The document discusses how various provisions of the Dodd-Frank Act and proposed Department of Labor rules expand the scope of fiduciary responsibilities for financial entities. Key points include: the Private Fund Investment Advisers Registration Act requiring most hedge fund and private equity fund advisers to register with the SEC; the "Volcker Rule" prohibiting banks from proprietary trading and limiting investments in hedge funds; and the Wall Street Transparency and Accountability Act establishing new regulation of the derivatives market, with some questions around treatment of stable value contracts and regulation of employee benefit plans.
The document provides an overview of the Danish banking law system. It summarizes that Denmark has approximately 80 credit institutions regulated by the Danish Financial Supervisory Authority. The main types are banks, savings banks, and mortgage credit institutions. Danish banking law is codified but operates largely on freedom of contract principles, especially for commercial loans. Key aspects covered include types of loan agreements, security interests like mortgages and pledges, financial assistance restrictions, and applicability of the Rome II and European Insolvency Regulations.
The document provides an overview and summary of key legal issues relating to cross-border financing projects in 2017. It discusses updates to Thai law on mortgages, guarantees, business collateral, bankruptcy, and presentations on major legal issues in negotiating cross-border financing contracts regarding governing laws, taxes, and managing disputes. Recommendations are made for effectively structuring deals and resolving disputes involving multiple jurisdictions.
The financing of physical trade is essential for ensuring the smooth flow of goods and commodities from the Middle East to the rest of the world. However, the complexity of the financial and regulatory landscape is increasing, and keeping pace with the many changes in the geopolitical sphere that have direct implications for financial institutions and their customers is becoming challenging. Through a day of workshops and presentations to an audience of lawyers and bankers, experts from Eversheds’ Trade Finance and Sanctions teams examined the legal and regulatory environment behind these international issues.
Investment Advisers Act Considerations for Foreign Investment AdvisersAlexandre (Sasha) Rourk
This document summarizes regulatory considerations for foreign investment advisers operating in the United States. It outlines three exemptions from SEC registration for foreign advisers under the Investment Advisers Act of 1940: 1) the venture capital fund adviser exemption, 2) the private fund adviser exemption, and 3) exempt reporting advisers. It provides examples of how foreign advisers can structure their operations to qualify for these exemptions, but notes they must remain within certain limits and cannot have non-exempt clients to maintain exemption status. Exempt advisers still face some regulatory requirements from the Advisers Act around record keeping, policies, and examinations.
This document provides an overview of custody services presented by Robert Rooks, Director of PwC Hong Kong. It defines custody as holding client funds or securities or having authority over them. A custody service involves settlement of securities transactions and safekeeping of assets. Custodians generate fees through activities like asset servicing, banking transactions, and reporting. Custodians are needed because they allow other firms to focus on investing while taking care of regulatory requirements for asset protection and risk reduction.
In cooperation with The Legal 500 and Slaughter and May as lead contributing editor, Carsted Rosenberg has contributed with the Danish chapter on securitisation and the Danish securitisation market. The country-specific Q&A provides an overview to Securitisation laws and regulations that may occur in Denmark. For other jurisdictions, please refer to the contributions prepared by CMS for Austria, Norton Rose Fulbright for Canada, Dentons for Germany, Mayer Brown for Hong Kong, Nagashima Ohno & Tsunematsu for Japan, GSK Stockmann for Luxembourg, Morgan & Morgan for Panama, LECAP for Russia, Yulchon for South Korea, Lenz & Staehelin for Switzerland and Paksoy for Turkey. To learn more about securitisation law in Denmark or to access the entire Securitisation Contry Comparative Guide 2020, please click on the inks to the Q&A section:
This document provides an overview of loan trading practices across various jurisdictions globally. It discusses the main methods for transferring loans, including assignment, novation, and participations. It also addresses key issues like guarantees and security, confidentiality, tax implications, and regulatory compliance considerations for each jurisdiction. The document aims to provide loan market participants with insights into local law issues to consider when trading loans internationally. It covers 19 jurisdictions in Europe, Asia, North America, and elsewhere.
The document discusses how various provisions of the Dodd-Frank Act and proposed Department of Labor rules expand the scope of fiduciary responsibilities for financial entities. Key points include: the Private Fund Investment Advisers Registration Act requiring most hedge fund and private equity fund advisers to register with the SEC; the "Volcker Rule" prohibiting banks from proprietary trading and limiting investments in hedge funds; and the Wall Street Transparency and Accountability Act establishing new regulation of the derivatives market, with some questions around treatment of stable value contracts and regulation of employee benefit plans.
The document provides an overview of the Danish banking law system. It summarizes that Denmark has approximately 80 credit institutions regulated by the Danish Financial Supervisory Authority. The main types are banks, savings banks, and mortgage credit institutions. Danish banking law is codified but operates largely on freedom of contract principles, especially for commercial loans. Key aspects covered include types of loan agreements, security interests like mortgages and pledges, financial assistance restrictions, and applicability of the Rome II and European Insolvency Regulations.
