Keywords: SAFE, PRC, new rules, cross-border
RMB capital account, related transactions
On 7 April 2011, the State Administration of Foreign Exchange of
the PRC (SAFE) issued the Notice on the Issues relating to the
Regulation of the Practice of Cross-border RMB Capital Account
Related Business (Circular No.38 of 2011) which became
effective as from 1 May 2011.
The Notice introduces significant changes to the current regime
of Renminbi (RMB) cross-border capital account transactions. Under
the new regulations, RMB can be used in a wider range of
transactions which involve the inflow or outflow of RMB debt or
equity....
Specific Questions relating to this article should be addressed directly to the author.
In recent months Argentina has been experiencing both formal and informal additional foreign exchange restrictions both to purchase in the country and to transfer foreign currency abroad.
Through two new regulations, the Ministry of Economy and the Central Bank reduced the terms for the liquidation of foreign exchange proceeds from exports.
Until March 30, 2012, Brazilian
financial institutions did not require the approval of the
Brazilian Central Bank or other authorities to directly or
indirectly invest in the capital stock of other legal entities
either in or outside Brazil.
On April 24, 2012, the Board of
Directors of the Central Bank of Brazil (Banco Central do
Brasil – Bacen) decided to adopt new rules for
merger and acquisition (M&A) transactions involving two or
more financial institutions or other similar entities duly
authorized to operate in Brazil by Bacen, and from now on Bacen may
require that the efficiency gains resulting from this type of
operation be shared with the consumers.
The "Novo Mercado" is a listing segment created by the Brazilian Securities, Commodities and Futures Exchange ("BM&FBOVESPA S.A – Bolsa de Valores, Mercadorias e Futuros" – BVMF) and designed for shares issued by companies that voluntarily undertake to abide by good corporate governance practices and transparency which are more rigid than those already required by the Brazilian legislation and by the Brazilian Securities and Exchange Commission ("Comissão de Valores Mobiliários" - CVM).
By means of Decree No. 7683, of
February 29, 2012 (Decree 7683/2012), published in the Official
Gazette of the Union of March 1st, 2012, the Brazilian
Federal Government decided to increase from two to three years the
term of the foreign currency loans which are subject to the tax on
exchange transactions (IOF) at the rate of 6%.
On April 25, 2012, the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) issued CVM Instruction No. 521 (CVM Instr. 521/2012), regulating the activity of credit risk rating (classificação de risco de crédito) in the Brazilian securities market, with emphasis on registration and recognition requirements, information disclosure, and rules of conduct and internal controls of the credit rating agencies (CRAs).
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