ABMI Group of Experts Report - Personal File Sharing

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egulations allow the ICSDs to hold omnibus accounts. Euroclear and Clearstreamare still holding (“dormant”) omnibus accounts even though they no longer provideservices through those accounts. Thus, if the ICSDs are actually to use omnibusaccounts, they may need to modify their system so they can efficiently calculate howmuch tax is imposed to which customer.In addition, although the KRW is not subject to restrictions, foreign exchange must beconducted via either an appointed Foreign Exchange (FX) banks or a licensed brokerin Korea. Licensed banks and brokers are eligible to participate in the interbank FXmarket. Foreign participation is not permitted.MalaysiaNo legal/regulatory issues have been identified in the original report. BothClearstream and Euroclear currently maintain active links to Malaysia. Omnibusaccounts are supported. The link can be direct or indirect. There are no newamendments or revisions published on the Capital Markets and Services Act (2007)or on other regulatory laws that regulate Malaysian bond market during 2010.There is no restriction on the purchase of MYR via External Accounts (EAs) held bynon-resident investors for settlement of the purchase of ringgit assets. The purchaseof MYR on forward basis would require confirmation of underlying transactions, byway of declaration or documentation to the local custodian. Overdrafts in MYR areonly permitted in the event of inadvertent delays due to technical errors for settlementof securities traded on Bursa Malaysia or settled through Real-Time ElectronicTransfer of Funds and Securities System (RENTAS). These ringgit credit facilities arelimited to two business days.PhilippinesForeign investors are required to fund their account on or before Settlement Datesince overdrafts are not allowed under local regulations. Prior approval is no longerrequired for foreign investors to repatriate excess PHP funds not used forinvestments. Foreign investors can repatriate excess PHP funded with inwardremittances of FX. Manual of Regulations on Foreign Exchange Transactions (FXManual) provides the general guidelines for the sale and purchase of foreignexchange. The FX Manual requires foreign investments to be registered with theBSP in order to obtain a Bangko Sentral Registration Document (BSRD) at theaccount level. The BSRD will be required if foreign exchange is purchased from theauthorized agent banks (AABs) and/or their affiliate foreign exchange corporations(AAB-Forex corps) to service future remittances of dividends, profits and earningsand/or capital repatriation. In order to be able to offer cash services in thePhilippines, a foreign corporation must first secure the necessary licenses orregistrations from the appropriate government bodies. In the case of corporations orpartnerships, the necessary incorporation papers from the SEC must first beobtained.For an Asian ICSD, the barriers identified in the original report are still maintained, asissuance of foreign investor documentation is still required (BSRD) 5 for the purchaseand sale of foreign currency against the Philippine peso. Funds converted to PHPfrom inward remittance must be invested in BSRD eligible instruments such asequities, government securities, money market instruments (i.e. corporate bonds),5 Foreign Investments Act of 1991 (or Republic Act No. 7042):http://www.lawphil.net/statutes/repacts/ra1991/ra_7042_1991.html7
and time deposits (with at least a 90 days maturity) in order for proceeds to beeligible for repatriation. Proceeds and income derived form investments may only berepatriated if the BSRD document for the original purchase of peso is available. AnAsian ICSD would need to work with its cash correspondent bank to fulfil alldocumentary requirements related to this activity.On 5 November 2010, the BSP issued reforms to the foreign exchange regulatoryframework under Circular No. 698. Under the new Circular, the sale of any foreigncurrency by an authorized agent bank (AAB) against the PHP for amounts in excessof US$60,000 (level increased from US$30,000) require supporting documentsindicating the purpose of the foreign exchange transaction.As per BSP/Central Bank Circular 222, dated 24 December 1999, lending in pesos tonon-residents are not allowed, except for certain exemptions as provided underMemorandum No. M-2007-021 dated 15 August 2007 which allow consumer lendingonly (auto loans, housing loans, etc.) to non-residents holding non-immigrant visasand staff and officials of diplomatic offices.SingaporeNo legal/regulatory issues were identified in the original report. European ICSDshave existing and established links to the market. Omnibus accounts and thenominee concept are still accepted. The link can be direct or indirect. The variouslegislative and quasi-legislative instruments applicable to the Market and itsparticipants are set out by the Monetary Authority of Singapore (MAS) and regulatedunder the Securities and Futures Act. There are no circulars or new amendments ofthe Securities and Futures Act published during the year 2010 that would constitute alegal barrier but MAS published amendments that update the main act that regulatesecurities, SFA Act (Securities and Futures Act) regarding reporting requirements.ThailandBoth European ICSDs have links today. No legal/regulatory issues are foreseen.With regards to cash accounts, an Asian ICSD could open a Non-Resident BahtAccount for Securities Activity (NRBS) account with a correspondent bank.Purchase of THB for “same day” and “next day” value without underlying transactionscan be made up to an aggregate of THB 300 million per group of non-resident perbank. The Bank of Thailand imposes a daily limit of THB 300 million outstanding atthe end of the day on Thai Baht (THB) cash balances in the accounts of nonresidents.This limit applies to aggregate account balances held by any non-residententity with any Thai bank, including the total cash balance held in a Non-ResidentBaht Account for Securities (NRBS) where amounts are not split according to theunderlying beneficial owners.In order to comply with this limitation, market practice is for local custodians toenforce the following measures:Their customers must keep their THB balances strictly at the lowest amount.If this is not observed, a local custodian may be forced to perform anautomatic same-day foreign exchange, without advice and charged at a8
Page 1 and 2: Re-assessment of ABMI Group of Expe
Page 3 and 4: 1. Overview of legal and regulatory
Page 5 and 6: demonstrated in the development of
Page 7: exceed IDR 500 million, supporting
Page 11 and 12: 1.3.2 BarriersPeople’s Republic o
Page 13 and 14: A positive precedent has been set b
Page 15 and 16: As indicated under barrier D2, the

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