The document provides an overview and summary of key legal issues relating to cross-border financing projects in 2017. It discusses updates to Thai law on mortgages, guarantees, business collateral, bankruptcy, and presentations on major legal issues in negotiating cross-border financing contracts regarding governing laws, taxes, and managing disputes. Recommendations are made for effectively structuring deals and resolving disputes involving multiple jurisdictions.
The financing of physical trade is essential for ensuring the smooth flow of goods and commodities from the Middle East to the rest of the world. However, the complexity of the financial and regulatory landscape is increasing, and keeping pace with the many changes in the geopolitical sphere that have direct implications for financial institutions and their customers is becoming challenging. Through a day of workshops and presentations to an audience of lawyers and bankers, experts from Eversheds’ Trade Finance and Sanctions teams examined the legal and regulatory environment behind these international issues.
Investment Advisers Act Considerations for Foreign Investment AdvisersAlexandre (Sasha) Rourk
This document summarizes regulatory considerations for foreign investment advisers operating in the United States. It outlines three exemptions from SEC registration for foreign advisers under the Investment Advisers Act of 1940: 1) the venture capital fund adviser exemption, 2) the private fund adviser exemption, and 3) exempt reporting advisers. It provides examples of how foreign advisers can structure their operations to qualify for these exemptions, but notes they must remain within certain limits and cannot have non-exempt clients to maintain exemption status. Exempt advisers still face some regulatory requirements from the Advisers Act around record keeping, policies, and examinations.
This document provides an overview of custody services presented by Robert Rooks, Director of PwC Hong Kong. It defines custody as holding client funds or securities or having authority over them. A custody service involves settlement of securities transactions and safekeeping of assets. Custodians generate fees through activities like asset servicing, banking transactions, and reporting. Custodians are needed because they allow other firms to focus on investing while taking care of regulatory requirements for asset protection and risk reduction.
In cooperation with The Legal 500 and Slaughter and May as lead contributing editor, Carsted Rosenberg has contributed with the Danish chapter on securitisation and the Danish securitisation market. The country-specific Q&A provides an overview to Securitisation laws and regulations that may occur in Denmark. For other jurisdictions, please refer to the contributions prepared by CMS for Austria, Norton Rose Fulbright for Canada, Dentons for Germany, Mayer Brown for Hong Kong, Nagashima Ohno & Tsunematsu for Japan, GSK Stockmann for Luxembourg, Morgan & Morgan for Panama, LECAP for Russia, Yulchon for South Korea, Lenz & Staehelin for Switzerland and Paksoy for Turkey. To learn more about securitisation law in Denmark or to access the entire Securitisation Contry Comparative Guide 2020, please click on the inks to the Q&A section:
This document provides an overview of loan trading practices across various jurisdictions globally. It discusses the main methods for transferring loans, including assignment, novation, and participations. It also addresses key issues like guarantees and security, confidentiality, tax implications, and regulatory compliance considerations for each jurisdiction. The document aims to provide loan market participants with insights into local law issues to consider when trading loans internationally. It covers 19 jurisdictions in Europe, Asia, North America, and elsewhere.
For full text article go to : http://www.educorporatebridge.com/securitization/securitization-of-assets This Article explain concepts like securitization of asset, meaning of securitization in layman language, ABS,MBS,CDO,CMO etc.
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
Financial services refer to services provided by banks and other financial institutions, including mobilizing and allocating savings, providing loans, insurance, investment products, and more. Some key types of financial institutions discussed are commercial banks, cooperative banks, and non-banking financial institutions. Financial markets allow for short-term lending and capital raising. Financial instruments can be primary, secondary, short-term, long-term or medium-term. Financial services are classified as fund-based, involving direct investment of funds, or fee-based, where institutions earn fees through specialized services.
The document discusses various types of banks in India, their services, and obligations. It covers:
1) Types of banks include public sector banks, private sector banks, foreign banks, cooperative banks, and regional rural banks.
2) Core banking services include accepting deposits, lending activities like loans and advances, and fee-based services.
3) Banks have obligations to stakeholders like depositors, borrowers, and regulatory authorities like the RBI. They must maintain customer confidentiality and follow lending guidelines.
The document discusses securitization, which involves a corporation transferring assets like mortgages or receivables to a special purpose vehicle (SPV) that issues securities backed by those assets. The key aspects of securitization include bankruptcy remoteness of the assets, credit enhancement to obtain high credit ratings, and structuring cash flows and securities to meet investor needs.
Securitization is a process where long-term financial assets like loans are pooled together and converted into marketable securities that can be sold to investors. This provides the originator with cash while transferring the credit risk to the investors. The document discusses the parties and stages involved including identification of assets, transfer to a special purpose vehicle, issuing securities to investors, and redemption upon repayment or default of underlying assets. Guidelines are provided on selecting high quality assets and ensuring proper structures, risk ratings, and regulations are in place for a successful securitization program.
Financial services refer to services provided by the finance industry, which encompasses organizations that deal with money management, such as banks, credit card companies, insurance companies, brokerages, and investment funds. Financial services can be fund-based, involving lending or underwriting insurance, or fee-based, where institutions earn income through fees, dividends or brokerage on services like corporate advisory, credit ratings, mutual funds, and stock broking. Common fund-based financial services include leasing, housing finance, credit cards, venture capital, and insurance, while fee-based services include issue management, advisory services, and asset securitization.
1. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Wall Street Reform Act) was signed into law in 2010 to comprehensively regulate the financial sector in response to the 2007-2010 financial crisis.
2. Key provisions of the Act include granting the SEC authority to establish a fiduciary standard for broker-dealers, modifying the definition of "accredited investor," permitting the SEC to restrict mandatory arbitration agreements, and bringing hedge funds and private equity funds over $150 million in assets under SEC regulation.
3. The Act also creates new regulatory bodies, studies various financial industry topics, and changes regulations regarding issues like investment advisor disclosures, insurance, and performance-based fees.
The document is a report on financial services that discusses securitization. It contains:
1) An introduction to securitization, the process of pooling and selling existing assets to a Special Purpose Vehicle which then issues asset-backed securities.
2) Details on the entities involved in securitization - originator, special purpose vehicle, obligor, servicer, trustee, rating agency, and structurer.
3) The regulatory framework and history of securitization deals in India, including some of the largest deals.
Securitization is the process of pooling and repackaging illiquid financial assets like receivables, loans, or leases into marketable securities that can be sold to investors. The assets are originated by a company and sold to a special purpose vehicle (SPV) that issues securities to fund the purchase. The SPV contracts the originator to administer the assets, using cash flows to repay investors while passing surpluses back to the originator. Credit enhancement through mechanisms like over-collateralization or insurance protects investors against losses on the underlying assets. Key parties include originators, SPVs, investors, obligors, rating agencies, administrators, and structurers. Common securitization instruments are pass-through certificates,
The document discusses securitization, which involves converting illiquid loans and receivables into marketable securities. Securitization originated in Denmark by selling bonds backed by equal amounts of loans. It later evolved in the US through innovations like slicing loan portfolios into tradable securities. A key part of securitization is the use of a special purpose vehicle (SPV) that purchases the loans, issues securities to investors, and uses the loan payments to repay investors. This separates the loans from the originator, protecting investors. Securitization provides originators with liquidity and long-term funding while transferring risk off their balance sheets.
This document provides an overview of legal risks and insurance options for investment advisors (RIAs). It discusses the fiduciary duties of RIAs under federal and state law, including acting in clients' best interests and avoiding conflicts of interest. Common legal claims against RIAs are described such as negligence, misrepresentation, and breach of fiduciary duty. Defenses to these claims include demonstrating adherence to industry standards of care and providing full disclosure of risks and conflicts of interest to clients. The document also notes that while the Investment Advisers Act establishes federal standards, most private litigation takes place under state laws and the Act does not provide a private right of action.
This document provides an overview of financial services in India. It discusses the concept and scope of financial services, including both traditional and modern activities. Traditional activities include fund-based activities like underwriting shares and non-fund based activities like merchant banking. Modern activities include services like project advisory, M&A advisory, and risk hedging. The regulatory framework for financial services in India involves the RBI and SEBI. One type of modern financial service discussed in detail is leasing, including the concept, process, types (financial, operating, leverage, sale and lease back), advantages, and history of leasing in India.
This document discusses asset securitization, which involves issuing marketable securities backed by expected cash flows from receivables. Securitization allows for more efficient financing, improves balance sheets, and better manages risk. Any asset with predictable cash flows can be securitized, especially those in large pools with standardized documentation. The benefits of securitization are off-balance sheet financing, regulatory capital relief, and liquidity for originators. Investors benefit from economies of scale and credit enhancement. A robust financial infrastructure is required to support successful securitization.
Financial services refer to the services provided by the finance market such as banking, insurance, investment funds, payment processing, housing financing, stock broking, and investment banking. Financial services have a scope that broadly includes traditional activities like fund-based activities such as underwriting shares and bonds, and non-fund based activities such as managing capital issues. Modern financial service activities include advisory services, mergers and acquisitions planning, and corporate restructuring guidance. Financial regulation subjects financial institutions to requirements and guidelines to maintain the integrity of the financial system and influence the structure of banking sectors.
This document provides an overview of securitization of debt. It defines securitization as the conversion of future cash flows from financial assets like loans into tradable securities that can be sold in the market. This process allows lenders to raise funds. A special purpose vehicle (SPV) is used as an intermediary between the originator of assets and investors. The SPV issues different types of securities backed by assets like mortgages (MBS), consumer debt (ABS), and corporate debt (CDO). The document discusses the key features and types of securitizable assets in securitization.
Access models for the buy side | CCP Central Counterparty | Eurex Clearing Eurex
With the balance in supply and demand in traditional financial market structure deteriorating, the buy side community is facing a variety of challenges. Increasing costs for the banks driven by new regulatory requirements translate into higher fees, wider spreads or even service reductions for the buy side not only for derivatives, but also for securities financing transactions. Additionally the concentration of banks offering client clearing creates challenges with regards to counterparty risk concerns and porting in case of a Clearing Member default.
► Visit our website: http://www.eurexclearing.com
► Twitter: http://twitter.com/eurexgroup
► LinkedIn: http://www.linkedin.com/company/eurex
September 2010 edition of Financial Services Industry Monthly Bulletin – a banking and finance law publication by Reff & Associates, correspondent law firm of Deloitte Romania and Deloitte Tax.
