After more than three years of discussions, the UK and Bermuda finally exchanged letters setting up an arrangement for the exchange of tax information, which commits the UK government to be able to obtain requested information from banks and trustees, regardless of whether any crime has been committed and without the knowledge of the subject of an investigation or any requirement for a court order. It also confirms Bermuda’s commitment to high international standards and its stature as a responsible international financial centre. (Source: Tax-News.com)


Egypt has recently received the coveted top spot in the World Bank’s ranking system for being the country with the most reformed business environment, which measures progress in the ease of opening and operating businesses, as regarding laws and regulations. Egypt slashed requirements for a minimum capital threshold to start a business to USD1,800 down from USD10,000; and overall made improvements in half the ten categories relating to business. (Source: Offshore Investment)


Legal & General International Ireland, the group's recently created offshore arm, has launched an International Portfolio bond to cater for high net worth clients on the Cofunds platform. This will be followed by a second version in December. Both bonds will require an initial £50,000 ($103,000) investment, although LGII expects the first version to attract the highest average investment. (Source: wealthbriefing.com)


A recently-concluded central conference on the economy said the country would shift its monetary policy from "prudent," - an approach it has followed for the last ten years - to "tight." The conference hopes that with a "prudent" fiscal policy and a "tight" monetary policy the country will be able to prevent rapid economic growth from overheating, and prevent price rises evolving from structural to evident inflation. (Source: crienglish.com)


Goldman Sachs has amassed $2bn to use for property investments in Asia, a move likely to intensify competition for assets in fast-growing markets such as China and India. The bank plans to invest across Asia’s real estate asset classes, including direct purchases of buildings, in development opportunities and by taking equity stakes in listed property companies. If invested, the $2bn would triple the bank’s equity committed to Asia. (Source: ft.com)


Germany’s planned legislation to curb co-operation between investors could threaten responsible share ownership, healthy investor activism and undermine confidence. The focus of the legislation is improving transparency by expanding the definition of active shareholder co-operation and provides specific examples that characterize such actions. Under the new rules, investors and shareholders consulting each other on corporate governance and on voting strategies at annual meetings would be deemed to have acted in concert. (Source: Offshore Investment)


Higher-than-expected taxes on wealthy so-called "non-doms" who shelter in tax havens while living in Britain are being considered by the Treasury. A consultation paper said there could be additional taxes on those non-domiciled in Britain for tax purposes. In the pre-Budget report, the Chancellor, Alistair Darling proposed a tax of £30,000 a year on non-doms who had been living in Britain for seven years. It would be possible to amend the new charge to apply it without a seven-year grace period. (Source: independent.co.uk)


Acquisitive Icelandic bank Kaupthing has agreed to acquire Derbyshire Building Society's Isle of Man-based offshore deposit-taking business. At the end of the third quarter 2007, Derbyshire Offshore had total deposits of over £320 million ($650 million). On completion, which is expected to take place before the end of the year, Derbyshire Offshore will be integrated into Kaupthing's existing Isle of Man operation. Kaupthing's strategy is to grow deposits and cross sell additional products. (Source: wealthbriefing.com)


Credit Suisse Group has reached a deal to form an investment-banking joint venture in China, which could portend greater access for foreign companies to the nation's booming -- but largely closed -- financial markets. If approved by Chinese regulators, the Swiss bank's proposed venture with Founder Group, a Beijing-based conglomerate, would be among the first to take advantage of a long-promised opening. (Source: WSJ.com)


China's consumer price index rose by 6.9% in November, an 11-year high. It is believed that the increase, led primarily by the sharp rise of food prices, which jumped by 18.2% - and particularly by the cost of pork - will serve to strengthen Beijing's resolve to further policies to cool the economy in 2008. The news will also likely further delay the government, which heavily subsidizes oil and coal, from enacting plans for energy price reform. (Source: chinaeconomicreview.com)


The Ministry of Commerce said EU Trade Commissioner had proposed that the EU Commission itself could enact anti-subsidy measurements without receiving a formal application from local companies. This measurement, which is a reaction to China's free trade policy, will give local governments of EU countries an easier way to enact anti-subsidy measurements. (Source: china.org.cn)


A number of key changes to Jersey's Companies Law are being proposed by the Minister for Economic Development, Senator Philip Ozouf. The aim of these changes is to both up-date and introduce more flexibility to the Companies Law. One of the most significant proposals which will benefit the funds sector is to allow a company to hold treasury shares. Another recommendation is to allow a regulated financial services business to act as a corporate director of a Jersey company. (Source: Tax-New.com)


Following its endorsement by the European Council and the European Parliament, a regulation harmonizing the rules concerning the law applicable to contractual obligations (to be known as Rome I) has been approved. The regulation provides citizens and companies of the EU the security to enter into a contract in the knowledge that courts in all the Member States will apply the same principles on those cross-border elements of contractual disputes. In turn, this will facilitate the mutual recognition of court decisions in the European Union. (Source: Investors Offshore.com)


