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Treas.
HJ
10
.A13P4
v.346
U.S. Department of the Treasury
PRESS RELEASES
REPORT ON STATUS OF
FINANCIAL SERVICES NEGOTIATIONS
UNDER THE
GENERAL AGREEMENT ON TRADE IN SERVICES
April 30, 1995
REpORT ON STATUS OF
FINANCIAL SERVICES NEGOTIATIONS
UNDER THE
GENERAL AGREEMENT ON TRADE IN SERVICES
April 30, 1995
INTRODUCfION
This report on the status of the financial services negotiations under the General Agreement
on Trade in Services (GATS) of the World Trade Organization (WTO) is submitted to the
Senate Finance and Commerce and Banking Committees, and to the House Ways and Means,
Commerce, and Banking Committees as required by the Statement of Administrative Action
that accompanied the Uruguay Round Agreements implementing legislation.! This report
reviews briefly the history of the Uruguay Round financial services negotiations, outlines
developments since then, and describes the current status of negotiations.
SUMMARY
During the Uruguay Round negotiations, the United States sought commitments from other
countries that would guarantee substantially full market access and national treatment to U.S.
financial services providers in their markets. 2 As of December 1993, however, when the
bulk of the Uruguay Round negotiations was completed, commitments made by other key
developed and developing countries in the areas of banking and other financial services
(excluding insurance) on balance fell short of this standard.
In consequence, the United States took a reservation (i.e., did not make a commitment) for
new establishment and new powers for foreign firms in the areas of banking and other
financial services (excluding insurance). In addition, the United States took an exemption
from the GATS most-favored-nation (MFN) obligation with respect to new establishment and
new powers for foreign firms in these areas. The purpose of the reservation and the MFN
exemption was to allow the United States to differentiate among WTO members in terms of
the ability of their banks, securities firms and other financial services providers (excluding
insurance) to expand existing operations, establish new firms, and undertake new activities in
the Uni ted States.
Statement of Administrative Action, page 309, accompanying the Uruguay Round Agreements Act
(P.L. 103-465).
2
Commitments were sought in the area of insurance and insurance-related services and in banking and
other financial services. including securities, financial leasing. asset management, and diversified
finance. The office of the U.S. Trade Representative (USTR) handled the insurance negotiations. The
Department of the Treasury was responsible for the other financial services negotiations.
2
As a general matter, current U.S. law and practice grant new licenses and powers to foreign
firms on a national treatment basis. This recognizes the substantial benefits that an open,
dynamic, and competitive financial services industry provides in terms of capital, jobs and
innovative, well-priced financial services to U.S. investors and consumers. But, to have
guaranteed unconditional national treatment for banking and other financial services
(excluding insurance) in the United States' GATS commitments would have removed one of
the few inducements foreign countries have to remove their own impediments to the
establishment and competitive opportunities of U.S. financial services firms.
In insurance, the overall level of commitments was also inadequate. Although the United
States did not take an exemption for this sector in December 1993, it reserved its right, as
discussed below, to do so later.
Some other key countries also took MFN exemptions covering all or part of their financial
services sectors.
There was a widespread sentiment among the Uruguay Round negotiating parties in
December 1993 that negotiations should continue, aimed at reaching a comprehensive
multilateral agreement in financial services. The Uruguay Round Final Act, which was
signed in Marrakesh on April 15, 1994, provided for a period of extended negotiations
ending six months after the entry into force of the agreement establishing the WTO. The
United States and other countries that had taken MFN exemptions that were conditional on
the level of other countries' commitments agreed to suspend their respective exemptions
during the six months of extended negotiations.
The six-month period ends June 30, 1995. The Final Act allows WTO members to
"improve, modify or withdraw all or part of [their] specific commitments on financial
services" and also to modify their lists of exemptions from the MFN obligation at the end of
this period. 3
The United States has continued to negotiate with key developed and developing countries
since December 1993. Our objectives remain unchanged. In accordance with the Uruguay
Round implementing legislation and advice received from industry advisory groups, we
continue to seek commitments from commercially important developed and developing
countries to substantially full market access and national treatment as the condition for
accepting a comprehensive MFN commitment in financial services. 4
Since December 1993, the Secretary of the Treasury, the U.S. Trade Representative, and
other senior Treasury Department and USTR officials have conducted numerous financial
services negotiations with commercially important developed and developing countries. The
3
See Final Act, Second Annex on Financial Services and Decision on Financial Services.
4
See P.L. 103-465, Art. 135.
3
European Union (EU), Canada, Australia, Switzerland, and some others have also conducted
negotiations to obtain improved commitments since the WTO's establishment in January
1995.
Some progress is being made. The United States' bilateral understandings reached with
Japan in October 1994 and January 1995, covering insurance and other financial services,
respectively, are an important step toward a multilateral agreement in the GATS, although it
remains for Japan to reflect. those understandings appropriately in its GATS commitments.
Progress is also being made with some other countries, which have indicated either to the
WTO Secretariat or in bilateral negotiations that they intend to make at least some
improvements in their commitments. A few of these countries have signalled a willingness
to improve their financial services offers in return for concessions from the United States, the
EU, and Japan in other areas such as movement of natural persons.
Nonetheless, the commitments of a large number of commercially important countries retain
significant limitations on foreign firms' access to, or treatment in, their financial services
markets. The United States is continuing to negotiate with key countries.
The GATS Committee on Trade in Financial Services (CTFS) recently established a time
table for completing the negotiations. May 8 has been set as a deadline for filing revised
schedules of commitments and MFN exemption lists. The CTFS will meet at the WTO in
Geneva shortly thereafter and again in early June, with opportunities for bilateral negotiations
on both occasions. Final schedules and MFN exemption lists are due June 15.
It remains to be seen whether these schedules will contain the improved commitments
necessary for the United States to accept a broad MFN obligation in financial services. The
Administration will consult closely with industry advisors and key Congressional committees
in making this decision.
RESULTS OF URUGUAY ROUND FINANCIAL SERVICES NEGOTIATIONS
BACKGROUND
The Uruguay Round of international trade negotiations began in Punta del Este, Uruguay, in
1986. This was the first round of multilateral negotiations aimed at opening markets to
international trade in services, including financial services. The bulk of the Uruguay Round
negotiations was completed in December 1993. The Final Act embodying the results of
these negotiations was signed in Marrakesh, Morocco, in April 1994. In signing the Final
Act, the contracting parties to the 1947 General Agreement on Tariffs and Trade (GATT)
agreed to establish the World Trade Organization (WTO). Following ratification by a critical
mass of signatories, the WTO came into effect on January 1, 1995. The WTO oversees not
only the revised GAIT but also the General Agreement on Trade in Services (GATS), the
Agreement on Trade-related Aspects of Intellectual Property Rights, and a number of other
4
related agreements. In addition to financial services, extended negotiations are under way on
movement of natural persons (which are also scheduled to conclude on June 30, 1995) and in
maritime and basic telecommunications services (scheduled to conclude in 1996).
U.S.OBJECI'IVES FOR 11IE URUGUAY ROUND FINANCIAL SERVICES NEGOTIATIONS
During the negotiations leading up to December 1993, the United States sought binding
commitments from other GATT members to undertake, with limited exceptions if any, the
market access and national treatment obligations of the GATS for all financial services
sectors. These sectors include insurance and insurance related services and banking and
other financial services, such as securities, financial leasing, diversified finance, asset
management, and related advisory services. 5
In return for commitments to substantially full market access and national treatment, the
United States stated that it would also commit to market access and national treatment in its
own relatively open financial services markets on terms no more restrictive than currently
applied. The United States also stated that if other key countries continued to restrict foreign
firms' access to their markets or to deny them national treatment, the United States would
not accept a broad MFN obligation in financial services. Instead, the United States would
reduce its commitments and take an exemption from the MFN obligation in financial services
in order to differentiate among countries in terms of the treatment their firms receive in the
United States with respect to new access and new powers.
At one point, U.S. negotiators offered a "two-tier" approach. This would have guaranteed
the current access, operations, and activities of firms from all countries and allowed certain
smaller countries that did not already have a presence in the United States to establish.
Firms from countries making good commitments in the GATS would have benefited from
additional, enhanced U .S~ commitments allowing them new access and expanded powers in
line with changes in U.S. financial markets legislation. This approach was not widely
supported by other negotiating parties and was withdrawn in late 1993.
STArns OF COMMITMENTS IN DECEMBER 1993
Altogether 60 members, including the United States and the European Union on behalf of its
12 member states, submitted schedules of commitments in banking, securities, and other
financial services including insurance, as of end-December 1993. Eleven additional countries
scheduled commitments limited to the insurance sector. 6
5
See the Annex on Financial Services, paragraph 5, for a complete list of these services.
6
Antigua and Barbuda, Barbados, Cyprus, Dominica, Grenada, Jamaica. Malta, Peru, St. Lucia, St.
Vincent and the Grenadines, and Trinidad and Tobago.
5
The Administration carefully evaluated 39 of the 59 non-U.S. schedules that included both
insurance and banking and other financial services. Because these schedules are bulky, we
are providing copies separately as Annex 2 to this report. The 39 include the schedules of
commercially important developed and developing countries and other parties with which we
have conducted active negotiations as well as the schedules of some other countries of special
geographic, political, or other interest. 7 Of the 39 that we evaluated:
•
Five negotiating partners 8 , largely those whose markets were already relatively open,
scheduled high quality commitments. These schedules generally included: full or
close to full coverage of the financial services sectors listed in the Annex and no
significant limitations on the market access, national treatment, or MFN obligations.
•
Twenty-one9 submitted schedules containing a few major flaws. Although the
schedules covered the major financial services sectors, some sectors were omitted or
coverage was unclear in some areas. In addition, these countries retained one or two
important barriers to market access or national treatment (e.g., non-prudential
screening or economic needs test for inward investment, limitations on investor choice
with respect to form of commercial establishment, limitations on number of branches)
and/or took an exemption from the MFN obligation for all or an important part of
their financial services sector.
•
Thirteen lO submitted schedules that had limited sectoral coverage and/or failed to
address significant limitations that would seriously impede U.S. firms' access to their
markets or ability to compete fairly in them on a national treatment basis. In
addition, some of these countries also took MFN exemptions. Examples of barriers
include:
7
The United States reached agreement with Canada and Mexico under NAFT A, and we have not
included them in our assessment of GATS commitments. Also, we have not included the commitments
of: Bahrain, Benin, Brunei, Cuba, Dominican Republic, El Salvador, Gabon, Ghana, Guatemala,
Guyana, Honduras, Kenya, Macau. Mozambique, Nicaragua, Nigeria, Paraguay, and Zimbabwe.
8
Argentina, European Union, Morocco, Sweden, and Switzerland. As Sweden is now a member of the
European Union, its commitments will be subsumed under the EU schedule.
9
Antilles (Netherlands), Aruba, Australia, Austria, Colombia, the Czech Republic, Egypt, Finland,
Hong Kong, Hungary, Iceland, Israel, Liechtenstein, New Zealand, Norway, Poland, Romania, Slovak
Republic, Tunisia, Turkey, and Uruguay. Austria and Finland are also now members of the European
Union and will be covered by the EU schedule.
10
Brazil, Chile, India, Indonesia, Japan, Korea, Malaysia, Pakistan, Philippines. Singapore, South
Africa, Thailand, and Venezuela. With respect solely to their commitments in insurance, Japan and
Singapore should be placed in the previous category.
6
prohibitions on new licenses for foreign firms, either for de novo establishment
or acquisition of existing firms
quotas or geographic restrictions on licenses for new foreign firms
discriminatory limitations on foreign equity shares in existing domestic firms
or new joint ventures and subsidiaries
limitations on ability to expand existing operations, including through the
addition of new capital or the addition of new branches
discriminatory limitations on the clients that foreign firms can serve or the
services they can provide
case-by-case, non-prudential authorization requirements for routine transactions
discriminatory capital requirements and ratios of assets or liabilities to capital
excessive waiting periods for converting representative offices into full-service
branches or subsidiaries
non-prudential screening requirements or economic needs tests for
establishment of a commercial presence, which undercut the value of market
access commitments across the board.
On balance, commitments from negotiating partners did not provide a s"Jfficient basis for the
United States to bind itself to provide national treatment on new access, operations, and
activities and to accept a comprehensive MFN obligation in banking and other financial
services (excluding insurance). A few countries' commitments met the standard of
substantially full market access and national treatment for which we wer~ prepared to make a
comparable commitment. Many other commercially important developed and developing
countries, however, retained significant limitations on market access and national treatment.
MFN treatment would require the United States to treat all countries as well as the country to
which the United States provides its best treatment. Thus, if the United States had accepted
a broad MFN obligation, it would have meant that those countries with substantial barriers to
foreign participation in their markets would have been able to maintain those barriers at no
cost in terms of their future access to and treatment in our market. They would be, in effect,
free riders".
It
Accordingly, despite the benefits to U.S. consumers of financial services and the employment
opportunities created by the presence of foreign institutions in the U.S. market, the United
States reduced its commitments by taking a reservation for new access and new powers in
banking and other financial services (excluding insurance). It also took a corresponding
7
exemption from MFN in those segments of the U.S. markets. By taking this reservation and
corresponding MFN exemption, the United States maintained scope to differentiate among
countries in terms of the ability of their firms to have future access to U.S. markets, expand
existing operations, or enjoy the benefits of any legislative reform allowing financial
institutions to undertake new activities.
In insurance and related services, the overall level of commitments was also inadequate.
Although the United States did not take an MFN exemption or modify its commitments in
these sectors in December 1993, it reserved its right to do so in the future.
Several other countries also took MFN exemptions in financial services to permit them to
differentiate among countries.
There was a widespread sentiment that the negotiations should not conclude on this basis.
Therefore, the United States and other negotiating parties agreed to extend negotiations for
six months following the WTO's entry into force. Moreover, they agreed that during this
period they would suspend those MFN exemptions that were conditional upon the level of
commitments undertaken by other participants. At the end of this period, the Final Act
allows WTO members to "improve, modify or withdraw all or part of [their] specific
commitments on financial services" and also to modify their lists of exemptions from the
MFN obligation. II
EXTENDED NEGOTIATIONS ON FINANCIAL SERVICES
u.S. OBJECTIVES
FOR THE EXTENDED NEGOTIATIONS
The United States' objectives in the extended negotiations are set forth in the Uruguay Round
implementing legislation and are essentially unchanged from before. The legislation directs
the United States Government during the extended financial services negotiations:
to secure commitments, from a wide range of commercially important
developed and developing countries, to reduce or eliminate barriers to the
supply of financial services, including barriers that deny national treatment or
market access, ... as the condition for the United States ... offering.
national treatment and market access in each of the financial services
sub sectors . . . on a most favored nation basis.12
As a new element in the Administration's approach, recognizing that financial market
liberalization requires time, we have told our negotiating partners that we are prepared to
11
12
See Uruguay Round Final Act, Second Annex on Financial Services and Decision on Financial
Services.
See P.L. 103-465. Art. 135.
8
consider transitional measures to respond to any legitimate concerns that they might have
about the effects of rapid market liberalization. Any transitional period must be limited,
however, and a situation of substantially full market access and national treatment must
prevail at its end. Mexico's financial services commitments under NAFTA are one example
of such transitional arrangements.
A number of WTO members, particularly the EU, Canada, Switzerland, Australia and others
have stated negotiating objectives parallel to our own. Like us, they are negotiating with key
countries to secure improved commitments. The EU and others have also indicated that their
own commitments are ·'conditioned" on substantially improved commitments from other key
negotiating parties. They too are willing to consider clearly specified arrangements to phase
in commitments over a defined period as might be necessary to address legitimate concerns
about the short-term effects of market liberalization.
DEVELOPMENTS SINCE
1993
The Administration has continued to engage key countries in financial services negotiations
since December 1993, when the bulk of the Uruguay Round negotiations concluded. The
Administration's negotiations with Japan, which culminated successfully in agreements on
insurance and on securities and other financial services in October 1994 and January 1995,
respectively, are addressed separately below. Senior Treasury and USTR officials also met
with their counterparts from other important countries in 1994 to discuss priorities for the
negotiations and to underscore the need for countries with deficient GATS financial services
commitments to be substantially more forthcoming. Among the more notable of these
developments are the following:
Developments in 1994
•
In February 1994, a senior Treasury Department official met with his counterpart in
the European Commission to discuss possible approaches for the extended
negotiations, including the United States' willingness to consider transitional
arrangements.
•
In April 1994, at the time of the meetings of the Interim and Development
Committees of the IMF and World Bank, senior Treasury officials met in
Washington, D.C., with counterparts from important developing countries, including
India and Korea, to encourage their efforts to accelerate significant financial sector
reforms that could be incorporated in their GATS commitments.
•
In July 1994, senior Treasury Department and USTR officials met with Finance
Ministry, Central Bank, and other officials in Bangkok, Jakarta, .Kuala Lumpur,
Manila, and Singapore. The U.S. officials briefed their counterparts on the United
States' objectives for the extended negotiations, discussed recent reforms in the
countries' financial sector policies. underscored the need for them to improve their
9
GATS commitments substantially, and outlined the concept of transitional
arrangements. U.S. officials also met with local representatives of U.S. financial
services firms in those locations.
•
In September 1994, senior USTR and Treasury officials met with their trade and
finance counterparts from the three other Quad participants (Canada, EU, and Japan).
Among other issues, they discussed objectives and approaches for the extended
financial services negotiations.
•
In early October 1994, during the annual meetings of the IMF ar.d World Bank,
senior Treasury officials met in Madrid with high-level representatives of Brazil,
Egypt, Hong Kong, Korea, Norway, and Pakistan. Later that month, a senior
Treasury official also met in Washington, D.C., with a high-level Colombian banking
official. As in their meetings in July, the U.S. officials briefed their counterparts on
the United States' objectives for the extended negotiations, underscored the need for
them to improve their GATS commitments substantially, and outlined the concept of
transitional arrangements.
•
Also in October, a U.S. delegation composed of Treasury, USTR, and State
Department officials attended the first meeting of the multilateral Interim Group on
Financial Services (IGFS) in Geneva. The IGFS was established by the GATT
Secretariat to monitor the progress of the negotiations until creation of the wro and
the establishment of a formal Committee on Trade in Financial Services under the
GATS Council on Trade in Services. U.S. delegates advised the IGFS participants
that the United States' objectives for the extended negotiations were unchanged.
While willing to consider phase-in measures to address any legitimate concerns about
the effects of rapid liberalization, the U.S. delegates stated that the United States
continued to require commitments to substantially full market access and national
treatment as the condition for accepting a broad MFN obligation in financial services
under the GATS.
•
In late October 1994, a U.S. delegation composed of officials from USTR, the
Department of Commerce, and the International Trade Commission visited India,
Malaysia, the Philippines, and Singapore to discuss bilaterally how they could
improve their commitments in insurance.
•
The IGFS meeting also provided an occasion for Treasury officials to meet with
counterparts from the European Commission, Canada, and Switzerland to compare
assessments of the commitments that major developed and developing countries had
made as of December 1993 and identify areas where their objectives might be
mutually reinforcing. These meetings revealed a high degree of similarity with
respect both to countries of concern and barriers to be addressed.
10
•
In November 1994, senior Treasury and USTR staff met in Washington with
counterparts from the European Commission. The Commission delegate reaffirmed
the EU's intention to seek better market access commitments from other countries in
the extended negotiations. Treasury and USTR officials strongly reiterated the United
States' intention to maintain its MFN exemption in financial services if commercially
important developed and developing countries did not provide commitments to
substantially full market access and national treatment. A discussion of respective
negotiating priorities confirmed the conclusions reached earlier by U.S. and
Commission officials as to important similarities.
•
In the last week of November, a delegation again composed of Treasury, USTR, and
State Department officials, and augmented by technical advisors from the Federal
Reserve Board and the International Trade Commission, conducted bilateral
consultations or negotiations in Geneva with 16 WTO signatories. 13 Some of these
signatories had tabled good or relatively good schedules in December 1993. In these
cases, the U.S. negotiating team reviewed how they might contribute positively to the
negotiations, by conducting negotiations of their own to encourage other countries in
their geographic region to improve their commitments and/or by addressing the few
remaining deficiencies in their own schedules so as to make high quality offers. Most
of the countries with which the U.S. team met had tabled schedules with major
deficiencies. The U.S. team reviewed these deficiencies in detail, in order to clarify
areas where the countries needed to make significant improvements in their
commitments.
•
On this same occasion, the delegation also represented the United States at the second
meeting of the multilateral IGFS. Once again, the U.S. delegation underscored the
need for commercially important developed and developing countries to improve their
commitments substantially as the condition for the United States' accepting an MFN
obligation in financial services in GATS.
•
In December 1994, the Department of the Treasury submitted its 1994 National
Treatment Study to the Congress. This report, which incorporated significant input
from the U.S. financial services industry, examines the degree of national treatment
and market access afforded U.S. financial institutions in 30 banking and 32 securities
markets. Its detailed analysis of barriers in many of the countries with which the
United States has been negotiating contributed importantly to the refinement of
specific U.S. objectives.
13
Argentina, Australia, Brazil, Chile, Colombia, European Union, Hong Kong, India, Indonesia, Korea,
Malaysia, Morocco, New Zealand, Philippines, Singapore, and Thailand.
11
U.S.-Japan Bilateral Negotiations
Top-level Administration officials from USTR, the Treasury Department, and other U.S.
agencies met frequently with Japanese counterparts throughout 1994 and early 1995 to reach
understandings regarding measures that Japan would adopt to liberalize foreign access and
national treatment in its insurance, securities, pension fund, and other financial markets. The
understanding on insurance was signed in October 1994. The understanding on securities,
pension fund management, and other financial services markets was concluded in January
1995 and signed the following month.
The Administration has already briefed the Congress on the scope of the market opening
measures that Japan agreed to implement. These understandings constitute an important step
toward a broad MFN-based agreement on financial services under the GATS. Resolving
important issues with Japan regarding U.S. firms' ability to establish and compete effectively
in Japan's insurance, securities, pension fund management, and other financial markets was a
necessary (though not sufficient) condition for the United States to make a comprehensive
MFN commitment in GATS. Japan has stated that it intends to extend fully the benefits of
the measures to all its trading partners on an MFN basis. The understandings with Japan
demonstrate that the United States is willing to guarantee MFN and national treatment in its
market to countries that are prepared to make quality commitments affecting U.S. firms.
It remains for Japan to reflect the insurance and other financial services understandings
appropriately in its GATS commitments. The United States has made it clear that it expects
Japan to do so and has met several times with Japan to discuss necessary changes in Japan's
schedule. Other WTO signatories, particularly the EU and Canada, are also urging Japan to
"multilateralize" the measures by including them in its GATS schedule.
Developments in 1995
On January 1, 1995, the WTO entered into force, the United States and a critical mass of
other signatories having ratified the Final Act by that time. This event signalled the
beginning of the final six months of the extended negotiations, the pace of which has
accelerated.
•
The U.S. negotiating team returned to Geneva at the end of January for another round
of bilateral negotiations or consultations with 15 WTO members. 14 In the negotiating
sessions, the U. S. team again reviewed specific deficiencies in the countries
commitments. It explained that the United States would not be able to justify
accepting a broad MFN obligation in financial services in GATS if major deficiencies
were not addressed.
t
14
Brazil, Egypt, Europ,ean Union, Hungary, India. Indonesia, Korea. Malaysia, New Zealand, Norway,
Pakistan, Philippines, Poland, South Africa, and Thailand.
12
•
The delegation also represented the United States at the third meeting of the IGFS.
At this meeting, the U.S., EU, Canadian, Swiss and other delegations expressed
concern that although many key countries had indicated a willingness to improve their
commitments, they had yet to provide any specifics. In view of the urgent need to
provide a more concrete basis for bilateral negotiations, the IGFS agreed on March 15
as the date for members to submit to the WTO Secretariat written indications of
improvements that they were prepared to make in their schedules, subject to
satisfactory commitments from others. The IGFS also agreed that the next
multilateral meeting, which would be the first meeting of the formal Committee on
Trade in Financial Services (CTFS) under the GATS Services Council, should be a
"high-level" meeting. It was further agreed that the CTFS meeting, which was later
scheduled for March 28, would provide the occasion for high-level bilateral
negotiations in order to give greater impetus to the process.
•
In early March, a senior Treasury official met with his counterpart from the Korean
Ministry of Finance and Economy in Washington, D.C. He reviewed in detail the
specific deficiencies in Korea's schedule that impede the ability of U.S. financial
services firms to establish in Korea, fund their operations, and compete effectively.
He underscored the critical importance of substantial improvements in Korea's GATS
commitments as a condition for the United States' accepting a broad MFN obligation
in financial services in GATS.
During the extended negotiations. other WTO parties have requested certain concessions
from the United States. The over-arching request was for the United States to make a
national treatment and MFN commitment that would guarantee not only foreign firms'
existing access, operations, and activities in U.S. financial markets, but also their ability to
have new access, expand existing operations in line with implementation of the 1994 RiegleNeal Interstate Banking and Branching Efficiency Act, and to conduct new activities as may
be authorized by any eventual legislative reform of Glass-Steagall limitations. In addition, a
number countries, primarily in South and Southeast Asia, linked any progress in their
financial services commitments to concessions from the United States, EU, and Japan on
movement of natural persons. Negotiations in this sector are on-going and are scheduled to
conclude in June 1995 along with the extended financial services negotiations. Also, some
countries expressed a linkage to concessions from the United States and other countries in the
maritime services negotiations.
CURRENT STAreS OF THE NEGOTIATIONS
Response to the March 15 Date
Eight WTO parties responded to the call to submit written indications regarding conditional
improvements in their schedules to the WTO Secretariat by the middle of March. These
were: the United States, Canada, the EU, Hong Kong, Japan, Korea, Mexico, and
Switzerland.
13
•
The United States' revised, conditional offer responds to requests that we received
from other negotiating parties. It is attached in Annex 1. This conditional offer
states that the United States is prepared to guarantee substantially full market access
and national treatment in U.S. markets on an MFN basis, subject to satisfactory
commitments from others. This means that the United States would guarantee foreign
firms' current access, operations, and activities in the United States, as already
provided for in the United States' December 1993 schedule of commitments. In
addition, the revised U.S. conditional offer would guarantee foreign firms' ability to
enter the U.S. market in the future, expand existing operations, and undertake new
activities in line with any future U.S. financial sector reforms. The offer also
reiterates the United States' willingness to consider proposals that would phase in
market access, within a reasonable and specified time, under conditions of national
treatment. It should be emphasized, however, that the revised U.S. offer is explicitly
conditioned upon other negotiating parties' also undertaking comprehensive
commitments to substantially full market access and national treatment in their
financial services sectors on an MFN basis.
•
The EU essentially reconfirmed its December 1993 schedule, but stated that
maintenance of these commitments would depend upon improved commitments by
others on an MFN basis.
•
Canada. Hong Kong. Korea. Mexico. and Switzerland offered minor improvements in
their schedules having to do with limitations on nationality requirements for directors,
banks' back-office and other operations, foreign equity in domestic firms, or other
matters, consistent with recent changes in policy, regulation, or law. In addition,
Canada and Switzerland offered to remove their MFN exemptions for certain new
licenses, subject to satisfactory commitments from others.
•
Japan offered to allow licensing of new foreign firms, expansion of existing
operations, or conduct of new activities, subject to all other major countries'
accepting an MFN obligation.
Additional information about these conditional offers is also contained in Annex 1.
Late March Bilateral and Multilateral Meetings in Geneva
The most recent round of bilateral and multilateral meetings in Geneva was held the week of
March 27. The United States was represented by a delegation composed of senior Treasury
Department and USTR officials, other officials from those agencies and the State
Department, and technical advisors from the Federal Reserve Board and International Trade
Commission.
14
The U. S. delegation held bilateral negotiations or consultations with 19 WTO parties. 15 The
delegation briefed the other parties on the revised U.S. offer and stressed its conditional
nature. In tabling a revised, conditional offer, the delegation said, the United States had
made another positive contribution to the success of the negotiations. It was now up to other
countries that desired a broad MFN agreement in financial services under the GATS to step
forward with significant improvements in their schedules. In this context, the U.S.
delegation again reviewed major deficiencies in other countries' schedules and made specific
requests and proposals for necessary improvements.
During these bilateral negotiations, a number of countries offered provisional improvements
in their commitments of varying degrees of significance. In most cases, however, they have
not yet communicated these improvements to the WTO Secretariat.
At the CTFS meeting, the U.S. delegates again underscored the conditional nature of the
United States' revised offer. They regretted that the response to the request for countries to
submit to the WTO Secretariat their written indications of conditional improvements in their
schedules had not been adequate and that bilateral negotiations had not resulted in more
concrete progress. They emphasized that the burden for achieving a broad MFN-based
agreement in financial services in GATS rests with other key countries, which need to step
forward urgently with significant improvements in their commitments.
The EU, Canada, and Switzerland also expressed concern about the lack of progress. They
stated that their offers were also conditioned on substantial improvements in other countries'
market access and national treatment commitments.
In view of the disappointing response from key countries to the March 15 deadline, the
CTFS agreed to the following timetable for completing the negotiations in the short amount
of time remaining:
10 April
Revised date for countries to submit written indications of conditional
improvements in their schedules to the WTO Secretariat
28 April
The CTFS reports to the Council on Trade in Services regarding the
status of the negotiations.
08 May
WTO members submit revised schedules of financial services
commitments and MFN exemption lists to the Secretariat.
15
High-level bilaterals were held with Brazil, European Union, Hungary, India, Indonesia, Philippines,
Singapore, South Africa, and Thailand. Additional bilateral consultations or negotiations were held
with Australia, Chile, Colombia, Egypt, European Union, Hungary, Korea, New Zealand, Pakistan,
Poland, Turkey, and Venezuela.
15
15-19 May
Bilateral negotiations in Geneva and meeting of the CTFS to assess
progress
07 June
High-level meeting of the CTFS, with additional bilateral negotiations
likely
15 June
Countries submit final schedules of commitments in financial services
and MFN exemption lists to the Secretariat.
16-28 June
WTO members review and consider final schedules and MFN
exemption lists.
29 June
CTFS meeting
30 June
Conclusion of extended negotiations
Key Developments Since the March Meeting
Six additional countries have advised the WTO Secretariat regarding their commitments in
financial services:
•
Brazil conditionally offered to eliminate discrimination in terms of capital
requirements for foreign bank branches and other financial institutions and with
respect to ownership of networks of automatic teller machines.
•
Colombia and Romania reaffirmed the conditionality of their existing schedules ..
•
New Zealand stated that it would maintain its current schedule in full, without
reference to conditionality.
•
Norway offered to bind market opening measures that will have entered into force
between December 1993 and the end of the extended negotiations. It stated that these
improvements are subject to the satisfactory outcome of negotiations in the financial
services and other sectors.
•
Turkey indicated its intention to broaden the sector coverage of its commitments to
include additional financial services.
Secretary Rubin met with finance ministry colleagues from several Asian countries in midApril. He encouraged them to improve their GATS financial services c.:>mmitments
significantly.
In late April around the time of the Interim and Development Committee meetings of the
IMF and World Bank, senior Treasury officials met with senior finance and central bank
16
officials from Brazil, Chile, India, Indonesia, and Venezuela to present specific proposals for
necessary improvements in their GATS schedules of financial services commitments.
At the end of April, the CTFS was to submit its report on the status of the negotiations to the
GATS Council on Trade in Services. As of the time of writing of the Administration's
report, the CTFS report had not been finalized.
.
OUTLOOK FOR THE NEGOTIATIONS
Although only two months remain until the end of the negotiations, it is still too early to
forecast their outcome. The United States' objective remains a comprehensive, MFN-based
agreement in financial services that gives us substantially full market access and national
treatment. Negotiators are making progress, but there is still a long way to go toward this
objective. The improvements that some countries have suggested to date are incremental and
piecemeal. A number of key countries have so far refused to provide any concrete
information. Submission of revised, conditional schedules of commitments on May 8 and the
negotiations in Geneva the following week will be critical bench marks.
In making its revised, conditional offer, the United States has made a substantial contribution
toward the fashioning of a comprehensive MFN-based agreement in the GATS. U.S.
negotiators will use every available opportunity to meet with key countries during the
remaining time to seek the necessary improvements in their schedules. Ultimately, the
prospects for successfully concluding the negotiations will depend on our negotiating
partners' recognizing the importance of, and being willing to make commitments to, liberal
trade in financial services.
CONSULTATIONS WITH
U.S. INDUSTRY AND THE CONGRESS
The Administration's advisory bodies for trade in financial services are the Investment and
Services Policy Advisory Committee (INSPAC) and the Industry Sector Advisory Committee
for services (ISAC-13). Treasury Department and USTR officials have consulted with these
two bodies regularly during the extended negotiations. U.S. objectives for the extended
negotiations, as reflected in the Uruguay Round Agreements implementing legislation, were
developed in close consultation with the Administration's advisors. The U.S. negotiators
have used information and counsel received from these advisory bodies in determining U.S.
priorities and strategies for the negotiations, with respect both to individual countries and to
the specific barriers to be addressed. U.S. negotiators have also kept the advisory bodies
informed of the results of each round of negotiations in Geneva. In addition, U.S.
negotiators have met frequently, and informally, with other representatives of the U.S.
financial services industry, at their request, to receive their views on the negotiations.
In February, Treasury Department and USTR officials initiated consultations with committee
staff of the House Banking, Ways and Means, and Commerce Committees and with the
Senate Banking and Finance Committees. The purpose of these consultations was to brief
17
staff on the background and status of the negotiations as of that time and to answer questions
that they might have about U.S. objectives and strategy.
The Administration will continue to consult closely both with industry and with the Congress
during the two months remaining for the negotiations. In particular, the Administration will
consult prior to making its decision as to whether the United States should accept an MFN
obligation in financial services in the GATS.
- 000-
ANNEX
1
SUMMARY OF WRIITEN INTENTIONS AND CONDITIONAL OFFERS
In addition to the United States' revised, conditional offer (attached), 14 other WTO
signatories have advised the WTO Secretariat in writing as to their intentions to maintain or
improve their December 1993 schedules of financial service commitments and MFN
exemption lists. These are: Brazil, Canada, Colombia, the European Union, Hong Kong,
Japan, Korea, Mexico, Morocco, New Zealand, Norway, Romania, Switzerland, and
Turkey. The communications of these countries are summarized below. 16
Brazil: Improvements that Brazil offered are eliminating discrimination between foreign and
domestic financial institutions in terms of minimum capital requirements and with respect to
ownership of individual networks of automatic teller machines. These improvements are
conditional on further commitments being taken by Brazil's major trading partners. Brazil's
communication also describes the Constitutional ban on establishment or expansion of foreign
financial services firms, including insurance companies.
Canada: Canada indicated that it would remove it MFN exemption for licensing of banks,
trust, and insurance firms (now conditioned on reciprocity). Canada has also offered to
allow 50% of the directors of banks, federally incorporated insurance companies and trust
and loan companies to be non-Canadian citizens. These improvements are conditioned on the
level of commitments from other countries as of June 30. 1995. Canada also reserves the
right to make technical changes to its schedule.
Colombia: Colombia stated that its bindings were conditional on other negotiating parties'
making similar commitments.
The European Union: The EU has forwarded a statement which essentially reaffirms its
current schedule of commitments on the table, but notes the "difficulty" that the EU would
have in maintaining its current schedule of commitments on an MFN basis if others do not
improve their offers. The EU notes that its expansion to include Austria, Finland, and
Sweden has increased the value of its commitments.
Hong Kong: Hong Kong has offered to bind the recent relaxation of the "one building" rule
for foreign banks -- foreign banks will be allowed to establish an additional service office
and a separate back office. This offer is subject to satisfactory commitments from other
negotiating parties.
16
These summaries are informal and not intended in any way as an authoritative interpretation of the
countries' respective intentions.
2
Japan: Japan has offered to drop its current limitation on the establishment of subsidiaries
and branches, expansion of existing activities, and conduct of new activities in banking and
other financial services (excluding insurance). Japan conditions this improvement, in part,
on "all the major trading partners [being] committed to the MFN principles. Japan also
holds out the possibility of some improvement in its commitments for insurance.
tI
Korea: Korea's revised conditional offer lists already-implemented regulatory changes which
they would be willing to bind. These include: raising the ceiling on foreign investment in
the stock market to 15 % in 1995, raising the ceiling on CD issuance by foreign banks to
400% of equity capital, and doubling the foreign equity ceiling for investment trust and
investment advisory companies. Korea also states that it plans to improve its commitments
further by incorporating elements of its two recent financial liberalization programs (the
Third Stage Plan for Financial Liberalization and the Foreign Exchange Reform Plan).
Mexico: Mexico has stated that it would revise its schedule of commitments in the near
future. (In a meeting of the CTFS, it referred to an increase to 49 percent in the binding for
foreign equity participation in Mexican financial institutions.)
Morocco: Morocco has stated that it would revise its schedule of commitments for the
banking sub-sector.
New Zealand: New Zealand has stated that it would maintain the bindings contained in its
December 1993 offer.
Norway: Norway's communication reaffirms its commitment to a standstill. In that regard,
it offers to bind market opening measures that have been implemented since December 1993
or will be by the end of the extended negotiations. These affect: the ability of financial
services firms from countries outside of the European Economic Area to branch directly into
Norway (subject to Parliamentary approval); purchase of life insurance abroad; and
residency, rather than nationality, requirements for managing directors and boards of
directors of financial service firms. These improvements are conditioned on the satisfactory
outcome of the extended negotiations in financial services and other areas.
Romania: Romania has stated that it reserves the right to withdraw previously offered
commitments and to introduce MFN exemptions if it finds the outcome of the negotiations to
be unsatisfactory.
Switzerland: Switzerland has offered to withdraw its current MFN exemption for new
licenses in banking and other financial services (excluding insurance). It has also offered to
bind changes in relevant legislation since December 1993. These improvements are
conditional.
Turkey: Turkey offered to expand its schedule to include derivative products, money
broking, and pension fund management. Its improvements are also conditional.
- 0
00-
Report on Status of
Financial Services Negotiations
under the
General Agreement on Trade in Services
April 30, 1995
Annex 2:
Compilation of Commitments and MFN Exemptions in Financial Services
under the GATS.