The document summarizes regulatory changes announced by several Romanian financial services authorities in February 2010, including:
- The National Bank of Romania amended interest rates for mandatory reserves.
- The Insurance Supervisory Commission amended regulations for mandatory vehicle insurance.
- The Private Pension System Supervisory Commission amended rules for privately managed pension funds.
- The National Securities Commission amended regulations for the Investor Compensation Fund and NSC income.
It also outlines several proposals for future regulatory changes under public debate.
For full text article go to : http://www.educorporatebridge.com/securitization/securitization-of-assets This Article explain concepts like securitization of asset, meaning of securitization in layman language, ABS,MBS,CDO,CMO etc.
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
Financial services refer to services provided by banks and other financial institutions, including mobilizing and allocating savings, providing loans, insurance, investment products, and more. Some key types of financial institutions discussed are commercial banks, cooperative banks, and non-banking financial institutions. Financial markets allow for short-term lending and capital raising. Financial instruments can be primary, secondary, short-term, long-term or medium-term. Financial services are classified as fund-based, involving direct investment of funds, or fee-based, where institutions earn fees through specialized services.
The document discusses various types of banks in India, their services, and obligations. It covers:
1) Types of banks include public sector banks, private sector banks, foreign banks, cooperative banks, and regional rural banks.
2) Core banking services include accepting deposits, lending activities like loans and advances, and fee-based services.
3) Banks have obligations to stakeholders like depositors, borrowers, and regulatory authorities like the RBI. They must maintain customer confidentiality and follow lending guidelines.
The document discusses securitization, which involves a corporation transferring assets like mortgages or receivables to a special purpose vehicle (SPV) that issues securities backed by those assets. The key aspects of securitization include bankruptcy remoteness of the assets, credit enhancement to obtain high credit ratings, and structuring cash flows and securities to meet investor needs.
Securitization is a process where long-term financial assets like loans are pooled together and converted into marketable securities that can be sold to investors. This provides the originator with cash while transferring the credit risk to the investors. The document discusses the parties and stages involved including identification of assets, transfer to a special purpose vehicle, issuing securities to investors, and redemption upon repayment or default of underlying assets. Guidelines are provided on selecting high quality assets and ensuring proper structures, risk ratings, and regulations are in place for a successful securitization program.
Financial services refer to services provided by the finance industry, which encompasses organizations that deal with money management, such as banks, credit card companies, insurance companies, brokerages, and investment funds. Financial services can be fund-based, involving lending or underwriting insurance, or fee-based, where institutions earn income through fees, dividends or brokerage on services like corporate advisory, credit ratings, mutual funds, and stock broking. Common fund-based financial services include leasing, housing finance, credit cards, venture capital, and insurance, while fee-based services include issue management, advisory services, and asset securitization.
1. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Wall Street Reform Act) was signed into law in 2010 to comprehensively regulate the financial sector in response to the 2007-2010 financial crisis.
2. Key provisions of the Act include granting the SEC authority to establish a fiduciary standard for broker-dealers, modifying the definition of "accredited investor," permitting the SEC to restrict mandatory arbitration agreements, and bringing hedge funds and private equity funds over $150 million in assets under SEC regulation.
3. The Act also creates new regulatory bodies, studies various financial industry topics, and changes regulations regarding issues like investment advisor disclosures, insurance, and performance-based fees.
The document is a report on financial services that discusses securitization. It contains:
1) An introduction to securitization, the process of pooling and selling existing assets to a Special Purpose Vehicle which then issues asset-backed securities.
2) Details on the entities involved in securitization - originator, special purpose vehicle, obligor, servicer, trustee, rating agency, and structurer.
3) The regulatory framework and history of securitization deals in India, including some of the largest deals.
Securitization is the process of pooling and repackaging illiquid financial assets like receivables, loans, or leases into marketable securities that can be sold to investors. The assets are originated by a company and sold to a special purpose vehicle (SPV) that issues securities to fund the purchase. The SPV contracts the originator to administer the assets, using cash flows to repay investors while passing surpluses back to the originator. Credit enhancement through mechanisms like over-collateralization or insurance protects investors against losses on the underlying assets. Key parties include originators, SPVs, investors, obligors, rating agencies, administrators, and structurers. Common securitization instruments are pass-through certificates,
The document discusses securitization, which involves converting illiquid loans and receivables into marketable securities. Securitization originated in Denmark by selling bonds backed by equal amounts of loans. It later evolved in the US through innovations like slicing loan portfolios into tradable securities. A key part of securitization is the use of a special purpose vehicle (SPV) that purchases the loans, issues securities to investors, and uses the loan payments to repay investors. This separates the loans from the originator, protecting investors. Securitization provides originators with liquidity and long-term funding while transferring risk off their balance sheets.
This document provides an overview of legal risks and insurance options for investment advisors (RIAs). It discusses the fiduciary duties of RIAs under federal and state law, including acting in clients' best interests and avoiding conflicts of interest. Common legal claims against RIAs are described such as negligence, misrepresentation, and breach of fiduciary duty. Defenses to these claims include demonstrating adherence to industry standards of care and providing full disclosure of risks and conflicts of interest to clients. The document also notes that while the Investment Advisers Act establishes federal standards, most private litigation takes place under state laws and the Act does not provide a private right of action.
