Foreign Financial Institutions Research Articles

Модель бізнесу ощадних банків Скандинавії

The segment of savings banks occupies a prominent place in the banking systems of European countries. Savings banks have survived systemic crises, institutional transformations, and consolidation, maintaining high depositor confidence thanks to a restrained appetite for risks. The relevance of researching the experience of savings banks in Scandinavia is due to a long history, a special type of corporate structure and business model in attracting and deploying resources. Although the activity of foreign savings banks in the modern market environment remains outside the attention of domestic researchers, in Ukraine household savings form the basis of the resource base of many banks, which requires a special approach of the regulator. According to the results of the study, it was found that savings banks achieve the effect of economies of scale due to the centralization of certain functions. At the same time, they are moving away from the historical business model, which is embodied in a change in legal status, an increasing focus on profit, the development of the corporate segment, digitization of operations, access to other local markets, conducting international operations, participation in the capital of foreign financial institutions, mergers and acquisitions, which lead to an increase in the scale of business. The emergence and development of savings banks in Scandinavia is a reaction to the growth of citizens\\\\\\\' well-being (as an offer of savings) and at the same time - a desire to improve it. The security of the banks\\\\\\\' business was certainly helped by a conservative attitude towards accepting credit risk. An important factor of trust in banks was and remains a low corruption risk in the Scandinavian countries. It was concluded that the creation of associations of savings banks and joint platforms deserves attention for use in Ukraine, as it ensures business efficiency even for small institutions.

How to Effectively Identify Financial Risks in Financial Management

In the context of global economic integration, Chinas financial industry has been influenced by the international situation, and the openness of the industry is obvious. The entry of foreign financial institutions has made the competition in Chinas financial market more and more intense, which has intensified the financial risks while promoting economic growth. In view of this, this paper will discuss in depth the effective identification of financial risks in financial management and put forward feasible protection countermeasures, aiming to help the financial industry further improve its risk management. The results of this study show that accurate identification of financial risks can provide a basis for financial management and fully maintain economic efficiency. To meet the international development trend, the financial industry must do a good job of risk identification, assessment, and prevention so as to reduce the probability of risk and the losses it brings. Since financial risks are inevitable, each company must face the increasingly complex economic market according to its own situation, which puts higher demands on the risk management of companies.

Does Cross-Border-Establishment Improve Competition and Performance of Indonesia’s Financial Sector?

This study examines the effects of cross-border establishment of financial institutions on competition level in Indonesia’s financial sector. We use sample data on all conventional banks, securities firms, life and general insurance companies from 2013-2020. To measure competition, we use Lerner index, Boone indicator and Panzar-Rosse. Our analysis shows that the entry of foreign financial institutions may increase the competition in the financial sector. Further analysis shows that the increasing competition have positive impact to profitability and intermediation, reflected by the return on asset, loan ratio, transaction value, and insurance premium income to total asset ratio. However, foreign financial firms tend to have higher market power compared to domestic counterparts due to the efficiency in doing their businesses. Hence, domestic financial institutions need to boost efficiency, particularly through the adaption of technology and capacity enhancement of human resources, in order to compete with more advanced foreign financial firms.

Balance of confidentiality and tax transparency in legal regulation of automatic exchange of financial account information in the United States