27.10.1994
Interim Group on Financial Services
COMPILATION OF SPECIFIC COMMITMENTS
FINANCIAL SERVICES SECTOR
Informal Note by the Secretariat
As requested at the 12 October 1994 meeting of the Interim Group on Financial Services, the Secretariat
has compiled commitments by participants on fmancial services on a sectoral basis. This sectoral
conwilation is composed of information contained in schedules. It is designed to be read in conjunction
with the informal Secretariat note entitled "Compilation of Horizontal Commitments: All Sectors"
of 21 June 1994.
In no way does this document replace, or necessarily reproduce in its entirety. the content of the
respective schedules. Commitments which have been translated from the original language in which
they were submitted are considered authentic in the original language only.
100TOC
FINANCIAL SERVICES
Table of Contents
page
Antigua and Barbuda
Antilles
Argentina
Aruba
Australia
Austria
Bahrain
Barbados
Benin
Brazil
Brunei Darussalam
Canada
Chile
China
Colombia
Cuba
Cyprus
Czech Republic
Dominica
Dominican Republic
Egypt
EI Salvador
European Communities
and their Member States
Finland
1
3
9
19
21
29
35
37
39
43
49
53
71
89
101
107
111
115
123
125
129
141
145
163
page
page
Gabon
Ghana
Grenada
Guatemala
Guyana
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Israel
Jamaica
Japan
Kenya
Korea
Liechtenstein
Macau
Malaysia
Malta
Mexico
Morocco
Mozambique
New Zealand
Nicaragua
167
169
171
173
175
177
183
193
201
205
213
229
233
235
247
251
267
271
277
303
305
315
321
323
331
Nigeria
Norway
Pakistan
Paraguay
Peru
Philippines
Poland
Romania
Saint Lucia
Saint Vincent and
the Grenadines
Singapore
Slovak Republic
South Africa
Sweden
Switzer1and
Thailand
Trinidad and Tobago
Tunisia
Turkey
United States of America
Uruguay
Venezuela
Zimbabwe
333
335
341
347
349
355
369
375
381
383
385
399
407
411
415
421
431
433
447
461
477
481
493
fin-TOC
ANTIGUA AND BARBUDA
Modes of supply:
1)
Cross-border supply
Sedor or subsector
7.
FINANCIAL SERVICES
A.
All insurance and
insurance related services
c)
Re-insurance
(CPC 81299)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional com....tments
I
1)
2)
3)
4)
None
None
Insurance Act
As indicated under borizontal commitments
1)
2)
3)
4)
None
None
Insurance Act
None
GATSISe/2
Page 5
TIlE KINGDOM OF THE NETIlERLANDS WIm RESPECT TO THE NETHERLANDS ANTILLES
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
The Netherlands Antilles will bind all fmancial service sectors in accordance with the provisions contained in the ·Understanding on Commitments in Financial
Services·
1.
FINANCIAL
SERVICES'
A.
Insurance
a)
Domestic insurance
companies1
1)
None
1)
None
2)
None
2)
None
3)
Must be limited liability companies or
mutual companies if the seat is registered
within the N.A. A test of economic needs
is applied for the establishment of branches
and subsidiaries in the domestic market.
The managing director, being a naooral
person, must be a resident of the N.A.
3)
None
4)
None
4)
None
w
I
----~
1
2
Capital transactions are subject to a licence granted by the Central Bank, according to the foreign exchange regulations of the N .A.
Domestic insurance companies are defmed as insurance companies conducting business primarily within the N.A.
GATSISC/3
Page 5
GATS/SC/3
Page 6
THE KINGDOM OF THE NETHERLANDS WITH RESPECT TO THE NETHERLANDS ANTILLES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
b)
International insurance
companies'
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Presence of natural persons
4)
Additional commltment5
Limitations on natlo.... treatment
1)
None
1)
None
2)
None
2)
None
3)
Must be limited liability companies or
mutual companies. The managing director,
being a natural person, must be a resident
of the N.A.
3)
None
4)
None
4)
None
~
-
..
_-
~
An international insurance company is defmed as an insurance company, conducting business outside the N.A. with non-residents. InternatioDal inJurance
companies are not allowed to operate on the domestic market.
THE KINGDOM OF THE NETHERLANDS WITH RESPECT TO THE NETHERLANDS ANTILLES (continued)
Modes of supply:
1)
Cross-border supply
Limitations
Sector or subsmor
B.
2)
00
Consumption abroad
3)
Commercial presence
Llmltatloos
market access
00
oatlonal treatmeot
4)
Presence of natural persons
Additional commitments
Banking and securities
trade
Secondary fmancial
institutions I
J1
-
,
1)
None
t)
None
2)
None
2)
None
3)
a)
Must be limited liability companies or
branches of a foreign financial
institution
3)
None
b)
A test of economic needs is applied
for the establishment of branches and
subsidiaries on the domestic market
(including expansion of activities of
established banks through new
branches)
-
A secondary financial institution is defined as an enterprise or institution whose activities consist primarily of obtaining funds from third panies in the form of
savings or debenture with the purpose of investing or lending these funds. A secondary financial institution is not a money-creating entity and therefore has no
effect on the total money supply.
GATS/SC/3
Page 7
TIlE KINGDOM OF TIlE NETIlERLANDS WITH RESPECT TO TIlE NETIlERLANDS ANTILLES (continued)
Modes of supply:
I)
Cross-border supply
Sedor or subsector
General banks I
2)
Consumption abroad
3)
Limitations on market access
c)
Only branches and subsidiaries of the
top 1000 banks may be admitted
d)
The managing directors must be
natur~ persons and residents of the
N .A. Their appointment is subject to
approval by the Central Bank
Conune~i~ p~
LlmltatlOM on national treatment
4)
GATS/SC/3
Page 8
Presence of natural persons
Additional commltmtDu
I
4)
None
4)
None
I)
None
I)
None
2)
None
2)
None
3)
a)
3)
None
0'1
b)
1
Must be limited liability companies or
branches of a foreign rtOanci~
institution
A test of economic needs is applied
for the establishment of branches and
subsidiaries on the domestic market
(including expansion of activities of
established banks through new
branches)
A general bank is defmed as an enterprise or institution whose activities consist primarily of regularly obtaining funds OD account from third panies aod/or
lending funds to third parties in the fonn of loans.
I
I
THE KINGDOM OF THE NETHERLANDS Wlm RESPECT TO THE NETHERLANDS ANTILLES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsedor
International banks'
.....
-
2)
Consumption abroad
3)
Limitations on market access
c)
OnJy branches and subsidiaries of the
top 1000 banks may be admitted
d)
The managing directors must be
natural persons and residents of the
N .A. Their appointment is subject to
approval by the Central Bank.
Commercial presence
4)
Additional commitments
Limitations on national treatment
4)
None
4)
None
1)
None
I)
None
2)
None
2)
None
3)
Must be legal entities or branches of
foreign fmandal institutions. Only
subsidiaries or branches of the top
1000 banks of the world are admitted. At
least one of the managing directors. being
a natural person. must be a resident of the
N .A. The appointment is subject to
approval by the Central Bank.
3)
None
4)
None
4)
None
Presence of natural persons
---
An international bank is defmed as an enterprise whose activities consist primarily of regularly obtaining funds on account from third parties being non-residents
and/or from the capital market, with the purpose of relending these funds to third parties being non-residents in the form of loans. Since international banks are
not subject to the restrictions in the foreign exchange regulations, those banks are not allowed to operate on the domestic market.
GATS/SC/3
Page 9
GATS/SC/4
ARGENTINA
Page 14
Modes of supply:
1)
Cross-border supply
Sedor or subsector
7.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL
SERVICES·
I
A.
a)
10
b)
All insurance services
and insurance-related
services
Life, accident and health
insurance services
(CPC 8121)
Non-life insurance
services
(CPC 8129)
-------_._---
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Authorization of the establishment of new
entities is suspended
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Authorization of the establishment of new
entities is suspended
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
-_._.-
Processed data must remain in the country so as to be available for consultation by the competent authority. This measure does not prevent the data from also being
transferred abroad.
ARGENTINA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Maritime and air
transport insurance
services
(CPC 81293)
c)
Reinsurance and
retrocession services
(CPC 81299·)
o
B.
Banking and other
fmancial services
(excluding insurance)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations
OD
national tnatment
I)
None
1)
None
2)
None
2)
None
3)
Authorization of the establishment of new
entities is suspended
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
None
1)
None
2)
None
2)
None
3)
Authorization of the establishment of new
entities is suspended
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, 9cept as indicated in the
horizontal section
4)
Presence of natural penons
Additional commitments
Financial operations by the Government and
State-owned enterprises are excluded from the
conditions specified in this schedule; they may
carry out their operations througb the entities
they designate.
In order to engage in stock market transactions it
is necessary to be a member and share-holder of
the Securities Exchange.
-
--
--
GATSISC/4
P .... e 15
GATS/SC/4
Page 16
ARGENTINA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
a)
b)
.....
.....
c)
Acceptance of deposits
and other repayable
funds from the public
(CPC.81115-81119)
Lending of all types
including consumer
credit, mortgage credit,
factoring and financing
of commercial
transactions
(CPC 81113)
Financial leasing services
(CPC 8112)
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I)
Unbound
1)
Unbound
2)
None
2) . None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
AddJtlonal commitments
--
ARGENTINA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
d)
e)
Payment and money
transmission services
(CPC 81339")
Guarantees and
commitments
(CPC 81199··)
N
f)
Tradiog on own account
or for clients, whether on
an excbange or not, or in
any other form, of the
following:
- _..
2)
Consumption abroad
3)
Commercial presence
Llmltadous on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicaaed in the
horizontal section
4)
Presence of natural persons
Additional commitments
1
GATSISC/4
Page 18
ARGENTINA (continued)
Modes of supply:
I)
Cross-border supply
foreign exchange
(CPC 81333)
~
w
derivative products,
including, but not
limited to, futures
and options
(CPC 81339··)
Consumption abroad
3)
Limitations on market access
Sedor or subsector
money market
instruments
(cheques, bills,
certificates of
deposit, etc.)
(C.PC 81339··)
2)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
AddJtlonal commitments
I
I
--
ARGENTINA (continued)
Modes of supply:
1)
Cross-border supply
Sector or 8uMedor
exchange rale and
interest rate
instruments, such as
swaps, forward
interest-rate
agreements, elC.
(CPC 81339+)
transferable
securities
(CPC 81321·)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
I)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except II indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
l)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
-"
la
other negotiable
instruments and
fmancial assets,
including bullion
(CPC 81339·+)
Unbound
I)
l)
I
I
Unbound
I
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
--
--
OATSISC/4
Page 19
GATSISC/4
Page 20
ARGENTINA (continued)
Modes of supply:
1)
Cross-border supply
Sedor or 5ubsedor
g)
h)
Participation in issues of
all kinds of securities,
including under-writing
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
(CPC 8132)
Money broking
(CPC 81339··)
2)
Consumption abroad
3)
Limitations on market accrss
Commercial presence
Limitations on national treatment
I)
Unbound
I)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except u indicated in the
borizontal section
4)
Unbound, except u indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Presence of natural penons
Additional commitments
~
U1
i)
Asset management, such
as cash or portfolio
management, all forms
of collective investment
management, pension
fund management,
custodial depository and
trust services
(CPC 8119·· + 81323·)
I
I
I
I
I
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I
I
ARGENTINA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsedor
j)
Settlement and clearing
services for financial
assets, including
securities, derivative
products, and other
negotiable instruments
(CPC 81339" or
8I3f9")
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
LlmltatiollS on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound. except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
I
k)
.....
0\
Advisory and other
auxiliary fmancial
services for any of the
activities listed in
Article J. B of document
MTN. TNCIW ISO,
including credit reference
and analysis, investment
and portfolio research
and advice, and advice
on acquisitions and on
corporate restructuring
and strategy.
(CPC 8131 or 8133)
I,
-~
GATS/SC/4
Page 21
GATSISC/4
Page 22
ARGENTINA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
I)
......
Provision and transfer of
financial information,
fmancial data processing
and related software by
suppliers of other
financial services
(CPC 8131)
New financial services
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Unbound
3)
None
4)
Presence of natural persons
Additional commitments
I
I
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
---~-
THE KINGDOM OF THE NETHERLANDS WIm RESPECT TO ARUBA
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
Aruba will bind all fmancial service sectors in accordance with the provisions contained in the ·Understanding on Commitments in Financial Services·
7.
FINANCIAL SERVICES
A.
Insurance
I)
None
I)
None
2)
None
2)
None
3)
Off-shore companies cannot operate on the
domestic market. A test of economic
needs is applied for the establishment of
branches and subsidiaries in the domestic
market.
3)
None
4)
Unbound
4)
A non-Aruban needs permission to become
a director of a financial institution
...
\D
---
- -
GATSISel5
Page 5
GATs/setS
Page 6
THE KINGDOM OF THE NETHERLANDS WITH RESPECT TO ARUBA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking and
trade
2)
Consumption abroad
3)
Presence of natural persons
4)
Additional commitments
LlmltatloDS on national treatment
LlmltatioDS on market access
securitie~
Commercial presence
1)
None
I)
None
2)
Residents of Aruba need permission from
the Central Bank for the purchase of
foreign securities above AFL 50.000'
2)
None
I
IV
o
-
•
I
3)
Off-shore companies cannot opente on the
domestic market. A test of economic
needs is applied for the establishment of
branches and subsidiaries on the domestic
market (incl. expansion of activities of
established banks througb new brancbes).
3)
None
4)
Unbound
4)
A non-Aruban needs permission to become
a director of a financial institution
----
A commitmenl on this mode of delivery is not feasible.
~
~-
GATS/SC/6
Page 32
AUSTRALIA
Modes of supply:
1) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
3) Commercial presence
4) Presence of natural penons
Limitations on national treatment
Additional
commitments
7. FINANCIAL SERVICES
. Australia undertakes its specific commitments on rmancial services in accordance with the attached ·Understanding on Commitments in Financial Services·
(hereinafter referred to as the ·Understanding").
The obligations under the Understanding are addressed in this Schedule additionally to those covered by the provisions of Part III of the Agreement and the
Annex on Financial Services. Market access commitments with respect to ·cross-border supply· and ·consumption abroad· are bound in this Schedule to the
extent of the obligations in paragraphs 3 and 4 of the Understanding.
These specific commitments on rmancial services are subject to the general limitations contained in the ·Horizontal Commitments· section of this Schedule.
N
~
A. Insurance and insurancerelated services
(8121, 8129··, 8140)
3) Approval of non-resident life insurers is
restricted to subsidiaries
3) Registered foreign life insurance companies
are required to have a principal officer
resident in Australia
AUSTRALIA (continued)
Modes of supply:
1) Cross-border supply
Sedor or subsector
2) Consumption abroad
LboltatloDS on market access
3) Commercial presence
4) Presence of natural persons
Limitations OD national treatment
Additional
commitment.
1), 3) An authorised insurance company
operating in Australia as a non-incorporated
entity must appoint an Australian resident
as agent of the insurer
3) Most State and Territory Governments
maintain restrictions, by way of monopolies
or licensing provisions and associated
controls on premiums and other terms of
policies, in the following areas of
insurance:
IV
IV
3) Sub-national guarantees are provided to
some State and Territory Insurance Offices
Compulsory Third Party Motor
Vehicle Accident: VIC, WA, TAS,
NT, ACT (monopolies); NSW, QLD,
SA (licensing, premiums/policy terms)
Workers Compensation: VIC, QLD,
SA (monopolies); NSW, WA, TAS
(licensing, premiums/policy tenos)
4) The temporary entry of specialists in the
operation of an insurance service supplier
established in Australia is permitted subject
to the tenos stipulated in the horizontal
section
--
I
I
--
GATSISC/6
Page 33
GATSISCI6
AUSTRALIA (continued)
Modes of supply:
IV
W
Page 34
1) Cross·border supply
2) Consumption abroad
Sector or subsedor
Limitations on market access
B. Banking and other fmancial
services {excluding insurance)
(8112, 8113, 8119, 8131,
8132, 8133. 81115-81119.
81199, 81319, 81321, 81323,
81333, 81339)
I) The investment at interest in Australia of
official reserves by foreign central banks
and foreign government monetary
institutions is approved by the Reserve
Bank provided that it obtains assurance
from the investing authority that it will aim
to be a stable holder of the Australian
dollar and that it will consult with the Bank
in the event of significant changes in its
Australian dollar portfolio. Monetary
institutions, responsible for both reserve
assets and commercial investments, are
permitted to invest in Australia up to a
limit under the same conditions.
3) Commercial presence
4) Presence of natural persons
Limitations on national treatment
AddJtlonal
commitments
1), 3) A foreign bank located overseas is able
to offer its services to Australian
enterprises, but it is not allowed to raise
funds in Australia or undertake business
within Australia unless it is an authorised
bank (or establishes a money market
corporation, subsidiary etc.)
-
AUSTRALIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
3) Commercial presence
4)
Presence of natural persons
Limitations on natlo..... treatment
AddJtlobal
commitments
I), 3) Dealings in foreign exchange in
Australia must be carried out through a
dealer authorised by the Reserve Bank.
Only banks, including branches of overseas
banks, and financial institutions
incorporated in Australia with the required
minimum capital base are eligible to seek
authorisation as a foreign exchange dealer.
IV
~
I
I
I
I
3) A person (including a corporation) and any
associated interests may acquire no more
than fifteen per cent of the voting shares of
an authorised bank
I
GATSISC/6
Page 35
GATS/SC/6
Page 36
AUSTRALIA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
3) Commercial presence
4) Presence of natural persons
Limitations on national treatment
Additional
commitments
N
U1
Foreign banks satisfying prudential
requirements and competition policy
considerations may conduct banking in
Australia. Foreign banks may undertake
banking operations in Australia through an
authorised branch, however, a branch may
not accept -retail Wdeposits. A foreign
bank wishing to accept -retail- deposits
must seek authorisation as a locallyincorporated subsidiary for that purpose.
Foreign bank branches may accept deposits
(and other funds) in any amount from
incorporated entities, non-residents and
their own employees. Deposits (and other
funds) may only be accepted from other
sources where the initial deposit (or other
funds) is greater than $250000. Deposittaking outside of this is considered to be
Wretail w banking business.
AUSTRALIA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations OD market access
3) Commercial presence
4) Presence of natural persons
Limitations OD Datlonal treatment
Additional
commitments
Acquisition, by foreign interests, of control
of any of Australia's four main banks
(Commonwealth Bank of Australia,
National Australia Bank, Westpac Banking
Corporation and Australia and New
Zealand Banking Group) is not permitted.
State and Territory governments reserve the
right to prohibit foreign control of Stateowned or controlled banks. Banks
(resident and non-residenl) are prohibited
from bolding shares in the Commonwealth
Bank of Australia and other entities may
not hold more than five per cent of its
issued share capital.
IV
0\
3) The Commonwealth Bank of Australia, the
Australian Industry Development
Corporation, and other Commonwealth
owned entities which may conduct fmancial
operations are guaranteed by the
Commonwealth Government
I
I
I
Banks operating in Australia, whether
domestically owned or foreign owned with
authorised branch status, may be permitted,
in certain circumstances, to hold up to
per cent equity in Authorised Money
Market Dealers (primary dealers). The
Reserve Bank imposes restrictions on
relationships and dealings between
authorised dealers and related banks, in
particular:
7'
-
GATS/SC/6
Page 37
GATSISC/6
Page 38
AUSTRALIA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsec:tor
2) Consumption abroad
Limitations on market access
authorised dealers must be
independent legal entities and be
separately capitalised;
authorised dealers' transactions with
related entities (defmed as parties
which own 12.S per cent or more of
the authorised dealer) must be carried
out at arm' 5 length and not represent
a disproponionate source of funding
or turnover; and
IV
"-oJ
authorised dealers must provide an
impartial service to all participants in
the money market.
A number of State and Territory
Governments operate central fmancing
authorities through which the Government' 5
wholly or partly-owned starutory authorities
and business enterprises are obliged to
borrow (and in some cases invest) their
funds. or otherwise obtain cenain financial
services:
3) Commercial presence
4) Presence of natural persons
Limitations on national treatment
Additional
commitments
AUSTRALIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsedor
2) Consumption abroad
Limitations on market access
3) Commercial presence
4) Presence of natural persons
Limitations on national treatment
Additional
commitments
SA - South Australian Financing
Authority. SA Local Government
Financing Authority
TAS - Tascorp
NSW - Treasury Corporation
VIC - Treasury Corporation of
Victoria
IV
00
3) The Australian Stock Exchange liquid
capital requirements for members may have
the effect of favouring membership of the
Exchange by subsidiaries rather than
branches of foreign companies
I
3) A majority of the directon of a member
organisation of the Australian Stock
Exchange must be Australian residents
An applicant must be a body corporate in
order to obtain approval to conduct a stock
market or a futures market as a stock
exchange or a futures excbange
,
I
4) The temporary entry of specialists in the
operation of a fmancial service supplier
established in Australia is permitted subject
to the terms stipulated in the horizontal
section
-
--
._.
GATS/SC/6
Page 39
GATs/sen
Page 24
AUSTRIA
Modes of supply:
Sector or subsector
IV
Cross-border supply
1)
I
2)
Consumption abroad
Limitations on market access
1
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
1
Additional commitments
7.
FINANCIAL SERVICES·
•
Unlike foreign subsidiaries, branches established directly in an EEA Member State by a non-EEA financial institution are not, with cenain limited exceptions,
subject to prudential regulations harmonized at EEA level which enable such subsidiaries to benefit from enhanced facilities to set up new establishments and
to provide cross-border services throughout the EEA. Therefore, such branches receive an authorization to operate in the territory of an EEA Member State
under conditions equivalent to those applied to domestic rmancial institutions of that EEA Member State, and may be required to satisfy a number of specific
prudential requirements such as, in the case of banking and securities, separate capitalization and other solvency requirements and reponing and publication of
accounts requirements or, in the case of insurance, specific guarantee and deposit requirements, a separate capitalization, and the localization in Austria of the
assets representing the technical reserves and at least one third of the solvency margin. The restrictions indicated in this schedule may be applied only with
regard to the direct establishment from a third country of a commercial presence or to the provision of cross-border services from a third country; therefore,
Austria may not apply lhese restrictions, including those concerning establishment, to third country subsidiaries established in other EEA Member States,
unless these restrictions can also be applied to companies or nationals of other EEA Member States in conformity with Austrian law.
\D
This schedule does not prejudice the application of prudential measures, subject to the conditions specified in An. 2.1 of the Financial Services Annex, such
as, in the securities area, non-discriminatory regul.ations concerning the organization of securities markets and trading rules concerning dealing in securities.
The admission to the market of new financial services or products may be subject to the existence of, and consistency with, a regulatory framework aimed at
achieving the objectives indicated in An. 2.1 of the Financial Services Annex.
EEA treatment of lhird country fmancial service supplien established in another EEA Member Stale may be refused if Austrian fmancial service supplien
receive less favourable treatment in that third country compared to financial service suppliers of anolher EEA Member State.
AUSTRIA (continued)
Modes of supply:
I)
Sedor or subsector
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Presence of nalUral persons
Additional commitments
Insurance and insurance
related services as
defined in the RANNEX
ON FINANCIAL
SERVICES·
(para. 5.1 a) - 5.1 d»
Licensing of foreign insurers (subsidiaries and brancbes) is subject to the condition that the other country in its tum offers competitive opportunities, effective
market access and national treatment equivalent to those offered by Austria (reciprocity).
However, for the period indicated in the RSecond Annex on Financial Services· and the RDecision on Financial Services R the reciprocity requirement will Dot
apply to WTO Members.
w
o
Commitments with respect to insurance and insurance related services are undertaken in accordance with the ·Annex on Financial Services· and the
·Understanding on Commitments in Financial Services· with abe following limitations on Marleet Access and National Treatment.
1), 2) Only abe transactions indicated in
numbers 3 and 4 of the ·Understanding·
are covered
Canvassing and intermediation on behalf of
a non-established insurer (except for
reinsurance and retrocession) are
prohibited
I), 2) Higher premium tax is due for insurance
contracts (except for contracts on
reinsurance and retrocession) written by
non-established insurers; abe higher
premium tax applies to the purchase of a
policy from non-established insurers by a
consumer resident in Austria, either
directly at the supplier's establishment
outside Austria or by correspondence.
Compulsory air transport liability insurance
can be placed only with established
insurers
GATs/sen
Page 25
GATs/sen
Page 26
AUSTRIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsedor
2)
Consumption abroad
3)
Limitations on market access
3)
Austria requires as a general rule and In a
non..cJiscriminatory manner that insurers
incorporated in Austria must adopt a
specific legal form (joint stock company;
mutual insurance company); foreign
insurers establishing a branch office must
have a comparable legal form in their
home country
Commercial presence
Limitations on national treatment
3)
None
4)
Unbound except as indicated iil Pan I
4)
Presence of natural persons
Additional commitments
Representative offices and agencies of
insurers are not allowed to write insurance
contracts
w
4)
~
Unbound except as indicated in Pan I
The directors of a branch of a foreign
insurer must be resident in Austria
-
--
-
I
I
I
AUSTRIA (continued)
Modes of supply:
1)
Sector or subsector
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Banking and other
financial services as
defined in the • ANNEX
ON FINANCIAL
SERVICES" (para S.l e)
- S.l p»
Licensing of foreign branches and subsidiaries of foreign banks is subject to the condition that the other country in its tum offen competitive opportunities,
effective market access and national treatment equivalent to those offered by Austria (reciprocity). In addition licensing may be refused, if the planned
activity is not in accordance with national economic interests.
W
However, for the period indicated in the "Second Annex on Financial Services· and the "Decision on Financial Ser\'ices" the reciprocity and economic interes
test r:equirement will not apply to WTO Members.
I\.J
Commitments with respect to banking and other fmandal services are undertaken in accordance with the • Annex on Financial Services" and the
"Understanding on Commitments in Financial Services· with the following limitations on Market Access and National Treatment; most entries on the
following pages do not constitute limitations on Market Access or National Treatment; they mainly serve transparency purposes.
Monopoly or exclusive rights as indicated in
number 1 of the ·Understanding·:
The management of governmental debts. the
administration of export credit insurance on
behalf and for the account of the government.
the scttlement of payment transactions for the
government and activities related to the
distribution of governmental subsidies are
reserved to special banking institutions or legal
entities
GATS/sen
Page 27
GATs/sen
Page 28
AUSTRIA (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
1)
None
Limitations on national treatment
1)
None
Only transactions indicated in number 3 of
the ·Understanding· are covered
W
IN
2)
None
2)
None
3)
Establishment and a certain legal form
fjoint stock company. limited liability
company) are required
3)
None
Licensing of branches or subsidiaries of
foreign banks may be subject to an
economic interest test
Only members of the Austrian Stock
Exchange may engage in securities trading
at the Stock Exchange. An application to
the Austrian Stock Exchange and
authorization for certain banking activities
of the Ministry of Finance are required
(Stock Exchange Law para. 15.1».
For trading in foreign exchange and
foreign currency authorization of the
Austrian National Bank according to
Foreign Exchange Law and of the Ministry
for Economic Affairs according to the
Austrian Trade Act (para. 243 e» is
required
Commercial presence
4)
Presence of natural persons
Additional commitments
AUSTRIA (continued)
Modes of supply:
Sector or subsedor
1)
Cross-border supply
2)
Consumption abroad
3)
LlmitatloM on market access
Commercial presence
4)
Limitations on national treatment
Presence of nawral persons
Additional commitment.!
Mortgage bonds and municipal bonds may
be issued by banks specialized and
authorized only for this activity (Mortgage
Bank Law; Banking Law para. 1.1) 9)
Services of investment fund management
(investment companies) may be provided
by banks specialized and authorized only
for this business (Banking Law para 1.1)
13; Investment Fund Law para. 2.2»
I
I
,
I
Only banks authorized for the safe custody
business (Banking Law para. 1.1) S) can
act as depositories of the assets of
investment funds (Investment Fund Law
para. 23.1»
For carrying out services of pension fund
management a specialized company only
for this activity and incorporated as a stock
company in Austria is required (Pension
Fund Law paras. 1.3), 6.1).
4) Unbound except as indicated in Parr I
4)
Unbound except as indicated in Pan I
At leasl one member of me Board of
Directors of a bank must reside in Austria
and have a good command of the German
language (Banking Law para. 5.1) 10, 11)
I
GATs/sen
Page 29
GATS/SC/97
Page 2
BAHRAIN
Modes of supply:
1)
Cross-border supply
Sector or subsedor
W
1ft
7.
FINANCIAL SERVICES
A.
All Insurance and
Insurance-Related
services (Offshore only)
a)
Life, Accident and health
insurance services
b)
Non-life insurance
services
c)
Reinsurance and
retrocession
d)
Services auxiliary to
insurance (including
broking and agency
services)
B.
Reinsurance and
Retrocession
-
2)
Consumption abroad
3)
Limitations on market accfSS
1)
2)
3)
4)
1)
2)
3)
4)
Commercial presence
Limitations on national treatment
None
None
None
Unbound
2)
3)
4)
None
None
None
Unbound
2)
3)
4)
1)
1)
None
None
None
Unbound
None
None
None
Unbound
4)
Presence of natural persons
Additional commitments
GATSISC/9
Page 4
BARBADOS
Modes of supply:
1)
Cross-border supply
Consumption abroad
3)
Limitations on market access
Sector or subsector
7.
FINANCIAL SERVICES
A.
All Insurance and
Insurance-Related
Services
c)
Reinsurance
(CPC 812·)
w
2)
-
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
-------
Commercial presence
.
~
•
The service specified constitutes only a part of the total range of activities covered by the CPC Classification.
4)
Presence of natural persons
Additional commitments .
GATSISC/Il
Page 2
BENIN
Modes of supply:
1)
Cross-border supply
Sedor or subsedor
7.
B.
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
FINANCIAL
SERVICES
4)
Presence of natural persons
Additional commitments
I
Banking and other fmancial
services
I
i
Acceptance of deposits and
other repayable funds from
the public
(CPC 81115-81119)
w
~
1)
None
1)
None
2)
None
2)
None
3)
To engage in banking activities it is necessary to
have the approval of the Ministry of Finance,
Law No. 9O"()18 of 27 July 1990 on the
regulation of banking. Banks must lie
established in the fonn of public limited
companies with fixed share capital having their
principal place of business in the Republic of
Benin or, by special authorization of the
Minister of Finance after consulting the Banking
Commission, in the fonn of cooperative or
mutual societies with variable share capital.
3)
None
I
I
i
BENIN (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-
Consumption abroad
Limitations on market access
4)
Lending of all types
(CPC 8Jl3)
2)
3)
Commercial presence
Limitations on national treatment
In accordance with Benin labour law. In
addition, a person may not administer or
manage a bank or fmancial establishment. or a
agency thereof. if he does not possess Benin
nationality. unless the agreement for the
establishment of the bank provides for
assimilation to Benin nationals.
4)
1)
Residents may take out loans abroad after first
obtaining authorization from the Minister of
Finance in conformity with the exchange control
regulations for loans of over CFAF 50 million.
1)
None
2)
Residents may take out loans abroad after first
obtaining authorization from the Minister of
Finance in conformity with the exchange control
regulations for loans of over CFAF SO million.
2)
None
4)
Presence of narural persons
Additional commitments
None
I
-------
~-
GATs/sell J
Page 3
GATSISC/ll
BENIN (continued)
Modes of supply:
Page 4
1)
Cross-border supply
Consumption abroad
Limitations on market access
Sector or subsector
3)
Commercial presence
Limitations on national treatment
3)
Unbound
3)
Unbound
4)
Unbound, except for measures affecting the
entry and temporary stay of natural persons who are employees of a company and
transferred to a company incorporated in Benin
belonging to, controlled by or a subsidiary of
the former - in the following categories:
4)
None
-
~
~
All payment and money
transmission services
(CPC 81339)
2)
4)
Presence of natural persons
Additional commitments
directors
senior executives
specialists who possess knowledge that is
essential to the provision of the service
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
In addition to approval as a bank, approval as
an intermediary is also required
3)
None
!
I
--
BENIN (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Consumption abroad
Limitations on market access
4}
Unbound, except for measures affecting the
entry and temporary stay of natural persons who are employees of a company and
transferred to a company incorporated in Benin
belonging to, controlled by or a subsidiary of
the fonner - in the following categories:
~
2)
3)
Commercial presence
Limitations on national treatment
4)
4)
Presence of natural persons
Additional commitments
None
I
I
directors
senior executives
specialists who possess knowledge that is
essential to the provision of the service
-
-
---
N
GATSISC/ll
Page 5
GATS/SCII3
Page 16
BRAZIL
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
All insurance and
insurance-related services
Insurance on freight
(CPC 81293)
Limitations
2)
00
3)
Consumption abroad
Commercial presence
Limitations
market access
00
natiooal treatmeot
1)
Imports can only be insured with
established companies
1)
Unbound
2)
Unbound
2)
Unbound
3)
Specific type of legal entity (Sociedade
Anomima - S.A.) required. Foreign
participation is limited to 50 per cent of the
capital of a company and to 1/3 of its
voting slock.
3)
None
4)
Unbound excepl as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
~
w
4)
Presence of natural persons
Additional commitments
--
--
BRAZIL (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Life insurance
(CPC 81211)
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Same conditions as in Insurance on Freight
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Same conditions as in Insurance on Freight
3)
None
4)
Unbound except as indicated in the
horizonral section
4)
Unbound except as indicated in the
horizonral section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
4)
Presence of natural persons
AddJtlonal commitments
I
Medical care
(CPC 81291)
{:>.
~
Property Insurance
(CPC 81292,
CPC 81294, CPC 81295,
CPC 81296)
-
I
I
I,
3)
Same conditions as in Insurance on Freight
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound elCep( as indicated in the
horizontal section
-
GATS/SC/I)
Pa,e 17
GATS/SC/13
Page 18
BRAZIL (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Liability Insurance
(CPC 81297)
Auxiliary services agencies and brokers
(CPC 81401)
~
U1
Auxiliary services consuftancy, actuarial
and surveys
(CPC 81402,
CPC 81404)
2)
Consumption abroad
3)
Limltatiom on market access
Commercial presence
Limltatlom on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Same conditions as in Insurance on Freight
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Natural persons only
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
I
I
BRAZIL (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of nalUral persons
Limitations on national treatment
Additional commltmenb
Banking and other
Financial Services
Financial instilUtions subject to this commitment are classified as commercial bank, investment bank, consumer finance company, housing finance company,
financial leasing company, brokers and dealers, and each may perform only those activities permitted by the Banco Central do Brasil or by the Conselbo MoneWio
Nacional. Multiple banks may be formed with a minimum of any two of the following ponfolios, each corresponding to a commercial bank, investment bank,
consumer finance company or a housing finance company.
1::>0
J'I
Acceptance of the
following funds from the
public:
i) demand deposits
ii) lime deposits
iii) financing of
commercial
transactions
Lending of all types,
including:
i) consumer credit
ii) monga~e credit
iii) financi~,g of
comme,cial
transactions
Financial leasing
l)
Unbound
I
1)
Unbound
2)
Unbound
I
2)
Unbound
3)
The establishment of new branches and
subsidiaries of foreign financial institutions
as well as increases in the percentage of
the participation of foreign persons and
finns in the capital stock of Brazilian
financial institutions is not permitted. The
number of branches in Brazil of each
foreign bank is limited to the number
existing on October 5th 1988
I 3)
An individual network for Automatic Teller
Machines (ATMs) may only be set up by
Brazilian banks for use of clients of that
bank. Banks controlled by foreign capital
and branches of foreign banks may share
facilities with other banks on a minority
basis.
Minimum requirements for paid-in capital
and net worth applicable to branches of
foreign banks as well as to commercial
banks and commercial banks ponfolios of
multiple banks controlled by foreign capital
are twice those established for Brazilian
banks.
GATS/SCIl3
Page 20
BRAZIL (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-
Payment and money
transmission services
carried out by financial
institutions
-
Guarantees and
commitments
-
Trading for own account
or for account of
customers, whether on
an exchange or in an
over-the-counter market,
including:
money market
i)
instruments
ii) foreign exchange
iii) futures and options
iv) ex~hange rate and
interest rate
instruments
v) transferable
securities
vi) other negotiable
instruments and
financial assets,
including bullion
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
Permission for a service supplier of another
Member to expand existing operations or
conduct new activities may be denied by
the Banco Central do Brasil or authorized
on terms and conditions less favourable
than those applied to Brazilian service
suppliers.
I
fa
-..J
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
I
I
I
I
BRAZIL (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-
Panicipation in public
issues of all kinds of
securities, including
underwriting and
placement as agent, and
provision of services
related to such issues
-
Brokerage of foreign
exchange
-
Ponfolio management
and custodial and
depository services
-
Investment and ponfolio
research and advice
-Ii>
!Xl
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
I)
Unbound
l)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of new branches and
subsidiaries of foreign fmancial institutions
as well as increases in the percentage of
the panicipation of foreign persons and
firms in the capital stock of Brazilian
financial institutions is not permitted. The
number of branches in Brazil of each
foreign bank is limited to the number
existing on October 5th
3)
An individual network for Automatic Teller
Machines (ATMs) may only be set up by
Brazilian banks for use of clients of that
bank. Banks controlled by foreign capital
and branches of foreign banks may share
facilities with other banks on a minority
basis.
Additional commitment!
Minimum requirements for paid-in capital
and net worth applicable to branches of
foreign banks as well as to commercial
banks and commercial banks ponfolios of
multiple banks controlled by foreign capital
are twice those established for Brazilian
banks.
Permission for a service supplier of another
Member to expand existing operations or
conduct new activities may be denied by
the Banco Central do Brasil or authorized
on terms and conditions less favourable
than those applied to Brazilian service
suppliers.
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horiwntal section
:
-
-
-
--
GATS/SCII]
Page 21
BRUNEI DARUSSALAM
Modes of supply:
I)
Cross-border supply
Sector or subsector
7.
F1NAt-!CIAL SERVICES
A.
All insurance and
insurance - related
services
(a)
Direct insurance (life)
including annuity,
disability income,
accident and health
insurance services.
(8121)
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
AdcUtlooal commitments
I
I
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Commercial presence is permitted only
through insurance companies that are
registered in Brunei Darussalam.
3)
None
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
1)
Unbound
1)
None
2)
Compulsory insurance of Motor Third
Party Liability and Workmen's
Compensation can be purchased only from
insurance companies established in Brunei.
2)
None
3)
Commercial presence is permitted only
through insurance companies that are
registered in Brunei Darussalam.