This document provides an overview of financial services in India. It discusses the concept and scope of financial services, including both traditional and modern activities. Traditional activities include fund-based activities like underwriting shares and non-fund based activities like merchant banking. Modern activities include services like project advisory, M&A advisory, and risk hedging. The regulatory framework for financial services in India involves the RBI and SEBI. One type of modern financial service discussed in detail is leasing, including the concept, process, types (financial, operating, leverage, sale and lease back), advantages, and history of leasing in India.
This document discusses asset securitization, which involves issuing marketable securities backed by expected cash flows from receivables. Securitization allows for more efficient financing, improves balance sheets, and better manages risk. Any asset with predictable cash flows can be securitized, especially those in large pools with standardized documentation. The benefits of securitization are off-balance sheet financing, regulatory capital relief, and liquidity for originators. Investors benefit from economies of scale and credit enhancement. A robust financial infrastructure is required to support successful securitization.
Financial services refer to the services provided by the finance market such as banking, insurance, investment funds, payment processing, housing financing, stock broking, and investment banking. Financial services have a scope that broadly includes traditional activities like fund-based activities such as underwriting shares and bonds, and non-fund based activities such as managing capital issues. Modern financial service activities include advisory services, mergers and acquisitions planning, and corporate restructuring guidance. Financial regulation subjects financial institutions to requirements and guidelines to maintain the integrity of the financial system and influence the structure of banking sectors.
This document provides an overview of securitization of debt. It defines securitization as the conversion of future cash flows from financial assets like loans into tradable securities that can be sold in the market. This process allows lenders to raise funds. A special purpose vehicle (SPV) is used as an intermediary between the originator of assets and investors. The SPV issues different types of securities backed by assets like mortgages (MBS), consumer debt (ABS), and corporate debt (CDO). The document discusses the key features and types of securitizable assets in securitization.
Access models for the buy side | CCP Central Counterparty | Eurex Clearing Eurex
With the balance in supply and demand in traditional financial market structure deteriorating, the buy side community is facing a variety of challenges. Increasing costs for the banks driven by new regulatory requirements translate into higher fees, wider spreads or even service reductions for the buy side not only for derivatives, but also for securities financing transactions. Additionally the concentration of banks offering client clearing creates challenges with regards to counterparty risk concerns and porting in case of a Clearing Member default.
► Visit our website: http://www.eurexclearing.com
► Twitter: http://twitter.com/eurexgroup
► LinkedIn: http://www.linkedin.com/company/eurex
September 2010 edition of Financial Services Industry Monthly Bulletin – a banking and finance law publication by Reff & Associates, correspondent law firm of Deloitte Romania and Deloitte Tax.
The document summarizes regulatory changes announced by several Romanian financial services authorities in February 2010, including:
- The National Bank of Romania amended interest rates for mandatory reserves.
- The Insurance Supervisory Commission amended regulations for mandatory vehicle insurance.
- The Private Pension System Supervisory Commission amended rules for privately managed pension funds.
- The National Securities Commission amended regulations for the Investor Compensation Fund and NSC income.
It also outlines several proposals for future regulatory changes under public debate.
Green school, Dekalb Academy of Technology and Environment presentation on sustainable classrooms. This unique school features a recycling program that even recycles cooking grease to biodiesel and soaps.
Legal Framework For Securitisation And Mortgage Bonds In RomaniaAndrei Burz-Pinzaru
The document summarizes the key aspects of Romania's legal framework for mortgage securitization and mortgage bonds. It outlines four main laws passed in 2006 that established the prerequisites for a secondary mortgage market, including defining origination rules and allowing new players like mortgage banks. It describes the concepts of securitization of mortgage loans and mortgage-backed securities under Romanian law. It also covers aspects like eligible assets, special purpose vehicles, requirements for issuance of mortgage-backed securities and bonds, and management of the asset pools.
Bloomberg Tax - Transfer Pricing Forum (October 2018) - Dutch FTTP rules - po...Martin Druga
Responses by EY Netherlands to questions of Bloomberg Tax within October 2018 Transfer Pricing Forum on Dutch rules governing Financial Transactions Transfer Pricing
This document discusses various aspects of raising funds domestically and globally. It begins by outlining the key topics that will be covered, including the process of fund raising, roles of different players, regulatory environment, types of instruments, costs, risks, and challenges. It then provides details on the introduction and process of fund raising. It describes the roles of various players like government, regulators, service providers, and media. It also discusses the regulatory environment, domestic and global instruments, specialized instruments, costs, risks, and challenges related to fund raising.
The document summarizes key considerations for investing in Dutch consumer finance non-performing loan portfolios. It notes that the Dutch economy and consumer confidence is growing. Collections are friendly with a strong legal creditor position and developed debt collection agency and bailiff markets. While the total non-performing loan stock is increasing, relatively small deals and forward flows are established. Investors should understand legal and compliance requirements and embed customer centric practices. The collections environment offers amicable and legal options with an increasing but still competitive bailiff and debt collection agency market.
