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asian-mena Counsel Volume 15 Issue 3, 2017 Volume 15 Issue 3, 2017 Volume ANTI-TRUST & COMPETITION ANTI-TRUST Anti-Trust & Competition www. Plus ... inhouse The Thing About… Investigative Intelligence community Jeanette Chan, head of Asset searches in the Paul Weiss’s China practice digital age .com | MAGAZINE FOR THE IN-HOUSE COMMUNITY ALONG THE NEW SILK ROAD | Feature contributors Michael Gu is a founding partner and a principal competition partner at AnJie Law Firm. As a competition law pioneer in China, he has secured merger clearance from the Nick Ferguson – Managing Editor [email protected] Ministry of Commerce for more than 60 merger transactions, including the first merger filing under the Anti-Monopoly Law. Gu frequently represents clients in high-profile Leo Yeung – Design Manager [email protected] antitrust investigation proceedings, antitrust civil litigations and leniency programmes. Wendy Chan – Global Head of Events [email protected] Jessica Ng – Events Executive [email protected] Francis Lim is a senior partner and a member of the executive and special committees of ACCRALaw. He was closely involved in the enactment of several Philippine laws Rahul Prakash – Publisher [email protected] such as the Financial Rehabilitation and Insolvency Act (FRIA), Credit Investment Yvette Tan – Head of Research and System Act (CISA), Real Estate Investment Trust Act (REITA), Personal Equity Development Manager Retirement Account Act (PERAA), and the Philippine Competition Act. He was also [email protected] involved in the formulation of several Philippine procedural rules such as the Interim Yannie Cheung – Office Administrator Rules on Intra-Corporate Controversies, Rules on Electronic Evidence, Rules on Notarial Practice, Rules on [email protected] DNA Evidence, Financial Rehabilitation Rules of Procedure, and the Financial Liquidation and Suspension Tim Gilkison – Managing Director of Payments Rules of Procedure. [email protected] Patrick Dransfield – Publishing Director [email protected] Eric Recalde is a tax and corporate and special projects partner in ACCRALaw. He is Arun Mistry – Director an accomplished legal writer having published several books: A Treatise on Tax Principles and Remedies (2009, 2015), The Philippine Local Tax and Tariff and Editorial Enquiries Tel: ....................... (852) 2542 4279 Customs Laws (2011) and The Philippine Internal Revenue Taxes (2014). Together with [email protected] Francis Lim, he published The Philippine Competition Act: Salient Points and Emerging Issues (2016). Advertising & Subscriptions Tel: ...................... (852) 2542 1225 [email protected] Published 10 times annually by Pacific Business Press Limited FIND A LAWYER ... Room 2008, C C Wu Building, 302-8 Hennessy Road, Wan Chai, Search by Practice and Industry at www.inhousecommunity.com Hong Kong S.A.R. Publishers of TM • ASIAN-MENA COUNSEL Magazine and Weekly Briefing • IN-HOUSE HANDBOOKTM Organisers of the • IN-HOUSE CONGRESSTM events Hosts of • www.inhousecommunity.com • www.mycareerinlaw.com Forums for the In-House Community along the New Silk Road © 2017 Pacific Business Press Limited and contributors Opinions expressed herein do not constitute legal advice, and do not necessarily reflect the views of the publishers. ISSN 2223-8697 ... AND SEND THEM AN In this issue Volume 15 Issue 3, 2017 ANTI-TRUST and COMPETITION Special Report 26 Asia’s evolving competition landscape After a period of rapid adoption of competition laws in Asia, only Bhutan and North Korea are compliance safe spaces, writes Nick Ferguson. 28 Anti-monopoly enforcement in China’s healthcare industry Companies involved in the manufacture and sale of active pharmaceuticalingre- dients are in the spotlight as Chinese authorities prepare an anti-monopoly wind- storm, write Michael Gu and Sihui Sun of AnJie Law Firm. 32 Towards robust yet balanced competition in the Philippines The Philippine Competition Commission is taking strides towards a competition law regime that is responsive to business while still promoting competition, write Francisco Lim and Eric Recalde of ACCRA Law Offices JURISDICTION UPDATES Key legal developments affecting the In-House Community along the New Silk Road 06 4 RBI issues directions on peer-to-peer lending platforms By Vineet Aneja and Abhishek Singla of Clasis Law 6 New regulation on guidelines and procedures for the implementation of investment climate development activities By Dini Retnoningsih of Lubis Ganie Surowidjojo 12 8 Malaysia introduces audit exemption for certain private companies By Norhisham Abd Bahrin of Azmi & Associates 2 www.inhousecommunity.com Protection of women employees in the Philippines 10 By Paulo N Rabanal of ACCRA Law Offices Big data ownership and regulation 14 12 By Hong Mi-Ok of Lee International IP & Law Group New decree for registration of security measures 14 By Dao Phuong Linh of Indochine Counsel 16 The Briefing Along with the latest moves and jobs, we put the spotlight on China 28 Literature’s US$1.1 billion Hong Kong IPO and review our latest events in Hong Kong and Shanghai. 