3)
None
4)
Unbound except as indicated under
horizontal measures.
4)
Unbound except as indicated under
horizontal measures.
I
~
Direct insurance (nonlife) including disability
income, accident and
health insurance and
contracts 'of fidelity
bonds, performance body
or similar contracts of
guarantee. (8129)
Consumption abroad
Limitations on markd access
t.O
(b)
2)
I
I
GATS/SC/95
Page 13
GATS/SC/95
BRUNEI DARUSSALAM (continued)
Modes of supply:
I)
Cross-border supply
Sedor or subsector
(c)
(d)
Reinsurance and
retrocession (life and
non-life) (81299·)
Insurance and
intennediation
comprising broking and
agency services (8140)
Page 14
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
I)
None
2)
Unbound
2)
None
3)
Unbound
3)
None
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
I)
Unbound
1)
Unbound
2)
Insurance intennediation is not allowed to
act for unregistered insurers.
2)
None
3)
(i)
3)
Unbound
Broking for direct insurance of
Bruneiao risks requires approval from
4)
Presence of natural persoD5
Additional commitments
MOF.
I
(ii) Broker, underwriting and insurance
managers require approval.
I
,
4)
-----
Unbound except as indicated under
horizontal measures.
4)
Unbound except as indicated under
horizontal measures.
BRUNEI DARUSSALAM (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsedor
Services auxiliary to
insurance, as follows:
(a) Consultancy (excludes
insurance agency
services to insurance
industry)
(b) Actuarial risk assessment
(c) Risk management
(d) Maritime loss adjusting
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Additional commitments
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
Presence of natural persons
,
I
'J1
B.
(I)
Banking and Other
Financial Services
Provision and transfer of
fmanciaJ information,
fmancial data processing
and related software by
providers of other
fmancial services. (8131)
I
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
I
I
3)
Ministry of Finance approval is required.
3)
Ministry of Finance approval is required.
4)
Unbound
4)
Unbound
~-~~
----
GATS/SC/95
Page 15
CANADA
Modes of supply:
1)
Sector or subsector
7.
Cross-border supply
2)
Consumption abroad
Limitations on market access
1
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Measures Applicable to All Sectors in Financial Services:
n
>J
1.
Commitments in this Chapter are undertaken .in accordance with the Understanding on Commitments in Financial Services (-Understanding-).
2.
For greater certainty, market access commitments with respect to the ·cross-border· and -consumption abroad- supply of services (as described in
paragraphs 2 a) and 2 b) of Article 1 of the General Agreement on Trade in Services> apply only to the transactions indicated in paragraphs 3 and 4 of Market
Access of the Understanding. It is understood that paragraph 4 of that section of the Understanding does not impose any obligation to allow non-resident
financial services suppliers to solicit business.
3.
The commitments on ·commercial presence· are bound according to the Understanding.
4.
The commitments on ·presence of natural persons· are scheduled in accordance with the Understanding and bound according to the general limitations
applicable to all sectors in this schedule (Part I).
5.
Otherwise, the commitments in this Chapter are subject to the general conditions or limitations applicable to all sectors in this schedule.
GATS/SC/16
Page 53
GATSISC/16
Page 54
CANADA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Limitations on market access
1)
None
1)
None
2)
NODe
2)
NODe
3)
None, otber than:
3)
None, other than:
~
a)
Life, accident and
health insurance
services
(CPC 8121)
4)
Presence of natural persons
Additional commitments
The Government of Ontario Management
Board Directive and Industrial
Development Review Process provides for
a price preference of up to 10 per cent for
Canadian content based on value-added in
Canada for certain government purchases.
The Management Board Directive applies
on the basis of the nationality of the
individual service provider.
IJ1
Insurance and
insurance-related
services
(CPC 812· + 814)
Commercial presence
Limitations on national treatment
Federally-regulated financial institutions
having capital in excess of $150 million
are required. within five years of baving
reached the threshold. to have 35 per cent
of their voting shares widely-held and
listed and posted for trading on a Canadian
stock exchange
A.
3)
Consumption abroad
4)
See paragraph 3 of headnote on Financial
Services
4)
See paragraph 3 of beadnote on Financial
Services
1)
None. other than:
1)
None
Direct insurance (federal): Services must
be supplied through a commercial presence
with the exception of marine insurance
(All provinces): Services must be supplied
tbrough a commercial presence
!
-
CANADA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
b)
c)
U1
U1
Consumption abroad
Limitations on market access
Non-life insurance
services (except
deposit insurance and
similar compensation
schemes)
(CPC 8129)
Reinsurance and
retrocession
(CPC 81299·)
2)
3)
Commercial presence
4)
LlmltatloDS on national treatment
Presence of natural persons
Additional commitments
Reinsurance and retrocession (federal):
Services must be supplied through a
commercial presence
(All provinces, excluding Alberta):
Services must be supplied through a
commercial presence.
2)
None, other than:
Reinsurance and retrocession (federal):
The purchase of reinsurance services by a
Canadian insurer, other than a life insurer
or a reinsurer, form a non-resident
reinsurer is limited to no more than 25 per
cent of the risks undertaken by the insurer
purchasing the reinsurance
2)
None, other than:
Direct insurance other than life. ~rsonal
accident, sickness or marine insurance
(federal): An excise tax of 10 per cent is
applicable on net premiums paid to nonresident insurers or exchanges in regard to
a contract against a risk ordinarily within
Canada, unless such insurance is deemed
not to be available in Canada
Direct insurance (Alberta) A fee payable to
the province of 50 per cent of the premium
paid and regulatory notification are
required on insurance of risks in the
province by unlicensed insurers
GATS/SC/16
Page 55
GATS/SC/J6
Page 56
CANADA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations OD market access
3)
None, other than:
Direct insurance and reinsurance and
retrocession (federal): The solicitation of
insurance services in Canada can onJy be
effected through:
VI
O'l
i)
a corporation incorporated under
the laws of Canada;
ii)
corporation incorporated by or
under the Jaws of another
jurisdiction (i.e., a branch of a
foreign corporation);
iii) an association fonned on the plan
3)
Commercial presence
4)
Limitations OD DatioDal treatmeDt
3)
None, other than:
Qirect insurance and reinsurance and
retrocession (federal): A minimum of onehalf of directors must be resident
Canadians
(British Columbia): A majority of the
directors must be resident in Canada and at
least one director must be resident in
British Columbia
(Ontario): Capital requirements for mutual
insurance companies do not apply to
certain mutual insurance companies
incorporated in Ontario
known as Lloyd's.
A controlling number of shares of a
Canadian insurance subsidiary must be
held directly by the foreign insurance
company incorporated in the jurisdiction
where the foreign insurance company,
either directly or through a subsidiary,
principally carries on business
(Qu~bec):
lbree-quaners of directors
must be Canadian citizens and a majority
must reside in Qu~bec
Presence of natural persons
AddltloDal commitments
CANADA (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
A branch of a foreign insurance company
must be established directly under the
foreign insurance company incorporated in
the jurisdiction where the foreign insurance
company. either directly or through a
subsidiary. principally carries on business
(All provinces): Insurance activities can
only be provided through:
\J1
.....
i)
a corporation incorporated under
provincial statutes;
ii)
an extra-provincial insurance
corporation, i.e .• an insurer
incorporated by. or under the
laws of another jurisdiction
(including a federally-authorized
branch of a foreign corporation);
iii) an association fonned on the plan
known as L1oyds; and
iv) (Ontario): Reciprocal insurance
exchanges.
(A1bena): Subsidiaries of foreign
insurance corporations must be
federally -authorized
GATSISC/16
Page 57
CANADA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsedor
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commltmmtt
(Quebec): Non-residents can acquire,
either directly or indirectly, no more than
30 per cent of the voting shares of any
Canadian-controlled and Quebec-chartered
company without ministerial approval
(Federal): The purchase of reinsurance
services by a Canadian insurer, other than
a life insurer or reinsurer, from a resident
reinsurer Is limJted to no more than 7S per
cent of the risks undertaken by the insurer
purchasing the reinsurance
(British Columbia): Incorporation. share
acquisition or application for business
authorization, where any person controls
or will control 10 per cent or more of the
voles of the company, is subject to
ministerial approval
Non-life insurance (Ontario): Reciprocal
insurance exchanges must maintain
guarantee fund of $50,000 unless an aulo
or fire insurer has principal office in
Ontario, then $25,000 is required
Motor vehicle insurance: (Quebec,
Manitoba, Saskatchewan and British
Columbia): Motor vehicle insurance is
provided by public monopoly
4)
See paragraph 3 of headnote
Services
00
Financial
4)
See paragraph 3 of headnote on Financial
Services
GATSISC/16
Page 57
GATSISCIl6
CANADA (continued)
Modes of supply:
Page 58
1)
Cross-border supply
Sector or subsector
d)
Services auxiliary to
insurance (including
broking and agency
services)
(CPC 8140)
2)
Consumption abroad
Limitations on market access
1)
None, other than:
3)
Commercial presence
Limitations on national treatment
I)
None
Presence of natural persons
Additional commitments
I
I
Intermediation of insurance relating to
maritime shil!1!ing, commercial aviation.
s(!ace launching. freight (inc. satellites)
and goods in international transit (all
provinces): Services must be supplied
through a commercial presence in the
province in which the service is provided
I
Adjustment services (Newfoundland):
Non-resident adjusters must, as a condition
for obtaining a license, agree to act
through the facilities of an adjuster,
adjusting company, representative, agent
or broker licensed under provincial law
IJ1
U)
I
(Ontario and Prince Edward Island):
Non-resident individual adjusters are
prohibited from being adjusters in the
province
2)
-~
4)
None
2)
None, other than:
CANADA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
4)
Commercial presence
Limitations on national treatment
Presence of natural persons
Additional commitments
Intermediation of insurance [elating to
commercial aviation, §p;ace launching.
freigbt (inc. satellites} and goods in
international transit (federal): An excise
tax of 10 per cent is applicable on net
premiums paid to non-resident insurers or
exchanges in regard to a contract against a
risk ordinarily within Canada, unless such
insurance is deemed not to be available in
Canada. The excise tax is also applicable
on net premiums payable with regard to a
contract entered into, through a nonresident broker or agent, with any insurer
authorized under the laws of Canada or of
any province to carry out the business of
insurance.
3)
NODe, other than:
3)
None
I
(Ontario): No license is provided to a
corporation to act as an insurance broker,
agency or adjuster if the majority of the
voting rights are in shares owned by
non-residents. A corporate agency or
adjuster or insurance broker which is
majority non-resident-owned and licensed
as a result of grandfatberiog cannot expand
through purchase of assets or business or
merger or amalgamation with any other
I
I
,
------
GATSISC/J6
Page 59
GATS/SC/16
Page 60
CANADA (continued)
Modes of supply:
1)
Cross-border ,supply
2)
Commercial presence
Limitations on national treatment
Limitations on market access
Sector or subsector
3)
Consumption abroad
broker, agent or adjuster. No license is
provided to a corporation or partnership
which is an insurance agency or adjuster if
the head office is outside Canada or if any
partner is resident outside Canada.
4)
Presence of natural persons
Additional commitments
I
(Newfoundland): Extra-provincial
adjustment companies must be sponsored
by a resident Newfoundland company or
agency
4)
m
See paragraph 3 of headnote on Financial
Services, and:
4)
See paragraph 3 of headnote on Financial
Services
(Newfoundland): Extra-provincial
individual adjusters and representatives
must be sponsored by a resident
Newfoundland insurance company or
agency
~
B.
Banking and other
fmancial services
(excl. insurance)
(CPC 81115 to 81119
+ 813)
a)
Acceptance of
deposits and other
repayable funds from
the public
(CPC 81115 - 81119)
I
I
1)
None
I)
None
2)
None
2)
None
3)
None, other than:
3)
None, other than:
CANADA (continued)
Modes of supply:
Sector or subsector
b)
en
""
Lending of all types,
incl., inter alia,
consumer credit,
mortgage credit,
factoring and
financing of
commercial
transactions
(CPC 8113)
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Banks: Foreign banks must incorporate
subsidiaries in Canada to undertake the
business of banking
Banks: Ministerial approval is required
for foreign bank subsidiairies to open more
than one branch
No one person (Canadian or foreign) may
own more than 10 per cenl of any class of
shares of a Shedule I bank
A minimum of one-half of the directors
must be resident Canadians
Trust and loan companies (federal and all
provinces): Federal or provincial
incorporation is required
Presence of natural persons
Additional commitments
Trust and loan companies (federal): A
minimum of one-half of the directors must
be resident Canadians
c)
Financial leasing
(CPC 8112)
d)
All payment and
money transmission
services
(CPC 81339·)
(Ontario, Quebec and Manitoba): The
direct or indirect acquisition of
Canadian-controlled companies by foreign
persons is restricted to 10 per cent
individually and 25 per cent collectively
(A1bena): At least three-quarters of the
directors must be ordinarily resident in
Canada
e)
Guarantees and
commitments
(CPC 81199·)
(Saskatchewan): Individual and collective
foreign ownership of Canadian-controlled
and provincially incorporated companies
can be no more than 10 per cent of shares
(British Columbia): A majority of the
directors must be resident in Canada and at
least one director must be resident in
British Columbia
(British Columbia): Incorporation, share
acquisition or application for business
authorization, where any person controls
or will control 10 per cent or more of the
votes of the company, are subject to
ministerial approval
(Nova Scotia): A majority of directors
must be resident in Canada and Canadian
citizens
GATS/SC/16
Page 61
GATS/SCIl6
Page 62
CANADA (continued)
Modes of supply:
Sector or subsector
0\
W
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
(Ontario): Incorporation or registration
will be refused unless authorities are
satisfied that there exists a public benefit
and advantage for an additional
corporation. Consent to change in control
or transfers of 10 per cent or more of
voting shares may be refused if it would
be in the public interest to do so.
(Manitoba and Ontario): Foreign persons
may not exercise the voting rights attached
to shares if they are not registered as
shareholders in respect of the shares
Banks and trust companies (federal): A
controlling number of shares of a Canadian
bank or trust company subsidiary must be
held directly by the foreign bank or trust
company incorporated in the jurisdiction
where the foreign bank or trust company,
either directly or through a subsidiary,
principally carried on business
(Quebec): Three-quarters of the directors
must be Canadian citizens and a majority
must reside in Quebec
Credit unions. caisses oopulaires and
associations or groups thereof (all
provinces): Must incorporate in the
jurisdictions in which they operate
(British Columbia): Directors and
sub-directors of credit unions must be
residents of the province
Mortgage brokers (Ontario): Must
incorporate under the laws of Canada,
Ontario or of another province.
Ownership of a corporation by foreign
persons must not exceed 10 per cent
individually and 25 per cent collectively of
the total number of equity shares.
(Manitoba): Credit unions and caisses
populaires are exempt from the corporate
capital tax
(Ontario): A majority of directors must be
Canadian citizens
Credit unions and caisses populaires
(Ontario and Manitoba): Directors of
credit unions must be Canadian citizens
(Alberta): Directors of credit unions must
be permanent residents of Canada and
three-quarters must at all times be
ordinarily resident in the province
Presence of natural persons
Additional commitments
CANADA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
4)
(Quebec): Directors of caisses populaires
must have a residence. place of business or
employment in the territory served by the
caisse
(Albena): Must maintain a business office
in the province
Communi" bonds corporations
(Saskatchewan, Manitoba): Directors of
Community Bonds Corporations must be
resident of the province
Loan and investment companies (Quebec):
Federal or provincial incorporation
Venture capital corporations (federal and
all provinces): Tax measures that result in
a difference in treatment with respect to an
investment in a venture capital corporation
as prescribed pursuant to the Income Tax
Act of Canada
Co-operative corporations (Ontario): Must
incorporate in Ontario
""
Commercial presence
Limitations on national treatment
(Nova Scotia): Must incorporate under the
laws of Canada or Nova Scotia
0'1
3)
bending of all types (Nova Scotia): Must
incorporate under the laws of Canada or
Nova Scotia
.
Acceptance of deposits (Quebec): The
acceptance of deposits of public and
para-public institutions is provided by a
public monopoly
4)
See paragraph 3 of headnote on Financial
Services, and:
Mortgage brokers (Ontario): Must be
permanent residents of Canada
4)
See paragraph 3 of headnote on Financial
Services
Presence of natural persons
Additional commltnlcnu
GATS/SC/16
Page 64
CANADA (continued)
Modes of supply:
1)
Cross-border supply
2)
Commercial presence
Limitations on national treatment
Limitations on market access
Sector or subsector
3)
Consumption abroad
4)
Presence of natural persons
Additional commitments
(Nova Scotia): Must be resident in the
province
(Alberta): Must be resident in the
province for a minimum of three months
to be registered
f)
0"1
Trading for own
account or for account
of customers, whether
on an exchange, in an
over-the-counter
market· or otherwise,
the following:
U1
1)
None, other than:
AdvisorY and auxilim fin!l)cial services
(Alberta, British Columbia, Nova Scotia,
Ontario, Quebec): Services must be
supplied through a commercial presence in
the jurisdiction in which the adviser is
providing advice
money market
instruments
(cheques, bills,
certificate of
deposits, etc.)
(CPC 81339·)
Asset management (Alberta, British
Columbia, Nova Scotia, Ontario, Quebec
and Saskatchewan): Services must be
supplied through a commercial presence in
the jurisdiction in which the service is
provided
foreign exchange
(CPC 81333)
(Quebec): The management of pension
funds of public and para-public institutions
in Quebec is provided by public monopoly
1)
None
I
I
CANADA (continued)
Modes of supply:
Cross-border supply
I)
Sector or subs ector
Commercia) presence
4)
Limitations on DatioDal treatment
Custodial services: Mutua) funds which
offer securities in Canada must use a
resident custodian. A non-resident
sub-custodian may be used if it has
shareholders equity of at least $100 million
exchange rate
and interest rate
instruments, incl.
products such as
swaps, forward
rale agreemenls,
etc .
(CPC 81339·)
2)
transferable
securities
(CPC 81321*)
3)
other negotiable
instruments and
financial assets,
incl. bullion
(CPC 81339·)
3)
Consumption abroad
Limitations on market access
derivative
products incl. but
not limited to,
futures and
options
(CPC 81339·)
.:n
.:n
2)
None. other than:
2)
None
3)
None, other than:
Trading in securities and commodity
futures - persons (all provinces): There
is a requirement to register in order to
trade through dealers and brokers that are
neither resident nor registered in the
province in which the trade is effected
None, other than:
Securities dealers and brokers (British
Columbia, Newfoundland, Ontario,
Saskatchewan, Yukon): Must be
incorporated, formed or continued under
federa) , provincial or territorial Jaws
(Quebec): Only brokerage firms
incorporated under federal. provincial or
territorial laws may be members of the
Montrea) Exchange
Trading in securities and commodity
futures and advisory and auxiliary fmandal
services - dealers. brokers. and advisers:
(Alberta. Ontario. Newfoundland. Nova
Scotia): A director or officer of an
applicant firm must have been a resident of
Canada for a period of at least one year
prior to the application
Presence of natural persons
Additional commitments
GATSISC/16
Page 66
CANADA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
g)
2)
Consumption abroad
Limitations on market access
Participation in issues
of all kinds of
securities, including
underwriting and
placement as agent
(wbether publicly or
privately) and
provision of service
related to such issues
(CPC 8132)
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
Adviso!l and auxilim fmancial servi£g
(Britisb Columbia): Must be incorporated,
formed or continued under federal,
provincial or territorial laws
I
Asset management (Qu~bec): The
management of pension funds of public
and para-public institutions in Qu~bec is
provided by a public monopoly
I
I
0'1
'"
4)
h)
Money broking
(CPC 81339*)
i)
Asset management,
such as cash or
ponfolio management,
all forms of collective
investment
management, pension
fund management,
custodial depository
and trust services
(CPC 8119*, 81323*)
--
-
See paragraph 3 of headnote on Financial
Services
4)
See paragraph 3 of headnote on Financial
Services, and:
Trading in securities and commodi~
futures and advisoa and auxilim fmancial
services - dealers, brokers, and advisers:
(all provinces except British Columbia):
An individual applicant for registration is
required to have been a resident of Canada
for a period of at least one year prior to
the application and a resident of the
province in which he/she wishes to operate
at the date of application
I
I
CANADA (c·ontinued)
Modes of supply:
Sector or subsector
j)
Settlement and
clearing services for
financial assets, inel.
securities, derivative
products, and other
negotiable instruments
(CPC 81339·,
1)
Cross-border supply
Limitations
00
2)
Consumption abroad
market access
3)
Commercial presence
Limitations
00
oatiooal treatmeot
4)
Preseoce of natural persons
AddltloDal commitments
(Quebec): An individual acting as a
representative of a dealer or adviser,
subject to certain exemptions, must be a
resident of the province
I
I
81319·)
k)
J)
Xl
Advisory and other
auxiliary financial
services on all the
activities listed in
Article 5.1 (p) of the
Annex on Financial
Services, incl. credit
reference and
analysis, investment
and portfolio research
and advice, advice on
acquisitions and on
corporate
restructuring and
strategy
(CPC 8131·, 8133·)
--
GATSISCIl6
Page 68
CANADA (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Provision and transfer
of fmancial
information, and
fmancial data
processing and related
software by providers
of other financial
services
(CPC 8131·, 842·,
843·, 844·)
0'1
\D
1)
,
I
I
I
I
I
--
---
CruLE
Modes of supply:
1)
Cross-border supply
Sector or subsector
Consumption abroad
Limitations on market access
3)
FINANCIAL SERVICES
-..J
2)
-
_.. _--
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
In addition to the horizontal measures
which affect all sectors, a supplier of
fmandal services operating through a
commercial presence may be subject to
evidence of economic need. That is, he
must obtain prior authorization to start up,
suspend or terminate operations from the
Banking and Financial Institutions
Supervision Department, in the case of
banking services, or from the Securities
and Insurance Supervision Department, in
the case of securities and insurance
services.
-"
GATSISe/18
Page 15
GATs/seIlS
Page 16
CIDLE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Authorization to supply fmandal services
through a commercial presence will be
given in so far as the applicant undertakes
to ensure the proper functioning, integrity
and stability of the market, fulfils the
requirements of the law and serves the
national interest.
The Chilean fmandal services sector is
partially compartmentalized, that is to say
the institutions, domestic and foreign,
authorized to operate as banks may not
encroach on the insurance and securities
business and vice versa. However, subject
to authorization from the Banking and
Financial Institutions Supervision
Department, domestic and foreign banks
operating in Chile may set up subsidiaries.
with their own capital. to supply other
financial services in accordance with the
relevant legislation.
a)
Banking services
Foreign banking institutions must be
companies legally constituted in their
country of origin. must acquire legal
personality in Chile and must put up the
capital required by Chilean law. Banking
institutions may only operate as:
(i)
~-
Open corporations; or
I
cmLE (continued)
Modes of supply:
1)
Cross-border supply
2)
3)
Consumption abroad
Limitations on market access
Sector or subsector
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
(ii) Subsidiaries.
No national or foreign natural or legal
person may acquire directly or through
third parties shares in a bank which, alone
or added to the shares such person already
possesses, represent more than 10% of the
bank's capital without having first obtained
the authorization of the Banking and
Financial Institutions Supervision
Department. In addition, the partners or
shareholders of a fmancial institution may
nOI transfer a percentage of rights or shares
in the company in excess of 10% without
having obtained authorization from the
Supervision Department.
......
w
Acceptance ,of deposits
(81115-81119)'
-
Banks not established as Chilean companies
(subsidiaries) pay a minimum income tax
equivalent to 2.6 per thousand of their total
deposits. The average deposits are
determined by the Banking and Financial
Institutions Supervision Department on the
basis of the information in the statement
which the banks that are subsidiaries are
required to submit.
I
I
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
-
Includes only current bank accounts, sight acceptances, term acceptances in saving accounts, fmancial instruments with repurchase undertaking, and deposits for issue
of bank guarantee vouchers.
GATSISC/IS
Page 17
GATs/seilS
cmLE
Page 18
(continued)
Modes of supply:
I)
Cross-border supply
2)
3)
Consumption abroad
Commercial presence
4)
Presence of natural persons
-
Sector' or subsector
Purchase of publicly-offered
securities
(8132)'
Credit granting
(8113)2
-..J
~
I
2
3
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I)
None}
I)
None
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizonlal section
4)
Unbound, except as indicated in the
borizontal section
Addltlona' commitments
-
Includes only purcbase of bonds and purchase of letters of credit.
Includes only current loans, discounting or acquisition of bills of exchange and promissory notes, loans and letters of credit, endorsable mortgage loans. purcbase of
financial instruments with resale undertaking. credit for issue of bank guarantee vouchers or other types of fmancing, endorsement and guarantee of third party liabilities;
issue and negotiations of letters of credit for imports and exports. issue and confinnation of stand-by letters of credit.
Limited to only freely-available credit, import and export financing, confirmation of letters of credit. and advances and overdrafts on current accounts. These servicet
may only be provided to local banks with authorization from the Central Bank of Chile. Other services for grant of credil unbound.
CIDLE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Issue of credit cards
Operation of credit cards
.....
U'1
Provision and transfer of
fmancial information and
processing of fmancial data
(8131)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
None l
I)
None
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
!,
i
-
Limited to credit cards issued abroad that circulate in Chile under an agreement with a bank or operator established in Chile.
GATSISellS
Page 19
GATSISe/18
Page 20
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sedor or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
Advisory and other auxiliary
financial services
I)
Unbound
I)
Unbound
(8131)
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the .
horizontal section
4)
Unbound, except as indicated in the
horizontal section
(Includes only administrative
services connected with the
management of the banking
services included in this
Schedule)
4)
Presence of natural persons
Additional commitments
In Chile advisory and other auxiliary
financial services (8131) are considered to
be complementary to the services which the
established banks can provide.
Consequently, domestic and foreign banks
must set up subsidiaries with their own
capital in order to be able to provide these
services and must have the appropriate
authorization from the Banking and
Financial Institutions Supervision
Department
~
0'1
Financial leasing
(81112)
v
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound. except as indicated in the
horizontal section
---
!
CIDLE (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Only domestic and foreign banking enterprises
established in Chile can provide fmancial leasing
services. In order to supply financial leasing
services they must establish subsidiaries with
their own separate legal personality, their own
capital and exclusive line of business subject to
prior authorization from the Banking and
Financial Institutions Supervision Department.
These companies may offer leasing contracts for
goods acquired at the client's request, i.e. they
cannot acquire goods in order to stock them and
offer them for leasing. These subsidiaries can
only operate the services expressly authorized by
the Banking and Financial Institutions
Supervision Department. Financial leasing
services are regarded as complementary banking
services and, consequently. the Banking and
Financial Institutions Supervision Department is
empowered to extend or restrict die operation of
the financial leasing services which the
institutions may offer.
-..J
-..J
b)
Insurance and
reinsurance services
Insurance and reinsurance services can be
provided only by limited insurance and
reinsurance companies established in Chile for
the exclusive purpose of developing this line of
business. Insurance and reinsurance
corporations can be legally constituted only in
accordance with the provisions of the law of
corporations.
GATSISellS
Page 21
GATSISe/18
Page 22
cmLE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
LimltatloDS on market access
Contracts concluded in Chile may be reinsured
by insurers and reinsurers with insurance and
reinsurance companies authorized to operate in
Chile:
Only the following are empowered
10
reinsure:
l.
Insurers established in the country and
those corporations whose sole purpose
is to operate reinsurance in one of the
two groups indicated below, subject to
inspection by the Securities and
Insurance Supervision Department;
and
2.
Those foreign reinsurers who are
enrolled in the Register of Foreign
Reinsurers maintained by the
Securities and InsUrance Supervision
Department.
.....
00
In addition, insurers and reinsurers may also
reinsure through intermediaries or brokers
enrolled in the Register of Reinsurance Brokers
maintained by the Supervision Department.
3)
Commercial presence
LlmltatloDS on national treatment
4)
Presence of natural persons
Additional commitments
cmLE
(continued)
Modes of supply:
Sedor or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
In Chile, the insurance business is divided into
two groups: the first group comprises
companies that insure goods and property against
the risk of loss or damage, while the second
comprises those that provide personal insurance
or guarantee, within or at the end of a certain
term, a capital sum, a paid-up policy or an
income for the insured or his beneficiaries.
Insurance companies may not be organized to
cover both categories of risks.
I
I
I
Credit insurance companies, even though
classified in the first group, must be established
as corporations with the sole purpose of covering
this type of risk, i.e. loss of or damage to the
property of the insured as a result of the
non-payment of a money debt or loan, being also
permitted to cover guaranty and fidelity risks.
""
\.0
The Chilean insurance Schedule does not include
insurance related to the social security system.
Insurance may be taken out directly or through
insurance brokers who, to engage in that
activity, must be enrolled in the Register
maintained by the Supervision Department and
must satisfy the prudential requirements of the
law.
-
GATS/Se/18
Page 23
GATs/seIlS
Page 24
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Sale of direct life insurance
(does not include insurance
related to the social security
system) (81211)
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Presence of natural persons
Additional commitments
I
Sale of direct general
insurance (8129)
00
o
Sale of direct general
insurance
Credit insurance
(81296)
--
-_
. .-
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound. except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Additional commitments
1)
Foreign reinsurance companies must be
enrolled in the Register of Foreign
Reinsurers of the Securities and Insurance
Supervision Department and fulfil the
requirements laid down by the Department.
1)
Premiums ceded under this beading are
subject to a tax of 6 per cent
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Reinsurance brokers
(Reinsurance intermediation)
1)
None
1)
None
(8140)
2)
Unbound
2)
Unbound
3)
Reinsurance brokers must be enrolled in
the Register of Reinsurance Brokers of the
Securities and Insurance Supervision
Department and fulfil the requirements laid
down by the Department.
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Policy reinsurance (81299)
-
~
Presence of natural persons
-~
GATSISe/18
Page 25
GATSISellS
CIDLE (continued)
Modes of supply:
Page 26
I)
Cross-border supply
Sector or subsedor
Insurance brokers (8140)
rv
c)
Securities services
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Must be enrolled in the Register maintained
by the Securities and Insurance Supervision
Department and fulfil the requirements laid
down by the Department. Only legal
persons legally constituted in Chile for this
specific purpose.
3)
None
Unbound, except as indicated in the
horizontal section
4)
4)
00
2)
Publicly offered securities may be traded by
natural or legal persons engaged in brokering
securities, either as members of a stock
exchange (stockbrokers) or outside the exchange
(securities agents). However, only stockbrokers
may trade shares or derivatives (options) on the
stock exchange. Other securities may be traded
by stockbrokers or securities agents registered
with the Securities and Insurance Supervision
Department, or by banks and fmance companies,
in accordance with their legal powers.
The purpose of fmancial portfolio management is
to diversify investments, on behalf of third
parties, over a range of instruments.
4)
Presence of natural persons
Additional commitments
I
I
Unbound, except as indicated in the
horizontal section
CIDLE (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
The Chilean Schedule in the securities sector
does not include asset fund management (mutual
funds, investment funds, foreign capital
investment funds, and pension funds).
00
w
Publicly offered securities risk rating services
are provided by rating agencies enrolled in the
Register of Risk Rating Agencies maintained by
the Securities and Insurance Supervision
Department. These must be constituted as a
company of persons in accordance with the
legislation and are inspected and controlled by
the above-mentioned SuperviSion Department.
On the other hand, the inspection of rating
agencies with respect to the rating of securities
issued by banks and finance companies is the
responsibility of the Banks and Financial
Institutions Supervision Department.
i
I
I
I
Securities custody consists of the physical
safe-keeping of customers' stocks and shares and
may be undertaken by securities intermediaries
(complementary activity) or by individuals. The
Chilean Schedule in the securities sector does
not include the services offered by firms which
simultaneously undertake the custody, clearance
and settlement of securities (centralized
securities depositories).
GATSISellS
Page 27
GATSISe/l8
Page 28
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Commercial presence
-
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Financial advisory services involve giving
financial advice on fmancing alternatives,
investment appraisal, investment possibilities,
debt rescheduling strategies, etc.
Intermediation of publicly
offered securities, except
shares (81321)1
co
Intermediation of limited
company shares (81321)
""
1
2
3
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Nonel
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None'
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Does not include intermediation of shares.
These intermediaries must have as their sole purpose the buying and selling of securities, although they may also carry out complementary activities as authorized by
the Supervision Department.
These intermediaries must have as their sole purpose the buying and selling of securities, although they may also carry out complementary activities as authorized by
the Supervision Department. In addition, to be able to operate they must acquire a share in the stock exchange in which they petform their broking functions, and,
moreover, must be accepted as members of that exchange.
cmLE
(continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Financial portfolio
management (81323)
00
The purpose of fmandal
portfolio management is to
diversify investments, on
behalf of third panies over a
range of instruments. (It does
not include management of
mutual funds, foreign capital
investment funds, investment
funds or pension funds).
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None'
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
IJ'I
-------------
-------
--
--
Those who offer financial portfolio management services in their capacity as securities intennediaries must fulfil the requirements appropriate to their principal function
(whether it be that of stockbroker or that of securities agent). Otherwise, in the case of other legal persons, they may engage in such activity if they hold a broad
mandate to operate for the account of third panies.
GATSISe/18
Page 29
GATSISellS
Page 30
CfDLE (continued)
Modes of supply:
I)
Cross-border supply
- -
Sector or subsector
Securities risk rating (81339)1
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Risk rating agencies must have as their sole
purpose the rating of publicly offered
securities, although they may also carry out
complementary activities as authorized by
the Supervision Department. Moreover,
they must be established as a company of
persons and be enrolled in the Register of
Risk Rating Agencies of the Securities and
Insurance Supervision Department. The
specific requirements to be fulfilled include
the following:
3)
None
4)
Presence of natural persons
Additional commitments
I
I
I
00
m
-
Not less than 60 per cent of the
company's capital must be held by the
principal partners;
-
The rating board must consist of
professionals with a university degree
or equivalent higher education and an
unblemished business record, the
majority of whom must have had at
least three years' work experience in
the economic and financial field.
-
Relates solely to rating or giving an opinion on publicly offered securities.
,
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
00
......,
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Securities custody (81319)
1)
Unbound
1)
Unbound
Does not include the services
offered by suppliers who
combine custody with
securities clearance and
settlement (custodial accounts).
2)
Unbound
2)
Unbound
3)
None I
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Only securities intermediaries, bank
subsidiaries and other natural and legal
persons I
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Financial advisory services
(81332)
The fmancial advice refers
only to the securities services
included in this Schedule
-
4)
Presence of natural persons
Additional commitments
I
---
Those who offer securities custody services in their capacity as securities intermediaries must fulfil the requirements appropriate to their principal function (whether
it be that of stockbroker or that of securities agent).
GATSISellS
Page 31
GATs/se/18
Page 32
CIDLE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Limitations on market access
00
Commercial presence
I)
Unbound·
1)
Unbound·
Corresponds to merchandise
warehousing services
accompanied by the issue of a
deposit and a chattel mortgage
receipt
2)
Unbound
2)
Unbound
3)
Only natural or legal persons legally
established in Chile who have the provision
of warrant services as their sole bwiness
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
-
-------
4)
Presence of natural persons
Additional commitments
LlmitatioM on national treatment
Warrants
---
00
3)
Consumption abroad
--
--
._-
-
~~--------
-
-
- -
-
-
---
-
---
---
GATS/SC/19
Page 22
CIDNA
Modes of supply;
1)
Cross-border supply
Sedor or subsedor
7.
FINANCIAL SERVICES
A.
a)
All Insurance and
Insurance-Related
Services
(CPC 812)
Li fe insurance)
b)
Non-life insurance4
c)
Reinsurance'
d)
Services auxiliary to
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Unbound
1)
2)
Unbound
2)
Unbound
3)
A. Two types of foreign insurance
institutions are permitted in the city of
Shanghai, China: the brancb of a
foreign insurance company and the
Cbinese-foreign joint insurance
company
3)
A. Requirements of registered capital and
guarantee funds:
1)
Presence of natural persons
Additional commitments
Unbound
I
insurance~
00
\D
a brancb of a foreign insurance
company underwriting either life
insurance or non-life insurance
shall pay in as its guarantee funds
US$ 4 million or equivalent in
other convertible currencies to the
branch of the People's Bank of
China in Shanghai;
--
3
Tbe life insurance service refers to the service provided to foreign and Chinese citizens who bear payment of premiums by themselves.
4
The non-life insurance service refers to any type of non-life insurance of foreign enterprises abroad, and property insurance, liability insurance of foreign-capitaI enterprises
in Cbina.
5
The reinsurance service refers to that service related to life insurance and non-life insurance.
6
The insurance brokerage and agency are not included.
CHINA (continued)
Modes of supply:
1)
Cross-border supply
2)
-
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
I
Sector or subsector
Limitations
OD
market access
Limitations on national treatment
-
the registered capilal of a
Chinese-foreign joint insurance
company underwriting either life
or non-life insurance sbaH be
USS20 million or equivalent in
other convertible currencies;
-
the registered capital of a
Chinese-foreign joint insurance
company underwriling both life
insurance and non-life insurance
shall be USS40 million or
equivalent in other convertible
currencies;
-
paid-in capital of a
Chinese-foreign joint insurance
company shall be no less than
50 per cent of its registered
capital;
~
I
-
a branch of a foreign insurance
company underwriting both life
insurance and Don-life insurance
shall pay in as its guarantee funds
USS 8 million or equivalent in
other convertible currencies to the
Branch of the People's Bank of
China in Sbangbai;
-
o
AddJtlonal commitments :
i
I
I
------
GATS/SC/19
Page 23
GATSISC/19
Page 24
CIDNA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations OD market acc:ess
4)
Commercial presence
Limitations OD national treatment
-
a Chinese-foreign joint insurance
company must draw 25 per cent
of the net profit after tax each
year as reserve funds until the
total amount of its paid-in capital
plus reserve funds is twice as its
registered capital;
-
a Chinese-foreign joint insurance
company shall pay in 20 per cent
of its paid-in capital as its
guarantee funds to the branch of
the People's Bank of China in
Shanghai.
~
-'
B.
Qualifications for establishing a foreign
insurance institution are as follows:
-
the investor shall be a foreign
insurance company with more than 30
years of establishment;
-
it shall have a representative office of
over three consecutive years in China;
-
it sball have total assets of more than
US$ 5 billion at the end of the year
prior to application
B.