OTC Derivatives: Evaluating the Impact of New Regulation in Europe, Brice Hen...DerivSource
Brice Henry, Partner, Allen & Overy
Presentation at DerivSource/Omgeo briefing 'OTC Derivatives: Evaluating the Impact of New Regulation in Europe' held in Paris on November 12th 2013
This document summarizes the key steps and techniques for conducting legal due diligence for cross-border M&A transactions. It discusses the scope of legal due diligence, including types of investigations and documents to review. It outlines important legal aspects to examine regarding the target company and its business. The document also addresses common requirements for legal due diligence, such as letters of intent and parties' obligations. It provides techniques for efficient due diligence investigations and identifies potential problems and risks to consider.
The document provides an overview of securities financing transactions (SFT) regulation (SFTR) including:
1) It defines shadow banking and SFT instruments such as repos, securities lending, buy-sell backs, and margin lending.
2) It describes the Securities Financing Transaction Regulation (SFTR) which increases transparency of SFT markets in response to shadow banking risks.
3) It outlines SFTR reporting requirements, data flows, and timelines for financial and non-financial counterparties to start reporting SFTs to trade repositories.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Wall Street Reform Act) comprehensively reforms regulation of financial services in response to the 2007-2010 financial crisis. Key provisions include:
1. Granting the SEC authority to establish a fiduciary standard for broker-dealers providing investment advice.
2. Requiring the SEC to modify the "accredited investor" standard for private placements by revising the net worth threshold.
3. Permitting the SEC to prohibit or restrict mandatory securities arbitration agreements.
4. Shifting regulatory authority over certain investment advisors from the SEC to state governments.
5. Requiring registration of hedge funds and private equity firms with over $150 million
Legal structures to attract investors and penetrate the global market EkoInnovationCentre
Private equity funding and global expansion require careful legal structuring and due diligence. Private equity involves providing equity capital to growing companies in exchange for ownership stakes. The process includes expressing interest, conducting due diligence on both parties, negotiating terms, and closing with signed agreements. Both companies and investors must research the other thoroughly. Expanding globally requires understanding foreign laws, choosing governing law for contracts, selecting the proper legal entity like an LLC or joint venture, and ensuring compliance with corporate governance rules. Careful legal and risk assessment is vital for attracting investors and penetrating new markets.
The document discusses regulations surrounding the listing of securitized debt instruments in India. It outlines how amendments to the Securities Contracts Regulation Act in 2007 allowed securitized debt instruments to be publicly traded by defining them as securities. Subsequently, SEBI issued regulations in 2008 governing public offerings and listings of securitized debt. This created a new regulatory framework for securitized debt markets involving originators, special purpose entities, trustees and investors. The key SEBI regulations and a 2011 listing agreement are summarized, covering disclosure requirements, asset transfer and bankruptcy remoteness, credit ratings, and ongoing reporting. Issues that may impact growth of India's securitized debt market are also mentioned.
Has the initial goal of bringing order to the financial markets been achieved?
Has there been an overreaction and new regulations have inhibited the free market system and specifically liquidity?
What clarity of legal thought has now evolved which can be trace through the various regulations and does it enhance established legal principles?
Is there now an emerging need for deregulation to re-dress the balance of new regulations?
2
Acquiring one or merging with another entity constitutes a very complex operation from legal and financial standpoint making corresponding share purchase agreements (SPAs) full of potential pitfalls. SPA-related disputes stem not only from the non-performance on obligations but also from the interpretation differences, fueled alike by vague and over-detailed provisions.
More information: https://www2.deloitte.com/pl/en/pages/finance/articles/dispute-services/Post-M-A-Disputes.html
REGULATIONS SURROUNDING THE LISTING OF Varun Vaish
The document discusses regulations surrounding the listing of securitized debt instruments in India. It outlines how amendments to the Securities Contracts Regulation Act in 2007 allowed securitized debt instruments to be publicly traded. SEBI then issued regulations in 2008 governing public offerings and listings of securitized debt instruments. This created a new market for these instruments with various players like originators, special purpose entities, trustees, and investors. SEBI also issued a listing agreement in 2011 to improve transparency and disclosure requirements for listed securitized debt instruments. However, issues around foreclosure laws and tax treatment of special purpose vehicle trusts still affect growth of the securitized debt market in India.
Luxembourg has developed into the second largest fund centre in the world. This success has been driven mainly by Luxembourg’s positioning as the leading jurisdiction for retail funds and undertakings for collective investment. A second pillar of funds has been developing markedly, namely investment funds focusing on so-called alternative asset classes, including private equity, real estate/infrastructure and debt, dedicated to a sophisticated and/or institutional/professional investor base.
1) Financial intermediaries are special because they act as brokers to reduce transaction costs, transform assets to make them more attractive to savers, and reduce information costs through monitoring and producing information.
2) Regulations are imposed on financial intermediaries to reduce externalities, ensure safety and soundness, facilitate monetary policy transmission, guide credit allocation, and protect consumers and investors.
3) Over time, the financial services industry has seen a decline in depository institutions' market share in the US along with a shift to more complex securitization and off-balance sheet risks, contributing to the financial crisis.