23 Investigative Intelligence: Asset searches in the digital age Social media and other technology are changing the way asset searches are conducted in a dispute, writes Reshmi Khurana of Kroll. 32 36 The Thing About… Jeanette Chan The managing partner of the China practice and head of the communications and technology practice at Paul Weiss discusses disruption, diversity and the changing legal landscape in China. 40 Asian-mena Counsel Direct Important contact details at your fingertips. 36 Asian-mena Counsel is grateful for the continued editorial contributions of: Volume 15 Issue 3, 2017 3 JURISDICTION UPDATES INDIA 14th Floor, Gopal Das Bhawan, 28, Barakhamba Road, New Delhi 110 001India By Vineet Aneja and Tel: (91) 11 4213 0000 / Fax: (91) 11 4213 0099 Abhishek Singla E : [email protected] • [email protected] W: www.clasislaw.com rower and lender, as applicable, which states RBI issues Directions on Peer to Peer that the limits prescribed above have been adhered to by the respective participant. Lending Platform The Directions clearly specify the fund transfer mechanism which needs to be nline lending transactions are in their platform is barred from carrying out various adopted by a P2P lending platform for the Onascent stage in India and given the activities, such as: purpose of running the business of P2P lend- increase in peer-to-peer (P2P) lending (i) raising deposits, lending on its own and ing. At least two escrow accounts need to be through e-commerce marketplace it is of permitting international flow of funds; and set up and maintained, wherein one account extreme importance to regulate such trans- (ii) cross-selling of product (except for loan- is for funds received from lenders and the actions. Accordingly, the Reserve Bank of specific insurance products) and provid- other account for funds collected from the India (RBI) has recently issued “Master ing/arranging any credit enhancement or borrowers. The escrow accounts shall be Directions – Non-Banking Financial credit guarantee. operated by a trustee, which shall be pro- Company – Peer to Peer Lending Platform A P2P lending platform is required to put moted by the bank maintaining the escrow (Reserve Bank) Directions, 2017” in place a board-approved policy to address accounts. (“Directions”) to regulate company that grievances/complaints of participants. In case Any takeover/acquisition of control of a carry on the business of P2P lending plat- a complaint is not redressed within a period P2P lending platform or any change in share- form (P2P lending platform) in India. of one month, the participant shall have the holding of a P2P lending platform that results One of the main elements of the right to appeal to the Customer Education in acquisition of 26 percent or more of the Directions is the mechanism specified in and Protection Department of RBI. paid-up equity capital of the P2P lending relation to the registration of a P2P lending platform would require prior written consent platform. As per the Directions, an existing/ of RBI. Further, any change in management prospective P2P lending platform is permit- “The Directions mainly aim at of a P2P lending platform that results in a ted to carry its business if the following con- establishing a constructive set of change in more than 30 percent of the direc- ditions are fulfilled: norms that would govern the tors (excluding independent directors) or any (i) it is a company; change in shareholding that gives the acquirer (ii) it has a net owned fund of not less than process of establishing and the a right to nominate a director shall also Rs20 million or such higher amount as functioning of P2P lending require prior written consent of RBI. RBI may specify; and platform in India” Subsequent to the receipt of approval from (iii) it has obtained a certificate of registration RBI. P2P lending platform and other con- from RBI. cerned parties would have to give a public The Directions make it mandatory for In terms of prudential norms, the notice of change in management/control at an existing P2P lending platform to obtain Directions states that the aggregate exposure least 30 days before such change is made registration within three months from the of a lender to (i) all borrowers across all P2Ps effective.