Presence of natural persons
AddJtlonal commitments
I
Other regulations on insurance business:
-
requirement of reinsurance: a foreign
insurance institution shall transact
30 per cent of its total insurance
business as reinsurance to the People's
Insurance Company of China. The
responsibility for each perilous unit in
non-life insurance underwritten by a
foreign insurance institution shall not
exceed 10 per cent of its total net
assets, the exceeded portion shall be
transacted as reinsurance to other
insurance institutions;
-
cmNA (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
3)
Consumption abroad
Presence of natural persons
Additional commitments
the branch of a foreign insurance
company and the Chinese-foreign joint
insurance company to engage in part
or all of the following investment
operations in China:
-
['I..J
4)
Limitations on national treatment
Limitations on market access
-
1..0
Commercial presence
-
-
deposit in Chinese financial
institutions;
purchasing bonds issued by the
government;
purchasing bonds issued by
enterprises (not exceeding 10 per
cent of its total investment);
purchasing fmandal bonds;
trust lending in foreign currencies
(it shall have collateral or
guarantee by the financial
institutions, each unit of its
lending shall not exceed 5 per
cent of its total investment, the
whole sum of its lending shall not
exceed 30 per cent of its total
investments) ;
equity investment (not exceeding
IS per cent of its total
investment);
I
I
I
GATSISC/19
Page 25
GATSISCI19
CIDNA (continued)
Modes of supply:
Page 26
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
-
-
-
\D
W
----
Unbound except as indicated in Horizontal
Commitments
4)
Limitations on national treatment
-
4)
Commercial presence
4)
other business operations ratified
by the People's Bank of China;
senior managerial personnel in a
foreign insurance institutions sball
not concurrently bold important
positions in other economic
organizations;
a foreign insurance institution
shall appoint a regular accountant
and actuary, such appointment is
subject to the approval by the
branch of the People's Bank of
China in Shanghai;
the foreign insurance institution
shall not conduct the statutory
insurance business
Unbound except as indicated in Horizontal
Commitments
--
Presence of natural persons
Additional commitments
cmNA (continued)
Modes of supply:
1)
Cross-border supply
--
Sector or subsector
B.
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commltmen15
Banking and Other
Financial Services
(excluding insurance)
Banking services
-
Acceptance of nORresident deposit in
foreign currencies 1
(CPC 81115-81119)
t)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
I
3)
-
Payment and money
transmission service
including credit, charge
and debit cards,
travellers' cheques and
banking drafts
(CPC 81339)
\D
f:>
---
7
--
--
-
A.
Resident representative office:
The establishment of Resident
Representative Offices in China by foreign
fmancial institutions, including banks,
security companies, investment companies,
insurance companies, fmance companies,
credit card companies, and financial leasing
companies, shall be approved by the
People's Bank of China
3)
A.
Requirements of registered capital and
operating funds:
I
The minimum registered capital of a
foreign bank and a Chinese-foreign joint
bank shall be US$ 30 million or equivalent
in other freely convertible currencies. The
minimum registered capital of a
Chinese-foreign jointly owned finance
company and totally foreign-owned finance
company shaH be US$ 20 million or
equivalent in other convertible currencies.
Their paid-in capital shall be no less than
50 per cent _of their registered capital
a)
At the present stage, the five types of foreign fmandal institutions are not allowed to take deposit from citizens residing in China; but they only take deposits
from "foreign-capital enterprises, equity joint ventures and contractual joint ventures· and they can also take deposits of loans proceeds from Chinese enterprises
from which they have granted the loans.
b) Each deposit which a Chinese-foreign joint finance company can take shall be no less than USS 100,000 or its equivalent in other convertible currencies for a
period of at least three months.
GATSISC/19
Page 27
GATSISC/19
CIDNA (continued)
Modes of supply:
Page 28
1)
Sector or subsector
-
Lending in foreign
currencies'
(CPC 8113)
-
Guarantees
(CPC 81199)
-
Trading for account of
customers'
(CPC 81339, 81333)
-
Custodial depository and
trust service 10
(CPC 8119 or 81319)
Cross-border supply
2)
Consumption abroad
Limitations on market access
The scope of work of a representative
office shall include consultancy, liaison,
market survey and other non-profit making
activities. A representative office shall be
prohibited from undertaking, in the course
of its work, any profit-making activities.
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
A foreign bank branch shall be allocated by
its head office a sum of no less than
US$ 10 million or equivalent in other
convertible currencies as its operating
i
funds
Within 30 days from receipt of the
approval certificate issued by the People's
Bank of China, a fmancial institution of the
five types must raise in full its paid-in
capital or operating funds to be verified by
a Chinese registered accountant who shall
issue a certificate of capital verification_ '-----
I
I
,
I
I
--
-
\0
\J1
Loans to Chinese citizens are excluded.
The five types of foreign fmancial institutions are free to grant loans to foreign-capital enterprises, equity joint ventures and contractual joint ventures, and their
lending to Chinese enterprises are subject to the rules and regulations issued by the State Administration of Exchange Control.
8
a)
b)
9
Excluding transferable securities and other negotiable instrument and fmancial assets inclusive of bullion.
10
Custodial depository services are applicable to foreign bankslbranches of foreign banks/Chinese-foreign joint banks; trust services are applicable to Chinese-foreign
joint fmance companies.
CIDNA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsedor
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
AddJtlonal commitments
A foreign bank, a Chinese-foreign joint
bank, a Chinese-foreign joint fmance
company or a totally foreign-owned fmance
company must draw 25 per cent of the net
profit after tax each year as reserve until
the total amount of its paid-in capital plus
reserve funds is twice as its registered
capital
I
A foreign branch bank must keep
2S per cent of its after-tax profit in China
to supplement its operating funds until the
kept profit is equal to its operating funds
\0
0'\
B.
Advisory and other
auxiliary fmancial
services, (including credit
reference and analysis
(CPC 8133. excluding
8131)
--
~-
Five types of foreign fmancial institutions
are permitted to provide services in China.
They are: subsidiary of a foreign bank,
branch of a foreign bank, Chinese-foreign
joint bank, Chinese-foreign joint finance
company and totally foreign-owned fmance
company. Establishment of the five types
of foreign financial institutions are limited
to the following regions: Shanghai,
Shenzhen, Zhuhai, Hainan, Xiamen ,
Shantou, Guangzbou, Fuzhou, Tianjin,
Nanj ing , Qingdao, Dalian and Ningpo
B.
I
I
I
Other regulation on banking business:
The total amount of loans and other
facilities granted by a fmancial institution
of the five types to any enterprise and its
related enterprise shall not be more than
30 per cent of its paid-in capital plus total
reserves, unless otherwise specially
approved by the People's Bank of China.
-
-
GATSISC/19
Page 29
GATSISe/19
Page 30
CIDNA (continued)
Modes of supply:
1)
Sector or subsector
Provision and transfer of
fmancial information data
processing and related
software by provider of
fmancial services
(CPC 8131)
Cross-border supply
Limitations
2)
00
Consumption abroad
market access
3)
Commercial presence
Limitations
00
4)
oatiooal treatmeot
The total amount of investment by a
fmancial institution of the five types shall
not be more than 30 per cent of its paid-in
capital plus its total reserves. The
preceding sentence does not apply to the
investments in financial enterprises
approved by the People's Bank of China.
The total assets of a fmancial institution of
the five types shall not be more than
20 times of its paid-in capital plus total
reserves.
A fmancial institution of the five types
shall engage at lease one Chinese citizen as
its senior managerial personnel. Senior
managerial personnel in a financial
institution of the five types shall not
concurrently hold important positions in
other economic organizations.
\D
.....
A fmancial institution of the five types
shall appoint a regular registered
accountant and such appointment is subject
to the approval by the People's Bank of
China or its branches.
--
The chief representative of a representative
office from foreign fmancial institutions
shall be required to reside in C~ina.
Presence of natural persons
AddltloDal commitmeots
!
CIDNA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
C.
D.
\.0
00
-
3)
4)
Commercial presence
Presence of natural persons
-
Limitations on DatloDal treatment
Additional commitments
Qualifications for establishing a foreign
bank are as follows:
-
the investor shall be a financial
institution;
-
it shall have a representative office of
over three years' standing in China;
-
it shall have total assets of more than
USS 20 billion at the end of the year
prior to the application
Qualifications for establishing a branch of a
foreign bank are as follows:
-
it shall have had a representative
office of over three years' standing in
China;
-
it shall have total assets of more than
USS 20 billion at the end of the year
prior to the application;
-
its home country or region shall have
a sound financial supervisory system
-
-
._--
-'--
-"
--
-
GATSISC/19
Page 31
GATSISC/19
Page 32
CIDNA (continued)
Modes of supply:
I)
Cross-border supply
3)
Consumption abroad
Limitations on market access
Sector or subsector
E.
4)
1.0
1.0
2)
Commercial presence
4)
Limitations on national treatment
Qualifications for establishing a
Chinese-foreign joint bank, a
Chinese-foreign joint finance company or a
totally foreign-owned fmance company are
as follows;
-
each investing party shall be a
fmancial institution;
-
the foreign investor shall have a
representative office in China
Unbound except as indicated in Horizontal
Commitments
4)
Unbound except as indicated in Horizontal
Commitments
Presence of natural persons
Additional commitments
GATS/SCI20
Page 36
COLOMBIA
Modes of supply:
1)
Cross-border supply
FINANCIAL SERVICES
Consumption abroad
3)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
7.
2)
Measures which affect all subsectors of the
Financial sector included in this schedule
The content of Colombia's Schedule on financial
services is understood to be covered by the
following indications:
I)
~
o
~
Unbound, except for measures affecting the
entry and temporary stay of natural persons
in the following categories: .
Managers, legal representatives and
technical specialists provided these persons
are providing their services in enterprises
having a commercial presence in the
country. The following definitions are
established for these purposes:
Managers: Directors of the enterprise and
other executives who have the authority to
manage the company's assets and economic
activities. Usually this category includes
members of the board of directors,
advisers, presidents, vice-presidents and
assistant directors.
1)
Unbound, except for the categories of
natural persons indicated in the market
access column
Presence of natural persons
Additional commitments
COLOMBIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence or natural persons
Additional commltmenu
Legal representatives: These are the
enterprise's authorized representatives with
respect 10 third parties; they sign and
perform all the actions and contracts for
the fulfilment of its objects. In this
capacity they represent the enterprise
before any State authority.
Technical specialists: These are executives
with outstanding expertise in specific
technical matters or direct importance to
the enterprise's operations and objects.
o
I'J
2)
Only the establishment or a company in
accordance with Colombian law in the
form of an affiliated company or subsidiary
is permitted. Consequently, other forms,
in particular branches, are excluded. This
does not prevent the operation of
representative offices, wbich may not
provide fmandal services in Colombia.
GATs/se120
Page 37
GATs/se120
Page 38
COLOMBIA (continued)
Modes of supply:
Sector or subsector
.....
ow
I)
Cross-border supply
2)
Consumption abroad
LlmltatloDS on market access
3)
Commercial presence
LlmltatloDS on national treatment
4)
Presence of natural persons
Additional commitments
The commercial presence shall be carried
out in accordance with the purpose
specifically authorized for the affiliated
company or subsidiary concerned.
Constitutional provisions require prior
government authorization for the exercise
of fmancial, stock-market and insurance
activities. Such authorization is obtained
through an administrative procedure in
accordance with criteria contained in the
foreign investment law and the basic law
on the fmancial system .
Colombia's fmal Schedule is to be
understood as being without prejudice to
the prudential regulations applicable to
fmancial operations in Colombia, such as
minimum capital levels, limits on the risk
assets of entities, limits on their debt, and
so fonh
,
COLOMBIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
A.
Insurance and insurancerelated services
a)
Direct insurance
(inc\udi-ng co-insurance)1
i)
ii)
o
.+::-
b)
Life insurance
Non-life insurance
services
Reinsurance and
retrocession
2)
3)
Consumption abroad
Commercial presence
Limitation! OD national treatment
Limitations on market access
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Unbound, except as indicated in the
introductory note to this sector
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Presence of naruraJ persons
Additional commitments
I
~--
---
!
------
In the case of foreign trade operations, insurance may be contracted with foreign insurers for external journeys i.e., those which begin or end in a Colombian port.
Travel insurance for Colombian residents may be contracted with foreign insurers for the journey.
GATS/SCI20
Page 39
GATSISC/20
COLOMBIA (continued)
Modes of supply:
Page 40
])
Cross-border supply
d)
.....
a
U1
B.
Insurance intermediation,
such as brokerage and
agency
Services auxiliary to
insurance, such as
consultancy, actuarial,
risk assessment and
claim settlement services.
Banking and other
fmanciaI services.
excluding insurance
Note: The offer is made in
accordance with the definitions
provided in point S,e) to p) of
the annex on fmancial
services.
Consumption abroad
3)
Limitations on market access
Sector or subsector
c)
2)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Unbound, except as indicated in the
introductory note to this sector
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Unbound, except as indicated in the
introductory note to this sector
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Unbound, except as indicated in the
introductory note to this sector
4)
Presence of natural persons
Additional commitments
REPUBLIC OF CUBA
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
All insurance and
insurance-related services
a)
Life, accident and health
insurance services
(CPC 8121)
b)
Non-life insurance
services
(CPC 8129)
3)
Consumption abroad
LimltatloDS on market access
Commercial presence
LimltatloDS on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
--
o
......
2)
-
4)
Presence of natural persons
Additional commitments
-
GATS/SC124
Page 13
GATS/SC/24
REPUBLIC OF CUBA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
c)
d)
o
CX)
Reinsurance and
retrocession
(CPC 81299)
Services auxiliary to
insurance (including
broking and agency
services)
(CPC 81401)
Average and loss
adjustment services
CCPC 81403)
Page 14
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
---
--
REPUBLIC OF CUBA (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sedor-or subsedor
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
i
-
Actuarial services
(CPC 81404)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
A banking institution set up under the
system of Cuban-foreign economic
associations may function under the private
banking regime with joint capital and may
fonn part of the Cuban banking system,
subject to national legislation and
regulations and supervision by the Banco
Nacional De Cuba. To operate within the
banking system it is necessary to apply for
and obtain a licence from the Banco
Nacional De Cuba and be entered in the
General Register of Banks
3)
Licensing requirements for operating as a
bank are applicable to all non-State
participants in the national banking system
I
B.
Banking and other
fmancial services
Commercial banking
o
1.0
Licences for associations set up in the
banking sector on the basis of foreign and
national capital permit commercial banking
activities related to operations in freely
convertible currencies
I
I
I
-
GATSISC/24
Page 15
GATSISC/24
Page 16
REPUBLIC OF CUBA (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sedor or 5ubsedor
Commercial presence
Limitations on national tnatment
The establishment of representative offices
of foreign banking interests must follow
the same procedure and they may Dot lend
or accept deposits
Licences for the creation of private banks
with joint capital are only granted for
carrying out operations in freely
convertible currencies, consistent with the
functions of commercial and investment
banks, with entities in Cuba and on
international markets
--o
Investment funds must come from abroad
and the licences restrict the possibilities of
attracting investment in Cuba
The establishment of subsidiaries of
foreign banks in Cuba is not permitted
Unbound, except as indicated in the
horizontal section
4)
-
4)
Unbound, except as indicated ill the
horizontal section
4)
Presence of natural persons
AddltloDal commitments
CYPRUS
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance and Insurance
Related-Services
a)
Life Insurance Services
1)
No person or company can operate as an
insurer within the Republic of Cyprus
unless so authorized by the Superintendent
of Insurance
Commercial presence
Limitations on national treatment
1)
4)
Presence of natural persons
Additional commitments
None
!
!
Foreign Insurance companies may offer
insurance services through the
establishment of a branch or agency only.
In both cases an authorization is required in
accordance with terms and conditions
stipulated by the Insurance Act. The
foreign insurer must have been authorized
to operate in its country of origin before
authorized to establish a branch or agency.
~
~
~
2)
None
I
2)
None
--
GATS/Se/2S
Page 9
GATS/SC125
Page 10
CYPRUS (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
3)
Restricted to insurance companies
registered in Cyprus and so authorized by
the Superintendent of Insurance, in
accordance with national regulations
4)
Commercial presence
Additional commitments
L1mltatloas on national treatment
3)
Presence of natural persons
None
Investment by non-residents in insurance
companies requires the prior approval of
the Central Bank
The share of foreign participation in the
capital of local insurance companies is
determined on a case by case basis, in
accordance with economic needs
4)
- - _ ..
Unbound
I
4)
None
~
~-
I
CYPRUS (continued)
Modes of supply:
1)
Cross-border supply
Non-Life Insurance
Services
(CPC 8129 other than
81299)
Consumption abroad
3)
Limitations on market access
Sector.or subsector
b)
2)
1)
No person or company can operate as an
insurer within the Republic of Cyprus
unless so authorized by the Superintendent
of Insurance
Commercial presence
Limitations on national treatment
1)
4)
Presence of natural persons
Additiona' commitments
None
International marine, aviation and transit
services can be offered without any
limitation by any insurer, irrespective of
whether authorized or not in Cyprus
~
w
Foreign Insurance companies may offer
insurance services through the
establishment of a branch or agency. In
both cases an authorization is required in
accordance with terms and conditions
stipulated by the Insurance Act. The
foreign insurer must have been authorized
to operate in its country of origin before
authorized to establish a branch or agency.
GATSISe/25
Page 11
GATSISe/25
CYPRUS (continued)
Modes of supply:
Page 12
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
2)
None
2)
None
3)
Restricted to insurance companies
registered in Cyprus and so authorized by
the Superintendent of Insurance, in
accordance with national regulations
Investment by non-residents in insurance
companies requires the previous approval
of the Central Bank
3)
None
4)
Unbound
4)
None
4)
Presence of natural persons
Additional commitments
I
-
t:>
I
--~
--
GATSISC/26
Page 24
CZECH REPUBLIC
Modes of supply:
J)
Sector or subsector
7.
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
f Additional commitments
FINANCIAL SERVICES
Measures applicable to all sectors in fmancial services:
I.
Commitments in this Chapter are based on the Agreement on Trade in Services, the Annex on Financial Services and the Understanding on Commitments in
Financial Services.
2.
Market access commitments with respect to the ·cross border supply· and ·consumption abroad· are bound to the extent of the obligations in para 3 and 4 of
Market Access of the Understanding subject to limitations listed below in individuals sectors.
3.
The purchase and acquisition of fmancial services by public entities of the Czech Republic is governed by this schedule by Article XIII of the Agreement.
4.
The admission to the market of new fmandal services and instruments may be subject to the existence of, and consistency with the domestic regulatory
framework.
5.
The commitments on presence of natural persons are bound according to the general limitations applicable to all sectors in this schedule (Part I).
6.
Otherwise, the commitments in this Chapter are subject to the general conditions or limitations applicable to all sectors in this schedule.
A.
Insurance and Insurance-Related Services
(CPC 812)
V1
The following insurance services are provided by exclusive suppliers:
Compulsory motor third party liability insurance, compulsory air transpon insurance, the liability insurance of employer against injury or occupational disease have
to be effected through the Czech Insurance Company. The basic health insurance and pension fund schemes are confmed to the General Health Company. These
exclusive service suppliers act in a manner consistent with obligations under Article II and specific commitments.
CZECH REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
a)
Ufe insurance
(CPC 8121)
b)
Non-life insurance
(CPC 8129)
Commercial presence is required for supply
of:
c)
Reinsurance and
retrocession
(CPC 81299)
-
the life of persons with permanent
residence in the Czech Republic,
d)
Insurance intermediation
(CPC 8140)
-
the insurance of property on the
territory of the Czech Republic,
-
the insurance of Iiabilily for loss or
damage caused by the activily of
natural and juridical persons on the
territory of the Czech Republic,
-
air and maritime transport insurance
covering goods, aircraft, hull and
liability
I)
2)
None other than:
None other than:
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
1)
None
2)
None
Insurance services covered by mode (1)
except insurance of air and maritime
transport, covering goods, aircraft, hull
and liability above may not be purchased
abroad
~--
-
GATS/SC126
Page 25
GATS/SC126
Page 26
CZECH REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsedor
3)
None other than:
Licence is required for provision of
insurance services. Foreign national may
establish an insurance company with the
seat in the Czech Republic in the form of a
joint stock company or may conduct
insurance business through their
subsidiaries or branches with registered
office in the Czech Republic under the
general conditions established in the Law
on Insurance. Insurance business means
insurance activity including brokerage and
reinsurance activity .
..J
Commercial presence
Presence of natural persons
4)
Limitations on national treatment
3)
Additional commitments
None other than:
The majority of the management board of
an insurance company has to be domiciled
in the Czech Republic
Intermediation activity aimed at the
conclusion of insurance contract between
third party and insurance company may be
provided by natural or juridical person only
domiciled in the Czech Republic on behalf
of insurance company having the licence of
the Insurance Supervisory Authority.
!
Intermediation contract aimed at conclusion
of insurance contract by third party with
insurance company may be concluded by
domestic or foreign insurance company
only on the basis of licence granted by the
Insurance Supervisory Authority.
---
--- '----
I
CZECH REPUBLIC (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Presence of natural persons
4)
AddJtlonal commltmtats
LlIbltatlons on national treatment
The financial resources of specific
insurance funds of licensed insurance
operators derived from insuring or
reinsuring policy holders with residence or
registered office in the Czech Republic
must be deposited in a resident bank or
saving institution int he Czech Republic
and may not be transferred abroad
4)
B.
Banking and Other
Financial Services
a)
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 - 81119)
---
Unbound except as indicated in horizontal
section
1), 2) None other than:
I
4)
Unbound except as indicated in horizontal
section
1), 2) None
Deposit services are confined to the banks
only.
--
---
.-
------,
.-
GATS/SC/26
Page 27
GATSISC/26
Page 28
CZECH REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Lending of all types
(CPC 8113)
d)
All payments and money
transmission services
(CPC 81339
e)
f)
~
~
\D
-
-
Guarantees and
commitments
(CPC 81199)
Trading for own account
of customers, whether on
an exchange, in an overthe-counter market or
otherwise as follows:
money market
instruments (cheques,
bills, certificate of
deposits, etc
(CPC 81339)
foreign exchange
(CPC 81333)
Consumption abroad
Limitations on market access
Sector or subsector
b)
2)
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Only authorized domestic banks, branches
or foreign banks and persons possessing a
foreign exchange licence may trade in
foreign exchange assets.
Non-cash cross-border payments may be
effected only by authorized banks and
branches of foreign banks
Foreign exchange licence issued by the
Czech National Bank or Ministry of
Finance is required in case of Czech
residents for:
a)
b)
c)
d)
opening an account abroad by a Czech
non-bank resident,
capital payments abroad,
obtaining financial credit from a
foreign exchange non-resident,
export and import of the Czech
currency and securities denominated in
this currency (applies also to
non-residents).
Foreign exchange assets of Czech residents
are required to be deposited with an
authorized domestic branch or branch of a
foreign bank
-
CZECH REPUBLIC (continued)
Modes of supply:
I)
Cross-border supply
Consumption abroad
3)
Limitations on market access
Sector or subsector
exchange rate and
interest rate instruments,
etc. including products
such as swaps, forward
rate agreements, etc.
(CPC 81339)
2)
3)
None other than:
Commercial presence
4)
Limitations on national treatment
3)
Presence of natural persons
Additional commitments
None
Banking services may be provided only by
established banks and branches of foreign
banks duly authorized by the Czech
National Banlc in agreement with the
Ministry of Finance
Private banks may be established as joint
stock companies only. With the
authorization of the Czech National Bank.
and other foreign subjects may panicipate
through their capital share in already
established banks
g)
I
4)
Unbound except as indicated in horizontal
section
4)
Unbound except as indicated in horizontal
section
transferable securities
(CPC 81321)
J)
Unbound
1)
None
Panicipation in issues of
all kinds of securities
(CPC 8132)
2)
None
2)
None
3)
None other than:
3)
None
--
---.-------
GATSISC/26
Page 29
GATSISC/26
Page 30
CZECH REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
-"
-"
Commercial presence
4)
Limitations on national treatment
Securities may be traded publicly only if
relevant authorization has been granted and
prospectus covering the security has been
approved by the Ministry of Finance. The
business of security dealer, stockbroker or
organizer of an over-the-counter market is
subject to approval of the Ministry of
Finance. Settlement and clearing services
for all kinds of payments are regulated by
the Czech National Bank.
Settlement and clearing
services for financial
assets
(CPC 81319, 81339)
4)
IV
3)
Consumption abroad
Limitations on market access
Sector or subsector
j)
2)
Unbound except as indicated in horizontal
section
4)
Unbound except as indicated in horizontal
section
Presence of natural persons
Additional commitments
GATSISe/27
Page 4
DOMINICA
Modes of supply:
I)
Cross-border supply
FINANCIAL SERVICES
C.
Reinsurance
Consumption abroad
3)
LlmltatloDS on market access
Sector or subsector
7.
2)
Commercial presence
LlmltatloDS on national treatment
4)
Presence of natural persons
Additional commitments
I
I
1)
2)
3)
4)
--
.....
tv
W
None
None
Subject to Insurance Act
Subject to work permits and immigration
regulations.
1)
2)
3)
4)
None
None
Subject to withholding tax.
None
I
I
i
DOMINICAN REPUBLIC
Modes of supply:
I)
Cross-border supply
. Sector or subsector
......
IV
IJ1
2)
3)
Consumption abroad
Limitations on national treatment
Limitations on market access
7.
FINANCIAL SERVICES
B.
Banking and other
fmancial services
c)
Financial leasing services
(CPC 8112)
Other credit granting
services
(CPC 8113)
--
Commercial presence
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
4)
Presence of natural persons
Additional commitments
I
---
GATSISe/2S
Page 29
GATs/se/28
Page 30
DOMINICAN REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
limitations on market access
Sector or subsector
Commercial presence
Llmltatlou OD national treatmeDt
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
Other bank deposit
services
I)
Unbound
1)
Unbound
(CPC 81116)
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
Other financial
intermediation services
other than insurance and
pension fund services
(CPC 8119)
Wholesale deposit
services
(CPC 81115)
4)
Presence of natural persons
Additional rommltmtDts
I
I
--
DOMINICAN REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Other deposit services
(CPC 81119)
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
4)
Presence of natural persons
Additional commitments
I
Services related to the
administration of
financial markets
(CPC 8131)
--
N
.....
3)
None
3)
Unbound
4)
Unbound. except as indicated in the
horizontal section
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound
4)
Unbound
I
Services related to
securities markets
(CPC 8132)
i
I
-
GATs/se/28
Page 31
GATSISe/28
DOMINICAN REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Other services auxiliary
to fmancial
intennediatioD
(CPC 8133)
Page 32
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations OD national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
I
I
,
N
Insurance (including
reinsurance) and pension
fund services, except
compulsory social
security services
(CPC 812)
1)
Unbound
l)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign ownersbip of up to 49 per cent of
equity allowed
3)
Unbound
4)
Unbound
a)
Services auxiliary to
insurance and pension
funding
(CPC 8140)
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
Unbound
4)
Unbound
4)
Unbound
I
---
GATS/SC/30
Page 8
EGYYf
Modes of supply:
Sector or subsector
1)
Cross-border supply
I
2)
Consumption abroad
Limitations on market access
I
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
1
Additional commitments
FINANCIAL SERVICES
Measures of specific application:
Commercial Presence for conducting the activities of other Financial Services (Capital Market Services excluding trading in securities) should take the form of a
joint-stock Company or a Partnership limited by shares or limited liability Company).
The main criteria on which the economic needs test concerning the Insurance and Reinsurance Services (both branches of foreign Companies and joint-venture
Companies), are as follows:
I.
Surplus demand to traditional classes of insurance gives new companies an opportunity of working without harmful competition to the market or financial
positions of existing companies and consequently policy holders.
2.
Exhausting of SO per cent of the capacity of the existing companies, which is calculated on the basis of solvency margin, there is a surplus demand in excess
of the capacity which enables a new company to achieve its purpose.
3.
Setting up of a new company leads to an increase of total retention in the market; taking into account the technical considerations.
4.
The new companies shall introduce new covers.
IV
<.D
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
INSURANCE AND
INSURANCE RELATED
SERVICES
l.
Life, health, ~rsonal
accident
w
I)
None
1)
None
2)
None
2)
None
3)
Foreign and joint venture Companies are
allowed only to carry on business in free
zones, provided that their activities shall be
confined to the transactions carried out in
convertible currencies.
3)
None
- Inland commercial presence, other than in free
zones, will be allowed within five years from
the entry into force of the GATS. Economic
needs test shall apply then;
C>
- Foreign capital equity shall not exceed 49 per
cent of the total capital required for the
company;
- 50 per cent in excess of the retention on the
basis of risk premium of any Company must
be ceded to the Egyptian Reinsurance Co., and
5 per cent of the Company's treaties to the
African Reinsurance Co.
4)
--
The managing directors should be nationals
I
4)
None
-
GATs/se/JO
Page 9
GATSISC/30
Page to
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2.
Non-Life Insurance
-
2)
Consumption abroad
3)
Limitations on market access
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Foreign and joint venture Companies are
allowed only to carry on business in free
zones, provided that their activities shall be
confmed to the transactions carried out in
convertible currencies
3)
None
- Inland commercial presence, other than in free
zones, will be allowed within five years from
the entry into force of the GATS. Economic
needs test shall apply then;
w
- Foreign capital equity shall not exceed 49 per
cent of the total capital required for the
Company;
- 30 per cent on proportional basis of the lotal
transactions must be ceded to the Egyptian
Reinsurance Co., and 5 per cent of the
Company's treaties to the African Reinsurance
Co.
3.
Reinsurance and
Retrocession
Commercial presence
4)
The managing directors should be nationals
4)
None
1)
None
1)
None
2)
None
2)
None
4)
Presence of natural persons
Additional commitments
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
3)
Foreign and joint venture Companies are
allowed only to carry on business in free
zones, provided that their activities shall be
confmed to the transactions carried out in
convertible currencies
Commercial presence
Limitations
3)
OD
national treatment
4)
Presence of natural persons
Additional commitments
None
I
I
I
- Economic needs test shall apply to the inland
Commercial Presence (other than in free
zones);
I
- Foreign capital equity shall not exceed
49 per cent of the total capital required for the
company;
- Insurance and reinsurance Companies are not
allowed to deal with reinsurers nol listed in the
supervisory authority list;
w
f\J
- 5 per cent of the Company's treaties must be
ct:ded to the African Reinsurance Co.
I
I
- The Egyptian Reinsurance Co. pledges to
accept the following shares:
-
4)
I
I
I
Life business: 50 per cent in excess of the
retention on the base of risk premium of
any Company;
I
Non-life business: 30 per cent on
proportional basis of the total transactions.
None
4)
None
OATSIsel30
Page' •
GATS/SC/30
Page 12
EGYPT (continued)
Modes of supply:
Cross-border supply
I)
AuxiliiY.:Y services other
than intermediation:
a}
Acturial services
b)
......
Consultancy (risk
assessment and risk
management only)
w
w
c)
3)
Consumption abroad
Limitations on market access
Sector or subsector
4.
2)
tAlss assessment
----
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign service supplier must be resident
3)
None
4)
None
4)
None
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign service supplier must be resident
authorized to perform this profession from
a competent authority in his home country
and registered at the Egyptian register for
that purpose
3)
None
4)
None
4)
None
4)
Presence of natural persons
Additional commitments
EGYPT (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
d)
Liaison offices
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
None
l)
None
2)
None
2)
None
3)
Commercial presence is bound only for
public relations and researches
3)
None
4)
None
4)
None
I)
Bound only for life insurance service and
reinsurance services
1)
None
2)
Bound only for life insurance service and
reinsurance services
2)
None
3)
Unbound
3)
Unbound
4)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
I
5.
Intermediation
..u
j::a
I
------
GATSISel30
Page 13
GATSISC/30
Page 14
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
V1
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
AddItional commitments
Joint Venture Banks
(JVB's)
- Acceptance of deposits and
other forms of repayable
funds
....
w
Consumption abroad
Limitations on market access
.
A.
2)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
- All types of lending,
including consumer credit,
and fmancing of commercial
transactions
3)
Foreign capital equity should not exceed
51 per cent
3)
Foreign service suppliers, in the context of
JVB's, are required to offer on-the-job
training for national employees
- All payment and money
transmission services,
including credit, charge and
debit cards, traveller'S
cheques and bankers draft
4)
The General Manager should be national
4)
None
- Guarantees and
commitments
.
- Trading for own account or
for account of customers in:
~-
EGYYf (continued)
Modes of supply:
I)
Sector or subsector
-'
w
0'1
Cross-border supply
2)
Consumption abroad
Limitations on market access
a)
Money market
instruments (cheques,
bills and cenificate of
deposits)
b)
Foreign exchange
c)
Securities
-
Participation in share
issues and the provision
of services related to
such issues
-
Money broking
-
Ponfolio management
and advice
-
Safekeeping of securities
-
Credit reference services
and
-
Safe custody services
3)
Commercial
p~nce
Limitations OD natloDal treatment
4)
Presence of natural persons
Additional commitments
.
-
-
GATSISe/JO
Page IS
GATS/SC/30
Page 16
EGYPT (continued)
1)
Modes of supply:
Cross-border supply
3)
Consumption abroad
Limitations on market access
Sector or subsector
B.
2)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
Foreign Bank Branches
Same activities specified
under (A) above
--
W
--.J
--~~
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Economic needs lest shall apply.
Terms and conditions specified by the
Minister of Economy and Foreign Trade.
3)
Branches of foreign banks established after
June 5th 1992, (the dale of enforcement of
Law No. 37 of 1992) may be licensed to
deal in local currency in addition to foreign
currency dealings, subject to the terms and
conditions specified by the Minister of
Economy and Foreign Trade.
4)
None
4)
None
-
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
C.
Renresentative Offices of
Foreign Banks (RO's)
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
J)
Foreign banks which desire to set up
representative offices should not have
branches in Egypt.
3)
Unbound·
4)
None
4)
Presence of natural persons
Additional rommltments
I
Activities of RO's should be confmed to
conducting studies and potential
investments, acting as liaison with their
bead offices and contributing to solving
problems and difficulties that may
encounter their bead offices'
correspondents in Egypt
<.AI
:xl
4)
I
None
I
OTHER FINANCIAL
SERVICES: (Capital Markel
Services)
I
1.
Underwriting
1)
None
1)
None
I
I
2)
NODe
2)
None
3)
None
3)
None
4)
None
4)
None
------'-----,--
..
- -
---
GATSlse/Ja
Page J7
GATSISC/30
Page 18
EGYPT (continued)
Modes of supply:
1)
Cross-border supply
Sedor or subsedor
2.
3.
.....
Brokerage
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
Trading in Securities
1)
None
1)
None
(Buy and sell by
individual or institution
on the stock-exchange)
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
w
I.D
4.
Clearing and Settlement
-
4)
Presence of natural persons
Additional commitments
EGYPT (continued)
Modes of supply:
I)
Cross-border supply
Sedor or subsector
5.
6.
Marketing and Market
Promotion
Portfolio and Investment
Management
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
I)
None
I)
None
2)
None
2)
None
3)
None
3)
None
4)
Presence of natural persons
Additional commitments
I
I
I
I
4)
None
4)
None
I)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
1)
None
1)
None
2)
None
2)
None.
3)
None
3)
None
4)
None
4)
None
I
7.
8.
Establishment of
collective investment
funds
Venture Capital
-
I
---
GATs/selJa
Page 19
GATSISC/29
ELSALVADOR
Page 10
I)
Modes of supply:
Cross-border supply
~
FINANCIAL SERVICES
B.
Banking and other
fmancial services
a)
Acceptance of deposits
and other repayable funds
from the public
Solely: sight deposits in
banks and branches of
foreign banks (81116);
time deposits and saving
accounts (81116, 81119)
~
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Branches, or through participation in the
ownership of domestic banks or fmance.
For companies that have been or are in the
process of being privatized, the ceiling on
shareholding by a natural or legal person is
five per cent of the capital of the
institution. Foreign entities wishing to
establish branches in the country must
obtain authorization from the Financial
System Supervisory Department.
3)
At least SO per cent of ownership of shares
in banks or fmance companies set up in
EI Salvador must be maintained for
Salvadorian natural persons. Creditors
domiciled in EI Salvador enjoy preferential
rights over assets which a foreign fmancial
institution owns in the country.
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
~
-
3)
Consumption abroad
Limitations on market access
Sector or subsector
7.
2)
-
EL SAL VADOR (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
b)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Granting of loans
I)
Unbound
1)
Unbound
Solely: granting of
mortgage loans (81131);
personal instalment loans
(81132); credit cards
services (81133); issue
and acceptance of lellers
of credit and documentary
credits in banks and
branches of foreign banks
(81139)
2)
Unbound
2)
Unbound
3)
Branches, or through participation in the
ownership of domestic banks or fmance
companies. For banlcs and fmance
companies that have been or are in the
process of being privatized, the ceiling on
shareholding by a natural or legal person is
five per cent of the capital of the
institution. Foreign entities wishing to
establish branches in the country must
obtain authorization from the Financial
System Supervisory Department. This
authorization is also required by foreign
fmandal institutions intending to open
agencies or offices to serve as information
centres for their clients or for the
placement of funds in the country in the
form of credits or investments, without
engaging in deposit operations in the
national tenitory.
3)
At least SO per cent of ownership of shares
in banks or fmance companies set up in
EI Salvador must be maintained for
Salvadorian natural persons. Creditors
domiciled in EI Salvador enjoy preferential
rights over assets which a foreign fmancial
institution owns in the country.
Unbound, except as indicated in the
horizontal section
4)
.j:>o
N
4)
Additional commitments
I,
Unbound, except as indicated in the
horizontal section
GATSISC129
PaRe I.
GATS/SC/29
Page 12
EL SALVADOR (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
c)
~
w
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Other financial services
1)
Unbound
1)
Unbound
Solely: wholesale deposit
services (81115); security
custody services and
financial reporting
services for clients
(81319); issue and
placing of securities,
bonds and mortgage bonds
in local or foreign
currency (81321, 81322);
operations with securities
of other companies, the
Central Reserve Bank or
the State Bank. or
guaranteed by the latter;
and operations on the
secondary mortgage
market (81321); fmancial
intermediation for the
placement of resources of
national or foreign
institutions and enterprises
(81331); foreign
exchange buying and
selling operations (81333);
transport of cash and
securities (81334)
2)
Unbound
2)
Unbound
3)
Branches, or through participation in the
ownership of domestic banks or fmance
companies. In the case of banks and
fmance companies thai have been or are in
the process of being privatized, the ceiling
on sharebolding by a natural or legal
person is five per cent of the capital of the
institution. Foreign entities wishing to
establish branches in the country must
obtain authorization from the Financial
System Supervisory Department. This
authorization is also required by foreign
fmancial institutions intending to open
agencies or offices to serve as information
centres for their clients or for the
placement of funds in the country in the
form of credits or investments, without
engaging in deposit operations in the
national territory.