Special Purpose Vehicals Securitizationfinancedude
Special Purpose Entities (SPEs) are legal entities created for specific purposes in structuring securitization transactions. SPEs are critical components of the $5.2 trillion U.S. securitization market, which provides liquidity to financial institutions and consumers through products like mortgages and credit cards. SPEs hold pools of financial assets, issue securities to investors, and protect investors from bankruptcy risk of the financial institution that established the SPE. Accounting standards require disclosure of risks and obligations associated with SPE transactions, even if the SPE is not consolidated on the financial institution's balance sheet.
Securitisation Token Offering - Old Concept in a New FormatMario Buttigieg
This document discusses security token offerings (STOs), which involve tokenizing traditional securities and offering them to the public using blockchain technology. It explains that STOs are subject to securities laws and regulations. Ricardian contracts are recommended for STOs as they are human-readable, programmable, and signed contracts that address limitations of smart contracts. The choice of vehicle, jurisdiction, and legal structure are also important considerations for STOs.
This document provides an overview of securitization, including:
- Securitization is the process of converting illiquid assets into liquid assets by pooling them and selling securities backed by the pooled assets.
- The key participants are originators, special purpose vehicles, investors, and servicers. Assets like mortgages, credit cards, auto loans can be securitized.
- Benefits include off-balance sheet financing for originators and returns for investors. Risks include collateral, structural, legal, and third party risks.
- India has taken steps to regulate securitization but lacks a comprehensive framework and standardization.
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My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Legal Criteria For Rating securitisation instruments & Covered Bonds
1. Introduction to the legal criteria for rating
securitisation / mortgage bonds
Romanian law perspective
Moody's 2nd Annual CEE Credit Risk Conference
12 June 2008, Bucharest
Andrei Burz Pinzaru
Senior Manager
Reff&Associates is the correspondent law firm of Deloitte Romania
2. Legal criteria for rating securitisation / mortgage bonds
Introduction
Legal Issues are analysed in rating any securitisation / mortgage bonds
transaction, but are particularly significant in new markets
Reasons
- the local laws and the nature of the legal system are less well known
- legal precedents may be limited or less applicable to securitisations / mortgage
bonds
Reff&Associates is the correspondent law firm of Deloitte Romania
3. Legal criteria for rating securitisation / mortgage bonds
Romanian legal framework for securitisation and mortgage bonds
Amendments to the Mortgage Lending Act (Law No. 34/2006, published
on 3 March 2006, amending Law 190/1999)
The main legal
The Securitisation Law (Law 31/2006, published on 13 March 2006) framework for
securitisation
and mortgage
bonds in
The Mortgage Bonds Law (Law 32/2006, published on 23 March 2006) Romania
•CNVM/NBR Regulation 12/2006 on the authorisation of agents
•NBR Norm19/2006 on eligible assets for “refreshing” MB cover pools
•CNVM Regulation11/2006 on securitisation
•CNVM&NBR Regulation 21/2006 on the credit risk in securitisation
Reff&Associates is the correspondent law firm of Deloitte Romania
4. Legal criteria for rating securitisation / mortgage bonds
Romanian securitisation framework: key features
A financial operation whereby an investment vehicle purchases pecuniary claims (all
Definition of
accessory rights included), (“assets”), groups them in pools and issues securities backed
securitisation under
by the respective assets’ corresponding cash-flows (“asset-backed securities”, in
Romanian law
Romanian “instrumente financiare securitizate”).
Pay through and pass-through structures available:
SPV set up as securitisation company
SPV set up as civil partnership (no legal personality)
Key legal aspects
SPV’s unchallenged ownership of asset pool – no insolvency claw-back
SPV’s bankruptcy remoteness: limited purpose, operational and management independency,
SPV insolvency protection for investors regarding the asset
Investors’ interest in the collateral (limited statute of limitation of challenge of collateral)
Key regulatory aspects
Entities involved in securitisation need authorisation by Securities Commission and Central Bank
Agent (trustee)
SPV administrator (corporate servicer) – minimum EUR125,000 equity
Portfolio management company (payment agent)
Reff&Associates is the correspondent law firm of Deloitte Romania
5. Legal criteria for rating securitisation / mortgage bonds
Romanian mortgage bonds framework: key features
Securities issued by banks, under CNVM’s supervision, based on a offering circular
Definition of
approved by CNVM, for the purpose of refinancing the mortgage lending activity of the
mortgage bonds
issuer, based on a cover pool of mortgage loans over which the investors are granted a
under Romanian law
first rank security interest and a preference right against any other creditors of the issuer.
Mortgage bonds: financial instruments accessible only to banks
Key legal aspects
Detailed regulation of Assets eligible for the cover pool and refreshment of the cover pool
(replacement of assets)
Protection of the investors’ interest in the cover pool
Isolation of the cover pool. Bankruptcy remoteness
Key regulatory aspects
Entities involved in securitisation need authorisation by Securities Commission and Central Bank
Agent (trustee) – mandatory for mortgage bonds (as opposed to securitisation)
Portfolio management company (payment agent)
Reff&Associates is the correspondent law firm of Deloitte Romania
6. Legal criteria for rating securitisation / mortgage bonds
Preliminary legal considerations in rating securitisation /
mortgage bonds
Does the necessary infrastructure exist to accommodate regulatory
concerns?