The subjectof research, relevance. Exchange of information is an important measure of administrative cooperation between and among tax authorities aimed at the fight with tax evasion. Tax evasion is a problem that has gone beyond national borders, thus individual states can’t cope with it alone. In the light of this problem tax authorities develop new forms of administrative cooperation such as automatic exchange of information. While developing new forms, states should remember about the balance of private and public interest. In the context of automatic exchange of information this problem looks like a problem of finding a balance between confidentiality and tax transparency.The purpose.The article discusses the problem of finding a balance between confidentiality and tax transparency on the example of the United States. The choice of the United States may be explained by its national approach to such a balance that differs from the approach of other states that have implemented the Common Reporting Standard and Mandatory Disclosure Rules.The aimof the article is to show what peculiarities in national and international regulation in the United States influence their unique approach and what is the effect of this approach on the global system of automatic exchange of information and the rights of the US taxpayers.The methodological basis.The following scientific methods were used: comparative-legal, formal-juridical and historic-legal. The research was conducted in compliance with the principles of independence and verification of the results.The main results,scope of application. The conclusion of this article is that the balance of private and public interest in the context of automatic exchange of information is reached by the United States through confidentiality provisions exclusively. They use their national state legislation on beneficial ownership and the lack of reciprocity in intergovernmental agreements implementing FATCA to attract foreign investors (non-resident aliens) wishing to avoid reporting under the Common Reporting Standard. Meanwhile, the United States acquire full information on the financial accounts of their citizens and resident aliens who are beneficial owners of such accounts held in foreign financial institutions. Such a state of affairs is dangerous for the effectiveness of the global system of automatic exchange of information. Moreover, it impairs the rights of Accidental Americans who permanently reside in foreign states and have no connection with the United States except for their citizenship but still have reporting obligations before the US Internal Revenue Service.Conclusions.Automatic exchange of information should be developed in compliance with the principle of balance between tax transparency and confidentiality. States should follow one and the same approach to providing such a balance. At the same time the taxpayers’ rights, in particular the rights of Accidental Americans, should be protected and they can’t be outweighed by the need of administrative cooperation between or among tax authorities.

The cost of foreign ownership: Voluntary sustainability reporting and financial performance in an emerging economy

PurposeMany emerging economy firms are under foreign owners' pressure to embrace the challenges of addressing corporate social responsibility (CSR) and consider adopting sustainability initiatives. However, it is not clear how foreign ownership plays a role to enable or inhibit these emerging economy firms from translating sustainability initiatives into improved financial performance. Utilizing neo-institutional theory, the authors argue that emerging economy firms that voluntarily report sustainability gain legitimacy in the eyes of shareholders and improve stock market performance. However, emerging economy firms may not have the resources to reconcile the internal stakeholders' various legitimacy requirements to promote sustainability practices, resulting in a negative association with accounting performance. Foreign ownership attenuates the relationship between sustainability reporting and firm performance due to the different legitimacy requirements in foreign markets.Design/methodology/approachTo test the study’s hypotheses, the authors collected and analyzed a large sample of publicly listed firms between 2010 and 2016 in Taiwan where the types of foreign ownership include foreign trust funds, foreign financial institutions and other foreign legal entities. Regression analyses were conducted to investigate whether the firms that report their sustainable practices have better financial performance, including stock market performance and accounting performance. Additionally, a three-step procedure was employed to address the endogeneity issue with a binary explanatory variable.FindingsThe positive stock market reaction to the emerging economy firms' voluntary sustainability reporting supports legitimacy gained among investors. By contrast, sustainability reporting has a negative association with accounting performance due to the difficulty of reconciling different legitimacy requirements among various stakeholders in emerging economies. Further, foreign ownership, particularly the trust fund, exhibits a negative moderating effect on the relationship between sustainability reporting in aligning corporate practices with sustainable development goals (SDGs) and the company's stock market performance.Originality/valueBy examining the less tested contingent role played by foreign ownership in the emerging economy firms' sustainability reporting, the authors provide insights into the influence exerted by different types of foreign ownership on firms' financial performances beyond previous studies that focus on family ownership, state ownership, or managerial ownership in emerging economies. The findings shed light on corporate sustainability strategy and foreign direct investment policies for an emerging economy.