3)
At least 50 per cent of ownership of shares
in banks or finance companies set up in
EI Salvador must be maintained for
Salvadorian natural persons. Creditors
domiciled in EI Salvador enjoy preferential
rights over assets wbich a foreign fmancial
institution owns in the country.
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
Additional commitments
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
--
Sector or subsector
3)
Commercial presence
---_._-
Limitations on market access
Limitations on national treatment
4)
Presence of natural persons
I Additional commitments
7.
FINANCIAL SERVICES SECTOR·
1.
The Communities and their Member States undertake commitments on Financial Services in accordance with the provisions of the "Understanding on
Commitments in Financial Services" (the Understanding).
These commitments are subject to the limitations on market access and national treatment in the "all sectors" section of this schedule and to those relating to
the subsectors listed below.
The market access commitments in respect of modes 1) and 2) apply only to the transactions indicated in paragraphs 3 and 4 of the market access section of
the Understanding respectively.
Notwithstanding note I. above, the market access and national treatment commitments in respect of mode 4) on fmancial services are those in the "all sectors"
section of this schedule.
The admission to the market of new fmancial services or products may be subject to the existence of, and consistency with, a regulatory framework aimed at
achieving the objectives indicated in Article 2.1 of the Financial Services Annex.
As a general rule and in a non-iliscriminatory manner, fmancial institutions incorporated in a Member State of the Community must adopt a specific legal
form.
2.
3.
4.
5.
6.
t.>o
I.J1
•
Unlike foreign subsidiaries, branches established directly in a Member State by a non-Community fmancial institution are not, with certain limited exceptions,
subject to prudential regulations harmonized at Community level which enable such subsidiaries to benefit from enhanced facilities to set up new establishments
and to provide cross-border services throughout the Communities. Therefore. such branches receive an authorization to operate in the territory of a Member
State under conditions equivalent to those applied to domestic fmancial institutions of that Member State, and may be required to satisfy a number of specific
prudential requirements such as, in the case of banking and securities, separate capitalization and other solvency requirements and reporting and publication of
accounts requirements or, in the case of insurance, specific guarantee and deposit requirements. a separate capitalization, and the localization in the Member
State concerned of the assets representing the technical reserves and at least one-third of the solvency margin. Member States may apply the restrictions
indicated in this schedule only with regard to the direct establishment from a third country of a commercial presence or to the prOVision of cross-border
services from a third country; consequently, a Member State may not apply these restrictions, including those concerning establishment, to third country
subsidiaries established in other Member States of the Communities, unless these restrictions can also be applied to companies or nationals of other Member
States in conformity with Community law.
GATS/SC/31
Page 61
GATS/SC/31
Page 62
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
I)
Cross-border supply
Sedor or subsedor
A.
Insurance and Insurance
Related Services
2)
Consumption abroad
3)
Limitations on market access
1)
OK: Compulsory air transport insurance
can be underwritten only by firms
established in the Community.
OK: No persons or companies (including
insurance companies) may for business
purposes in Denmark assist in effecting
direct insurance for persons resident in
Denmark, for Danish ships or for property
in Denmark, other than Danish companies.
foreign companies registered in DelllWlrk,
or foreign insurance companies subject to
the Danish Act on the provision of
insurance services within direct Don-life
insurance (implementing the EC second
non-life Insurance Directive). The Minister
of Industry may lay down rules providing
otherwise.
Commercial presence
Limitations on national treatment
1)
4)
Presence of natural persons
Additional commitments
None
I
D: Compulsory air insurance policies can
be underwritten only by a subsidiary
established in the Community or by a
branch established in Germany.
D: If a foreign insurance company has
established a branch in Germany. it may
conclude insurance contracts in Germany
relating to international transport only
through the branch established in Germany.
I
E. I: Unbound for the actuarial profession.
~-
-
-
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
F: Insurance of risks relating to ground
transport may be carried out only by
insurance firms established in the
Communities.
I
i
I: Insurance of risks relating to CIF
exports by residents in Italy may be
underwritten only by insurance firms
established in the Communities.
I: Transport insurance of goods, insurance
of vehicles as such and liability insurance
regarding risks located in Italy may be
underwritten only by insurance companies
established in Italy or companies having
their head office in the EC. This
reservation does not apply for international
transport involving imports into Italy.
-...
~
-..J
P: Air and maritime transport insurance,
covering goods, aircraft, hull and liability
can be underwritten only by firms
established in the EC; only persons or
companies established in the EC may act as
intermediaries for such insurance business
in Portugal.
2)
---_._-
OK: Compulsory air transport insurance
can be underwritten only by firms
established in the Community.
2)
None
--
GATS/SC/31
Page 63
GATS/SC/3}
Page 64
EUROPEAN COMl\fUNlTIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
OK: No persons or companies (including
insurance companies) may for business
purposes in Denmark assist in effecting
direct insurance for persons resident in
Denmark, for Danish ships or for property
in Denmark, other than Danish companies,
foreign companies registered in Denmark,
or foreign insurance companies subject to
the Danish Act on the provision of
insurance services within direct non-life
insurance (implementing the EC second
non-life Insurance Directive). The Minister
of Industry may lay down rules providing
otherwise.
D: Compulsory air insuranCe policies can
be underwritten only by a subsidiary
established in the Community or by a
branch established in Germany.
D: If a foreign insurance company bas
established a branch in Germany, it may
conclude insurance contracts in Germany
relating to international transpon only
through the branch established in Germany.
F: Insurance of risks relating to ground
transport may be carried out only by
insurance firms established in the
Community.
3)
Commercial pn:scDU
Limitations on national treatment
4)
Presence of natural persons
Adclltlonal commitments
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
I)
Cross-border supply
2)
3)
Consumption abroad
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
Commercial presence
Presence of natural penons
Additional commitments
I: Insurance of risks relating to CIF
exports by residents in Italy may be
underwritten only by insurance firms
established in the Communities.
I: Transport insurance of goods, insurance
of vehicles as such and liability insurance
regarding risks located in Italy may be
underwritten only by insurance companies
established in Italy or companies having
their head office in the EC. This
reservation does not apply for international
transport involving imports into Italy.
-"
~
P: Air and maritime transport insurance,
covering goods, aircraft, hull and liability
can be underwritten only by firms
established in the EC; only persons or
companies established in the EC may act as
intermediaries for such insurance business
in Portugal.
1.0
3)
GR, E, IRL: The right of establishment
does not cover the creation of
representative offices or other permanent
presence of insurance companies, except
where such offices are established as
agencies, branches or head offices.
3)
E: The establishment of branches of
insurance companies not having their head
office in a Member State of the
Communities is subject to the
representative of the branch having
received the special authorization as
referred under mode 4) (see page 61).
GATS/SC/31
Page 65
GATS/SC/31
Page 66
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsedor
Limitations on market access
Limitations on national treatment
Additional commltmenu
E: Before establishing a branch or agency
in Spain to provide certain classes of
insurance, a foreign insurer must have been
authorized to operate in the same classes of
insurance in its country of origin for at
least five years.
F: The establishment of branches of
insurance companies not having their head
office in a Member State of the
Community is subject to a special
authorization for the representative of the
firm in France.
Lr1
o
I: Access to actuarial profession through
natural persons only. Professional
associations (no incorporation) among
natural persons permitted.
I: The authorization of the establishment
of branches of insurance companies not
baving their bead office in a Member State
of the Community is ultimately subject to
the evaluation of supervisory authorities.
I
i
I
P: Foreign companies may carry out
insurance intermediation in Portugal ooly
through a company formed in accordance
with the law of a Community Member
State.
I
I
I
I
I
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
Sector or subsedor
3)
4)
Commercial presence
Presence of natural persons
Limitations on national treatment
AddJtlonal commitments
P: In order to establish a branch in
Portugal, foreign insurance companies need
to demonstrate prior operational experience
of at least five years.
4)
......
V1
......
Unbound except as indicated in the
horizontal section and subject to the
specific conditions:
4)
Unbound except as indicated in the
horizonal section and subject to the
following specific limitations:
DK: The general agent of an insurance
branch shall be a national of one of the
Member States of the Community. The
Ministry of Industry may grant exemption
from this requirement. Managers and the
members of the board of directors of a
company shall be a national of one of the
Member States of the Community.
DK: The general agent of an insurance
branch will need to have resided in
Denmark for the last two years. The
Ministry of Labour may grant exemption.
However, the Minister of Industry may
grant exemption from this requirement.
Exemption is granted on a
non-discriminatory basis.
E: The representative of a branch of an
insurance company which does not have its
head office in a Member State of the
Communities is subject to a special
authorization. The conditions to be met
are related to the technical qualification and
good standing of the person.
GR: A majority of the Members of the
Board of Directors of a Greek insurance
company shall be nationals of Greece or of
one of the Member States of the
Community.
E, I: Residence requirement for actuarial
profession.
-
GATSISC/31
Page 67
GATS/SC/3l
Page 68
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking and other
Financial Services
(excluding insurance)
2)
Consumption abroad
3)
B: Establishment in Belgium is required for
the provision of investment advisory
services.
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
1)
Commercial presence
1)
None
I
!
I: The offer and marketing of services
concerning the distribution to the public,
through telecommunication or other
information means, of information
concerning prices, the volume of
transactions, the offer and demand
conditions relating to the negotiation of
securilies dealt in the Italian regulated
market, or in other recognized markets,
requires prior authorization by the Stock
Exchanges Commission (Consob). This
authorization may not be granted if the
authorities determine that there is a risk
that the data provided may induce the
public to error.
'--
---
-
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
I: An establishment (a securities
investment company incorporated in Italy
or a bank subsidiary or branch) is needed
in order to provide investment research and
advice relating to securities (dealing, issue,
underwriting) and asset management,
securities custody, and services regarding
mergers, acquisitions, corporate
restructuring, management buy-outs and
venture capital. Collective asset
management (excluding UCITS) is
extended to banks, insurance companies,
securities investment companies with their
legal head office in the EC.
,
I: Unbound for "promotori di servizi
fmanziari" (fmancial salesmen).
--- -
GATS/SC/l1
Page 69
GATSISC/31
Page 70
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
2)
D: Issues of securities denominated in
Deutschmarks can be lead managed only by
a credit institution, subsidiary or branch.
established in Germany.
Commercial presence
Limitations on national treatment
2)
4)
Presence of natural penoll5
Addltlona. commltmmts
None
GR: Establishment is required for the
provision of custodial and depository
services involving the administration of
interest and principal payments due on
securities issued in Greece.
I
I
I: An establishment (a securities
investment company incorporated in Italy
or a bank subsidiary or brancb) is needed
in order to provide investment research and
advice relating to securities (dealing. issue.
underwriting) and asset management.
securities custody. and services regarding
mergers. acquisitions, corporate
restructuring, management buy-outs and
venture capital. Collective asset
management (excluding UCITS) is
extended to banks, insurance companies,
securities investment companies with their
legal bead office in the EC.
I
I: Residents in Italy need authorization to
purchase or sell abroad unrefmed gold.
--
----
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
P: Open-ended investment funds are
required to invest 25 per cent of their funds
in Portuguese Government funds. The
ability of residents in Portugal to carry out
the following operation abroad is restricted:
issue on a foreign market of domestic
securities and negotiable instruments.
,
i
UK: Sterling issues. including privately
led issues, can be lead managed only by a
firm established in the United Kingdom.
,
3)
~
VI
VI
-
All Member States:
The establishment of a specialized
management company is required to
perform the activities of management of
unit trusts and investment companies
(Anicles 6 and 13 of UCITS Directive,
85/6111EEC).
Only firms having their registered office in
the Communities can act as depositories of
the assets of investment funds
(Anicles 8.1 and 15.1 of the UCITS
Directive, 851611lEEC).
F: In addition to French credit institutions.
issues denominated in French francs may
be lead managed only by French
subsidiaries (under French law) of
non-French banks which are authorized,
based on sufficient means and
commitments in Paris of the candidate
French subsidiary of a non-French bank.
These conditions apply to lead banks
running the books. A non-French bank may
be, without restrictions or requirement to
establish, jointly-lead or co-lead manager
of Eurofranc bond issue.
B: With certain exceptions (block trading),
fmandal institutions may engage in
securities trading only through stock
exchange firms incorporated in Belgium.
I: Representative offices of foreign
intermediaries cannot carry out promotional
activities in the area of investment in
securities.
I
I
I
I
GATSISC/3)
Page 71
GATS/SC/31
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
DK: Non-resident financial institutions
may engage in securities trading on the
Copenhagen Stock Exchange only through
subsidiaries incorporated in Denmark.
E: Financial institutions may engage in
securities trading in securities listed in an
official stock exchange or in the
government securities market only through
securities firms incorporated in Spain.
P: The establishment of non-EC banks
may be subject to an economic needs test.
GR: Participation by non-EC investon in
the share capital of a bank established in
Greece is limited in principle to
40 per cent. For the establishment of a
branch, a minimum amount of foreign
exchange must be imported. converted into
drachmas and kept in Greece as long as a
foreign bank continues to operate in
Greece; this minimum amount is equal to
the minimum amount of sbare capital
required for the establishment of a Greek
bank.
GR: Financial institutions may engage in
securities trading only through stock
excbange firms incorporated in Greece.
Page 72
3)
Commercial presence
4)
Limitations on natloDal treatment
NL: Branches and subsidiaries of non-EC
banks need permission to lead manage
guitden-denominated paper.
Presence of natural persons
Additional commitments
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
IRL: The right of establishment does not
cover the establishment of representative
offices of foreign banks.
IRL: In the case of unit trusts and
collective investment schemes constituted
as variable capital companies (other than
undertakings for collective investment in
transferable securities, UCITS), the
trustees or depository, management
company or investment company is
required to be incorporated in Ireland or in
another Member State of the Community.
I
-----~
V1
-.J
GATS/SC/31
Page 73
I
GATSISC/3)
Page 74
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
I: A separate incorporation in Italy in the
fonn of a securities company is required
for firms other than banks (including
foreign banks branches) in order to provide
services related to securities dealing
(including dealing for the own account or
for the account of customers,· issue and
distribution of securities, acceptance of sale
and purchase orders, investment advice,
asset and portfolio management, and
raising funds from the public by means of
activities which may also be promotional··
and carried on in a place different from the
legal head office or principal administrative
establishment of the issuer, offerer or
person marketing the investment).
I: Clearing and settlement of securities
may be conducted only by the official
clearing system.
I
"---
--
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
,
I
I
I
--
•
From 1 January 1993 foreign as well as domestic banks may not provide securities dealing for its own account or for the account of customers; however, banks, including
branches of foreign banks, are allowed to deal in Treasury bonds and State-backed securities.
••
Door-to-door selling.
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
Sector or subsedor
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
I: The public offer of securities
(as provided for under Art. 18 bis of
Law 216174) other than shares, debt
securities (including convertible debt
securities) can only be made by Italian
limited companies, foreign companies duly
authorized, public bodies or companies
belonging to local authorities whose
assigned capital is not below 2 billion
Liras.
~
U1
1.0
I: Centralized deposit, custody and
administration services for Government
securities can be provided only by the Bank
of Italy, or by Monte Titoli SpA for
shares, securities of a participating nature
and other bonds traded in a ruled market.
I
I
NL: Only companies incorporated
according to the law and regulations of an
EC Member State may become members of
the Amsterdam Stock Exchange.
P: The services of provision of venture
capital, factoring, enterprise development,
pension and investment fund management
and broker/dealer services may be provided
only by companies incorporated in
Portugal.
-- -
GATS/SC/31
Page 75
GATS/SC/31
Page 76
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
4)
Commercial presence
Limitations on national treatment
Presence of natural persons
Additional commitments
UK: The following categories of fmancial
institutions dealing in Government debt are
required to be incorporated in the United
Kingdom and be separately capitalized:
-
-
gilt edged market makers (or GEMMs).
which are primary dealers in gilt-edged
Government debt and through wbicb the
Government operates in executing
Government debt management policy;
-
discount bouses wbich are primary dealers
for Treasury Bills and other money market
instruments. and througb wbicb the
Government operates in executing
monetary policy;
-
stock exchange money brokers (SEMBs).
which act as intermediaries between
GEMMs and lenders of gilt-edged stock;
and
-
inter-dealer brokers (lOBs). which act as
intermediaries between GEMMs.
I
I
I
I
-
..
EUROPEAN COMMUNITIES AND THEIR MEMBER STATES (continued)
Modes of supply:
1)
Cross-border supply
4)
....
Consumption abroad
3)
Unbound except as indicated in the
horizontal section and subject to the
specific conditions:
F: Societes d'investissement A capital fixe:
condition of nationality for the president of
the Board of Directors, the
Directors-General and no less than two
thirds of the administrators, and also, when
the securities firm has a Supervisory Board
or Council, for the members of such board
or its Director General, and no less than
two-thirds of the members of the
supervisory council.
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
0'1
2)
4)
Presence of natural persons
Additional commitments
Unbound except as indicated in the
horizonal section and subject to the
following specific limitations:
I: Condition of residence for ·promotori
di servizi fmanziari· (fmancial salesmen).
I
I
GR: The majority of the members of the
Board of Directors of a bank established in
Greece must be nationals of a Member
State of the EC and residing in Greece.
GATS/SC/31
Page 77
GATSISC/33
Page 24
FINLAND
Modes of supply:
1)
Cross-border supply
Sector or subsedor
7.
LlmitatloDS
00
2) Consumption abroad
market access
3) Commercial presence
4) Presence of natural persons
LlmitatloDS 00 oatlooal treatmeot
Additional
commitments
FINANCIAL SERVICES
Commitments in FINANCIAL SERVICES are made in accordance with the Understanding on Commitments in Financial Services (Understanding)
Insurance Services
(including services
auxiliary to insurance)
Direct insurance and
reinsurance
....
0'1
I)
Foreign insurers may on cross-border trade
without licence offer only reinsurances and
retrocessions in Finland
1)
None
2)
Obligatory insurances (the statutory
employment pension insurance, the
statutory accident insurance, the motor
third party liability insurance, the
insurance against treatment injwy) have to
be effected in Finland
2)
None
Requirements concerning citizenship and
place of residence, from which an
exemption may be granted in some cases,
apply to the founder. Managing Director,
Auditors and Members of the Board of
Directors and the Supervisory Board of an
insurance company
3)
W
3)
I
I
The general agent of the foreign insurance
company shall reside in Finland. The
general agent will be approved by the
Ministry of Social Affairs and Health
I
I
I
FINLAND (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
3) Commercial presence
Limitations on national treatment
4) Presence of natural persons
Additional
commitments
Branches of foreign insurance companies
cannot get a licence in Finland to carry on
statutory insurances business (the statutory
employment pension insurance, the
statutory accident insurance, the motor
third party liability insurance, the
insurance against treatment injury)
Insurance intermediation
and services auxiliary to
insurance
~
0'\
t>.
I
-
I
4)
Unbound except as indicated in the
horizontal section
4)
None
1)
The supply of insurance broker services is
subject to a permanent place of business in
Finland
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicalcd in the
horizontal section
4)
None
~
-,
OATS/SC/33
2-'
GATS/SC/33
Page 26
FINLAND (continued)
Modes of supply:
I) Cross-border supply
Sector or subs ector
Banking and other
fmancial services
(excluding insurance)
Credit institutions
including Banks
0)
V1
2) Consumption abroad
Limitations on market access
---
Limitations on national treatment
I)
None
I)
None
2)
Payments from governmental entities
(expenses) shall be transacted through the
Finnish Postal Giro System or through a
certain credit institution (Postipankki Ltd.)
2)
None
3)
Acquisition of shares by foreign owners
giving more than one third of the voting
rights of a major Finnish commercial bank
or credit institution (with more than 1000
employees or with a turnover exceeding
1000 million Finnish markka or with a
balance sheet total exceeding 1000 million
Finnish markka) is subject [0 confirmation
by the Finnish authorities; the confirmation
may be denied only if an important
national interest would be jeopardized
3)
None
Requirements concerning nationality and
place of residence from which exemptions
may be granted apply to the founder. the
Supervisory Board and the Board of
Management as well as the Chief General
Manager and auditors
Collective investment
funds
3) Commercial presence
Collective investment funds may not be
managed by branches of foreign
management companies
4) Presence of natural persons
Additional
commitments
FINLAND (continued)
Modes of supply:
I) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
Intermediation of
securities and derivatives
3) Commercial presence
4) Presence of natural persons
AddJtlonal
commitments
Limitations on national treatment
Professional intennediation of securities
and derivatives (options and futures)
requires a pennanent place of business in
the form of a limited liability company, a
deposit bank, other credit institution or a
branch of a foreign credit institution
I
,
0'1
0'1
Stock Exchange
Brokerage Firms and
Brokers
Requirements concerning citizenship and
place of residence apply to the Board of
Directors and Managing Director of a
Stock Exchange Brokerage Firm as well as
to a Stock Exchange Broker
Market makers and
brokers on derivatives
exchange
Citizenship and residency requirements
from which exemptions may be granted
Payments from governmental entities
(expenses) shall be transacted through the
Finnish Postal Giro System or through a
certain credit institution (Postipankki Ltd.)
I
4)
Unbound except as indicated in the
horizontal section
------
-
-- - - -
--- -
---
4)
None
-----
--
OATS/SCI33
Page 37
GABON
Modes of supply:
1)
Cross-border supply
Sector or subsedor
0\
......
7.
FINANCIAL SERVICES
A.
AJI insurance and
insurance-related services
(CPC 8121-8129-812998140)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
Prior approval of the ministries concerned.
The procedure is discretionary.
3)
None
4)
Unbound, except for measures affecting the
entry and temporary stay of natural persons
- who are employees of a company and
transferred to a company incorporated in
Gabon belonging to, controlled by or a
subsidiary of the former - in the following
categories:
4)
Unbound, except for measures affecting the
categories of natural persons indicated in
the market access column
Additional commitments
I
-
managers
-
senior executives
-
specialists who possess knowledge that
is essential to the provision of the
service
I
-
GATS/SC/34
Page 3
GATSISC/34
Page 4
GABON (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking, and other
financial services
Applies to the following
headings:
-
lending of all types
(CPC 8113);
-
transferable securities
(epC 81321);
-
other negotiable
instruments and financial
assets, including bullion
(CPC 81339);
-
asset management
(epC 8119);
en
co
-
advisory and other
auxiliary services
(ePe 8133);
-
provision and transfer of
financial information and
financial data processing
(CPC 8131).
2)
3)
Consumption abroad
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
l)
None
I)
None
2)
None
2)
None
3)
Prior approval of the ministries concerned
and of the BCEAC and COBAC. The
procedure is discretionary.
3)
None
4)
Unbound, except for measures affecting the
entry and temporary stay of natural persons
- who are employees of a company and
transferred to a company incorporated in
Gabon belonging to, controlled by or a
subsidiary of me former - in the following
categories:
4)
Unbound, except for measures affecting the
categories of natural persons indicated in
me market access column
-
managers
-
senior executives
-
specialists who possess knowledge that
is essential to the provision of the
service
Additional commitments
GATSISC/35
Page 4
GHANA
Modes of supply:
1)
Cross-border supply
.....
FINANCIAL SERVICES
A.
All insurance and
insurance-related services
a)
Life, accident and health
insurance services
(CPC 8121)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
Sedor or subsector
7.
2)
1)
None
1)
None
2)
Except in case of personal effects every
insurance effected in respect of any goods
imponed into Ghana shall be placed with
an insurer registered in Gbana
2)
None
b)
Non-life insurance
services including fire,
marine, transpon and
aviation, motor vehicle
(CPC 8129)
3)
At least 20 per cent of the capital or other
proprietary interest in that business shall be
owned by the Government of Gbana, and
at least 40 per cent of capital or proprietary
interest shall be owned by a Ghanaian.
3)
None
c)
Reinsurance and
retrocession
(pan of CPC 81299)
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
B.
Banking and other
fmancial services
(excluding insurance)
(corresponds to section
7.B. of
MTN.GNS/W/120)
I)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
Cl'I
\D
4)
Presence of natural persons
Additional commitments
,
I
GATS/SC/96
Page 4
GRENADA
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
C.
Reinsurance
2)
3)
Consumption abroad
Limitations on national treatment
Limitations on market access
1)
2)
3)
4)
None
None
Subject to exchange control regulations and
alien landholding regulations ..
Subject to work permit and immigration
regulations.
Commercial presence
I)
2)
3)
4)
4)
Presence of natural persons
Additional commitments
None
None
Subject to withholding tax
None
---
...
...
-..J
GATS/SC/36
Page 4
GUATEMALA
Modes of supply:
l)
Cross-border supply
FINANCIAL SERVICES
A.
Insurance services
(i) Reinsurance of
policies
(CPC 81229)
B.
Consumption abroad
. 3)
Commercial presence
Limitations on national treatment
Limitations on market access
Sector or subsedor
7.
2)
1)
None
1)
None
2)
None
2)
Unbound
3)
Unbound
3)
Unbound
4)
Unbound
4)
Unbound
I)
None
1)
Unbound
2)
None
2)
Unbound
3)
Only foreign fmancial institutions legally
3)
Unbound
4)
Unbound
4)
Presence of natural persons
AddJtlonal commitments
Banking Services
-..J
W
Supply, transfer and
processing of fmandal
information
(CPC 8113)
I
established in Guatemala
4)
----
Unbound, except as indicated in the
horizontal section
I
GUATEMALA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Financial advisory
services
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
1)
Unbound
2)
None
2)
Unbound
3)
Only foreign financial institutions legally
established in Guatemala
3)
Unbound
4)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commltmenu
,
-....J
""
GATSISC/36
Page 5
GATS/SC/37
Page 4
GUYANA
Modes of supply:
I) Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
B.
Banking and Other
Financial Services
(excluding insurance)
a)
Acceptance of deposits
and other repayable
funds from the public
(81115-81119)
.....
2) Consumption abroad
3) Commercial presence
Limitations on market access
4) Presence of natural persons
Additional
commitments
Limitations on national treatment
I
I)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in horizontal
section
4)
Unbound, except as indicated in horizontal
section
1)
None
1)
None
2)
None
2)
None
3)
None
3)
Loans to non-residents need to be approved
by the Central Bank of Guyana
4)
Unbound, except as indicated in horizontal
section
4)
Unbound, except as indicated in horizontal
section
......
U1
b)
Lending of all types,
incl., inter alia,
consumer credit,
mortgage credit,
factoring and financing
of commercial
transaction
(8113)
--
GUY ANA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsector
A.
Insurance Services
a)
Life, accident and health
insurance services
(8121)
b)
Non-life insurance
services
(8129)
...J
"
d)
Services auxiliary to
insurance (including
broking and agency
services)
(8140)
3) Commercial presence
2) Consumption abroad
4} Presence of natural persons
Limitations on national treatment
Limitations on market access
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in horizontal
section
4)
Unbound, except as indicated in horizontal
section
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in horizontal
section
4)
Unbound, except as indicated in horizontal
section
1)
None
I)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in horizontal
seclion
4)
Unbound, except as indicated in horizontal
section
Additional
commitments
HONDURAS
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
All insurance and
insurance-related services
Life insurance
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Entry of foreign companies requires that at
least 60 per cent of registered capital
belong to Honduran nationals
3)
None
4)
Presence of narural persons
AddJtlonal commitments
(CPC 81211)
Insurance instirutions may not buy foreign
securities or grant loans to natural or legal
persons domiciled outside Honduras
~
-.J
-.J
The operation of insurance institutions is
subject to approval by the Central Bank, in
accordance with general and local
economic conditions and requirements
i
Only companies with shares and mutual
companies may engage in such activities
4)
-
-
Unbound
4)
Unbound
-~
GATS/Se/38
Page 5
GATSISC/38
Page 6
HONDURAS (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
General insurance
(CPC 81291-81299)
(includes: accident,
disaster, vehicle and
freight. civil liability and
professional risks, credit
and transport)
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
J)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Entry of foreign companies requires that at
least 60 per cent of registered capital
belong to Honduran nationals
3)
None
4)
Unbound
4)
Presence of natural persons
Additional commitments
Insurance institutions may not buy foreign
securities or grant loans to natural or legal
persons domiciled outside Honduras
The operation of insurance institutions is
subject to approval by the Central Bank, in
accordance with general and local
economic conditions and requirements
Only companies with shares and mutual
companies may engage in such activities
-
4)
Unbound
I
HONDURAS (continued)
Modes of supply:
1)
Cross-border supply
2)
3)
Consumption abroad
Limitations on market access
Sector or subsector
Reinsurance
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Entry of foreign companies requires that at
least 60 per cent of registered capital
belong to Honduran nationals
3)
None
4)
Presence of natural persons
Additional commitments
Insurance institutions may not buy foreign
securities or grant loans to natural or legal
persons domiciled outside Honduras
I
The operation of insurance institutions is
subject to approval by the Central Bank, in
accordance with general and local
economic conditions and requirements
.....
--J
1.0
Only companies with shares and mutual
companies may engage in such activities
Services auxiliary to
insurance
(CPC .g 1402-81409)
(including actuarial
services and other
auxiliary services)
-~
4)
Unbound
4)
Unbound
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound
4)
Unbound
I
-
GATS/SC/38
Page 1
GATS/SC/38
Page 8
HONDURAS (continued)
Modes of supply:
1)
Cross-border supply
Sedor or subsector
B.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
Presence of natural persons
Additional commitments
Banking services
Deposit -taking
(CPC 81116 and 81119)
(Only sight deposits.
savings deposits and time
deposits in local
currency)
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of foreign banks and
their branches is subject to approval by the
Central Bank of Honduras in accordance
with the economic conditions and needs of
Honduras
3)
None
4)
Unbound, except as indicated in the
horizontal section
I
Every banking institution must be
established as a company limited by shares
and its sole purpose must be banking
activity
~
.J
:l
Managers of branches of foreign banks
must be domiciled in Honduras. with
sufficient powers to execute the actions
appropriate to the nature of the branch or
agency
Authorization required to purchase
securities or grant loans to foreigners
4)
I
4)
-
-
Unbound, except as indicated in the
horizontal section
--
---
HONDURAS (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Granting of loans
(CPC 81132)
(Only loans in local
currency) (excluding
mortgages)
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of foreign banks and
their branches is subject to approval by the
Central Bank of Honduras in accordance
with the economic conditions and needs of
Honduras
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
Every banking institution must be
established as a company limited by shares
and its sole purpose must be banking
activity
.....
.....
00
Managers of branches of foreign banks
must be domiciled in Honduras, with
sufficient powers to execute the actions
appropriate to the nature of the branch or
agency
Authorization required to purchase
securities or grant loans to foreigners
4)
Unbound, except as indicated in the
horizontal section
I
I
GATS/SC/38
Page 9
HONG KONG
Modes of supply:
1)
Sector or subsector
Cross-border supply
2)
3)
Consumption abroad
Commercial presence
4)
Limitations on market access
Limitations on national treatment
Life, accident and health
insurance services
I)
Unbound
1)
Unbound
Non-life insurance
services
2)
None other than that statutory insurances
which include third party liability in respect
of vehicles and vessels and employer's
liability insurance in respect of employees
must be purchased from an insurer
authorized in Hong Kong
2)
Unbound
3)
None other than that under the Insurance
Companies Ordinance, only a company or
an associatioo of underwriters is permitted
to carry 00 insurance business. 10 the case
of the former, commercial presence must
talee the form of a subsidiary, branch or
representative office, although insurance
business may not be carried out through a
representative office.
3)
None other than that an insurer authorized
in Hoog Kong must appoint a locally-based
chief executive
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
All Insurance and
Insurance-Related
Services
~
00
w
Reinsurance and
retrocession
-~
~
GATSISC/39
Page 15
GATSISC/39
Page 16
HONG KONG (continued)
Modes of supply:
Sector or subsector
Services auxiliary to
insurance (including
broking and agency
services)
J)
Cross-border supply
3
Commercial presence
Limitations on national treatment
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment]
4)
Unbound
1)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None unless the supply of any such
services can be regarded as carrying on or
holding oneself out as carrying on any
class of insurance business in or from
Hong Kong in which case the limitations as
set out under -Life, accident and health
insurance services, non-life insurance
services, and reinsurance and retrocession(above) shall apply
3)
None
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment]
4)
Unbound
1'0
-
3)
Consumption abroad
Limitations on market access
:;0
I
2)
4)
Presence of natural persons
Additional commitments
I
I
I
----
-
-
--
Commitments on presence of natural persons are confined to businesses regulated under Hoog Kong banking, securities, insurance and related legislation.
HONG KONG (continued)
Modes of supply:
1)
Sector or subsector
Cross-border supply
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
Banking and Other
Financial Services
(excluding insurance)
Acceptance of deposits
and other repayable
funds from the public
1)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None other than that commercial presence
must take the form of a subsidiary. branch
or representative office, subject to the
following:
3)
None other than that institutions authorized
under the Banking Ordinance must appoint
a chief executive and not less than one
alternative chief executive, each of whom
is subject to a residence requirement in
Hong Kong
.....
co
V1
Under the existing authorization criteria,
applications for a new full banking licence
from banks incorporated outside Hong
Kong may be granted for branches only.
Such banks may maintain offices to which
customers have access for the purpose of
any business in only one building ("Office"
includes automatic teller machines or
similar tenninal devices).
I
I
GATSISC/39
Page 17
GATSISC/39
HONG KONG (continued)
Modes of supply:
Sector or subsedor
1)
Page 18
Cross-border supply
2)
Consumption abroad
Limitations on market accr5S
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Limited companies incorporated in Hong
Kong which have been institutions
authorized under the Banking Ordinance
for at least ten years and are predominantly
beneficially owned by Hong Kong interests
or are otherwise closely associated and
identified with Hong Kong may also apply
for a new full banking licence
,
Banks incorporated overseas may apply for
a licence to operate a restricted licence
bank or a deposit-taking company. Such
restricted licence banks may maintain
offices to which customers have access for
the purpose of any business in only one
building rOffice- includes automatic teller
machines or similar terminal devices).
.....
00
0\
Banks incorporated overseas may also set
up representative offices in Hong Kong,
but such offices are prohibited from taking
deposits or from undertaking banking
business generally
4)
3
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment)
4)
Unbound
Commitments on presence of natural persons are confined to businesses regulated under Hong Kong banking, securilies. insurance and related legislation.
HONG KONG (continued)
Modes of supply:
1)
Sector or subsector
Lending of all types,
including consumer
credit, mortgage credit,
factoring and fmancing
of commercial
transaction
All payment and money
transmission services
......
00
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Presence of natural persons
4)
Additional commitments
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None
3)
None
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment)
4)
Unbound
1)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None
3)
None
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment)
4)
Unbound
i
I
-..J
-
3
-
I
-
Commitments on presence of natural persons are confmed to businesses regulated under Hong Kong banking, securities, insurance and related legislation.
GATS/SC/39
Page 19
GATS/SC/39
HONG KONG (continued)
Modes of supply:
I)
Sector or subsedor
Trading for own account
or for account of
customers. whether on
an exchange. in an
over-the-counter market
or otherwise the
following:
-
:»
money market
instruments
(cheques, bills.
certificate of
deposits. etc)
Page 20
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
I)
Unbound
l)
Unbound
2)
None
2)
Unbound
3)
None other than the following:
3)
None other than that for dealing in
securities or commodities futures. there is a
residence requirement in Hong Kong in
respect of a sole proprietor, or. in the case
of a partnership or company, in respect of
at least one partner or director, who is
registered as a dealer
Ooly corporations incorporated in Hong
Kong. or natural persons born in Hong
Kong or resident in Hong Kong for five of
the preceding seven years, or partnerships
composed of such persons. may become
members of the Stock Exchange of Hong
Kong Limited·
Additional commitments
,11)
-
foreign exchange
-
derivative products
including futures
and options
-
4
Ooly corporations incorporated in Hong
Kong may become members of the Hong
Kong Futures Exchange
----
The residence requirement for memberships can be waived for persons of good reputation with substantial experience of dealing in securities.
I
I
HONG KONG (continued)
1)
Modes of supply:
Sector or subsector
exchange rate and
interest rate
instruments,
including products
such as swaps,
forward rate
agreements, etc.
Cross-border supply
2)
3)
Consumption abroad
Commercial presence
4)
Limitations on market access
Limitations on national treatment
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment]
4)
Unbound
1)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None
3)
None other than that if registration as a
dealer is required, as it is in the case of
public placements, the limitations as for
dealers (above) shall apply
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment]
4)
Unbound
Presence of natural persons
Additional commitments
transferable
securities
Panicipation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
~
00
ID
---
3
---
-
Commitments on presence of natural persons are confined to businesses regulated under Hong Kong banking, securities, insurance and related legislation.
GATS/SC/39
Page 21
GATS/SC/39
Page 22
HONG KONG (continued)
Modes of supply:
1)
Sector or subsector
Asset management, such
as cash or ponfolio
management, all forms
of collective inveslment
management, pension
fund management,
custodial depository and
trust services
Advisory and other
auxiliary fmancial
services on all the
activities listed in
sub-paragraph .5(a)(v) to
(xv) of the Annex on
Financial Services,
including credit reference
and analysis, investment
and ponfolio research
and advice, advice on
acquisitions and on
corpora!e restructuring
and strategy
.....
\D
C)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
Unbound
3)
None
3)
None
4)
Presence of natural persons
Additional commltmmts
I
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment'
4)
I)
Unbound
I)
Unbound
2)
None
2)
Unbound
4)
Unbound
I
I
3)
None
3)
NODe
I
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment)
4)
Unbound
--
3
Commitments on presence of natural persons are confmed to businesses ~gulated under Hong Kong banking, securities, insurance and related legislatioD.
HONG KONG (continued)
Modes of supply:
1)
Sector or subsector
Provision and transfer of
fmancial information,
and fmancial data
processing and related
software by providers of
other financial services
-
-
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
I)
None l
1)
Unbound
2)
None
2)
Unbound
3)
None
3)
None
4)
Unbound except for intra-corporate transfer
of general managers, senior managers and
specialists as set out in the Attachment)
4)
Unbound
---
4)
Presence of natural persons
Additional commitments
--
~
1.0
~
I
3
Commitment excludes cross-border supply of international value-added or basic telecommunications services.
