The Office of Fair Trading had asked sale-and-rent-back companies to justify claims that customers could rent their properties after they were sold at a fair market rate, that they could buy back their homes in future and that rental terms would be flexible. Many homeowners are unaware that they may no longer be eligible for housing benefit if they choose to sell and rent back. Sale-and-rent-back schemes have become more popular recently as an increasing number of borrowers have turned to them as a last resort. (Source: timesonline.co.uk)

Dubai is mulling tightening rules on the property market in the Gulf financial hub after many developers' shelved projects because of the global financial crisis. Buyers would be required to pay a developer 30 percent of the property price as a deposit, with the remaining 70 percent paid in installments linked to stages of the development. Developers would not be allowed to start selling units in a property until 20 percent of the planned project has been completed. This will ensure only the most feasible projects go forward. (Source: zawya.com)

An institution jointly established by the Chinese government and Japanese companies in Tokyo will establish a section to accept copyright registration from Japanese companies for China as soon as April. The copyright registration will enable Japanese companies to more easily fight product piracy and imitations of their merchandise in China. The section also will handle applications by Japanese companies for lawsuits and mediation related to copyright in China. Currently, foreign companies are able to register copyright only in Beijing. (Source: yomiuri.co.jp)

The World Trademark Review has published an article exploring German trademark law. The article states that unregistered trademarks are protectable in Germany as long as they function as trademarks and have acquired a reputation through use. Other commercial signs may also be protected, with the distinctiveness requirement varying depending on the type of right sought. (Source: lawdit.co.uk)

After being recognized as Chinese Well-known Trademark, top Chinese search engine Baidu Company obtained a Special Award Fund with the sum of one million yuan. The Special Award Fund for Chinese Well-known Trademark aims to encourage parts of outstanding enterprises with well-known trademarks in investing and striving for brands.

Chinese officials plan to implement previously discussed plans to allow mainland property developers to raise capital through real estate investment trusts (REITs). Banking regulators are planning to use REITs to stimulate property market. REITs cannot be used until their regulations are specified through legislation. REITs could attract billions of dollars in extra capital to the sector and free mainland property developers from their current dependence on bank finance. The timing of the REIT pilot program remains uncertain, however. (Source: chinaeconomicreview.com)

Investment trusts could provide an alternative income for investors and savers, as the Bank of England continues to cut rates, says JPMorgan. Many established investment trusts have considerable revenue reserves as a result of their ability to retain up to 15 per cent of their annual income. As such, investment trust boards are able to enhance annual dividend payments to shareholders during market downturns. Long-term savers and investors could benefit from the regular returns investment trusts can provide through the payment of dividends. (Source: whatinvestment.co.uk)

The European Parliament passed a law to help mutual funds expand abroad. The bill would let funds attract investors anywhere in the region with a harmonized. Fund administration companies could set up shop anywhere in the 27-nation EU. The changes will also make it easier for mutual funds to merge. It is estimated that fund managers could save $8 billion a year. However, some critics said the rules could weaken investor protection. EU national governments still need to give final approval before the proposal can become law, taking effect at in July 2011. (Source: iht.com)

GoldenTree Asset Management, a credit hedge fund, is offering investors who want to withdraw money securities instead of cash. Hedge funds warn investors that they have the right to pay investors back "in kind" not cash. However, such payments in kind have been highly unusual until the current credit crisis. GoldenTree had about $10bn under management last year. But losses and redemptions could leave it with half as much if investors made good on withdrawal requests. (Source: ft.com)

From the start of this year, all new marketing materials for funds will be required to comply with revised advertising guidelines in HK. Fund management companies will have until March 31 to update existing marketing materials. Many fund houses worry about the significant added cost of reprinting marketing materials. The Securities and Futures Commission wants fund offering documents to be up-to-date and to contain sufficient information needed by investors to make an informed decision regarding the investment. (Source: asianinvestor.net)

Jersey is considering the financial costs and benefits of following the UK in allowing same-sex couples to enter civil partnerships, a move which could increase the number of people wishing to domicile their affairs on the island. If approved, Jersey could grant same-sex couples the same property and inheritance treatment as heterosexual spouses. The introduction of same-sex civil partnerships in the UK had several implications concerning wealth management issues. (Source: wealthbriefing.com)

The list in property settlement verdicts in divorce proceedings have vividly echoed changing concept of the Chinese on marriage and property. In the 1980s, the court focused mainly on ruling whether the couple should be divorced. But now, the disputes gradually shifted to partition of more valuable items. As the attitudes to divorce becoming more tolerant, the number of divorces has been rising since 1980 when the figure was 341,000. About 1.4 million couples divorced across the country in 2007, a year-on-year increase of 18.2 percent, and latest figures showed. (Source: chinadaily.com)

Guernsey has recently acted to clear up a legal pitfall facing descendants classified as illegitimate if their parents were unmarried. In the event of a person dying after 7 May 2008 without making a will, any illegitimate children will automatically have a share together with the legitimate heirs. In practice, a buyer of property being sold by the heirs will not definitely be sure that the persons are its only owners. To avoid arguments about title, the Royal Court may grant an Administration Order to sell the property, subject to making enquiries as to the existence of any unascertained heirs. (Source: wealthbriefing.com)