The Nasdaq Stock Market opened a representative office in Beijing on Dec.3 in a fresh move to tap the bourse's fastest growing market outside the United States. The office will serve the growing number of Chinese firms listed or seeking to list on Nasdaq and deepen its dialogue with China's bourses and regulatory bodies, Nasdaq said in a statement. (Source: chinaview.cn)


Barclays has announced that it is planning to launch an enhanced version of its defined returns plan, featuring an improved five-year kick-out option offering investors a 10% annual return for each year the plan is in force. The defined returns plan, can offer investors a fixed return of either 20% or 42.5% provided the level of the FTSE 100 at maturity is equal to or higher than its level at the starting date. (Source: banking-business-review.com)


UK and Saudi Arabia signed the first comprehensive double taxation avoidance agreement between the UK and Saudi Arabia. The treaty follows the OECD model with the aim of the agreement being the facilitation of exchange of information between the relevant revenue authorities, under which, source-country withholding taxes on all interest payments have been abolished and dividends may generally be taxed at source up to a maximum rate of 5% and royalties to a maximum of 8%. (Source: Offshore Investment)


JP Morgan Private Bank, the private client arm of the US investment bank, is to close its Jersey trust business. The bank said the withdrawal from Jersey followed its decision to consolidate international fiduciary services into one, as yet unspecified, location. The bank also stressed that it will be continuing its four other Jersey-based business lines-asset management, treasury, financial services and corporate banking. (Source: wealthbriefing.com)


The new EU-China project on the Protection of Intellectual Property or IPR-II has started in Beijing. It aims to help improve the effectiveness of intellectual property rights enforcement in China. It provides technical assistance to Chinese legislative, judicial, administrative and enforcement agencies. The project will run from 2007 to 2011, with a European Commission contribution of 10 million euros, and a Chinese contribution of 5.425 million euros over 4 years. (Source: crienglish.com)


Acer, the world's third largest personal computer vendor, has outbid its close rival Lenovo to become a global sponsor of the Olympic Games. Acer will become one of 11 global sponsors for the Olympic Games from January 2009 to 2012. It will supply notebook and desktop computers and monitors to the 2010 Vancouver Winter Olympics and the 2012 London Summer Olympics. (Source: ftchinese.com)


Pakistan's Federal Board of Revenue has created a task force to review how multinationals' international transactions are taxed. The task force will look specifically at banking sector, non-resident companies, petroleum/gas exploration companies, pharmaceutical, telecommunication, satellite TV channels and mobile phone companies. It will make key recommendations for improving revenue collection from non-resident companies. (Source: International Tax Review)


Uproar in the Italian public opinion as the Senate, while debating the annual financial law, approved - on November 16th, 2007, by a two vote’s majority - an amendment (Section 53-bis) to the bill’s original draft text, meant to enforce collective protection for consumers by introducing a class action system. The amendment, if confirmed by the Chamber of the MPs, would introduce significant modifications to the Consumer Code in force (Legislative Decree no. 206 of September 6th, 2005). (Source: mondaq.com)


The Money Laundering Regulations 2007 come into effect in the UK on 15th December 2007 to ensure that the UK’s approach to money laundering at home and abroad is effective and proportionate. The new regulations extend supervision to all businesses in the regulated sector which are financial firms, lawyers, accountants, casinos, trust and company service providers and estate agents to ensure greater compliance by including for the first time estate agents, trust and company service providers and consumer credit businesses. (Source: Trusts & Trustees)


Chinese exporters suffered a direct loss of $75.8 billion last year because of overseas technical trade barriers. The survey showed 15.22 percent of Chinese exporting enterprises were affected by "certain technical barriers" in overseas markets. Opportunities lost due to such barriers were worth $26.2 billion last year, up 20.74 percent from a year ago. The barriers also increased exporters' production costs by $2.62 billion. (Source: China Daily)


The ECJ determined that the non-application of article 43.º of the IRS Code to residents of other EU Member States is incompatible with the European Community Law. Under that article, only 50% of the real estate capital gains obtained by resident individuals is subject to taxation. Portugal will have to reduce the taxation of EU citizens or revoke the benefit for tax residents and refund the tax unduly levied in the last four years accrued of indemnity interest to the taxpayers that file a proper claim. (Source: Private Banking Newsletter)


UBS became the latest financial firm to go to Asia and the Middle East hat in hand, hoping to raise enough cash to patch the holes in its balance sheet caused by its holdings of subprime mortgages. Singapore's government investment fund and an Middle Eastern investment answered the call, buying up 13 billion Swiss francs of convertible bonds. UBS clearly thought that wasn't enough, so it will pay its dividend in stock rather than cash and will resell about 2 billion francs in stock it had bought back. (Source: WSJ.com)