Commitments on presence of natural persons are confmed to businesses regulated under Hong Kong banking, securities, insurance and related legislation.
GATS/SC/39
Page 23
HUNGARY
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
A.
FINANCIAL
SERVICES
All services listed under
A and B below:
Insurance, Reinsurance,
Insurance brokers
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
3)
Insurance. banking and securities activities
should be performed by legally separate
suppliers of fmancial services
1)
Unbound for insurance and insurance
brokers
1)
None
2)
Unbound
2)
None
3)
Establishment of wholly or panly foreign
owned insurance companies is subject to
Government approval.
3)
None
4)
Unbound except as indicated in Pan I
0.0
W
4)
Presence of natural per:sons
Additional commitments
With the exception of representative
offices, commercial presence must take the
form of a joint-stock company. insurance
co-operative or insurance association.
4)
Unbound except as indicated in Pan I
~--
GATS/SC/40
Page 21
GATSISC/40
HUNGARY (continued)
Modes of supply:
Page 22
I)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsector
B.
Limitations on market access
Additional commitments
Limitations OD DatioDal treatment
Banking and Other
Financial Services
All services listed below
3),a) i) The establishment of a wholly or
partially foreign owned financial institution
within the meaning of Act No. LXLX of
1991, or,
ii) the acquisition by foreigners of shares
in a financial institulioD.
is subject to the preliminary approval by
the Government, except when the total
foreign participation does not exceed
10 per cent in the registered capital .
.....
1.0
.t>.
b)
l
I
With the exception of representative
offices, financial institutions should be
established in the form of joint-stock
company. or, in the case of savings banks,
joint-stock company, savings co-operative
or credit co-operative.
-
-
---
-
-
--
--
HUNGARY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
a)
b)
Acceptance of deposits
and other repayable
funds
Lending of all types
~
Ul
c)
Financial leasing
- -
2)
3)
Consumption abroad
Limitations on market access
4)
Commercial presence
Limitations on national treatment
I)
Unbound
I)
None
2)
Unbound
2)
None
3)
Services may only be provided by fmancial
institutions subject to the conditions
indicated in the horizontal entry applicable
for banking and other fmancial services
3)
None
4)
Unbound except as indicated in Part I
4)
Unbound except as indicted in Part I
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
Services may only be provided by fmandal
institutions subject to the conditions
indicated in the horizontal entry applicable
for banking and other fmancial services
3)
None
4)
Unbound except as indicated in Part 1
4)
Unbound except as indicated in Part I
I)
Leasing operations are subject to
authorization from the National Bank
I)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated in Part I
4)
Unbound except as indicated in Part I
Presence of natural persons
Additional commitments
I
I
--
GATS/SC/40
Page 23
GATS/SC/40
Page 24
HUNGARY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
d)
e)
All payment and money
transmission services
Guarantees and
commitments
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
Services may only be provided by financial
institutions subject to the conditions
indicated in the horizontal entry applicable
for banking and other fmancial services
3)
None
4)
Unbound except as indicated in Part I
4)
Unbound except as indicated in Pan I
1)
Purcbasing of such services is subject to
licensing
1)
None
2)
Purchasing of such services is subject to
licensing
2)
None
3)
Services may only be provided by fmancial
institutions subject to the conditions
indicated in the horizontal entry applicable
for banking and other fmancial services
3)
None
4)
Unbound except as indicated in Pan I
4)
Unbound except as indicated in Pan I
\.0
m
-
Presence of natural persons
Additional commitments
HUNGARY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
f)
Trading for own account
or for account of
customers with the
following instruments:
i)
~
3)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
If traded for own account:
Services may only be provided by fmancial
institutions subject to the conditions
indicated in the horizontal entry applicable
for banking and other financial services. If
traded for account of customen: None
3)
None
4)
Unbound except as indicated
4)
Unbound except as indicated in Part I
ii) foreign exchange
\D
Consumption abroad
Limitations on market access
money market
instruments
(excluding money
exchange
transactions
2)
~
Part I
4)
Presence of natural persons
Additional commitments
iii) futures and options
iv) Transferable
securities (excluding
securities listed in
para. (1) of § 2 of
Act VI .• 1990 on
Securities and Stock
Exchange)
v) exchange rate and
interest rate
instruments
-------
GATS/SC/40
Page 25
GATSISC/40
HUNGARY (continued)
Modes of supply:
Page 26
1)
Cross-border supply
Sector or subsector
g)
j)
Consumption abroad
3)
Limitations on market access
Securities
Settlement and clearing
services for financial
assets
2)
Commercial presence
4)
Unbound
1)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound except as indicated in Part I
4)
Unbound except as indicated in Part I
I)
Unbound
1)
None
2)
Unbound
2)
None
3)
Operation of electronic transfer systems
perfonniog clearing: None
Otherwise: Services may only be provided
by fmanciai institutions subject to the
conditions indicated in the horizontal entry
applicable for banking and other fmancial
services
3)
None
4)
Unbound except as indicated in Pan I
4}
Unbound except as indicated in Part I
I)
None
1)
None
2}
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated in Pan I
4)
Unbound except as indicated in Pan I
co
Additional commitments
Limitations on national treatment
I)
lD
Presence of natural persons
I
k)
Advisory and other
auxiliary fmanciai
services
I
I
-
-
IfllNGARY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
l)
Provision and transfer of
financial data processing
and related software by
providers of other
financial services
------
--
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated in Part I
4)
Unbound except as indicated in Part I
----
------_._--
--------
--
- -
4)
Presence of natural persons
Additional commitments
-
GATSISC/40
Page 27
ICELAND
Modes of supply:
.
1)
Cross-border supply
Sector or subsector
7.
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Iceland is undertaking commitments in financial services in accordance with the Understanding on Commitments in Financial Services.
A.
All insurance and
insurance related services
(CPC 812)
Remark:
Law on Insurance activity is under revision and
therefore the following limit on nat. treatment
may be abolished or revised
1)
The supply of direct insurance is allowed
only through an insurance service supplier
authorized in Iceland
1)
Residence requirements of agencies and
branches of foreign insurance companies is
a condition for broking and agency services
Cross-Border
2)
None
2)
None
3)
Insurance undertakings not incorporated in
Iceland may only establish a commercial
presence through a branch and must have a
resident agent
3)
Icelandic registered companies are subject
to requirements of Icelandic citizenship of
the Founders. Foreign insurance
companies are entitled to offer insurance
services through branch if it has held an
authorization for practising insurance
activities in its home country for a period
of 5 years previous to authorization.
Insurance undertakings not incorporated in
Iceland are required to deposit assets for
agencies established in Iceland.
N
a
I
I
!
4)
Unbound except as indicated in the
horizontal section
4)
None
I
GATS/SC/41
Page 29
GATS/SC/41
Page 28
ICELAND (continued)
Modes of supply:
B.
1)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Sector or subsector
Limitations on market access
Limitations on national treatment
Banking and other
financial services
(excluding insurance)
1),2) Transborder payments must be channelled
through an authorized established financial
institution and also Iransactions in securities
l),2) Registration of accounts overseas with the
Central Bank of Iceland is required
3)
3)
With the authorization of the Ministry of
Commerce, foreign banks or other foreign
credit institutions may establish a branch or
a representative office
Commercial banks, securities companies
and leasing companies can only be
established as companies with a limited
liability (joint-stock companies)
IV
o
IV
Foreign ownership of equity shares of a
commercial bank must not exceed 25 %
Auditing must be made by a resident
certified accountant or a resident CPA
company
Authorization and establishment
requirement to operate as an intermediary
for transactions in transferable securities
and shares
Commercial banks and savings banks have
exclusive license to accept deposits and
other repayable funds from the public
-
~-
Presence of natural persons
Additional commitments
A founder of a commercial bank or a
savings bank shall be a natural or legal
person resident in Iceland. The Ministry of
Commerce can grant exemptions.
Members of the board of commercial banks
and savings banks shall be resident in
Iceland unless an exemption has been
granted by the Ministry of Commerce.
Managing directors shall be resident in
Iceland.
Residency is a condition for a license as a
securities broker. Members of the board of
a securities company, a management
company and VCITS shall be resident in
Iceland unless waived by the Ministry of
Commerce. The executive director of these
companies shall be resident.
I
I
A majority of the board of a leasing
company shall be resident in Iceland
I
Concession is needed if personal data is 10
be processed outside Icelandic jurisdiction
ICELAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Commercial presence
Limitations on natlonsl treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Public offer of transferable securities must
be handled by a cenified securities
company
The manager of a leasing company shall be
a resident and citizen of Iceland
4)
Unbound except as indicated in the
horizontal section. Residency requirement
for licensing as a broker .
4)
None
.'-J
.:>
u.J
GATS/SC/41
Page 29
GATSISC/42
Page 10
INDIA
Modes of supply:
1)
Cross-border supply
FINANCIAL SERVICES
A.
InsuranCe and InsuranceRelated Services
Non-Life
(Insurance of freight)
Ex. 5 a) i) B)
3)
Consumption abroad
Limitations on market access
Sector or subsector
7.
2)
Commercial presence
I)
2)
Unbound
2)
Unbound
3)
Unbound
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
rv
a
iJ1
Presence of natural persons
Additional commitments
Limitations on national treatment
Unbound except in the case of insurance of
freight, where there is no requirement that
goods in transit to and from India should
be insured with Indian insurance companies
only. Insurance is taken by the buyer or
seller in accordance with the terms of the
contract. This position will be maintained.
Once under a contract the Indian importer
or exporter agrees to assume the
responsibility for insurance such as in the
case of f.o.b. contracts for imports into
India or c.i.f. contracts for exports from
India, insurance has to be taken only with
an Indian insurance company.
I)
4)
Unbound
I
-
INDIA (continued)
Modes of supply:
I)
Cross-border supply
S«tor or subs«tor
Reinsurance and
Retrocession
5 a) ii)
ru
o
en
Insurance intennediation.
limited to reinsurance
5 a) iii)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Reinsurance can be taken with foreign
reinsurers to the extent of the residual
uncovered risk after obligatory or statutory
placements domestically with Indian
insurance companies. At present this
amounts to 10 per cent of the premium of
the market overall being reinsured abroad.
This will be maintained.
I)
Unbound
2)
Reinsurance can be taken with foreign
reinsurers to the extent mentioned above
2)
Unbound
3)
Unbound
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
I)
Reinsurance of domestic risks can be
placed with foreign reinsurers through
overseas brokers, to the extent mentioned
under reinsurance and retrocession
I)
Unbound
2)
Same as above
2)
Unbound
3)
i)
3)
Unbound
Overseas brokers are allowed to have
resident representatives and
representative offices who can procure
reinsurance business from Indian
insurance companies to the extent
mentioned above. They can also place
reinsurance business from abroad with
Indian insurance companies.
4)
Presence of natural persons
Additional commitments
-
GATSISC/42
Page II
GATSISC/42
Page 12
INDIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
ii)
Commercial presence
4)
Limitations on national treatment
Except for the business indicated
above, the resident representatives and
representative offices cannot undertake
any other activity in India.
iii) All the expenses of the resident
representatives and representative
offices have to be met by remittances
from abroad and no income can be
received in India from Indian
residents.
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
i)
3)
i)
N
o
-....I
B.
Banking
l.i) Acceptance of deposits
and other repayable
funds from the public
5 a) v)
ii)
Lending of all types,
including consumer
credit, mortgage, credit
and financing of
commercial transactions
but excluding factoring
5 a) vi)
ii)
Only through branch operations of a
foreign bank licensed and supervised
as a bank in its home country.
Not more than five licences a year
both for new entrants and existing
banks.
Foreign banks are required to
constitute Local Advisory Boards
consisting inter-alia of professionals
and persons having expertise in areas
such as small scale industry and
exports. The appointment of
Chairman and members of the Board
requires Reserve Bank of India
approval;
Presence of natural persons
Additional commitments
INDIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
iii)
iv)
Guarantees and
commitments
5 a) ix)-
iv) Licences for new foreign banks may
be denied when the maximum share of
assets both on and off balance sheet of
foreign banks to total assets both on
and off balance sheet of the banking
system exceeds 15 per cent.
a)
money market
instruments
foreign exchange
transferable securities
5 a) x)
3)
ii)
companies by branches of foreign
banks licensed to do banking business
in India individually not to exceed
10 per cent of owned funds or
30 per cent of the invested company's
capital.
4)
Unbound except as indicated in the
horizontal section
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
iii) Investments in other rmancial services
Trading for own account
of:
vi)
Consumption abroad
All payment and money
transmission services
including credit. charges
and debit cards,
travellers cheques and
bankers drafts
5 a) viii)
v)
b)
c)
2)
Additional commitments
Foreign banks are required to publish
consolidated fmandal statements of the
Indian branches as at 31 st March
every year.
I
4)
Unbound except as indicated in the
horizontal section
Portfolio management.
custodial. depository and
trust serVices
5 a) xiii)
vii) Clearing services for
other banks for cheques.
drafts and other
instruments
5 a) xiv)
I
-
GATSISCI42
Page .3
GATSISC/42
INDIA (continued)
Modes of supply:
Page 14
1)
Cross-border supply
ii)
v
.:>
o
Financial consultancy
services i.e. financial
advisory services
provided by fmancial
advisors, etc. to
customers on fmancial
matters, investment "and
ponfolio research and
advice, advice on
acquisitions and on
corporate restructuring
and strategy
5 a) vii)
Consumption abroad
3)
Limitations on market access
Sector or subsector
2.i) Panicipation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
5 a) xi)
2)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
i)
Foreign bank branches licensed to do
banking business in India.
3)
None
ii)
Through incorporation with foreign
equity not exceeding 51 per cent by
financial services companies
(including banks).
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
INDIA (continued)
Modes of supply:
1)
Cross-border supply
Sedor or subsector
3.
4.
2)
Consumption abroad
3)
Limitations on market access
Factoring
Ex. 5 a) vi)
Financial Leasing
5 a) vii)
....
o
I'J
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Through incorporation with foreign equity
not exceeding 51 per cent by financial
services companies (including banks)
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound except as indicated in the
horizontal section
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
i)
Through incorporation with foreign
equity not exceeding 51 per cent by
financial services companies including
banks.
3)
None
ii)
Funding has to be entirely out of
equity.
4)
Unbound except as indicated in the
horizontal section
4)
--
Commercial presence
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
--
GATSISC/42
Page IS
GATSISC/42
Page 16
INDIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
5.
Venture Capital
Ex. 5 a) vi)
-"
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
i)
Through incorporation with foreign
equity not exceeding 51 per cent, by
fmancial services companies including
banks.
3)
None
ii)
Funding has to be entirely out of
equity.
4)
Unbound except as indicated in the
horizontal section
4)
I'V
2)
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
GATSISC/43
Page 26
INDONESIA
Modes of supply:
1) Cross-border sllp~
2) Consumption abroad
3) Commercial presence
- Limitations on market access
Sector or subsector
4) Presence of natural persons
Limitations on national treatment
FINANCIAL SERVICES
Non-Life Insurance
Services
(CPC 8129)
1)
Unbound
I)
Unbound
2)
Unbound except if:
2)
Unbound
a)
b)
IV
W
c)
There is no insurance company in
Indonesia, either individually or
group, which could handle the
insurance risks of the object in
question.
There is no insurance company in
Indonesia which want to carry out an
insurance coverage of the object in
question.
The owners of insurance objects in
question are not Indonesian citizens or
Indonesian legal entities.
3)
As specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Unbound except for director and technical
advisor/expen
4)
As specified in the Horizontal Measures
Additional
commitments
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
Reinsurance Services
N
->
~
Life Insurance Services
(CPC 8121)
n
2) Consumption abroad
Commercial presence
4) Presence of natural persons
Limitations on national treatment
Limitations on market access
11)
Unbound
Unbound except for service supplier which
met the capital requirement and has a good
reputation
2)
Unbound
3)
As specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Unbound except for director and technical
advisor/expert
4)
As specified in the Horizontal Measures
1)
Unbound
1)
Unbound
2)
Unbound except if:
2)
Unbound
1)
Unbound
2)
a)
b)
c)
Additional
commitments
There is no insurance company in
Indonesia. either individually or
group. which could handle the
insurance risks of the object in
question.
There is no insurance company in
Indonesia which want to carry out an
insurance coverage of the object in
question.
The owners of insurance objects in
question are not Indonesian citizens or
lndonesian legal entities.
GATSISC/43
Page 27
GATS/SC/43
INDONESIA (continued)
Modes of supply:
Page 28
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
Limitations on market access
Sector or subsector
4)
Presence of natural persons
Limitations on national treatment
Additional
commitments
Insurance Brokerage
Services
(CPC 8140)
3)
As specified in the Horizontal Measures
4)
Unbound except for director and technical
advisor/expert
I 4)
As specified in the Horizontal Measures
11)
Unbound
I
1)
Unbound
I
2)
None
I 2)
Unbound
3)
At least one of the directors in the joint
venture should be an Indonesian
I 3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Unbound except for director and technical
advisor/expert
I 4)
As specified in the Horizontal Measures
11)
Unbound
I
1)
None
I
2)
None
2)
Unbound
3)
As specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Unbound except for director and technical
advisor/expert
4)
As specified in the Horizontal Measures
tV
3)
~
\.J1
Reinsurance Brokerage
Services
(CPC ~140)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
INDONESIA (continued)
Modes of supply;
I) Cross-border supply
Sector or subsector
Financial Lease Services
(CPC 81120)
2) Consumption abroad
3) Commercial presence
Limitations on market access
4) Presence of natural persons
Limitations on national treatment
t)
Unbound
1)
None
2)
None
2)
Unbound
3)
As specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
Additional
commitments
As specified in the Horizontal Measures
Unbound
Unbound
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Credit Card Business
(Issuer and Agent of
Credit Card)
(CPC 8113)
As specified in the Horizontal Measures
I 4)
As specified in the Horizontal Measures
I 1)
None
1)
I 2)
None
I 2)
Unbound
As specified in the Horizontal Measures
I 3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020
3)
None
GATS/SC/43
Page 29
GATS/SC/43
Page 30
INDONESIA (continued)
Modes of supply:
1) Cross-border s~y
Sector or subsector
....-..J
Securities Business
Trading for own
account or for
account of
customers, on an
exchange or over the
counter market
Listed shares
Bonds
3) Commercial presence
Limitations on market access
Consumers Finance
Services
(CPC 8113)
N
2) ConsumJ!1ion abroad
I
4) Presence of natural persons
Limitations on national treatment
4)
As specified in the Horizontal Measures
4)
As specified in the Horizontal Measures
1)
None
1)
None
2)
None
2)
Unbound
3)
As specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
As specified in the Horizontal Measures
4)
As specified in the Horizontal Measures
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Through establishment of a securities
broker/dealer, requirements as specified in
the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
As specified in the Horizontal Measures
4)
As specified in the Horizontal Measures
I 4)
Additional
commitments
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsedor
Participation in
issues of securities,
including
underwriting and
placement as agent
(whether publicly or
privately), and
provision of services
related to such issues
2) Consumption abroad
3) Commercial presence
Limitations on market access
4) Presence of natural persons
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Through establishment of a securities
broker/dealer, requirements as specified in
the HorizOntal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
As specified in the Horizontal Measures
4)
As specified in the Horizontal Measures
1)
Unbound
I)
Unbound
2)
None
2)
None
3)
Through establishment of an investment
management company requirements as
specified in the Horizontal Measures
3)
Higher paid-up capital is required of
foreign service suppliers than of domestic
service suppliers. This measure will be
eliminated in the year 2020.
4)
Unbound except for directors
4)
As specified in the Horizontal Measures
Additional
commitments
N
~
00
Portofolio
management, all
fonus of collective
investment
managemenr
-
GATSISC/43
Page 3J
GATSISC/43
Page 32
INDONESIA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsedor
2) Consumption abroad
Limitations on market access
3) Commercial presence
4) Presence of natural persons
Limitations on national treatment
Additional
commitments
Banking Subsector: General Conditions on Banking Subsector
1.
The terms of the schedule in the Banking Subsector are in accordance with the Annex on Financial Services unless otherwise specified.
2.
The general conditions and qualifications are an integral part of the offer in the Banking Subsector.
3.
Bound for existing branches of foreign banks at 100% foreign ownership. Foreign bank may only open new sub-branch offices in the cities of Jakarta,
Surabaya, Semarang, Bandung, Medan, Ujung Pandang, Denpasar and Batam Island with 1 (one) office for each location.
4.
Acquisition of local existing banks is allowed through the purchase of up to 49% of the shares of locally incorporated bank listed in the stock exchange.
5.
In conducting transactions specified in this offer, with the exception of the existing branches of foreign banks, foreign services provider must be in the form
of joint venture bank locally incorporated in Indonesia with the following requirements
a) As specified in the Horiwntal Measures
b) Unbound for new license
6.
The government of Indonesia reserves the rights to establish regulations concerning the paid-up capital requirements for joint venture banks.
7.
The schedule is limited to transactions specified in the specific commitments.
IV
......
I.D
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
3) Commercial presence
2) Consumption abroad
4) Presence of natural persons
Limitations on national treatment
Limitations on market access
Additional
commitments
Commercial Banking
Business
Acceptance of
deposits and other
repayable funds
from the public
1)
Deposits received by banks operated in
Indonesia (including overseas branch
offices of the Indonesian banks) is subject
to government regulation on Foreign
Commercial Borrowing
1)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
I 4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
For the joint venture bank only for the
directors can be assumed by the
expatriates in proportion to the
ownership sharing
IV
IV
o
Lending of all types,
including consumer
credit. mortgage.
credit. factoring, and
fmancing of
commercial
transaction
I
1)
None
I)
None
I 2)
None
2)
None
I
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Bank.in~ Subsector
3)
GATSISC/43
Page 33
GATS/SC/43
Page 34
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
4)
a)
b)
IV
IV
3) Commercial presence
Limitations on market access
Sector or subsector
AU payment and
money transmission
services, including
credit, charge and
debit cards,
travellers cheques
and bankers drafts
2) Consumption abroad
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proportion to the
ownership sharing
4) Presence of natural persons
Limitations on national treatment
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
I)
None
1)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound only iii accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proportion to the
ownership sharing
Additional
commitments
i
I
I
i
I
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
Guarantees and
Commitments
IV
IV
IV
2) Consumption abroad
3) Commercial presence
Limitations on market access
4) Presence of natural persons
Limitations on national treatment
I)
None
1)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subseclor
b)
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proportion to the
ownership sharing
Additional
commitments
--- -
GATSISCI43
Page 35
GATSISC/43
Page 36
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
IV
IV
W
Money market
instruments
(including
cheques, bills,
cenificates of
deposits)
3) Commercial presence
Limitations on market access
Sector or subsector
Trading for own
account or for
account of
customers, whether
on an exchange. in
an over-the-counter
market or otherwise,
the following:
2) Consumption abroad
4) Presence of natural persons
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound oruy in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound oruy in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
For foreign bank branch, oruy
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proponion to the
ownership sharing
Additional
commitments
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
Foreign
Exchange
rv
rv
-
3) Commercial presence
Limitations on market access
4) Presence of natural persons
Limitations on national tnabnent
I)
None
I)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
~
2) Consumption abroad
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proponion to the
ownership sharing
Additional
commibnents
-
--~
-"---
GATS/SC/43
Page 37
GATSISCI43
Page 38
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
Limitations on market access
Sector or subsector
Excbange rate
and interest rate
instruments,
including
products such
as swaps,
forward rate
agreements
N
N
V1
4) Presence of natural persons
Limitations on national treatment
1)
None
1)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures
and General Conditions on Banking
Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
-
3) Commercial presence
2) Consumption abroad
For foreign bank branch, only
executive position can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint bank only for the director
can be assumed by the expatriates in
proportion to the ownership sharing
Additional
commitments
INDONESIA (continued)
Modes of supply:
I) Cross-border supply
Sector or subsector
2) Consumption abroad
3) Commercial presence
Limitations on market access
Transferable
securities
None
I)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures and
General Conditions on Banking Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
-
Limitations on national treatment
I)
N
N
..J)
4) Presence of natural persons
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
For the joint venture bank only for the
directors can be assumed by the
expatriates in proportion to the
ownership sbaring
-----
Additional
commitments
-----_.-
GATSISC/43
Page 39
GATS/SC/43
Page 40
INDONESIA (continued)
Modes of supply:
1) Cross-border supply
3) Commercial presence
Limitations on market access
Sector or subsector
Asset management, such
as cash or porto folio
management, all forms
of collective investment
management, pension
fund management,
custodial and depository
services
2) Consumption abroad
4) Presence of natural persons
Limitations on national treatment
1)
None
I)
None
2)
None
2)
None
3)
As specified in the Horizontal Measures and
General Conditions on Banking Subsector
3)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
4)
a)
For foreign bank branch, only
executive positions can be assumed by
expatriates with limitation that at least
one of them shall be Indonesian
national
4)
Bound only in accordance with the
Horizontal Measures and General
Conditions on Banking Subsector
b)
For the joint venture bank ooJy for the
directors can be assumed by the
expatriates in proportion to the
ownership sharing
""""
..."j
Additional
commitments
GATSISC/44
Page 10
ISRAEL
Modes of supply:
1)
Cross-border supply
Consumption abroad
3)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
7.
2)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
General Note: Israel applies certain restrictions on the convertibility of its currency. Therefore, certain rules concerning the purchase of foreign currency from
Sheqalim by either Israeli residents or foreign residents may appear in the following tables and notes as restricting foreign suppliers of fmancial services. The main
intention of these restrictions is to protect the Israeli money and capital markets and not as it might seem, to discriminate against foreign suppliers of services as
such.
A.
All Insurance and
Insurance-Related
Services
Non-life insurance
services
1)
2)
3)
4)
IV
IV
I.D
None (a)
Unbound·
None (b)
Unbound except as indicated in the
horizontal section.
1)
2)
3)
4)
None (a)
Unbound·
None (c)
Unbound except as indicated in the
horizontal section. (c)
Notes:
(a)
(b)
(c)
Including Reinsurance.
The Ministry of Finance is responsible for the issuance of insurance licences. A foreign insurer must satisfy the Ministry that it is financially sound and must
commit itself to keep certain prescribed sums of money in the country before it is accorded a licence.
Similar to notes (d) and (e) under banking sector below.
-
ISRAEL (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsedor
Life insurance
2)
Consumption abroad
3)
Limitations on market access
I)
2)
3)
4)
Unbound (a)
Unbound (b)
None
Unbound except as indicated in the
horizontal section. (c)
Commercial presence
Limitations on national treatment
1)
2)
3)
4)
4)
Presence of natural persons
Additional commitments
Unbound (a)
Unbound (b)
None
Unbound except as indicated in the
horiwntal section. (c)
Notes:
(a)
(b)
(c)
Certain exchange controls are still operative in Israel. Therefore selling foreign life insurance policies in Israel cannot be permitted. However, buying the
risk part of an insurance scheme is permitted.
Certain exchange controls are still operative in Israel. Therefore Israeli residents are not permitted to purchase life insurance schemes - as distinct from the
risk part - while physically being abroad.
Similar to notes (d) and (e) under banking sector below.
tv
W
o
GATSISCI44
Page II
GATSISC/44
ISRAEL (continued)
Modes of supply:
Page 12
1)
Cross-border supply
Consumption abroad
Limitations on market access
Sector or subsector
B.
2)
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persoos
Additional commitments
Banking and Other
Financial Services
(excl. insurance)
Banking
1)
2)
3)
4)
Unbound (a)
Unbound (b)
None (c)
Unbound except as indicated in the
horizontal section. (d)
1)
2)
3)
4)
Unbound (a)
Unbound (b)
None
Unbound except as indicated in the
horizontal section. (e)
Notes:
IV
W
(a)
(b)
(c)
(d)
(e)
Certain Exchange controls are still operative in Israel. Therefore, various direct banking services from abroad may not be available to Israeli residents.
Certain exchange controls are still operative in Israel. Therefore Israeli residents are not permitted to purchase certain banking services while physically
present abroad.
Israel regards foreign banking presence within its borders favourably. Therefore, there are no restrictions on the establishment of locally incorporated banking
firms, or the acquisition thereof, by foreign residents. However, the prudential requirements laid down by the Supervisor of Banks regarding the ownership
and management of Israeli banks must be adhered to. Distributed profits may be repatriated without restrictioos. There are no restrictions on the opening of
Israeli branches of foreign banks as long as they satisfy the prudential requirements laid down by the Supervisor of Banks. Exchange control regulations set
certain rules for the repatriation of profits from the investment in an Israeli branch of a foreign firm and of the principal thereof. These apply to branches of
banking firms too.
The general rules regarding employment of foreign residents in any industrial branch in Israel apply to employment of foreign residents in banking, too - see
part one. Foreign residents can serve on companies' boards of directors.
There are no set restrictions regarding the nationality of foreign banks employees.
ISRAEL (continued)
Modes of supply:
I)
Sector or subsector
Traded Securities
(Capital Market Services)
Cross-border supply
II)
2)
3)
4)
2)
Consumption abroad
Limitations on market
3)
presen~
Limitations OD DlitioDli1 treatment
IICCess
None (a)
Unbound (b)
None (c)
Unbound except as indicated in the
horizontal section. (d)
Commercial
I)
2)
3)
4)
4)
Presen~
of natural persons
Additional commitments
None (a)
Unbound (b)
None (c)
Unbound ex~pt as indicated in the
horizontal section. (d)
Notes:
(a)
(b)
,'-.,)
J,.)
,v
(c)
(d)
Israeli mutual funds are pennitted to purchase foreign securities trade in the main capital markets. Individual Israeli residents are permitted to do the same
according to a recent legislation (the details for the implementation are currently being worked out). Securities purcbased must be kept in a safe lceeping
deposit with an Israeli bank. There are however no restrictions as to who is the foreign broker or fund manager from whom the securities are purchased.
Israeli firms are allowed to raise funds (loans, bonds and stocks) on foreign capital markets without restrictions (however, the proceeds must be transferred to
Israel).
Certain exchange controls are still operative in Israel. Physical presence abroad does not in itself affect the rights to buy or sell foreign securities that an
Israeli individual resident may have.
Currently there are no rules to prescribe the requirements for a commercial presence of a foreign security broker in Israel. Nonetheless, a security broker
office in Israel operating in foreign securities on behalf of Israeli residents requires an authorization from the Controller of Foreign Exchange.
Similar to notes (d) and (e) under banking sector above.
GATSISCI44
Page 13
JAMAICA
Modes of supply:
1)
Cross-border supply
FINANCIAL SERVICES
A.
All Insurance and
Insurance-Related
Services
a)
Life, accident and health
insurances services
(CPC 8121)
Consumption abroad
Limitations on market access
Sector or subsector
7.
2)
1)
2)
3)
N
W
W
4)
1)
None
2)
None
Under the current government policy there
3)
is a stipulation that entities should be at
least 51.0 per cent Jamaican. This policy
is now being reviewed with the objective of
removing that stipulation and allowing fully
owned foreign establishments. However,
permission is granted for such investments
subject to a review of the investors'
applications by the Ministry of Finance on
a case-by-case basis. The Superintendent
of Insurance must also be satisfied that the
covers being offered by these companies
will be supplemental to the industry in
situations where there is limited capacity in
the market. In addition he must also be
satisfied that adequate funds will be
deposited to cover the domestic liabilities
of these companies.
Unbound except as indicated in the
4)
horizontal section.
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
None
None
None
Unbound except as indicated in the
horizontal section.
GATS/SC/45
Page 9
GATS/SC/45
Page 10
JAMAICA (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsedor
b)
Non-life insurances
services
(CPC 8129)
Limitations on market access
1)
2)
3)
4)
c)
Reinsurance and
retrocession
(CPC 81299)
I)
2)
3)
4)
--.)
A.J
J::>
d)
Services auxiliary to
insurance (including
broking and agency
services)
(CPC 8140)
-
1)
2)
3)
4)
None
None
As indicated under mode (3) for Life,
accident and health insurance above.
Unbound except as indicated in the
horizontal section.
Limitations on national treatment
1)
2)
3)
None
None
None
4)
Unbound except as indicated in the
horizontal section.
None
None
As indicated under mode (3) for Life,
accident and health insurance above.
Unbound except as indicated in the
horizontal section.
1)
2)
3)
None
None
None
4)
Unbound except as indicated in the
horizontal section.
Unbound
Unbound
As indicated under mode (3) for Life,
accident and health insurance above.
Unbound except as indicated in the
horizontal section.
1)
None
None
None
2)
3)
4)
Unbound except as indicated in the
horizontal section.
Additional commitments
GATS/SC/46
JAPAN
Page 52
Modes of supply:
1)
Sector or subsector
7.
Cross-border supply
I
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
In addition to Part III of this Agreement and the Annex on Financial Services, Japan undertakes its specific commitments with respect to Financial Services
under this Agreement in accordance with the Understanding on Commitments in Financial Services (hereinafter referred to as the ·Understanding" attached to this
schedule, which forms an integral part of this schedule). Thus, the obligations under the Understanding are incurred in the sectors of Financial Services
additionally to those covered by the provisions of Part III of this Agreement and the Annex on Financial Services.
IV
W
For prudential reasons within the context of paragraph 2.a) of the Annex on Financial Services, Japan shall not be prevented from taking measures such as
non-discriminatory limitations on juridical forms of a commercial presence. For the same reasons, Japan shall not be prevented from applying non-discriminatory
limitations concerning admission to the market of new ftnancial services which shall be consistent with regulatory framework aimed at achieving such prudential
objectives. In this context, securities firms are allowed to deal in securities derIDed in the relevant Japanese law, and banks are not allowed to deal in those
securities wiless allowed in accordance with the said law.
U1
With respect to specific comniitments in the sectors of Financial Services, services supplied in the territory of a Member other than Japan to the service
consumer in Japan without any active marketing from the service supplier are considered as services supplied under paragraph 2.b) of Article I of this Agreement.
A.
Insurance and InsuranceRelated Services
Speciftc commitments in the market access
column with respect to the supply of a service
as prescribed in paragraph 2.a) and b) of
Article I of this Agreement are unbound
except for obligations under paragraph 3
and 4 of the Understanding respectively which
are incurred in this sector additionally to
those covered by the provisions of Part III of
this Agreement and the Annex on Financial
Services, subject to conditions and
qualifications set out below.
JAPAN (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
Sector or subsector
I)
Commercial presence is in principle
required for insurance contracts on the
following items and any liability arising
therefrom:
a)
goods being transported within
Japan
b)
ships and aircrafts of Japanese
registration
3)
Commercial presence
Limitations on national treatment
1)
4)
Presence of natural persons
Additional commitments
None
Japan intends to take measures necessary
for making substantial liberalization of
the cross-border insurance transactions
for ships of Japanese registration which
are used for international maritime
transport and aircrafts of Japanese
registration, as an integral part of the
Insurance System Reform in 1995.
60% of amounts of reinsurance on the
compulsory automobile third party
liability insurance is subject to the
compulsory coverage by the
Government.
Insurance services are not allowed to be
supplied through an intermediary in
Japan.
--~
GATSISC/46
Page 53
GATS/SC/46
JAPAN (continued)
Page 54
Modes of supply:
1)
Cross-border supply
2)
i'.J
--.I
Consumption abroad
Limitations on market access
Sector or subsector
W
2)
Commercial presence is in principle
required for insurance contracts on the
following items and any liability arising
therefrom:
a)
goods being transponed within
Japan
b)
ships and aircrafts of Japanese
registration
Japan intends to take measures necessary
for making substantial liberalization of
the cross-border insurance transactions
for ships of Japanese registration which
are used for international maritime
transpon and aircrafts of Japanese
registration, as an integral part of the
Insurance System Refonn in 1995.
60% of amounts of reinsurance on the
compulsory automobile third party
liability insurance is subject to the
compulsory coverage by the
Government.
3)
Commercial presence
Limitations on national treatment
2)
4)
Presence of natural persons
Additional commitments
None
I
JAPAN (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on Datlonal treatment
Presence of natural persons
Additional commitments
Insurance services are not allowed to be
supplied through an intermediary in
Japan.
3)
Establishment of commercial presence as
insurance brokers is not allowed.
3)
Japan intends to take measures necessary
for introducing the insurance brokerage
system, as an integral part of the
Insurance System Reform in 1995.
Foreign life insurance companies are
required to retain in yen currency an
amount corresponding to their technical
and claim reserves for yen-denominated
insurance policies in Japan.
I
As indicated in HORIZONTAL
COMMITMENTS
60% of amounts of reinsurance on the
compulsory automobile third party
liability insurance is subject to the
compulsory coverage by the
Government.
/'..J
W
00
Insurance intermediation services are not
allowed to be supplied for insurance
contracts made by an insurance service
supplier who is not licensed in Japan.
4)
Unbound except as indicated in
HORIZONTAL COMMITMENTS
4)
Unbound except as indicated in
HORIZONTAL COMMITMENTS
-
GATS/SC/46
Page 55
JAPAN (continued)
Modes of supply:
GATSISC/46
Page 56
1)
Cross-border supply
IV
W
\0
Banking and Other
Financial Services
(excluding Insurance and
Insurance-Related
Services)
Consumption abroad
Limitations on market access
Sector or subsector
B.
2)
3)
Limitations on national treatment
Specific commitments in the market access
column with respect to the supply of a service
as prescribed in paragraph 2.a) and b) of
Article I of this Agreement are unbound
except for obligations under paragraph 3
and 4 of the Understanding respectively which
are incurred in this sector additionally to
those covered by the provisions of Part III of
this Agreement and the Annex on Financial
Services, subject to conditions and
qualifications set out below.
Commercial presence is required for
discretionary investment management
services.
I)
None
2)
Overseas deposits and trust contracts
denominated in foreign currencies, the
sum of which are over 100 million yen
value, and those denominated in yen are
subject to approval.