Japan will seek to scrap capital gains taxes for foreigners investing in Japanese companies through funds. Japan currently levies a corporate tax of about 40 percent on capital gains when foreign firms sell shares through funds, one of the highest rates in the world, depressing the flow of global capital into Japan. Foreign investors account for only 4 percent of fund investment in Japan. Eligible funds will need to have held stakes in firms for at least a year, while any foreign investor with a stake of 25 percent or more. (Source: reuters.com)

In a move to try and protect the country's aviation industry, China has pledged to give those airlines hit by the economic downturn an USD360m tax concession. Under the regime, airlines will no longer have to pay the 3% fuel surcharge until 2011, and the government will refund all of the surcharges already paid by airlines from January 1, 2008. In addition to this, 10 of the country's banks have teamed up with AVIC (the part-owner of China's Commercial Aircraft Corp) to offer them a multi-billion dollar loan. (Source: LawandTax-News.com)

Exchange traded fund (ETF) inflows accelerated in 2008 as their appeal of increased diversification, liquidity and lower fees attracted investors from traditional managed funds. American investors pumped nearly $200 billion into ETFs in the first 11 months of 2008 and pulled $193 billion out of managed equity managed funds. The ETF's assets under management will soar to $1.5 trillion in 2009 from the present $1.06 trillion. Average daily trading volume of ETFs soared 32.5 per cent to $120.6 billion a day in 2008. (Source: investordaily.com)

The New York Times Company had reached an agreement with the Mexican billionaire Carlos Slim Helú for a $250 million loan intended to help the newspaper company finance its businesses. Under the deal, Mr. Slim would invest $250 million in the form of six-year notes with warrants that are convertible into common shares. The notes also carry a 14 percent interest rate. The company will use the proceeds to refinance its existing debt. Mr. Slim will receive no representation on the company's board or any shares with special voting rights. (Source: nytimes.com)

China will regulate the nation's insurance companies based on their solvency, internal control and risks from this year. Insurance companies will be classified as four types, from the highest A to lowest D. The insurance watchdog started this method of regulating the nation's insurers in 2006 and will expand the pilot program nationwide. The regulator will review the insurance companies' solvency and risk data every month. Failed insurers will be forced out of the market as the new practice is put into effect. (Source: bloomberg.com)

IBM China has bought a 1.56 percent stake in Changhong Electric Co Ltd for about $15.79 million. The deal makes IBM China the second largest shareholder in Changhong, one of the country's largest TV manufacturers. Following the share sale, Changhong Group, Changhong Electric's largest shareholder, holds a 29.08 percent stake. The transaction is aimed at optimizing the listed company's stock structure and attracting strategic investors and will not change Changhong Group's position as the controlling shareholder. (Source: chinadaily.com)

B. Ramalinga Raju, chairman of Satyam Computer Services, has confessed to fixing the company's books in a $1bn fraud. He had manipulated the accounts to show hugely inflated profits and fictitious assets. The fraud is India's biggest corporate scandal since the early 1990s. Its disclosure will ring alarm bells for hundreds of Fortune 500 companies that entrust their most critical data and computer systems to Indian outsourcing companies. Satyam was the first Indian company to list on three international stock exchanges yet the fraud went unnoticed for years. (Source: ft.com)

The world is heading toward "water bankruptcy" as demand for the precious commodity outstrips even high population growth. In less than 20 years water scarcity could lose the equivalent of the entire grain crops of India and the US. Water has been consistently under-priced in many regions and has been wasted and overused. About 70 major rivers around the world are close to being totally drained in order to supply water for irrigation and reservoirs. (Source: google.com)

Beijing has granted a business permit to a Credit Suisse joint venture to offer investment banking services on the mainland, a sign that regulators may be loosening their grip on foreign investors in the equity market. The venture, 66.7 per cent owned by Hunan's Founder Securities, will be able to manage and sponsor A-share and bond offerings. Beijing now gives Sino-foreign securities companies' licenses only for investment banking and research, while barring them from the brokerage business. (Source: scmp.com)

Citi and Morgan Stanley agreed to merge their wealth management operations. Under the deal, the Citi-owned Smith Barney US, Citi Smith Barney Australia and Quilter units will merge with Morgan Stanley Global Wealth Management. Morgan Stanley will pay Citi $4.05 billion in upfront cash and control 51 per cent of the joint venture. It will have over 20,000 financial advisers who manage $2.25 trillion in client assets and generate $22.37 billion in pro-forma combined revenue. It will also have $4.2 billion in combined pre-tax profit and cater to 6.8 million client households globally. (Source: investordaily.com)

China's central bank plans to implement a pilot program of settling overseas trade with the Chinese currency instead of the US dollar in 2009. China will allow the renminbi to be used for settlement between Guangdong and the Yangtze River Delta, and Hong Kong and Macao. Meanwhile, exporters in Guangxi and Yunnan will be allowed to use renminbi to settle trade payments with Association of Southeast Asian Nations members. Those moves are expected to facilitate overseas trade, as Chinese exporters might face losses if they continue to be paid in US dollars. (Source: xinhua.com)

Lawyers are hailing a European court ruling that will enable people to claim tax relief on donations to foreign-based charities for the first time, boosting cross-border philanthropic transfers and tax-planning options. The ruling is significant because until now, the UK, for example, has only granted tax relief to charities registered in the UK and many other EU states take a similar stance. However, lawyers cautioned that nation states could still drag their heels on enabling cross-border charitable transfers to enjoy tax breaks. (Source: wealthbriefing.com)

【Chief Editors: Cynthia & Lillian 】

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