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Securities

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The global IPO market finally succumbed to negative sentiment in the first half of 2016. While cross-border listings have outperformed domestic listings in every first half since 2013 in terms of market share by value, deals of both types fell dramatically in the first half of this year. They fell more or less in tandem, with domestic deals marginally less affected as the issuers brave enough to come to market sought safety in home markets. The…

In light of a landmark energy reform that overhauled Mexico’s energy sector, the National Pension System Commission (CONSAR) has consistently amended its regulations, including the sole financial guidelines, in an effort to increase investments carried out by Mexican pension funds (AFORES or Administradoras de Fondos de Ahorro para el Retiro) in other asset classes, such as CERPIs.

CERPIs are certificates offered through the Mexican Stock Exchange by means of a Mexican issuing trust to finance or invest in certain projects in Mexico.  These are a new breed of asset class created as an alternative to the existing certificates for capital development or CKDs. Only institutional and qualified investors under Mexican law can purchase CERPIs.

Recent Developments

To increase investor protection and keep up with the developments in market practice, on 18 April 2016, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan – OJK) enacted OJK Rule No. 20/POJK.04/2016 on the Licensing of Securities Companies that Undertake Business Activities as Underwriters and Broker-Dealers (OJK Rule No. 20/2016). This rule was published on OJK’s website in late April 2016.

This rule replaces Rule of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) No. V.A.1 on the Licensing of Securities Companies, as attached to Decision of the Chairman of Bapepam-LK No. Kep-334/BL/2007 (Rule No. V.A.1). The provisions of OJK Rule No. 20/2016 are far more extensive and detailed than those of the previous rule and they set out more requirements and prohibitions than the previous rule.

Issuers and their respective advisors can now no longer rely on a disclaimer for liability which is customarily included as part of any teaser document or information memorandum (IM) that is distributed in Malaysia to solicit interest of potential investors to invest in an auction sale of any equity or debt instrument. With effect from 15 September 2016, Section 256, read together with section 92A, of the Malaysian Capital Markets and Services Act 2007 now provides that any provision in a “document, agreement or contract” that excludes the liability of any person who provides information to another who is investing in a capital market product will be void.