2)
None
a)
Trade in:
4)
Presence of natural persons
Additional commitments
I
I)
The following capital transaction
services may be supplied through
authorized foreign exchange banks in
Japan, or otherwise are in principle
subject to approval:
Commercial presence
I
JAPAN (continued)
Modes of supply:
Cross-border supply
I)
Sector or subsector
2)
Consumption abroad
limitations on market access
i)
payment instruments such as
cbeques and bills;
ii)
foreign exchange; and
3)
Commercial presence
Limitations on national treatment
4)
Ptesence of natural persons
Additional commitments
iii) derivative products which
involve outright foreign
excbange transactions such as
currency spot options.
b)
N
l>o
o
SpeciaJ methods of settlement such
as offsetting and any method
whereby a resident either makes
payment for the non-resident
concerned to another resident or
receives payment made by another
resident for the non-resident
concerned
i
I
c)
Swaps
d)
Factoring
Commercial presence is required for
fmancial/securities futures and options
transaction services, except for the
services supplied to the fmancial
institutions in accordance with the
designation by Minister of Finance
under the relevant Japanese laws.
----
GATS/SCl46
Page 57
GATS/SC/46
Page 58
JAPAN (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
Sector or subsector
3)
Commercial presence for investment
trust management services must be a
juridical person established in Japan.
N
--::.
b)
4)
11
Commercial presence
3)
The deposit insurance system does not
cover deposits taken by branches of
foreign banks.
Unbound for standstill obligation under
the Understanding with respect to the
limitations a) and b) referred to in the
market access column
Licences required for establishing
subsidiaries and branch offices are
not granted to foreign service
suppliers.
As indicated in HORIZONTAL
COMMITMENTS
Authorization or qualification for
licensed service suppliers to expand
existing operations or conduct new
activities is not granted to foreign
service suppliers.
Unbound except as indicated in
HORIZONTAL COMMITMENTS
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Unbound for standstill obligation under
the Understanding with respect to the
limitations below:
a)
3)
4)
3)
Japan intends to expand
the scope of Employees'
Pension Fund (hereinafter
referred to as -fund-)
assets which can be
managed by discretionary
investment management
finns, in respect of the
funds qualified by
Minister of Health and
Welfare, by removing
classification between
New Moneyll and assets
other then New Money.
Unbound except as indicated in
HORIZONTAL COMMITMENTS
New Money is asset mainly consisting of accumulation of premiums collected by a fund after the day when the fund is qualified by Minister of Health and
Welfare as appropriate for expanding its means of asset management to include discretionary investment management services.
Page 59
UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES
Panicipants in the Uruguay Round have been enabled to take on specific commitments with respect
to fmancial services under the General Agreement on Trade in Services (hereinafter referred to as the
" Agreement") on the basis of an alternative approach to that covered by the provisions of Pan III of the
Agreement. It was agreed that this approach could be applied subject to the following understanding:
(i)
it does not conflict with the provisions of the Agreement;
(ii)
it does not prejudice the right of any Member to schedule its specific commitments in
accordance with the approach under Part ill of the Agreement;
(iii)
resulting specific commitments shall apply on a most-favoured-nation basis;
(iv)
no presumption has been created as to the degree of liberalization to which a Member is
committing itself under the Agreement.
Interested Members, on the basis of negotiations, and subject to conditions and qualifications where
specified, have inscribed in their schedule specific commitments confonning to the approach set out below.
A.
Standstill
Any conditions, limitations and qualifications to the commitments noted below shall be limited to
existing non-conforming measures.
B.
Market Access
Monopoly Rights
I.
In addition to Article Vill of the Agreement, the following shall apply:
Each Member shall list in its schedule pertaining to financial services existing monopoly rights and
shall endeavour to eliminate them or reduce their scope. Notwithstanding subparagraph l(b) of the
Annex on Financial Services, this paragraph applies to the activities referred to in subparagraph l(b)(iii)
of the Annex.
Financial Services purchased by Public Entities
2.
Notwithstanding Aniele xm of the Agreement, each Member shall ensure that financial service suppliers
of any other Member established in its territory are accorded most-favoured-nation treatment and national
treatment as regards the purchase or acquisition of financial services by public entities of the Member in its
territory .
Page 60
Cross-border Trade
3.
Each Member shall permit non-resident suppliers of financial services to supply, as a principal, through
an intermediary or as an intermediary, and under terms and conditions that accord national treatment, the
following services:
(a)
insurance of risks relating to:
(i)
maritime shipping and commercial aviation and space launching and freight (including
satellites), with such insurance to cover any or all of the following: the goods being
transported, the vehicle transporting the goods and any liability arising therefrom;
and
(ii)
goods in international transit;
(b)
reinsurance and retrocession and the services auxiliary to insurance as referred to in
subparagraph S(a)(iv) of the Annex;
(c)
provision and transfer of financial information and financial data processing as referred to
in subparagraph 5(a)(xv) of the Annex and advisory and other auxiliary services, excluding
intermediation, relating to banking and other financial services as referred to in
subparagraph 5(a)(xvi) of the Annex.
4.
Each Member shall permit its residents to purchase in the territory of any other Member the financial
services indicated in:
(a)
subparagraph 3(a);
(b)
subparagraph 3(b); and
(c)
subparagraphs 5(a)(v) to (xvi) of the Annex.
Commercial Presence
5.
Each Member shall grant fmancial service suppliers of any other Member the right to establish or
expand within its territory, including through the acquisition of existing enterprises, a commercial presence.
6.
A Member may impose terms, conditions and procedures for authorization of the establishment and
expansion of a commercial presence in so far as they do not circumvent the Member's obligation under
paragraph 5 and they are consistent with the other obligations of this Agreement.
New Financial Services
7.
A Member shall permit financial service suppliers of any other Member established in its territory
to offer in its territory any new fmanciaI service.
Transfers of Information and Processing of Information
8.
No Member shaH take measures that prevent transfers of infonnation or the processing of financial
information, including transfers of data by electronic means, or that, subject to importation rules consistent
with international agreements, prevent transfers of equipment, where such transfers of information, processing
of financial information or transfers of equipment are necessary for the conduct of the ordinary business of
a financial service supplier. Nothing in this paragraph restricts the right of a Member to protect personal
data, personal privacy and the confidentiality of individual records and accounts so long as such right is not
used to circumvent the provisions of the Agreement.
Temporary Entry of Personnel
9.
(a)
(b)
Each Member shall pennit temporary entry into its territory of the following personnel of
a fmancial service supplier of any other Member that is establishing or has established a
commercial presence in the territory of the Member:
(i)
senior managerial personnel possessing prQprietary information essential to the
establishment, control and operation of the services of the fmancial service supplier;
and
(ii)
specialists in the operation of the financial service supplier.
Each Member shall pennit. subject to the availability of qualified personnel in its territory,
temporary entry into its territory of the following personnel associated with a commercial
presence of a financial service supplier of any other Member:
(i)
specialists in computer services, telecommunication services and accounts of the
financial service supplier; and
(ii)
actuarial and legal specialists.
Non-discriminatory Measures
10.
Each Member shall endeavour to remove or to limit any significant adverse effects on financial service
suppliers of any other Member of:
(a)
non-discriminatory measures that prevent financial service suppliers from offering in the
Member's territory. in the form detennined by the Member, all the financial services pennined
by the Member;
(b)
non-discriminatory measures that limit the expansion of the activities of financial service
suppliers into the entire territory of the Member;
(c)
measures of a Member, when such a Member applies the same measures to the supply of
both banking and securities services, and a financial service supplier of any other Member
concentrates its activities in the provision of securities services; and
GATSISC/46-
Page 62
(d)
other measures that, although respecting the provisions of the Agreement, affect adversely
the ability of financial service suppliers of any other Member to operate, compete or enter
the Member's market;
provided that any action taken under this paragraph would not unfairly discriminate against financial service
suppliers of the Member taking such action.
11.
With respect to the non-discriminatory measures referred to in subparagraphs lO(a) and (b), a Member
shall endeavour not to limit or restrict the present degree of market opponunities nor the benefits already
enjoyed by financial service suppliers of all other Members as a class in the territory of the Member, provided
that this commitment does not result in unfair discrimination against financial service suppliers of the Member
applying such measures.
c.
National Treatment
1.
Under tenns and conditions that accord national treatment, each Member shall grant to financial service
suppliers of any other Member established in its territory access to payment and clearing systems operated
by public entities, and to official funding and refinancing facilities available in the normal course of ordinary
business. This paragraph is not intended to confer access to the Member's lender of last resort facilities.
2.
When membership or participation in, or access to, any self-regulatory body, securities or futures
exchange or market, clearing agency, or any other organization or association, is required by a Member in
order for financial service suppliers of any other Member to supply fmancial services on an equal basis with
financial service suppliers of the Member, or when the Member provides directly or indirectly such entities,
privileges or advantages in supplying financial services, the Member shall ensure that such entities accord
national treatment to financial service suppliers of any other Member resident in the territory of the Member.
D.
Definitions
For the purposes of this approach:
1.
A non-resident supplier of financial services is a financial service supplier of a Member which supplies
a financial service into the territory of another Member from an establishment located in the territory of another
Member, regardless of whether such a financial service supplier has or has not a commercial presence in
the territory of the Member in which the financial service is supplied.
2.
"Commercial presence" means an enterprise within a Member's territory for the supply of financial
services and includes whoIly- or partly-owned subsidiaries, joint ventures, partnerships, sole proprietorships,
franchising operations. branches, agencies, representative offices or other organizations.
3.
A new financial service is a service of a financial nature, including services related to existing and
new products or the manner in which a product is delivered, that is not supplied by any financial service
supplier in the territory of a particular Member but which is supplied in the territory of another Member.
GATS/SC/47
KENYA
Modes of supply:
Page 4
I)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance and Insurance
Related Services
a) & Insurance (life and nonb) life)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
t)
Unbound
I)
Unbound
2)
Unbound
2)
None
3)
Restricted to suppliers with commercial
presence in Kenya. At least one-third of
the controlling interest whether in terms of
shares, paid-up share capital or voting
rights must be held by citizens of Kenya.
In the case of a body corporate which does
not have shares, at least one-third of the
board must be citizens of Kenya.
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
rv
::.
......
4)
Presence of natural persons
Additional commitments
-
KENYA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
c)
Reinsurance and
Retrocession
(all classes)
2)
Consumption abroad
3)
Limitations on market access
Presence of natural persons
Additional commitments
Limitations on national treatment
l)
Unbound
1)
Unbound
2)
Unbound
2)
None
3)
Restricted to suppliers with commercial
presence in Kenya. At least one-third of
the controlling interest whether in terms of
shares, paid-up share capital or voting
rights must be held by citizens of Kenya.
In the case of a body corporate which does
not have sbares, at least one-third of the
board of directors or managing board must
be citizens of Kenya.
3)
None
Unbound except as indicated in the
horizontal section
4)
IV
4)
Commercial presence
I
~
00
4)
-
--
-----
Unbound
-
--------
-----.~~-
--
GATS/SC/47
Page 5
GATSISC/47
Page 6
KENY A (continued)
Modes of supply:
I)
Cross-border supply
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
Sedor or subsedor
d)
2)
4)
Presence of natural persons
Additional commitments
Services auxiliary to
insurance
- Braking services
1)
Unbound
I)
Unbound
2)
Prior approval of the commissioner of
Insurance is required to place Kenya
business with an insurer not registered
under the Insurance Act and for remittance
of premiums, claims and other sums of
money arising out of insurance.
2)
None
3)
Restricted to suppliers with commercial
presence in Kenya. At least sixty (60) per
cent of their paid-up capital must be owned
by citizens of Kenya.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
None
3)
Unbound
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
N
.J:>.
1.0
- Agency services
,
I
I
!
KENYA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking and other
Financial Services
a)
Acceptance of deposits
and other repayable
funds from the public
b)
IV
lJ1
a
I
Lending of all types,
including consumer
credit, mortgage credit,
factoring and financing
of commercial
transactions
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on natlona' treatment
I)
Unbound
1)
Unbound
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
None
4)
Presence of natural persons
Additional commitments
I
I
I
I
!
I
I
3)
None
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
GATSISCI47
Page 7
GATSISC/48
Page 26
REPUBLIC OF KOREA
Sector or Sub-sector
Limitations on Market Access
LImitations on National Treatment
1)2)3) Korea undertakes a
standstill commitment for
limitations on market access,
where specific commitments are
undertaken, in financial
services listed in this schedule
as of December 31, 1993.
1)2)3) Korea undertakes
a standstill commitment
for limitations on
national treatment, where
specific commitments are
undertaken, in financial
services listed in this
schedule as of December
31, 1993.
Additional COlllDUtmenU
7.FINANCIAL SERVICES 1
ALL FINANCIAL SERVICES
All Financial
Services covered by
This Schedule
Including Insurance
Cross-border supply of financial
services and supply through
consumer movement may not be
settled in Korean currency.
After the establishment of a
commercial presence, financial
institutions may handle only
transactions, denominated and
settled in Korean currency, with
residents. Approval is required
for transactions denominated or
settled in foreign currency or
transactions with non-residents.
1 Sub-sectors in financial services are classified based on the unit of business establishment.
A financial institution
must be established for only one business defined in sub-sectors (1) through (12), and thus cannot engage in business activities
in other sub-sectors.
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitation! on Market Access
Urnltatlons on National Treatment
Additional Commltmenu
The management and operation of
assets of a financial
institution are restricted. A
financial institution may not
own non-business real estate.
Assets owned by branches must be
kept within the territory of
Korea. The capital of the head
office is not recognized as the
basis for determining the extent
of funding and lending
activities of branches.
Interest rates of governmentfinanced loans, loans
rediscounted by the Bank of
Korea, and short-term deposits
of less than 2 years (in case of
installment savings deposits,
less than 3 years) are
regulated.
New financial products are
subject to approval .
• With interest rate and
foreign exchange
liberalization, such products
will be more widely allowed,
subject to relevant laws and
regulations.
GA"
':;/48
GATSISC/48
Page 28
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
1) Unbound
1) Unbound
2) Unbound
2) Unbound
3) <Horizontal Limitations on
Banking Services>
3) None
Additional Commitments
BANKING AND OTHER
FINANCIAL SERVICES
(1) BANKING
BUSINESSES
Following
Banking Services:
i) Deposit and
related services 1
[81115*, 81116*1
ii) Loan and related
services l
[81131*, 81132*]
iii) Payment and money
transmission
services
excluding credit
card services
[81339*]
Only representative offices or
branches of foreign banks are
permitted. Branches may only be
established after one year has
passed following the
establishment of a
representative office.
Issuance of debentures is
prohibited.
Foreign exchange position is
regulated.
• The oversold position limit
of spot foreign exchange will
be adjusted in 1994-1995 to:
3\ of the previous month's
average balance of foreign
exchange bills bought, US$3
million, or 2\ of capital
(whichever is greatest) .
l
Activities in which banks obtain funds from the pubric by receiving-aeposits or issuing transferable instruments or other
securities.
Activities, such as loans and bill discounts, in which banks provide funds to the public in order to receive interest.
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
iv) Settlement and
clearing services l
(81339*]
v) Foreign
exchange services 1
Limitations on Market Access
LImitations on National Treatment
Additional Commitments
A maximum limit of 8\ is applied
to the equity ownership of a
bank by a natural person or a
juridical person.
<Limitations on Deposit and
Related Services>
(81333*]
vi) Services
auxiliary to
banking
• sale of
commercial bills)
[81339*]
• sale of trade
bills'
[81339*]
• mutual installment
deposit
[81132*]
• payment
guarantees and
commitments
Issuance limit of CDs is limited
to the larger of 250\ of capital
or 20 billion Won. The maturity
of CDs is restricted to 91-270
days, and its minimum
denomination is restricted to 30
million Won .
• The issuance limit and
maturity will be expanded in
1994-1995.
Deposits for specific purposes,
such as housing subscription
deposits, may be handled only by
designated institutions.
<Limitations on Loan and Related
Services>
Foreign currency loans are
restricted with respect to
ceiling and uses.
{8113*]
1
Mandatory lending to small- and
medium-sized companies are
required.
Settlement and clearing services on notes, bills and checks by banks according to the Articles of KFTCI.
Purchase, sale, issuance, remittance and collection of foreign exchange.
A commercial bill is defined as a bill accompanying commercial transactions.
A trade bill is defined as a bill issued by exporters based on Lie before shipping export cargo.
GATSISCI48
P.,
GATS/SC/48
Page 30
REPUBLIC OF KOREA (continued)
Stctor or Sub-sector
vii) Trust services l
Limitations on Market Access
Limitations on National Treatment
Additional CommJtments
<Limitations on Foreign Exchange
Services>
[81192*, 81193)
Underlying documentation
requirements apply to foreign
exchange transactions.
<Limitations on Trust Services>
Certain trust business
activities, including real
estate trust, are prohibited.
Approvals both from the Monetary
Board for engaging in businesses
other than the main banking
businesses and from the Ministry
of Finance for handling a trust
business are required, provided
that the head office is licensed
in the home country to handle a
trust business.
Mandatory purchase of Monetary
Stabilization Bond is required
in managing assets of a trust
business .
• The purchase ratio will be
lowered in 1994-1995.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Activities where the trustee, having been delegated the authority, manages assets of the truster for the beneficiary.
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Umitatlons on National Treatment
1) Unbound
1) Unbound
2) Unbound
2) Unbound
3) Only representative offices or
branches of foreign suppliers
which deal exclusively with
credit card services are
permitted.
3) None
Additional Commitments
(2) CREDIT CARD
BUSINESSES
Credit Card
Services
(81133)
Lending for credit card
members through such means as
card loans is subject to
limitations.
Maximum limits are applied to
various rates such as fees and
interest rates.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
GATSISC/48
Pa,
GATS/SC/48
Page 32
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limftations on Market Access
Limitations on National Treatment
1) Unbound
I} Unbound
2) Unbound
2) Unbound
3) Unbound
3) None
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
(3) FINANCIAL LEASING
BUSINESSES
Financial Leasing
Services
(81120)
Top executive personnel
of each establishment must
reside in Korea.
(4) SECURITIES
BUSINESSES
Following Services
Related to
Securities:
i)
Dealing
1) Unbound
1) Unbound
[81199*)
2) Unbound
2) Unbound
3) Only representative offices,
branches, or joint ventures of
foreign securities companies are
permitted. Branches may only be
established after two years have
passed following the
establishment of a
representative office.
3) Among the three main
businesses, namely i),
iiI, and iii), an
operating fund of at least
10, 15 or 20 billion Won
is required to engage in
anyone, two, or all three
of the above businesses,
respectively.
H) Broking
(81321*)
iii) Underwriting
(81322*)
iv) Securities
Savings
(81119*1
v) Credit Granting
[81139*)
In joint ventures, which must
be established as a chusik
Hoesa(a joint stock
corporation), foreign equity
participation must be at least
40\ but less than 50\.
Local
shareholders must meet certain
eligibility criteria. If
Foreign securities firms
are not permitted to
establish mUltiple
branches.
Additional Commitments
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
Additional Commitments
there are multiple foreign
shareholders in the joint
venture companies, at least one
shareholder must hold more than
20\ of the equity.
Equity participation in an
existing domestic securities
company by foreign securities
companies is limited to less
than 10\ per company and less
than 50\ in the aggregate.
Establishment of a commercial
presence is subject to the
economic needs test.
Broking for foreigners is
limited to listed stocks.
Ceilings and operating
conditions are applied to the
services listed under iv) and
v) .
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
GA~/!l;CI48
P-.
GATS/SC/48
Page 34
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
Securities
Investment Trust
Services
1) Unbound
1) Unbound
2) Unbound
2) Unbound
[81193*]
3) Only representative offices of
foreign securities investment
trust companies are permitted.
3) None
(5) SECURITIES
INVESTMENT TRUST
BUSINESSES
Equity participation in an
existing domestic securities
investment trust company by
foreign securities investment
trust companies is limited to
less than 5\ per foreign company
and less than 10\ in the
aggregate .
• The maximum limit of
equity participation will be
expanded in 1994-1995,
Establishment of a commercial
presence, except for a
representative office, is
subject to the economic needs
test.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
Additional Commitments
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
1) Unbound
1) Unbound
2). Unbound
2) Unbound
3) Only representative offices of
foreign investment advisory
companies are permitted.
3) None
Additional Commitments
( 6 ) INVESTMENT
ADVISORY
BUSINESSES
Investment
Advisory Services
[81332]
Equity participation in an
existing domestic investment
advisory services company by
foreign investment advisory
companies is limited to less
than 5\ per foreign company and
less than 10\ in the aggregate .
• The maximum limit of equity
participation will be
expanded in 1994-1995.
Establishment of a commercial
presence, except for a
representative office, is
subject to the economic needs
test.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
....
OA TS/.-:C/4B
~
GATSISC/48
REPUBLIC OF KOREA (continued)
Sedor or Sub-sedor
Page 36
Limitations on Market Access
Limitations on National Treatment
1) Unbound
1) Unbound
2) Unbound
2) Unbound
3) In joint ventures, multiple
foreign shareholders are not
allowed, and the foreign share
must exceed 50\. Local
shareholders must meet certain
eligibility criteria.
3) None
INSURANCE AND
INSURANCE RELATED
SERVICES
(7) LIFE INSURANCE
BUSINESSES
Life Insurance
Services
[81211]
Establishment of a commercial
presence is subject to the
economic needs test.
The number of sales offices
which can be established is
limited annually.
The recruitment and employment
of insurance professionals,
including sales personnel, are
restricted.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
AddJtional Commitments
REPUBLIC OF KOREA (continued)
Sedor or Sub-sedor
Limitations on Market
Acc~S5
UmitatioM on National
Treatm~nl
Additional Commitments
(8) NON-LIFE
INSURANCE
BUSINESSES
Non-life
Insurance Services
1) Unbound except for marine
export cargo insurance.
1) Unbound
(8129)
2) Unbound
2) Unbound
3) Quoting insurance rates
from abroad is subject to
restrictions. These restrictions
do not apply to aviation
insurance.
3) None
Only representative offices and
branches of foreign non-life
insurance companies are
permitted.
Foreign equity participation is
limited to only existing
domestic non-life insurance
companies.
Establishment of a commercial
presence is subject to the
economic needs test.
Duopoly by specialized firms is
maintained in fidelity and
surety insurance.
The number of sales offices
which can be established is
limited annually.
GATSISC/48
Palle '17
GATSISC/48
Page 38
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
4). Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
(9) REINSURANCE
AND RETROCESSION
BUSINESSES
Reinsurance and
Retrocession
Services
1) None
1) Ceding insurers are
required to reinsure with
priority given to
reinsurance companies
established in Korea. The
above requirement does not
apply to aviation
insurance.
2) None
2) None
3) Direct insurance companies may
participate in the supply of
services subject to the
restriction in section (8)
regarding non-life insurance
services.
3) None
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
[81299*]
Top executive personnel
of each establishment must
reside in Korea.
Additional Commitments
REPUBLIC OF KOREA (continued)
Sector or
Sub-~ctor
Limitations on Market Access
Limitations on National Treatment
Insurance
broking and Agency
Services
1) Unbound
1) Unbound
2) Unbound
2) Unbound
[8140P)
3) Only exclusive agencies are
allowed.
In the case of nonlife insurance services, dual
agency is permitted .
3) None
(10)
Additional Commitments
INSURANCE BRaKING
AND AGENCY
BUSINES~ES
• Life insurance dual agency
will be permitted in 1994.
Establishment of a commercial
presence is subject to the
economic needs test.
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
Top executive personnel
of each establishment must
reside in Korea.
(11) CLAIM SETTLEMENT
BUSINESSES
Claim Settlement
Services
1) Unbound
1) None
2) Unbound
2) None
3) Unbound
3) None
4) Unbound except as indicated in
ALL SECTORS
4) Unbound except as
indicated in ALL SECTORS
(81403*J
Top executive personnel
of each establishment must
reside in Korea.
GATS/SC/48
Page 39
GATSISC/48
Page 40
REPUBLIC OF KOREA (continued)
Sector or Sub-sector
Limitations on Market Access
Limitations on National Treatment
1) Unbound
1)
(12) ACTUARIAL
BUSINESSES
Actuarial
Services
None
2)
Unbound
2) None
3)
Unbound
3) None
4)
Unbound except as indicated in
ALL SECTORS
4) Unbound except as
[81404]
indicated in ALL SECTORS
Top executive personnel
establishment must reside in
Korea.
Additional Commitments
GATS/SC/83-A
Page 30
LIECIITENSTEIN
Modes of supply:
1)
Cross-border supply
Consumption abroad
3)
Limitations on market access
Sector or subsector
7.
2)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Commitments on banking, securities and insurance services in accordance with the 'Understanding on Commitments in Financial Services'
(hereafter 'Understanding') and subject to limitations and conditions as contained in Part I (horizontal commitments) and as listed below. It is·
understood that paragraph 8.4 of the 'Understanding' does not impose any obligation to allow non-resident fmancial services suppliers to solicit business.
Insurance and insurance
related services
IV
0"1
-..J
1)
Establishment of a commercial presence is
required for the provision of insurance
services in Liechtenstein. Residents may
not purchase insurance services in the
territory of another Party.
1)
Establishment of a commercial presence is
required for the provision of insurance
services in Liechtenstein. Residents may
not purchase insurance services in the
territory of another Party.
2)
Establishment of a commercial presence is
required for the provision of insurance
services in Liechtenstein. Residents may
not purchase insurance services in the
territory of another Party.
2)
Establishment of a commercial presence is
required for the provision of insurance
services in Liechtenstein. Residents may
not purchase insurance services in the
territory of another Party.
LIECHTENSTEIN (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
3)
Permit for establishment of insurance
companies from countries other than
Liechtenstein is granted only to companies
which are supervised by the Swiss
insurance supervision authority;
To be recognized for participation in the
basic health insurance scheme. health
insurance suppliers must be organized in
the fonn of mutual associations
(Genossenscbaft. Verein:
Versicberungsverein auf Gegenseitigkeit or
Hilfskasse) or foundations (Stiftung);
Duty of security for insurance services;
Economic need test for accident insurance
services;
Commercial presence does not cover the
setting up of representative offices
3)
Domestic legal entities and the branch or
agency establishment of foreign legal
entities whose managing or representing
bodies. such as the board of directors and
the administration. are comprised in the
main of foreigners or foreign firms. shall
appoint in Liechtenstein a Liechtenstein
citizen who is permanently resident here
either to represent the legal entity towards
the authorities as a legal representative or.
empowered as an authorized signatory
(procurist). to exercise the representation.
without the cooperation of others. Before
sening up a commercial presence to
provide specific classes of insurance
services, a foreign insurer must have been
authorised to operate in the same classes of
insurance in its country of origin for at
least three years
4)
Unbound except as indicated in Part I
4)
Unbound except as indicated in Part I
.v
n
:xl
AlIcHtlonal cOmmitments
--
GATSISC/83-A
Pase 31
GATS/SC/83-A
Page 32
LIECIITENSTEIN (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Banking and other
financial services
(excluding insurance)
2)
Consumption abroad
3)
Limitations on market access
I')
Panicipation in settlement and clearing
networks is subject to a commercial
presence in Liechtenstein
Commercial presence
4)
Limitations on national treatment
1)
Subvention for house building is only
granted to Liechtenstein citizen, which
have to take out the loan for the bouse
building at a domestic bank
Presence of natural persons
AddJtional commitments
According to the practice in Liechtenstein,
mutual funds (collective investments) have
to be marketed through banks baving a
commercial presence in Liecbtenstein
Swiss franc denominated issues can be lead
managed only by a bank having a
commercial presence (registered office or
branch office) in Liechtenstein
I'.J
0'1
<.D
2)
Swiss franc denominated issues can be lead
managed only by a bank baving a
commercial presence (registered office or
branch office) in Liechtenstein
2)
Subvention for house building is only
granted to Liechtenstein citizen, which
have to take out the loan for the house
building at a domestic bank
3}
Licence granted to banks and fmancial
companies according to Liechtenstein
Banking and Financial Companies Act has
to be approved by the Liechtenstein
parliament
3)
One member of the board of directors and
the administrators must have domicile in
Liechtenstein. They must be duly
authorized to fully represent their
company.
Banks and fmancial companies must be
organized in the form of a limited company
-
Are covered not only transactions indicated in paragraph B.3 of the 'Understanding' but the whole range of banking and other financial services transactions
(excluding insurance).
LIECIffENSTEIN (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Strtor or subsector
Limitations on market access
Limitations on national treatment
-
Additional commitments
Financial institutions other than banks and
financial companies according to the
Liechtenstein Banking and Companies Act
are subject to the following licensing
requirements: foreign equity ceiling of
49 per cent; foreign voting rights may not
exceed 49 per cent; at least one member of
the administrative body authorized to
manage and represent must be a
Liechtenstein citizen domiciled in
Liechtenstein. be in possession of the
professional licence to act as an auditor or
trustee and must work full-time for the
juridical person
.J
-.J
:>
Commercial presence of foreign fmancial
institutions is subject to licensing
requirements relating to the name of firm,
duties toward the Swiss national bank and
regulations on financial institutions in the
country of origin
4)
Unbound except as indicated in Pan I
4)
Unbound except as indicated in Part I
..
GATS/SCI83-A
Page 33
GATS/SCI50
MACAU
Modes of supply:
Page 2
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
7.
FINANCIAL SERVICES
A.
All insurance and
insuranCe related services
a)
Life, Decident and health
insurance services
(CPC 8121)
1)
Unbound
1)
Unbound
b)
Non-life insurance
services
(CPC 8129)
2)
None
2)
Unbound
c)
Reinsurance and
retrocession
(CPC 81299·)
3)
None
3)
None
Serviees auxiliary to
insurance (including
brooking and agency
services)
(CPC 8140)
4)
Unbound
4)
Unbound
IV
-..J
~
d)
4)
Presence of natural persons
Additional commitments
MACAU (con.tinued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking and other
financial services
(excluding insurance)
a)
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 - 81119)
b)
Lending of all types,
including inter alia,
consumer credit
mortgage credit,
factorin~ and financing
of commercial
transaction
(CPC 81(3)
c)
Financial leasing
(CPC 8112)
d)
All payment and money
transmission services
(CPC 81339")
N
-...J
N
I
I
I
2)
Consumption abroad
3)
Limitations on national treatment
Limitations on market access
I)
Unbound
Commercial presence
1)
4)
Presence of natural persons
Additional commitments
Unbound
GATS/SCISO
Pase 3
GATSISCI50
MACAU (continued)
Modes of supply:
Page 4
I)
Cross-border supply
Sector or subsector
e)
Guarantees and
commitments
(CPC 81399**)
f)
Trading for own account
or for account of
customers, whether on
an exchange, in an overthe-counter market or
otherwise, the following:
- money market
instruments
(cheques, bills,
certificates of
deposits, etc.)
(CPC 81339**)
2)
Consumption abroad
3)
Limitations on market access
2)
None
Commercial presence
Limitations on national treatment
2)
4)
Presence of natural persons
Additional commitments
Unbound
I
N
-..J
W
-
foreign exchange
(CPC 81333)
-
derivative products
including but not
limit to, futures and
options
(CPC 81339*·)
---
I
I
MACAU (conlinued)
Modes of supply:
I)
Cross-border supply
Sector or subsedor
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
exchange rale and
interest rale
instruments,
including products
such as swaps,
forward rate
agreement, etc.
(CPC 81339")
transferable
securities
(CPC 81321*)
other negotiable
instruments and
financial, assets,
including bullion
(CPC 81339")
N
---J
~
g)
I
I
3)
None
3)
NODe
I
Participation in issues of
all kinds of securities,
including under-writing
and placement as agent
(whether of service
related to such issues
publicly or privately) and
provision
(CPC 8132)
I
I
I
h)
Money broking
(CPC 81339**)
-
GATSISC/~
Paae 5
GATS/SC/SO
Page 6
MACAU (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
i)
j)
IV
.......
Vl
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Asset management, such
as cash of portfolio
management, all forms
of collective investment
management, pension
fund management,
custodial depository and
trust services
(CPC 8119·· + 81323·)
Settlement and clearing
services for fmancial
assets, including
securities, derivative
products, and other
negotiable instruments
(CPC 81339·· or
81319")
I
4)
Unbound
4)
I
I
Unbound
-
----
MACAU (conrinued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsector
k)
Advisory and other
auxiliary financiaJ.
services on all the
activilies listed in article
IB of MTN.TNCIW/SO,
including credit reference
and analysis, investment
and portfolio research
and advice, advice on
acquisitions and on
corporate restructuring
and strategy (CPC 8131
or 8133)
I)
Provision and transfer of
financial information,
and fmancial data
processing and related
software by providers of
other fmancial services
(CPC 8131)
LimItations on market access
Additional (ommltment5
Limitations on national treatment
v
.J
Tl
-
---
--
---~-
..
GATS/SCI50
P •• e 7
GATSISCI52
Page 28
MALAYSIA
Modes of supply:
1)
Cross-border supply
Sedor or subsedor
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
FINANCIAL SERVICES, INCLUDING INSURANCE
Horizontal Commitments Applicable to the Financial Services Sector
r::1
1)
The offers in the fmancial services sector are in accordance with the Framework Agreement on Services and the Annex on Financial Services.
2)
The limitations listed under the all-sector horizontal section shall not apply to fmancial services, unless otherwise indicated.
3)
In respect of offshore banks, commercial banks, merchant banks, offshore insurance and offshore reinsurance companies, insurance companies and
representative offices of commercial banks and merchant banks, the following conditions and limitations on market access and movement of natural persons
shall apply in addition to specific limitations to the activity of each fmancial service as specified in each offer.
ALL FINANCIAL
SERVICES
-...J
1), 2) As indicated under each subsector
3)
Limitations on investments as contained in
the all-sector horizontal section
1), 2) As indicated in each subsector
3)
Limitations on land and other immovable
property as contained in the all-sector
horizontal section
Unbound for current and future measures
affecting fmancial services accorded, to
any Bumiputera or to assist development of
any Bumiputera fmancial institution to
achieve objectives of the National
Development Policy (NDP)
4)
Limitations in the all-sector horizontal
section will apply when indicated in each
activity
4)
Limitations in the all-sector horizontal
section will apply when indicated in each
activity
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
(All Financial Services
cont'd)
I)
Offshore banks, offshore
insurance and offshore
reinsurance companies
I), 2) Unbound due to lack of technical
feasibility
1), 2) Unbound due to lack of technical
feasibility
3)
3)
None
4)
None
Entry is confined to the Federal Territory
of Labuan
Entry is limited to establishment of a
branch or a subsidiary incorporated in
Malaysia
.'-.1
4)
..J
JO
2)
Commercial banks and
Merchant banks
None
I), 2) Unbound due to lack of technical
feasibility
1), 2) Unbound due to lack of technical
feasibility
3)
3)
Existing foreign bank branches of
commercial banks, after local
incorporation, are permitted to be
wholly-owned by the existing banks
None except as indicated in the all rmancial
services offer and in the respective activity
listed below
Unbound for new licences
I
New entry is limited to equity participation
in e~isting locally incorporated institutions
and the selling up of representative offices.
Aggregate foreign shareholding in a
commercial bank. or a merchant bank shall
not exceed 30 per cent.
...
GATSISCI52
Page 29
GATS/SCI52
Page 30
MALAYSIA (continued)
Modes of supply:
I)
Sector or subsedor
(All Financial Services,
Commercial and
Merchant banks cont'd)
I\J
"
0.0
Cross-border supply
2}
Consumption abroad
Limitations on market access
Acquisition of an aggregate of 5 per cent
or more of shareholding in a locally
incorporated commercial bank or merchant
bank requires approval. Acquisition ofsuch
shares is limited to foreign banks and
subject to economic needs test, including
ability to facilitate trade and contribute to
financial and economic development in
Malaysia, the country of the foreign bank
has significant trade and investment
interests in Malaysia and does not already
have a significant representation in the
Malaysian banking industry.
An institution owned or controlled by a
foreign Government or an agency of such a
Government is not allowed to control a
commercial bank or a merchant bank in
Malaysia
A licensed fmancial institution in Malaysia
is not allowed to acquire a commercial
bank or a merchant bank, but a commercial
bank may acquire a merchant bank. A
person holding 5 per cent of more of the
shares of a licensed financial institution in
Malaysia is not allowed to acquire 5 per
cent or more of the shares of another
commercial bank and merchant bank.
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
i
I
I
MALAYSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
(All Financial Services,
Commercial and
Merchant banks cont'd)
4)
CommerciaJ presence
Ptesence of natural persons
Additional commitments
Limitations on natlODal treatment
Representative offices can only undertake
research, excbange of information and
liaison services. They are not permitted to
carry on commercial banking or merchant
banking business.
Unbound for new service products of
commercial and merchant banks
...
.
-~
---
4)
Unbound except the following:
a)
Unless otherwise specified, temporary
presence of natural persons is offered only
in respect of supply through the mode of
commercial presence
b)
For banks, one senior manager for each
institution. Specialists or experts are
subject to an acceptable training
programme for Malaysians to be conducted
by these persons, market test and eligibility
criteria. A senior manager is an individual
possessing proprietary knowledge and
authority essential to the establishment,
control and operation of the services of the
fmandal services supplier. Specialists are
individuals who possess knowledge and
expertise relating to new products and
services, technique or management of the
financial service suppliers .
4)
Unbound except for the categories of
natural persons referred to under market
access
~
..
-
GATSISCIS2
Page 3.
GATS/SC/52
Page 32
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
(All Financial Services,
Commercial and
Merchant banks coDt'd)
3)
.'-/
()O
Insurance cornparUes
2)
Consumption abroad
3)
Limitations on market access
c)
For a representative office, one foreign
national for a management post
d)
Movement of a manager or specialist can
be through intra-corporate transfers or
otherwise
e)
Entry shall be limited to a maximum period
of five years
3)
Local incorporation of existing foreign
branches is required. Aggregate foreign
shareholding of the parent company shall
not exceed 30 per cent.
Unbound for new licences
New entry is limited to equity participation
in existing locally incorporated insurance
companies. Aggregate foreign shareholding
in an existing locally incorporated
insurance company shall nol exceed 30 per
cent.
Commercial presence
4)
Limitations on national treatment
3)
None, except as indicated in the all
fmancial services offer and the respective
activity below
Presence of natural persons
Additional commitments
MALA YSIA (continued)
Modes of supply:
I)
Sector or subsector
(All Financial Services,
insurance companies
coot'd)
I-..J
,XI
,'-.,J
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Acquisition of S per cent or more of
shareholding in a locally incorporated
company requires approval. Acquisition of
such shares is limited to foreign insurance
companies subject to economic needs test,
including ability to contribute to fmancial
and economic development in Malaysia,
the country of the insurance company has
significant trade and investment interests in
Malaysia and does not already have a
significant presence in the Malaysian
insurance industry.
