1 The Institute has received two suggestions for expanding the guide. One suggestion is to include additional tax material including information on when, how and where tax forms
required by a country must be filed. The other suggestion is to expand the foreign investment restrictions section so that for each country the guide identifies all industries in which foreign
investment may be restricted and specifies the limitations.
January 10, 1997
ACTION REQUESTED
TO: INTERNATIONAL COMMITTEE No. 2-97
RE: 1997 UPDATE OF INSTITUTE’S FOREIGN INVESTING GUIDE
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Since 1993 the Institute has published the Foreign Investing Guide to provide members
with a source of information as to the types of requirements or restrictions in foreign countries
that may apply to portfolio investments by US mutual funds in those countries. The Foreign
Investing Guide is prepared for the Institute by the law firm of Baker & McKenzie through its
extensive network of foreign offices.
Over the years the guide has been expanded to add additional categories of information
and to cover more countries. Currently the Foreign Investing Guide provides information with
respect to 47 countries. This information includes whether there are any general restrictions on
foreign investment in the country; what withholding tax rates exist and whether there is a tax
treaty with the United States; what disclosure regime is imposed on significant shareholdings,
including the types of securities covered, reporting thresholds and when and where to file
reports; what types of institutions provide custody services; and whether securities lending is
permitted.
As the guide has expanded significantly, the cost of preparing it has increased. To
assure that the guide remains a useful and appropriate member service, we would like to
receive input from members before beginning the 1997 update. Specifically, we are interested
in your views on whether the guide is generally useful and, if so, whether there are ways in
which it should be improved. Should the guide include more countries? Should it include
more information?1
In responding to the attached questionnaire please keep in mind that the guide is
intended to be a general source of information and not a substitute for appropriate legal advice
with respect to all relevant foreign laws and regulations.
Please respond by returning the attached questionnaire by January 24, 1997.
Mary S. Podesta
Associate Counsel - International
1FOREIGN INVESTING GUIDE QUESTIONNAIRE
January 1997
1) Please comment on the usefulness of the Foreign Investing Guide to your
organization.
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2) Should the Institute continue to publish the Foreign Investing Guide?
YES NO
3) In your experience, has the information contained in the guide generally been
accurate?
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* In your experience, have changes in foreign laws and regulations generally been
reflected in the next update of the guide?
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4) Do you have any comments on the following sections of the guide?
* Foreign Investment Restrictions
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* Foreign Investment Taxation
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* Obligation to Disclose Significant Shareholdings
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* Custody
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* Securities Lending
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5) Should any of these sections be eliminated? Please specify.
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6) The Guide currently covers the following countries:
Argentina Korea
Australia Luxembourg
Austria Malaysia
Belgium Mexico
Brazil Netherlands
Canada New Zealand
Chile Norway
China Pakistan
Colombia Philippines
Czech Republic Poland
Denmark Portugal
Egypt Russia
Finland Singapore
France South Africa
3Germany Spain
Greece Sri Lanka
Hong Kong Sweden
Hungary Switzerland
India Taiwan
Indonesia Thailand
Ireland Turkey
Israel United Kingdom
Italy Venezuela
Japan
* Should any other countries be added? (Please list any suggested additions in priority
order.)
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* Should any countries be eliminated?
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7) Are there any areas in which the information in the Guide should be expanded? (Please
be specific and please prioritize your suggestions.)
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8) Do you have any other suggestions for improving the Guide?
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