СУЧАСНІ СВІТОВІ ТРЕНДИ ЦИФРОВІЗАЦІЇ ІНДУСТРІЇ ФІНАНСОВИХ ПОСЛУГ У СФЕРІ СПОЖИВАННЯ

The article examines the digitalization trends of the financial services market in the field of personal consumption. Attention is paid to the spread of various financial services in the field of personal finance management and e-commerce. Examples of foreign financial institutions focused on servicing trade and investment personal financial transactions are given. The specificity of digital technologies makes financial services remote, but their availability is increasing. It is shown that users prefer those banks that provide the opportunity to remotely manage personal accounts and monitor their own financial situation using online platforms and mobile applications. Therefore, the number of digital financial services offered in the field of personal financial transactions becomes a factor in the modern competitiveness of a financial institution. The development of consumer finance (consumer finance) covering operations from investing in real estate to paying for college education is analyzed. Wellplanned consumer finance helps users securely purchase products and services by paying for them in installments over a fixed period of time. The peculiarities of the BNPL industry – "buy now, pay later" – which modernized deferred and installment payments, were studied. BNPL solutions are available in online stores and are immanent for e-commerce. Therefore, the growth of e-commerce sales by 44.4% in 2021 compared to the same year in 2020 stimulated the spread of BNPL's financial services. This increases the competition of firms in this segment of the financial services market. In order to strengthen their competitive positions, the companies offer a number of new approaches to the implementation of BNPL products and solutions. First, they are direct providers of new financial services that are at the heart of BNPL's US solution development. Second, there are facilitators, large payment companies with well-established commercial relationships that seek to capitalize on the growing interest in direct supplier solutions. Third, retroactive suppliers offering different financing options for all purchases made with their credit card after the fact of payment.

Digital transformation of banking services: development scenarios and management mechanisms

The search for new economic tools, technologies, and directions for the development of banking services in the context of increased competition is caused by the presence of several problems, which are outlined in the following way. First, the developing Kazakh banking services market is very attractive for foreign financial institutions, whose entry into the financial markets of leads to an increase in market concentration, and, as a result, an increase in competitive pressure. Secondly, the recent trend of growth of the Kazakh economy and the development of its real sector led to a decrease in the profitability of speculative instruments, which traditionally served as the main source of profit for banks. Third, during the reform of the Kazakh economy, there was a significant change in the value system of consumers of banking services, a shift in emphasis from the price characteristics of the product to the service ones, which increases the importance of developing and implementing modern technologies to meet customer demand. Fourth, under the current circumstances, it is important to identify the prospects for banks to maintain strategic competitive advantages in the national financial market, despite the increased presence of foreign companies. This requires studying the country features of the formation of the banking services market, identifying the main development trends, justifying a set of technologies to improve the efficiency of working with clients in a competitive environment. As a result of the author's research, the practical aspects and significance of banking services management are substantiated, based on which the corresponding conclusions are made

Economic security and the role of collective West in the post-war recon struction of Ukraine

Problem setting. Although the outcome of the Russian-Ukrainian war is uncertain, it is necessary to start thinking about the future reconstruction of Ukraine. The paper examines issues related with the complex of problems connected with the post-war reconstruction of Ukraine and the participation of the collective West, which means a set of countries (USA, EU member states, Canada, Scandinavian countries) participating in Euro-Atlantic integration. In this article, we use previous experience of post-war reconstruction of Western Europe (for example, the Marshall Plan after World War II). We set out the key principles of international cooperation in the renovation of the Ukrainian economics and the state as a whole, as well as the role of individual subjects of international law in this process. The paper is intended to involve foreign and domestic lawyers in a discussion on a wider range of issues, which will include further and more detailed analysis of the best ways to rebuild Ukraine after the war. Analysis of resent researches and publications. The idea of developing a European plan for the reconstruction of Ukraine (“Marshall Plan for Ukraine”) began to be discussed after the Revolution of Dignity. However, it has not been the subject of serious research. The situation changed after Russia declared war on Ukraine. As Ukraine has a chance to win the war, the leaders of the United States, the European Union and Ukraine are discussing the possible content of a “New European Plan for Ukraine.” However, today, both in Ukraine and abroad, this issue is dominated by journalistic publications, which determines the relevance and practical significance of the development of the problem. Target of research is to reveal the content, main directions of participation of international financial institutions and individual states in the reconstruction of Ukraine after the war. Article’s main body. The article considers the problem of determining the content of the “New European Plan for Ukraine” in relation to the postwar period. The uniqueness of the plan to restore the Ukrainian economy is emphasized. The steps of international financial institutions and individual countries regarding the revival of Ukraine during and after the war are analyzed. Conclusions and prospects for the development. The conclusion that grants should make up a large share of foreign aid flows in the post-war reconstruction of Ukraine is substantiated. An important step in Ukraine’s post-war reconstruction should be the write-off of foreign debt, or at least part of it, by foreign financial institutions, primarily the IMF and the World Bank, as an important and necessary sign of genuine solidarity of the international community. Emphasis is placed on the special role of the United States and the European Union in the postwar reconstruction of Ukraine, in particular on the issue of writing off Ukraine’s foreign debt.