- It is important to ascertain whether or not the necessary infrastructure exists, to
accommodate structural, accounting, and other regulatory concerns.
- The extent to which relevant originators (e.g., banks, consumer lenders) are regulated
influences normally the credit quality of their products as well as their motivation to
securitise / issue mortgage bonds.
- Data/consumer protection rights
- Foreclosure
- Regulations of the rated instruments
- The nature of the accounting and tax treatment of the transaction.
Reff&Associates is the correspondent law firm of Deloitte Romania
7. Legal criteria for rating securitisation / mortgage bonds
Preliminary legal considerations in rating securitisation
- The structure of the special purpose vehicle (SPV) that issues the
securities
- Type of asset backed securities (debt or equity)
- Impact of local laws on issues such as bankruptcy, transfer of assets to
SPV or foreclosure?
- Could the ‘true sale’ of the assets to the SPV be challenged in the
event of the originator’s insolvency (‘claw back’)?
- The noteholders’ security interest in the assets, data/consumer
protection rights, foreclosure, etc.
Reff&Associates is the correspondent law firm of Deloitte Romania
8. Legal criteria for rating securitisation / mortgage bonds
Preliminary considerations in rating mortgage bonds
- Is there a special legal framework for mortgage bonds?
- How is protected the bondholders’ security interest in the cover pool?
- Impact of bankruptcy of the originator on the cover pool and mortgage bonds
investors
Reff&Associates is the correspondent law firm of Deloitte Romania
9. Legal criteria for rating securitisation / mortgage bonds
Legal Issues Frequently Encountered in New Markets:
Borrower/Loan Related
- Enforceability of loan documents, including the underlying security
- Average time to enforce security and average recovery costs
- Enforceability of prepayment penalties
- Consumer protection laws –limitations on the data that banks/lenders can
share with investors / other third parties?
Reff&Associates is the correspondent law firm of Deloitte Romania
10. Legal criteria for rating securitisation / mortgage bonds
Legal Issues Frequently Encountered in New Markets:
Transfer of receivables
- Is a notification to borrowers needed? If so, what are the implications if no notice is
given?
- Are there any other requirements in order to perfect the transfer of the receivables?
- Is there any registration required in connection with certain assets (e.g., mortgage
loans)?
- Is there a stamp tax or transfer tax?
- True sale – What is the possibility that a court would re-characterise the transfer as a
secured loan in case of the seller’s bankruptcy? Is there relevant case law?
- Claw back – How far back in time can a court go to cancel the transfer, in the case of a
fraudulent conveyance or a preference?
Reff&Associates is the correspondent law firm of Deloitte Romania
11. Legal criteria for rating securitisation / mortgage bonds
Legal Issues Frequently Encountered in New Markets:
SPV
- Is there a specific law for its structure and conditions?
- Is there a minimum capital required? Restricted actions? Minimum number of
officers? etc.
- Is the SPV and/or its assets legally segregated from its affiliates and/or
creditors?
- Is it eligible to file for, or be placed in, bankruptcy? If so, how will the underlying
assets be treated in its bankruptcy?
Reff&Associates is the correspondent law firm of Deloitte Romania
12. Legal criteria for rating securitisation / mortgage bonds
Legal Issues Frequently Encountered in New Markets:
Bankruptcy
- Specifics of the bankruptcy law
- The typical time frame of the proceedings
- How are secured creditors treated differently from unsecured creditors?
- Typical priority order of claims
- Who has the capacity to decide on the plan of liquidation / re-organisation?
Reff&Associates is the correspondent law firm of Deloitte Romania
13. Legal criteria for rating securitisation / mortgage bonds
Legal Issues Frequently Encountered in New Markets:
Taxation
- Taxation on the revenues of the SPV
- Stamp or transfer tax - with respect to the transfer of receivables
- Value added tax (VAT)
- Withholding tax – applied to the payments made by the SPV to investors
- Other taxes under securities laws
Reff&Associates is the correspondent law firm of Deloitte Romania
14. Legal criteria for rating securitisation / mortgage bonds
Concluding comments
How well does Romanian legal framework “serve” the rating of securitisation /
mortgage bonds?
Local versus cross – border transactions
Reff&Associates is the correspondent law firm of Deloitte Romania
15. Securitisation Services : Financial Advisory
in Romania Legal assistance
Tax assistance
Contacts
Tax Services Legal and regulatory
Rodica Segarceanu Andrei Burz Pinzaru
Partner Senior Manager
Direct:+40 21 207 53 64 Direct:+40 21 207 52 05
Fax: +40 21 319 51 03 Fax: +40 21 319 51 02
Mobile:+40 744 328 381 Mobile:+40 728 328 928
Email: rsegarceanu@deloittece.com Email: aburzpinzaru@deloittece.com
www.deloitte.com/ro/legal
4-8 Nicolae Titulescu Road,
East Entrance, 3rd floor, 4-8 Nicolae Titulescu Road,
Sector 1, Bucharest, 011141 East Entrance, 3rd floor,
Romania Sector 1, Bucharest, 011141
Romania
Reff&Associates is the correspondent law firm of Deloitte Romania