/news/article.html?ref=152124 2012-02-08T00:08:56Z http://www.complinet.com/global/news/news/article.html?ref=152132 Trade between Asia and Iran is likely to slow as new U.S. sanctions make payments more difficult, traders said on Tuesday, although the more determined can still find a route through Middle Eastern intermediaries. On Sunday, U.S. President Barack Obama authorized new measures which extend sanctions to all Iranian financial institutions and require financial institutions doing business in the United States to block and freeze transactions having a suspected link to Iran. Previous sanctions had only required American banks to reject those transactions. Asian importers of Iranian crude, fuel oil and iron ore will find the sanctions complicate payment, which already often goes through intermediaries in the Middle East. Iran will be forced to rely more on settlement in illiquid currencies, which raises its cost of trade and adds to pressure on its currency. "Iranian cargoes I can get, that's not a problem. But how to pay is a problem," said an iron ore trader in New Delhi. Some Tue, 07 Feb 2012 14:59:38 GMT http://www.complinet.com/global/news/news/article.html?ref=152132 2012-02-07T14:59:38Z http://www.complinet.com/global/news/news/article.html?ref=152091 Malaysia and Thailand’s central banks agreed to a reciprocal arrangement aimed at boosting liquidity facilities to financial institutions in both countries, according to a statement in Kuala Lumpur today. Eligible financial institutions operating in Malaysia may obtain ringgit liquidity from the Malaysian central bank by pledging baht, or Thai government and central bank bonds, Bank Negara Malaysia said in the statement. A similar arrangement is agreed upon for financial institutions operating in Thailand. -- Bloomberg Copyright © The New Straits Times Press (Malaysia) Tue, 07 Feb 2012 03:14:34 GMT http://www.complinet.com/global/news/news/article.html?ref=152091 2012-02-07T03:14:34Z http://www.complinet.com/global/news/news/article.html?ref=152086 Beijing, Feb 6 (Reuters) — China has tightened the qualifying criteria for firms wanting to audit listed companies, to protect investor interests, according to new regulations published on Monday. The new regulations, made jointly by the finance ministry and the securities watchdog, were aimed at improving auditing quality for listed firms, according to a statement on the finance ministry's website (www.mof.gov.cn). China has been one of the fastest-growing markets in the world for accounting firms with total revenues growing at 20 percent annually, offering about $1.5 billion to the so-called Big Four in 2010 — namely Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. That growth has also been accompanied by accounting fraud scandals. In 2010 and 2011, dozens of Chinese firms traded in Canada and the United States were delisted over scandals. Trading in the companies' shares have been suspended, share prices have plunged and probes have been launched. "[The new rules] Tue, 07 Feb 2012 00:57:45 GMT http://www.complinet.com/global/news/news/article.html?ref=152086 2012-02-07T00:57:45Z http://www.complinet.com/global/news/news/article.html?ref=152087 Shanghai, Feb 6 (Reuters) — The Chinese unit of Citigroup Inc said on Monday that it has received regulatory approval to issue credit cards in China, the first non-Asian bank to receive permission. Citi, which has branches in 13 cities, said it would likely launch credit card operations this year. "This approval represents a significant milestone in the continued expansion of Citi's business in China, a priority market for Citi," said Citi Asia Pacific Chief Executive Stephen Bird. "Our business in China continues to perform strongly across institutional and consumer lines, and our ability to introduce a credit and commercial card proposition adds to our healthy growth momentum in this key market." Citi had about 16 million cards in Asia at the end of 2011, according to company figures. It also signed an agreement with Shanghai-based Orient Securities in June to launch a securities joint venture in the country. About 40 foreign banks have locally incorporated units in China, Tue, 07 Feb 2012 00:57:42 GMT http://www.complinet.com/global/news/news/article.html?ref=152087 2012-02-07T00:57:42Z http://www.complinet.com/global/news/news/article.html?ref=152031 Feb 5 (Reuters) - The United States is coming to be seen as a global threat, acting unilaterally with aggressive new market rules that critics say will hurt U.S. firms, foreign banks, and international markets in one swoop. The new buzzword in the financial world is "extraterritoriality", or ET. The idea that a government can exercise its authority beyond its borders. The fear is that after the 2007-2009 financial crisis that roiled global markets, some countries will engage in an arms race of tough financial reforms in order to be seen as the safest capital markets, and will haphazardly foist their own rules on other nations. Despite its talk of a global level playing field, the United States is being portrayed as a rogue country, with its unmatched Volcker rule to curtail banks' risky trades and its accelerated timetable to put in place new derivatives reforms. The backlash has gained force in recent weeks. International finance ministers are taking up their Mon, 06 Feb 2012 06:03:52 GMT http://www.complinet.com/global/news/news/article.html?ref=152031 2012-02-06T06:03:52Z http://www.complinet.com/global/news/news/article.html?ref=152034 The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) has revoked the licenses of two fund managers, and will likely terminate more, for their failure to meet regulations on investment management functions and minimum capital requirement. "We are in the process of evaluating several fund managers. Having revoked two fund managers' licenses earlier this week, we may revoke other licenses. However, I cannot reveal their names now," head of the investment bureau at Bapepam-LK Fachri Hilmi told The Jakarta Post over the telephone on Thursday. Bapepam-LK recently announced that it would revoke the licenses of three fund managers. Earlier this week, the supervisory agency said that it had revoked the licenses of PT Mega Nusantara Capital and PT Peak Capital. Fachri said that Bapepam-LK always made sure that the companies whose licenses it revoked no longer had investment products, so that their clients would not suffer losses. Bapepam-LK revoked the license Mon, 06 Feb 2012 03:01:00 GMT http://www.complinet.com/global/news/news/article.html?ref=152034 2012-02-06T03:01:00Z