Digital and Innovative Education During the COVID-19 Pandemic: Uzbekistan

The pandemic has become a unique test of the power of international cooperation, manifested not only in the exchange of experience on epidemiological and organizational issues, but also in mutual financial, economic, and food assistance among the population. In this regard, it has become clear in Uzbekistan that it is difficult to fully ensure national security, especially human security, by eradicating the coronavirus only within the country. During the pandemic, international organizations provided the necessary assistance to Uzbekistan, and in 2020, $2.7 billion directed by international and foreign financial institutions, such as the Asian Development Bank, the World Bank, and the Japan International Cooperation Agency. The financial institutions will provide health care to fight the pandemic and have allocated $277 million to the storage health sector, sources said. The COVID-19 pandemic in the social context has significantly affected the population due to the great impact that has been generated in all the contexts where the individual develops. Among the problems that can be highlighted due to their level of increase is social inequality, discrimination, exclusion, and violence, among others, being those a reason for people to have effects on their well-being and quality of life. In relation to the aforementioned, this research aimed to analyze COVID-19 in the educational context in Uzbekistan universities and in the methodological context in virtual classes during this pandemic.

ПРИМЕНЕНИЕ ИННОВАЦИОННЫХ ЦИФРОВЫХ РЕШЕНИЙ НА ФИНАНСОВОМ РЫНКЕ

Innovative digital technologies and their application in the management of financial institutions are the trigger for the introduction of new regulatory instruments. The concept, essence and significance of regulatory technologies is determined by the transformation of the economy and the transition to high-tech solutions for business structures. Digital technologies in the financial sector are used not only as auxiliary tools of activity, but also transform the service market itself, determine the trend of development, as well as the nature of interaction of subjects. The article discusses the main types and classes of financial digital regulators, describes the ways of their application in practice. A comparative analysis of the level of digitization of domestic and foreign financial institutions is carried out.

On the Issue of the Activities of Foreign Banks in the Far East of Russia in 1922– 1925

Using documentary sources, some published here for for the first time, this article aims to analyze and summarize the activities of branches of foreign banking institutions in Vladivostok after the end of the Civil War and the military intervention of allied troops and the establishment of Soviet power in the Russian Far East from 1922 to 1925. The role of branches of foreign banks in the economy and money market of the region during the period of foreign intervention is revealed. A brief description of the branches of foreign banking institutions (Japanese Chosen Bank, Yokohama Haste Bank, and English Hong Kong Shanghai Bank), which continued their activities after the evacuation of foreign military units from the region, is given. The necessity of the presence of these institutions in the territory of the Russian Far East in the first years of Soviet power is determined in view of the close connection of the region with foreign markets and the importance of Manchu transit, which takes place to a large extent with the participation of these banks. The article shows the inability of the “young” Far Eastern Region, the industry and economy of which were in decline and were just beginning to recover, to resist the activities of foreign financial institutions. It was impossible for Soviet banking institutions relying on hard foreign currency to begin operations in the region quickly to replace foreign banks. The main economic indicators of the financial activities of these banking institutions in the period under review and their relationship with the Soviet financial and economic bodies of the region are given.

