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FTC AMENDS RULES FOR RE-VIEWING FINANCIAL HOLDING COMPANY MERGERS
SU, SUE
Following the amendments to the Fair Trade Law (FTL) in February 2002, on 27 March the Fair Trade Commission (FTC) promulgated amendments to its Rules for the Review of Business Combination Cases Involving Finan-cial Holding Companies.
The main points of the amendments are as fol-lows:
The system of prior application and approval is changed to one of prior filing with opportunity for objection.
Calculation of a financial holding company's sales turnover in the previous fiscal year should include the turnover of all the subsidi-aries in which it holds a controlling interest.
Additional documents must be submitted when reporting a combination case. As well as the documents required under the old review rules, the reporting entity must now also submit to the FTC the business licenses of the entities participating in the combination, contracts or resolutions relating to the combination, statements of the participating entities' in-vestments in other businesses, the most recent prospectuses or annual reports of the partici-pating entities (for TSE or OTC listed com-panies only), and information on the partici-pating entities' involvement in horizontally or vertically related businesses.
The provisions for the use of simplified pro-cedures are deleted.
Other necessary adjustments are made in line with the amendments to the FTL.
