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Global Financial Services Regulatory Guide Global Financial Services Regulatory Guide Baker McKenzie’s Global Financial Services Regulatory Guide Baker McKenzie’s Global Financial Services Regulatory Guide Table of Contents Introduction .......................................................................................... 1 Argentina .............................................................................................. 3 Australia ............................................................................................. 10 Austria ................................................................................................ 22 Azerbaijan .......................................................................................... 34 Belgium .............................................................................................. 40 Brazil .................................................................................................. 52 Canada ................................................................................................ 64 Chile ................................................................................................... 74 People’s Republic of China ................................................................ 78 Colombia ............................................................................................ 85 Czech Republic ................................................................................... 96 France ............................................................................................... 108 Germany ........................................................................................... 118 Hong Kong ....................................................................................... 141 Hungary ............................................................................................ 163 Indonesia .......................................................................................... 177 Italy ................................................................................................... 184 Japan ................................................................................................. 192 Luxembourg ..................................................................................... 206 Malaysia ........................................................................................... 218 Mexico .............................................................................................. 225 Netherlands ....................................................................................... 235 Peru ................................................................................................... 244 Philippines ........................................................................................ 255 Baker McKenzie | i Poland ............................................................................................... 265 Russia ............................................................................................... 276 Saudi Arabia ..................................................................................... 290 Singapore .......................................................................................... 304 South Africa ..................................................................................... 313 Spain ................................................................................................. 325 Sweden ............................................................................................. 349 Switzerland ....................................................................................... 358 Taiwan .............................................................................................. 368 Thailand ............................................................................................ 382 Turkey .............................................................................................. 391 Ukraine ............................................................................................. 401 United Arab Emirates ....................................................................... 409 United Kingdom ............................................................................... 415 United States of America .................................................................. 428 Venezuela ......................................................................................... 450 Vietnam ............................................................................................ 464 ii | Baker McKenzie Baker McKenzie’s Global Financial Services Regulatory Guide Introduction The financial services industry is undergoing sweeping changes driven by regulatory developments and continued consolidation in the sector. The lines between traditionally discrete business areas have become less clear. Our new Global Financial Services Regulatory Guide provides a comprehensive summary of regulations applicable to banks and other financial services companies around the world. It covers 41 jurisdictions and brings together the collective knowledge and experience of more than 700 banking and finance lawyers in Baker McKenzie’s global network. Contact details for each country can be found at the end of the relevant chapter. Arun Srivastava Global Financial Services Regulatory Chair Baker McKenzie Baker McKenzie | 1 Baker McKenzie’s Global Financial Services Regulatory Guide Argentina Argentina 1. Who regulates banking and financial services in Argentina? The Argentine Central Bank (Banco Central de la República Argentina or ACB) is the governmental agency in charge of the regulation of financial entities in Argentina, and therefore of authorizing their registration, as stated in Article 7 of the Financial Entities Law No. 21,526 (FEL). The ACB exercises control and system monitoring through the Superintendence of Financial and Exchange Entities (SEFyC). The ACB’s main duties include: (i) the regulation of the financial system; (ii) the enactment of financial regulations; (iii) the flow of funds and regulation of interest rates; and (iv) the authorization regarding the registration of foreign banks. In accordance with the principle of equal treatment between both national and foreign capital, Argentine law sets no restrictions on the nationality of the investors who wish to participate in the local financial system nor on the operations that the entities in which they participate can perform. In addition, the Argentine capital market is regulated by the Argentine Securities Commission (Comisión Nacional de Valores or ASC), which is the entity in charge of regulation of public offerings, brokers and stock exchanges. In addition, the Capital Market Law No. 26,831 regulates public and private offerings in Argentina. Baker McKenzie | 3 2. What are the main sources of regulatory laws in Argentina? The legal framework regarding financial entities’ regulations in Argentina is mainly given by the following laws: • FEL No. 21,526 – The objective of this law is to regulate the establishment and operation of entities providing financial services, whether private or public, state or mixed in nature. The FEL regulates financial institutions’ organization, authorization and operational requirements, obligations, and permitted and prohibited activities. It also establishes penalties in connection with violations of the FEL, which include warnings, fines, disqualifications and revocation of the license to operate as a financial entity. • ACB’s Charter Law No. 24,144 – This law provides for the general organization of the ACB, its functions, rights and duties. The law aims to promote monetary and financial stability, employment and economic development with social equity to the extent possible within the policy framework established by the national government. • ACB’s implementing regulations – The ACB issues several resolutions to further regulate and implement the financial system in Argentina. They relate to all aspects of banking and financial activities, aimed to facilitate the understanding and monitoring of regulations. • Capital Market Law No. 26,831 – This regulates public and private offerings in Argentina and establishes the ASC as the regulatory authority for the public market. • ASC’s implementing regulations – The ASC is the official body responsible for the promotion, supervision and control of stock markets. The main purpose of the ASC is safeguarding investors’ and shareholders’ interests. 4 | Baker McKenzie Baker McKenzie’s Global Financial Services Regulatory Guide Argentina 3. What types of activities require a license in Argentina? Any banking or financial intermediation and/or solicitation of funds activities performed in Argentina require registration and licensing with the ACB. However, registration and licensing do not apply if the banking activities are performed entirely from outside Argentina. In addition, it is important to note that the FEL distinguishes among different types of financial entities, which include among others, commercial banks, investment banks, mortgages banks and financial entities. On the other hand, and in connection with capital markets, any public offering of securities shall be subject to the supervision and prior authorization of the ASC. From a corporate standpoint, there is a distinction between isolated activities and others performed on a regular basis. Any corporation performing activities on a regular basis in Argentina will need to establish local presence
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