On the Sabotage by Foreign Banks of Short-Term Obligations of the State Treasury During the Foreign Intervention in the Russian Far East and Siberia

The revolutionary events of 1917, the Civil War, and the military intervention of the allied powers in the Russian Far East (1918–1922) were marked by frequent regime changes and an acute monetary crisis. Each government tried to solve it by issuing its own currency surrogates. These included 5% short-term liabilities of the State Treasury of the Provisional Siberian Government and short-term liabilities of the State Treasury of the Provisional All-Russian Government. Branches of foreign financial institutions established in the region refused to accept these obligations on a par with the national banknotes, in violation of the previously effective laws. This contributed to the depreciation of the Russian rouble and had a significant negative impact on the monetary situation and the economic situation of the region in what was already a very difficult historical period. The issue, circulation, and withdrawal of various short-term liabilities of the State Treasury have been extensively discussed in the writings of Russian historians. However, an intriguing and historically significant aspect, such as the refusal to accept these obligations on an equal basis with the national banknotes operating in the region by branches of foreign banks, has remained outside the scope of these studies. The author examines previously overlooked aspects of the operations of branches of foreign banks in the Far East of Russia in 1918–1922. In addition, for the first time, archival documents relating to the subject are being brought into scholarly circulation.

Stock market as a catalyst of ESG transformation

The modern climate agenda requires tremendous efforts from all market participants, including in terms of improving management mechanisms. It is important to have a working toolkit available that can fulfill the interests of all participants. In this regard, the stock market comes to the fore, which is acquiring special significance today. The emergence of green bonds, as well as other methods of hedging risks using stock market instruments, is becoming an integral part of the ESG agenda. In recent years, the world community has been trying to focus its efforts as much as possible on achieving the principles of sustainable development through the stock market. In these conditions, the existence of well-developed mechanisms for regulating the issue and circulation of financial instruments that contribute to solving climatic and social problems becomes a rather important aspect. The article discusses the features of the use of green and social bonds. The contradictions and systemic shortcomings that hinder the process of introducing «green» financial products have been identified. The experience of Russian and foreign financial institutions in the field of responsible investment has been studied. The author also analyzed the regulatory practice and formulated proposals to ensure the consistency of interests of the participants in the process. The paper gives recommendations in terms of synchronizing work on the formation of ESG-ratings, and also substantiates the importance of the management component in the sustainable development system.

Investment Analysis for Submarine Power Cable Project Between Belakang Padang Island and Sambu Island

PT Pertamina (Persero) Riau Islands proposed the installation of electrical power for the fuel storage tank terminal on Sambu Island with a capacity of 7 MVA. Currently, Sambu Island is still receiving electricity by operating a Diesel Power Plant (PLTD) with diesel fuel.
 Seeing that the nearest electricity supply from Sambu Island is Pulau Belakang Padang Electricity, then as a business solution to be able to meet the demand of PT Pertamina (Persero), PT PLN Batam will build a submarine cable between Sambu Island – Pulau Belakang Padang to distribute electricity from the Power Plant in Batam to Sambu Island through the Belakang Padang Island.
 PT PLN Batam must obtain a reference regarding the feasibility of investing in the construction of a submarine cable between Belakang Padang – Sambu Island. To get this reference, an investment analysis must be carried out to determine the business feasibility of this submarine cable development.
 The business feasibility parameters to be analyzed are NPV (Net Present Value), IRR (Internal Rate of Return), BCR (Benefit to Cost Ratio) and PBP (Payback Period). To further refine the business feasibility analysis, a sensitivity analysis was carried out to see the effect of changes in investment parameters.
 After conducting investment analysis, it was found that the Capital was carried out with a portion of 30% from equity and 70% loans from domestic financial institutions after comparing with foreign financial institutions, and the construction of this submarine cable was declared feasible because it met all the feasibility parameters. business, where NPV > 0, BCR > 1, IRR > Discount Rate and PBP < Loan Tenor.
 With the construction of the submarine cable, PT PLN Batam will get a potential profit of Rp. 12.358.560.473, - in the first year after the operation of the submarine cable with an electricity tariff of Rp. 2,054 /Kwh. This electricity tariff is cheaper than the electricity tariff using PLTD of Rp 3,000/Kwh.

Perspective of blockchain technology application in corporate governance: Recent trands

The subject of the present paper is the perspective of blockchain technology application based on the experience of the Russian and foreign companies, financial institutions, and public authorities. The purpose of the article is to study trends, identify areas of application, and analyze the risks and benefits of blockchain technology application in corporate governance. The author used the methods of generalization, synthesis, comparative analysis of the approaches applied to determine the role played by blockchain in corporate governance, studied appropriate recent scientific publications, and also conducted the comparative analysis of the corporate governance goals and key characteristics of the above technology. The author has exhaustively analyzed the prospects of blockchain technology implementation in corporate governance taking into account the spread of the COVID-19 pandemic, which forms the novelty of the present paper. The author proposes to follow the below recommendations pertaining to certain issues of implementing blockchain technology into entity’s operations: to include the issue of suitability of blockchain technology integration into the entity’s operations in the meeting of the Board of Directors’ agenda, develop and approve at the Board level in-house documents to regulate the technology application within the entity as well as the strategy of its using to be followed by its integration into the entity’s general business strategy, approve the entity’s risk-appetite to use the technology within the frameworks of the overall entity’s risk management strategy, analyze the impact it may cause on the entity’s activities at the Board level and also ensure improving the employees’ training and competencies with respect to using blockchain technology. The author concludes that nowadays blockchain technology will be most intensively used in areas where it is a more effective alternative to existing systems in their current state. The conclusions and results obtained may be used in the course of developing Russian corporate governance practice as well as in the analytical and practical work performed by the public authorities and the business community.

Зарубежный опыт государственного регулирования в условиях цифровой экономики

The article considers the issues of state regulation of investment activity in the digital environment using the example of the USA, the European Union, Japan and the BRICS countries. In the era of computers and high technologies, the digital economy affects all spheres of life: healthcare, education, Internet banking, and government. The digital economy is developing in all highly developed countries, including Russia. Currently, the concepts of the formation and development of the digital economy in modern developed countries are defined differently. The main problems in regulating relations related to the development of the digital economy are identified both at the level of legislative acts and at the level of by-laws; in strategic documents at the national level. The purpose of this article is to study the foreign experience of state regulation of investments in the digital economy. The theoretical and methodological basis of this article was the research of Russian and foreign scientists studying the content and forms of state regulation of the investment process, expert and analytical materials of public servants, materials of scientific conferences and seminars. A database for substantiating conceptual provisions: information materials of the Federal State Statistics Service of the Russian Federation and its regional bodies, a number of research institutes, analytical materials of Russian and foreign financial institutions, regulatory legal acts and official materials of federal and regional authorities. In the process of the study, methods of logical, statistical and system analysis, methods of modeling and expert evaluation were used.

The role of the eco-financial sector in realizing the sustainable development goals

The article examines the role of the eco -financial sector in the implementation of sustainable development goals through the creation of a new ecological system of global financial resources -a system of responsible and green financing. Favorable economic conditions and significant socio-economic benefits are at the heart of banks’ transition to responsible and green finance. Provided that these principles are implemented on an ongoing basis, in the near future, one can expect an increase in investments in environmental and social projects, and, as a result, an improvement in the environmental situation and an increase in the standard of living of the population different countries of the world. In this paper, the authors analyzed the main directions of development of a new ecological system of global financial resources - a system of responsible and green financing in Russia and abroad and the role of the eco - financial sector in the implementation of the UN sustainable development goals in terms of combating climate change, industrialization, innovation and infrastructure, affordable and clean energy, clean water and sanitation. The analysis showed that foreign and domestic banks and other financial institutions are actively involved in organizing and conducting the issuance of “green” bonds.

The Effect of Interest Rate Corridor on Turkish Financial Markets

The 2008 financial crisis had important consequences first in the US economy and then in the global economy. This has caused a significant change especially in the monetary policy practices of developing country central banks. The American Central Bank was the first monetary authority to apply for these practices. With these applications called as non-traditional monetary policy, an extraordinary amount of government bonds and mortgage-backed securities were made. As a result, the global liquidity level increased. Thus, foreign financial institutions having access to liquidity facilities and foreign capital inflows into the country has increased in Turkey. In 2010, as a necessity of the current developments, policy tools that monitor both price stability and financial stability were designed. These policy tools aimed to prevent the risks that might occur in asset and credit markets as a result of fluctuations in foreign capital movements. The asymmetric interest rate corridor is one of the policy tools that has been implied in this period. Therefore, this policy tool is important for the financial stability target of the Central Bank. With this policy tool, the CBRT has the opportunity to influence loan and deposit transactions without changing the policy interest rate. Thus, it is aimed to have an impact on both speculative capital inflows and credit markets at the same time. Accordingly, this study aims to investigate the effect of the asymmetric interest rate corridor, which is implied between 2010:5-2018:5, on financial markets. The upper limit of the corridor, the lower limit of the corridor, BIST100, the overnight repo rate, and the dollar / TL exchange rate are the variables considered in the empirical analyses. VAR is preferred as the analysis method and the analysis is carried out with data at monthly frequency. According to empirical results, the lower corridor positively affects the overnight repo rate and it affects the BIST100 index negatively. In addition, it is seen that the upper limit of the corridor has no effect on the variables used in the study.

Italian supreme court ruling on the criteria to apply corporate liability: an overview of the implications for foreign financial institutions operating in Italy

Purpose To analyze the Italian Supreme Court decision (case no. 11626/2020) and its potential implications for foreign financial institutions operating in Italy. Design/methodology/approach This article provides firstly a brief description of Decree 231/2001 and of its application to financial institutions, then a description of the Italian Supreme Court decision and, lastly, a set of inputs to foreign financial institutions operating in Italy. Findings Following the decision under review, where the further conditions set out in the Decree 231/2001 are met, entities are liable under the same Decree when a relevant offense occurs in Italy – or there is Italian jurisdiction – regardless of their nationality, the localization of their registered office, the place where they predominantly carry out their business or whether there are rules governing the same matter in the State of origin. Practical implications Following the decision under review, foreign financial institutions operating in Italy should adopt and implement the control measures required by the Decree 231/2001 in order to avoid incurring the relevant sanctions. Originality/value This is an analysis of the potential practical implications for foreign financial institutions operating in Italy of a decision issued by the Italian Supreme Court that may also provide useful advice to mitigate the potential risks linked to it.

Protecting the Rights of Local Shareholders under the Saudi rules for Qualified Foreign Financial Institutions Investments in Listed Shares: قانون الاستثمار الأجنبي في سوق الأسهم السعودية: دراسة تأصيلية مقارنة مع دول مجلس التعاون الخليجي ودولة استراليا

Recently, the Saudi Capital Market Authority (CMA) opened the door for foreign investors to invest directly in the stock exchange market (Tadawul) to gain more welfare from their investments. Along with this step, the CMA released a set of Rules for Qualified Foreign Financial Institutions Investments (RQFFII) in Listed Shares 2015 that aimed to attract and protect the shareholders' rights. In this research project, the RQFFII have been examined to discover the level of attraction that these Saudi rules offer to foreign investment. The project also aimed to highlight strengths and weaknesses in the rules with regard to the protection shareholders' rights. This thesis explored the possible influence of foreign investments in the Saudi stock exchange. The research project aimed to increase the CMA and shareholders' awareness and knowledge in regard to these rules which lead to more protection of the local stock exchange. In order to achieve this goal, this thesis used a qualitative method by comparing these rules to the regulations of other countries that have a successful record, such as the Gulf Countries Council (GCC) and Australia. It has also analysed reports of the international organization to support the findings. The findings showed that on the one hand the current rules are not sufficiently attractive, and on the other hand are restricted and able to provide enough protection to the domestic market and shareholders. In addition, the results support the positive role of foreign investors on the local stock exchange market and its regulations. The findings implied a correlation between regulations and foreign investment flows in regard to attracting foreign investments and protecting the local economy. Hence, Saudi policymakers use the gradual opening of foreign investors to its stock exchange, this project found that the amended rules in 2016 may lead to more foreign investment inflow.