An insurance company is not allowed to
acquire a licensed insurance broking
company or another insurance company
that carries on the same class of insurance
business as that carried on by it. A person
holding S per cent or more of the shares of
an insurance company is not allowed to
acquire 5 per cent or more of the shares of
another insurance company carrying on the
same class of insurance business as that
carried on by the insurance company or a
licensed insurance broking company of
which he is a shareholder.
GATS/SC/S2
Page 33
GATSISCI52
Page 34
MALAYSIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
(All Financial Services,
insurance companies
conl'd)
2)
Consumption abroad
Unbound except the following:
a)
Unless otherwise specified, temporary
presence of natural persons is offered only
in respect of supply through the mode of
commercial presence
b)
For insurance companies, one senior
manager for each institution. Specialists or
experts are subject to an acceptable training
programme for Malaysians to be conducted
by these persons, market test and eligibility
criteria. A senior manager is an individual
possessing proprietary knowledge and
authority essential to the establishment,
rv
w
00
Commercial presence
4)
Limitations on national treatment
Limitations on market access
4)
3)
4)
Presence of natural persons
Additional commitments
Unbound except for the categories of
natural persons referred to under market
access
control and operation of the services of the
fmancial services supplier. Specialists are
individuals who possess knowledge and
expertise relating to new products and
services, technique or management of the
financial service providers.
c)
Movement of a manager or specialists can
be through intra-corporate transfers or
otherwise
d)
Entry shall be limited to a maximum period
of five years
I
MALAYSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
4)
Commercial presence
Presence of natural persons
Limitations on national treatment
Limitations on market acctSS
Additional commitments
BANKING AND
OTHER FINANCIAL
SERVICES,
EXCLUDING
INSURANCE
Acceptance of deposits,
and other repayable
funds from the public,
wholesale and retail
I)
Soliciting, advertising and acceptance of
deposits in Malaysia are not allowed
2)
Soliciting and adverting in Malaysia for
acceptance of deposits are not allowed
3)
Only permitted through existing institutions
licensed as a commercial bank, a merchant
bank or an offshore bank.
[1.J
co
I)
None
3)
For commercial banks, unbound for
branching (including off-premises ATMs)
and networking with ATMs in Malaysia.
For merchant banks, branching is permitted
when foreign equity does not exceed 30 per
cent.
4)
Unbound except as indicated in the finance
sector horizontal section
-A
Offshore banks in Labuan are permitted to
accept foreign currency deposits only
Merchant banks are only permitted to
accept term deposits from non-individuals.
The minimum amount of each term deposit
shall be specified by the Central Bank from
time to time.
4)
Unbound except as indicated in the finance
sector horizontal section
-
..
GATS/SCl52
P .....
3~
GATS/SCI52
Page 36
MALA YSIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Lending of all types,
including consumer
credit, mortgage credit,
factoring and financing
of commercial
transactions
rv
00
Ul
2)
3)
Consumption abroad
Limitations on market access
1), 2) Financial services associated with lending
to residents in any currency must be
undertaken jointly with banks incorporated
in Malaysia
3)
Entry as a non-bank for scheduled
businesses is limited to establishment of a
locally incorporated joint-venture company
or a representative office. Aggregate
foreign shareholding in such a company
shall not exceed 30 per cent and shall be
confined to foreign rwancial institutions.
Representative offices can only undertake
research and liaison services and cannot
carry 00 any scheduled business
Provision of factoring services by a
commercial bank requires the setting up of
a separate entity. Shareholding by a
foreign-controlled commercial baole shall
nOI exceed 30 per cent.
For merchant banks, consumer credit and
home mortgages are not permitted
Overdraft facilities are not permitted,
except when supplied by a commercial
bank
Offshore banks are permitted to lend in
foreign currencies only
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
I), 2) None
3)
Non-resident controlled companies are
permitted to obtain up to a maximum of
40 per cent of their total credit facilities
(including factoring and leasing) from
foreign-controlled banks in Malaysia.
(60 per cent must be sourced from
Malaysian controlled institutions).
For commercial banks, unbound for
branching (including off-premises ATMs)
and networking with ATMs io Malaysia.
For merchant banks, branching is permitted
when foreign equity does not exceed
30 per cent.
I
MALA YSIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
For banks, unbound except as indicated in
the finance sector horizontal section
4)
Additional commitments
For banks, unbound except as indicated in
the finance sector horizontal section
Residency requirements are required for
lending of money
1), 2) Leasing services to residents in any
currency must be undertaken jointly with
banks incorporated in Malaysia
I), 2) None
3)
3)
Entry as a non-bank is limited to
establishment of a locally incorporated
joint-venture company or a representative
office. Aggregate foreign shareholding in
such a company shall not exceed
30 per cent and shall be confined to foreign
financial institutions.
Presence of natural persons
For non-banks, unbound except for the
categories of natural persons referred to
under market access
For non-banks. unbound except one foreign
national for a management post other than
the CEO. for each establishment. For
representative offices of scheduled
businesses, one foreign national for a
management post.
Financial leasing
4)
Limitations on national treatment
Limitations on market access
4)
Commercial presence
I
None
Leasing operations by a commercial bank
require setting up a separate entity.
Shareholding by a foreign-controlled bank
shall not exceed 30 per cent.
Representative offices can only undertake
research and liaison services and cannot
carry on any fonn of leasing business
GATS/SC/j2
PallC 37
GATS/SCIS2
MALA YSIA (continued)
Modes of supply:
Page 38
1)
Cross-border supply
Sector 'Or subsector
2)
Consumption abroad
3)
Limitations on market access
4)
Unbound except one foreign national for a
management post other than the CEO, for
each establishment. For representative
offices, one foreign national for a
management post.
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
4)
Unbound except for the categories of
natural persons referred to under market
access
Additional commitments
I
I
i
i
All payment and money
transmission services,
namely credit and debit
cards, !ravellers cheques
and bankers drafts
"-J
00
-....J
1), 2) Electronic fund transfer system requires
1), 2) None
approval
3)
Offshore banks are permitted to extend
payment and money transmission services
to non-residents onJy
Issue of credit cards and debit cards are not
allowed, other than by commercial banks
3)
For commercial banks, unbound for
branches (including off-premises ATMs)
and networking with ATMs in Malaysia.
For merchant banks, branching is permitted
when foreign equity does not exceed 30 per
cent.
Issue, sale and purchase of ringgit
travellers cheques is confined to Malaysian
controlled banks
Sale and purchase of travellers cheques by
individuals require citizenship status
Sale and purchase of foreign currency
travellers cheques other than by
commercial banks require a money
changer's licence. Entry is limited to
establishment of a locally incorporated
joint-venture company. Aggregate foreign
shareholding in such a company shall not
exceed 30 per cent.
Branches (including dispensers) of
travellers cheques companies are permitted
when foreign equity does not exceed 30 per
cent
Checking account services are not
pennitled, except when provided by a
commercial bank in Malaysia
---
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
4)
For banks, unbound except as indicated in
the finance sector horizontal section
I), 2) None
4)
4)
For non-banks, unbound except for the
categories of natural persons referred under
market access
I), 2) None
3)
Entry is limited to establishment of a
company incorporated in Malaysia. (There
is no limit on foreign equity).
3)
None
4)
Unbound except one manager for each
establ ishment
4)
Unbound except for the categories of
natural persons referred to under market
access
I), 2) None except banks established in Malaysia
may be given the right of first refusal
1), 2) None
(Guarantees and
commitments undertaken
by non-residents are
governed by rules
relating to foreign
exchange)
3)
None
3)
None
4)
Unbound except as indicated in the finance
sector and all-sector horizontal section
4)
Unbound except as indicated in the fmance
sector and all-sector horizontal section
1), 2) Broking services, involving Ringgit
Malaysia and fmancial instruments issued
in Malaysia must be effected through
authorized dealers and money and foreign
exchange brokers incorporated in Malaysia
Additional commltmeots
For banks, unbound except as indicated in
the fmance sector horizontal section
Guarantees and
commitments
Money and foreign
exchange broking
services
Presence of natural persons
Limitations on national treatment
For non-banks, one foreign national for a
management post other than the CEO post,
for each establishment
Charge 1:ards
Commercial presence
1),2) None
GATS/SC/j2
Pase 39
GATSISCI52
Page 40
MALAYSIA (continued)
Modes of supply:
1)
Cross-border supply
N
00
\.0
-
-
money market
instruments
foreign exchange
transferable
securities
exchange rate and
interest rate
instruments
dtrivative products,
including future and
options
other negotiable
instruments,
including bullion
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
Sector or subsector
Trading for own account
or account of customers
in the following:
2)
3)
Entry other than through equity
participation in existing institutions is not
pennitted. Aggregate foreign sbareboldiog
in each company shall not exceed
30 per cent.
3)
None
4)
Unbound
4)
Unbound
1)
Dealing is limited to contracts traded on
specified exchanges abroad
1)
None
2)
None
2)
None
3)
Transactions by offshore banks in Labuan
must be conducted in foreign currencies,
except for the sale and purchase of
currencies with authorized banks in
Malaysia. Transactions for own account are
limited to instruments created and issued
abroad.
3)
None
Trading for accounts of customers by
offshore banks and offshore companies in
Labuan is confined to non-resident
customers and in instruments created and
issued abroad. Trading in shares of
Malaysian companies is confined to
non-resident customers who are not
offshore companies registered or
incorporated in Labuan.
4)
Presence of natural persons
Additional commitments :
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
A-ddltlonal commitments
Trading in foreign currency is not
pennilled, except by commercial banks and
offshore banks
Trading and dealing in securities and
financial futures and derivative products
other than by designated fmancial
institutions requires establishment of a
locally incorporated joint-venture company.
Aggregate foreign shareholding in such
company shall not exceed 30 per cent.
4)
For banks, unbound except as indicated in
the finance sector horizontal section
4)
For non-banks, unbound except as
indicated in the all-sector horizontal section
Services related to the
issues of all kinds of
securities and placement
as agents (whether
publicly or privately)
(excluding issuing and
rating houses)
I
I
I), 2) Participation in issues and services related
For banks, unbound except as indicated in
the fmance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
I), 2) None
to such issues requires authorization
3)
Participation by offshore banks in Labuan
is limited to non-resident customers and for
issues of securities outside Malaysia
3)
None
Submissions for new issues requiring
approval of the Securities Commission
must be made through licensed merchant
banks
GATSISCl52
P ••" 4.
GATS/SCI52
Page 42
MALAYSIA (continued)
Modes of supply:
1)
Cross-border supply
2)
3)
Consumption abroad
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
Sector or subsector
Commercial presence
Additional commitments
Participation by non-banks requires
establishment of a locally incorporated
joint-venture company. Aggregate foreign
shareholding in such company shall not
exceed 30 per cent.
I
I
Unbound for appointment as principal
dealers
4)
For banks, unbound except as indicated in
the fmance sector horizontal section
4)
For banks, unbound except as indicated in
the flDance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
IV
~
.....
Underwriting
1), 2) Commercial presence is required
1), 2) Unbound due to lack of technical
feasibility
I
3)
Underwriting other than by a bank,
requires a dealer's licence. Entry is limited
to establishment of a locally incorporated
joint-venture company. Aggregate foreign
shareholding shall not exceed 30 per cent.
3)
None
4)
For banks, unbound except as indicated in
the finance sector horizontal section
4)
For banks, unbound except as indicated in
the flDance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
Asset management as
follows:
For non-banks, unbound except as
indicated in the all-sector horizontal section
I)
Commercial presence is required
1)
NODe
2)
None
2)
None
-
i
I
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sedor or subsedor
-
cash or ponfolio
management
all fonns of
collective investment
management
custodial and
depository services
2)
Consumption abroad
3)
Limitations on market access
3)
Asset management by offshore banks and
offshore companies is confmed to
non-resident customers and foreign
currency assets. Asset management by
offshore banks and offshore companies in
Malaysian equities or equity linked
investments are confined to non-residents
which are not offshore companies
registered in Labuan.
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
3)
None
4)
For banks, unbound except as indicated in
the fmance sector horizontal section
Additional commitments
Entry as a non-bank is limited to
establishment of a locally incorporated
joint-venture company. Aggregate foreign
shareholding in such a company shall nOl
exceed 30 per cent.
ru
\0
IU
Asset management by a commercial bank
requires establishment as a separate entity.
Shareholding by a foreign-controlled
commercial bank sball not exceed
30 per cent.
4)
For banks, unbound except as indicated in
the fmance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
-~
GATS/SC152
Pa"e 43
GATS/SCI52
Page 44
MALA YSIA (continued)
Modes of supply:
l)
Cross-border supply
3)
Consumption abroad
I), 2) Services to residents must be undertaken
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
Advisory, intermediation
and other auxiliary
financial services
including credit reference
and analysis, investment
advice on acquisitions,
corporate restructuring
and strategy
2)
Presence of natural persons
Additional commitments
I), 2) None
jointly with banks incorporated in Malaysia
3)
Entry as a non-bank is limited to
establishment of a locally incorporated
joint-venture company or a representative
office. Aggregate foreign shareholding in
each company shall not exceed 30 per cent
3)
None
Representative offices (including those of
commercial banks, merchant banks and
securities companies) are permitted to
undertake research, information and liaison
services only. Representative offices of
securities companies are permitted to
publish and circulate research work outside
Malaysia only.
rv
<.0
W
;
Services by offshore banks and offshore
companies in Labuan, are limited to
non-resident customers
4)
For banks, unbound except as indicated in
the fmance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
4)
For banks, unbound except as indicated in
the fmance sector horizontal section
For non-banks, unbound except as
indicated in the all-sector horizontal section
---
I
MALA YSIA (conlinued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Operalional Headquarters
(OHQ) for financial
sector
I\)
LD
-""
3)
Consumption abroad
I), 2) Unbound due to lack of technical
feasibility
Only through a locally incorporated wholly
foreign-owned company
Commercial presence
Limitations on national treatment
Limitations on market access
3)
(provides services to
commercial and
investmenl banking
inslilutions in activities
relaling to work carried
out in Malaysia for its
offices and related
companies outside
Malaysia, covering
general management and
administration, business
planning, procurement of
raw materials, technical
support: marketing
control and sales
promotion planning,
training and personnel
management, provision
of treasury and fund
management services and
research and
development)
2)
4)
Presence of nalural persons
Additional commitments
1), 2) Unbound due to lack of technical
feasibility
3)
None
I
A foreign-owned company, a regional
office of a foreign-owned company which
transfers its OHQ services to Malaysia, a
regional office of a foreign-owned
company established in Malaysia, and a
foreign-owned company which is already
incorporated in Malaysia may seek to
qualify as a OHQ
OHQ must operate in Malaysia and fulfil
the following criteria:
a)
cany out at least 3 of the OHQ
service activities;
b)
have a sizeable network of companies
outside Malaysia which includes the
parent company or its head office and
related companies;
-
GATS/SC/j2
PaBC 45
GATS/SCI52
Page 46
MALAYSIA (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
c)
have a well established foreign-owned
company which is sizeable in tenos of
assets and employees:
d)
have a network of companies with
substantial number of qualified
executives, professionals, technical
and other supponing personnel;
e)
be able to make decisions
independently without consultations
with its head office or parent company
located outside Malaysia;
f)
to be able to contribute to the
Malaysian economy by:
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
rv
'.0
'.11
i)
using services such as legal,
accounting etc. provided by
Malaysians;
ii)
creating job opportunities for
Malaysians;
iii) enabling greater inflow of foreign
funds
4)
-
-----
Unbound except as indicated in the
all~sector horizontal section
4)
Unbound except as indicated in the
all-sector horizontal section
_L_
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
a)
broking services;
Trades on Malaysian stock excbanges must
be transacted through companies
incorporated in Malaysia which are
members of the exchange
b)
credit reference and
analysis;
Promotion in Malaysia of Malaysian stocks
requires approval
c)
investment ponfolio
management and
advice; and
Provision of investmem advisory services
and credit reference services to residents
requires commercial presence
d)
market research
Securities broking
services comprising:
I)
I
I
I
Commercial presence
Limitations on national treatment
1)
None
2)
Trades on Malaysian stock excbanges must
be transacted through companies
incorporated in Malaysia whicb are
members of the exchange
2)
None
3)
Entry is limited to equity panicipation in
existing stockbroking companies or
establishment of joint-venture companies
with Malaysian stockbroking companies
and incorporated in Malaysia or setting up
of representative offices. Aggregate foreign
sbareholding in each company shall not
exceed 30 per cent. Foreign entry is
limited to recogoized foreign stockbroking
companies. A foreign stockbroking
company is pennilted to hold shares in one
stockbroking company.
3)
None
4)
Presence of natural persons
Additional commitments
New licences subject to economic needs
test and/or geographical location
-
GATS/SCl52
Pase 47
GATS/SCI52
MALA YSIA (continued)
Modes of supply:
Page 48
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Representative offices are permitted to
undertake research, information and liaison
services only. They are permitted to
publish and circulate research work outside
Malaysia only.
4)
Unbound for a stockbroking company,
except as indicated in the all-sector
horizontal section
4)
Unbound except for the categories of
natural persons referred to under market
access
One foreign national for a senior
management post per representative office
IV
£)
'"
Commodity futures
broking services
I), 2) Trades on any Malaysian commodity
futures exchange must be conducted
through companies incorporated in
Malaysia which are members of the
exchange
1). 2) None
3)
3)
Entry is limited to establishment of a
representative office or a locally
incorporated joint-venture company.
Aggregate foreign shareholding in such a
company is limited to 30 per cent or any
higber percentage as determined by the
relevant authorities.
Representative offices are permitted to
undertake research, information and liaison
services only
Total membership of the exchange will be
based on economic needs
None
Presence of natural persons
Additional commitments
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
INSURANCE
SERVICES
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
4)
Unbound except one foreign national for a
management post per establishment, subject
to market lest
4)
Unbound except for the categories of
natural persons referred to under market
access
I)
Soliciting and advenising in Malaysia is
not allowed
I)
None
Presence of natural persoll5
Additional commitments
Other than marine and aviation insurance
associated with goods in international
transit, direct insurance abroad requires
approval. Approval may be denied if
underwriting capacity and skill are
available in Malaysia.
Direct insurance
(non-life)
ru
'-0
ex>
2)
Other than marine and aviation insurance
associated with goods in international
transit, direct insurance abroad requires
approval. Approval may be denied if
underwriting capacity and skill are
available in Malaysia.
2)
None
3)
Offshore insurance companies in Labuan
are not pennilled to accept direct insurance
of Malaysian risks
3)
Branching is only pennitted for insurance
companies with foreign equity not
exceeding 30 per cent
Direct insurance in Malaysia is pennitted
only through existing licensed insurance
companies
4)
Unbound except as indicated in the fmance
sector horizontal section
I
Unbound for special assistance to
Malaysian-owned insurance companies to
promote their development
4)
Unbound except as indicated in the finance
sector horizontal section
GA TSISCI!52
P."e 49
GATS/SCI52
Page SO
MALAYSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Direct insurance (life)
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
1), 2) Unbound
1), 2) Unbound
3)
3)
Investment-linked insurance business and
new life insurance products provided by
offshore insurance companies require
approval
4)
Underwriting of lire insurance of
Malaysian residents by offshore insurance
companies in Labuan is not allowed
Branching is only permitted for insurance
companies that have foreign equity not
exceeding 30 per cent
Unbound for special assistance to
Malaysian-owned insurance companies to
promote their development
Life insurance in Malaysia is only
permitted through existing licensed
insurance companies
."J
o
4)
o
Reinsurance and
retrocession
(life and non-life)
Unbound except as indicated in the fmance
sector horizontal section
I), 2) Outward reinsurance is permitted only if
local capacity is not available
4)
Unbound except as indicated in the fmance
sector horizontal section
I), 2) Voluntary cession up to 30 per cent of
each class of non-life reinsurance business
to the Malaysian National Reinsurance
Bhd.
Unbound for fiscal incentives to promote
reinsurance in Malaysia
Presence of natural persons
Additional commitments
MALA YSIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Unbound for new licences
3)
Entry is limited to acquisition of existing
companies. Aggregate foreign equity in
each company shall not exceed 30 per cent.
UJ
Insurance intermediation
as follows:
o
o
-
-
offshore broking
offshore
underwriting; and
offshore insurance
management
services
.
Unbound except as indicated in the fmance
sector horizontal section
Additional commitments
Obligation on all registered insurers to
maximise national capacity before any
outward reinsurance
4)
Unbound except as indicated in the fmance
sector horizontal section
I), 2) Insurance intermediation is not allowed
except for reinsurance broking. Insurance
broking services are further limited to
offshore companies in Labuan
I), 2) None
3)
3)
Establishment is confined to the Federal
Territory of Labuan
Presence of natural persons
Measures granting special position to
Malaysian National Reinsurance Bcrnad
shall not apply
Entry as an offshore reinsurance company
is confmed to Labuan only
4)
4)
Limitations on national treatment
Limitations on market access
3)
Commercial presence
None
Broking for direct insurance of Malaysian
risk is not pennilted
,
Insurance broker shall only broke direct
insurance product of licensed offshore
insurance companies in Malaysia
I
Underwriting manager shall only provide
services to licensed offshore insurance
companies in Malaysia
GATS/SCl52
5.
P.~e
GATSISCI52
Page 52
MALA YSIA (continued)
Modes of supply:
1)
Cross-border supply
3)
Consumption abroad
Limitations on market access
Sector or subsector
a)
2)
Commercial presence
4)
Limitations on national treatment
4)
Unbound except as indicated in the fmance
sector horizontal section
4)
Unbound except as indicated in the finance
sector horizontal section
Services auxiliary 10
insurance, as follows:
I)
Provision of actuarial services is only
permitted for offshore insurance and
reinsurance companies in Labuan
1)
None
Consultancy (excludes
insurance agency
services to insurance
industry);
2)
None
2)
None
3)
Offshore companies in Labuan are not
allowed to provide services to Malaysian
residents
3)
None
4)
Unbound except as indicated in the finance
sector horizontal section
4)
Unbound except as indicated in the finance
sector horizontal section
b)
Actuarial risk
assessment;
c)
Risk management;
and
d)
Maritime loss
adjusting
Presence of natural persons
Additional commitments
302
GATS/SCIS4
Page 2
MALTA
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance Services
(CPC-SI2)
2)
Consumption abroad
3)
Limitations on market access
1)
No limitations in marine and aviation
insurance; Professional Liability Marine ship repairers and shipbuilding risks;
Engineering (including Loss of Profits but
not Engineering Advanced Loss of Profits);
Motor Liability.
Commercial presence
Limitations on national treatment
1)
None
Limitations on the remaining classes of
insurance shall be liberalized as follows:
Abrogation Date: 30 June 1995
Accident
Class/Risk:
w
w
o
Abrogation Date: 31 December 1995
All remaining areas of
insurance
Class/Risk:
2)
None
2)
None
3)
Unbound
3)
Unbound
4)
Unbound
4)
Unbound
--
4)
Presence of natural persons
Additional commitments
304
GATS/SC/56
Page 34
MEXICO
Modes of supply:
1)
Cross-border supply
3)
Consumption abroad
Limitations on market access
Sector or subsector
7.
2)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
I
Financial intennediation
services, except
insurance and pension
fund services, including:
Banks and holding
companies
w
o
\J1
Financial intennediation
services, except
insurance and pension
fund services and the
following subdivisions:
Central bank deposit
services
(CPC 81111)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 20 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 2.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
Unbound
4)
4)
-
I
I
Unbound
- -
-
--
MEXICO (continued)
Modes of supply:
I)
Sector or subsector
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Central bank supervisory
services
(CPC 81112)
Central bank reserve
management services
(CPC 81113)
Central bank currency
issue services
(CPC 81114)
VJ
o
CJ)
Non-central bank
currency issue services
(CPC 81117)
Property unit trust
services
(CPC 81192)
,
Other unit trust services:
services by which money
subscribed in "units" is
invested in financial
assets by a management
company. The unitholder is nol a
shareholder of the
management company
(CPC 81193)
,
GATS/SC/56
Page 35
GATSISCI56
MEXICO (continued)
Modes of supply:
Page 36
1)
Cross-border supply
Sector or subsector
Financial leasing
companies, timitedpurpose financial
institutions and
investment trusts
w
-....J
Consumption abroad
3)
------
4)
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 5 per cent in the case of financial
leasing companies and 7.5 per cent in the
case of investment trusts and timitedpurpose rwancial institutions. Effective
control of the enterprise by the Mexican
shareholders. Foreign financial entities
may establish representative offices in
Mexico with the prior authorization of the
Ministry of Finance and Public Credit
(SHCP). These offices may not carry out
rwancial intermediation operations.
Services consisting in the
granting of loans by
institutions not involved
in monetary
intermediation
(CPC 8113)
Investment trust services
by companies whose
capital is subscribed by
shareholders and which
invest mainJy in shares
and government
securities
(CPC 81191)
Commercial presence
Limitations on national treatment
Limitations on market access
Financial leasing services
(CPC 8112)
a
2)
4)
Unbound
4)
Presence of natural persons
Additional commitments
I
I
Unbound
!
._--
---
MEXICO (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Own-account dealing
services by securities
dealers
Only own-account
dealing services by
securities dealers
(CPC 81199)
lAJ
o
OJ
Insurance (including
reinsurance) services,
except compulsory social
security services
Insurance (including
reinsurance) and pension
fund services, except
computsory social
security services and the
subdivision:
(CPC 812)
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 20 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed S per cent. Effective control of the
enterprise by the Mexican shareholden.
4)
Unbound
4)
Unbound
1)
Bound for reinsurance only. With regard
to reinsurance transactions, foreign
reinsurance companies may accept or
assign liabilities, whenever they are entered
in the register maintained by the SHCP,
which may approve or refuse registration.
1)
None
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 7. S per cent. Effective control of
the enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
Additional commitments
-
GATSISC/56
Page 37
GATS/SC/56
Page 38
MEXICO (continued)
Modes of supply:
I)
Cross-border
~upply
2)
Consumption abroad
3)
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
Commercial presence
Presence of natural persons
Additional commitments
Pension and annuity
services
(CPC 81212)
Services auxiliary to
financial intennediation
other than to insurance
and pension funding,
including securities
houses
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 20 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 5 per cent. Effective control of the
enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
w
o
l..D
- -
-
--
MEXICO (continued)
Modes of supply:
I)
Cross-border supply
- -
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Services auxiliary to
financial intennediation
other than to insurance
and pension funding,
except the following
subdivisions:
(CPC 813)
Services related to the
administration, operation
and supervision of
financial markets
(security exchanges,
stock exchanges and
commodity exchanges)
other than by public
authorities
(CPC 8131)
Foreign currency
excbange services
provided by Bureaux de
Change (CPC 81333)
Advisory services
relating to investments
and securities, including
credit reporting services
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
GATSISCI56
Page 39
I
GATSISCI56
Page 40
MEXICO (continued)
I)
Modes of supply:
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
I
w
Other services auxiliary
to financial
intermediation
(CPC 8133) except the
sub-division
3)
Foreign investors in aggregate, excluding
government agencies, may hold upto 30
per cent of the ordinary capital. Effective
control of the enterprise by the Mexican
shareholders
3)
The individual shareholding may not
exceed 7.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
Foreign currency
exchange services
provided by (Bureaux de
Change) (CPC 81333)
4)
Unbound
4)
Unbound
Services auxiliary to
insurance or closely
related to the
management of
insurance, including:
consultancy, broking,
agency, actuarial and
loss adjustment services
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 7.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
--
I
I
I
MEXICO (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Services auxiliary to
insurance and pension
funding or closely related
to their management,
except the subdivision:
(CPC 814)
Other services auxiliary
to insurance and pension
funding
(CPC 81409)
Financial factoring
services
(CPC not included)
Includes only the
services mentioned in the
General Ancillary Credit
Organizations and
Activities Act
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican stockholders.
3)
The individual shareholding may not
exceed 7.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual shareholding may not
exceed 7.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
Additional commitments
GATS/SC/S6
Page 41
GATSISCI56
Page 42
MEXICO (continued)
Modes of supply:
1)
Cross-border supply
2)
3)
Consumption abroad
Limitations on market access
Sector or subsector
Guarantee and reguarantee institutions
(CPC not included)
(CMAP 813(01)
4)
Limitations on national treatment
I)
Bound only for re-guaranteeing services.
With regard to re-guaranteeing
transactions, foreign enterprises may accept
or assign liabilities, whenever they are
entered in the register maintained by the
SHCP, which may approve or refuse
registration.
I)
None
2)
Unbound
2)
Unbound
3)
Foreign investors in aggregate, excluding
governments and government agencies,
may hold up to 30 per cent of the ordinary
capital. Effective control of the enterprise
by the Mexican shareholders.
3)
The individual sbarebolding may not
exceed 7.5 per cent. Effective control of
the enterprise by the Mexican shareholders.
4)
Unbound
4)
Unbound
w
w
-
Commercial presence
--
Presence of natural persons
Additional commitments
314
MOROCCO
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
A change in the control of a credit establishment providing services a). b). d) and e) may be subject to new approval. With regard to delivery mode 4,
financial services in subsectors A: a). b). c) and B may nOl be provided by natural persons.
Banking and other
financial services
excluding insurance
w
......
V1
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115-81119)
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
GATS/SC/57
Page 7
GATs/se/5?
Page 8
MOROCCO (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Lending to finance
investment in Morocco
(CPC 8113·)
Lending to fmance
commercial transactions
with Morocco
(CPC 8113·)
W
2)
3)
Consumption abroad
Limitations on national treatment
Limitations on market access
I)
None
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
I)
None
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
G\
---
•
The asterisk means that the subsector is an "extract from".
Commercial presence
4)
Presence of natural persons
Additional commitments
MOROCCO (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Other lending, including
consumer credit and
credit cards
(CPC Stl3"')
Financial leasing
(CPC Stl2)
w
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Additional commitments
Limitations on national treatment
I)
None
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
I)
None
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
I)
Unbound
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
Presence of natural persons
......
All payment and money
transmission services,
including credit, payment
and similar cards,
travellers' cheques and
cheques
(CPC 81339)
-
...
The asterisk means that the subsector is an "extract from".
GATS/SC/57
Page 9
GATs/se/S?
MOROCCO (continued)
Modes of supply:
Page 10
1)
Cross-border supply
Sector or subsector
Guarantees and
commitments
(CPC 81199)
w
2)
Consumption abroad
3)
Limitations on market access
Limitations on national treatment
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
Trading for account for
customers, whether on
an exchange, in an
over-the-counter market
or otherwise:
t), 2) Residents may acquire foreign securities
subject to prior authorization in accordance
with exchange regulations
1),2) None
3)
None
3)
None
-
4)
Unbound, except as indicated in the
horizontal section
4)
None
00
-
Negotiable securities
(CPC 81321)
Gold
(CPC 81339)
Commercial presence
4)
Presence of natural persons
Additional commitments
MOROCCO (continued)
Modes of supply:
Cross-border supply
I)
Sector or subsector
\.0
Consumption abroad
3)
Provision and transfer of
financial information,
and fmancial data
processing and related
software by providers of
other fmancial services
(CPC 843)
-
l)
Unbound
l)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
l)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
"-----
Commercial presence
Limitations on national treatment
Limitations on market access
Participation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
(CPC 8119)
w
2)
4)
Presence of natural persons
Additional commitments
I
I
-
-
GATs/se/S7
Page II
GATs/se/S7
Page 12
MOROCCO (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on DlltioDal treatment
Insurance and
reinsurance
Insurance (all branches)
(CPC 812)
W
N
a
Reinsurance (all
brancbes)
(CPC 81299)
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Obligation to have a registered place of
business in Morocco
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
1), 2) Establishment of a reinsurance plan in the
framework of the existing regulations on
insurance and exchange, and subject to
cession of operations to the Societe centrale
de reassurance
1),2) None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
None
4)
Presence of natural persons
Additional commitments
GATSISCI58
MOZAMBIQUE
Modes of supply:
Page 2
1)
Cross-border supply
W
FINANCIAL SERVICES
B.
Banking. and other
Financial Services
(exc!. insurance)
Consumption abroad
3)
Limitations on market access
Sector or subsector
7.
2)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
AddJtional commitments J
I
1)
None
1)
None
2)
None
2)
None
3)
Any foreign bank or financial institution
can operate in Mozambique as long as they
abide by the domestic rules and regulations
governing investment and operations of
such institutions
3)
None
4)
Work permit required
4)
None
N
---
-
,
322
GATS/SC/62
Page 18
NEW ZEALAND
I)
Modes of supply:
Cross-border supply
2)
Consumption abroad
3)
Limitations on national treatment
Limitations on market access
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance and Insurancerelated Services
b)
Non-life insurance
services (8129)
1)
W
N
W
-
Unbound except for insurance of risks
relating to maritime shipping and
commercial aviation and space launching
and freight, and goods in international
transit.
I),
3)
The Accident Rehabilitation
and Compensation Insurance Act 1992
provides for compulsory worker's
compensation insurance via levies on
vehicle owners, employers and the selfemployed. The Act is administered by the
Accident Rehabilitation and Compensation
Insurance Commission.
1),
3)
The Earthquake Commission is
the sole insurer of residential property
disaster insurance for replacement cover up
to $NZ 100,000 per dwelling and
$NZ 20,000 on personal property. These
amounts may be increased by regulation.
4)
Commercial presence
l)
2)
3)
Presence of natural persons
Additional commitments
None
None
None
I
I
I
-~
I
NEW ZEALAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
I).
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Under the Apple and Pear
Marketing Act 1971 the Apple and Pear
Marketing Board has the power to organise
compulsory hail insurance on behalf of
growers and to require growers to pay a
levy to recover the premium amount of this
insurance.
I )2) Unbound for marketing and
& 3) sales related to products covered under
CPC 01. 02. 211.213-216, 22. 2399 and
261.
W
N
~
4)
c)
Reinsurance and
retrocession (81299)
1)
2)
3)
4)
Unbound except as indicated in the
horizontal section.
None
None
None
Unbound except as indicated in the
horizontal section.
4)
1)
2)
3)
4)
Unbound except as indicated in the
horizontal section.
I
I
,
None
None
None
Unbound except as indicated in the
horizontal section.
-
GATSISC/62
Page 19
GATSISC/62
NEW ZEALAND (continued)
Modes of supply:
1)
Page 20
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
4)
Limitations on national treatment
Limitations on market access
B.
Banking and other
Financial Services
(excluding insurance))
a)
Acceptance of deposits
and other repayable
funds from the public;
(81115-81119)
I)
Unbound except for services described in
subsectors (Ie) and (I) excluding
intermediation.
1)
None
b)
lending of all types,
including consumer
credit, mortgage, credit,
factoring and fUlancing
of commercial
transaction; (8113)
2)
None
2)
None
c)
Financial leasing; (8112)
W
IV
VI
Commercial presence
Additional commitments
--
3
As defined in paragraph 5(a)(v)-(xvi) of the Annex on Financial Services.
Presence of natural persons
NEW ZEALAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
uJ
i'J
d)
All payment and money
transmission services,
including credit, charge
and debit cards,
travellers cheques and
bankers drafts;
(81339··)
e)
Guarantees and
commitments; (81199")
2)
Consumption abroad
3)
Limitations on market access
3)
None
Commercial presence
4)
Limitations on national treatment
3)
Presence of natural persons
Additional commitments
The Financial Reporting Act 1993 requires
overseas companies to prepare financial
statements on an annual basis comprising a
balance sheet, a profit and loss statement
and (if required by an applicable financial
reporting standard approved by the
Accounting Standards Review Board) a
statement of cash flows.
The Act also requires such financial
statements in relation to an overseas
company's New Zealand business.
m
GATS/SC/62
PaJZe 21
GATS/SC/62
Page 22
NEW ZEALAND (continued)
Modes of supply:
1)
Sector or subsector
f)
Trading for own account
or for account of
customers, whether on
an exchange, in an overthe-counter market or
otherwise, the following:
i)
w
rv
'"
ii)
money market
instruments
(cheques, bills,
certificates of
deposits etc.);
(81339··) .
foreign exchange;
(81333)
iii) derivative products
Cross-border supply
2)
3)
Consumption abroad
Limitations on market access
4)
Limitations on national treatment
The Act requires the following companies
to deliver annual audited fmandal
statements to the Registrar of Companies
for registration:
a)
issuers (i.e. those which have raised
investment from the public);
b)
overseas companies;
c)
subsidiaries of companies or bodies
corporate incorporated outside New
Zealand;
d)
companies in which 2S per cent or
more of the shares are held or
controlled by:
i)
including, but not
limited to, futures
and options;
(81339··)
-------
Commercial presence
- - -
a subsidiary of a company or
body corporate incorporated
outside New Zealand or a
subsidiary of that subsidiary; or
--
--
Presence of natural persons
Additional commitments
!
I
I
NEW ZEALAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
w
N
co
transferable
securities; (81321)
4)
Limitations on national treatment
iv) exchange rates and
interest rate
instruments,
including products
such as swaps,
forward rate
agreements etc.;
(81339*·)
v)
Commercial presence
ii)
Presence of natural persons
Additional commitments
a company or body corporate
incorporated outside New
Zealand; or
iii) a person not ordinarily resident in
I
New Zealand.
4)
Unbound except as indicated in the
horizontal section.
4)
Unbound except as indicated in the
horizontal section.
vi) other negotiable
instruments and
financial assets,
including bullion.
(81339**)
g)
Participation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues; (8132)
h)
Money broking;
(81339*·)
GATSISC/62
PaRe 23
GATS/SC/62
Page 24
NEW ZEALAND (continued)
Modes of supply:
1)
Sector or subsector
i)
Asset management, such
as cash or portfolio
management; all forms
of collective investment
management, pension
fund management,
custodial, depository and
trust services; (8119** ,
81323**)
j)
Settlement and clearing
services for fmancial
assets, including
securities, derivative
products, and other
negotiable instruments;
(81339*·, 81319*·)
k)
Provision and transfer of
financial information,
and fmancial data
processing and related
software by providers of
other fmancial services;
(8131)
W
N
\.0
-----
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
I
I
,
I
~-
NEW ZEALAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
I)
Lu
Lu
o
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Advisory.
intermediation. and other
auxiliary financial
services on all the
activities listed in (a) to
(k) above. including
credit reference and
analysis, investment and
portfolio research and
advice. advice on
acquisitions and on
corporate restructuring
and strategy.
(8131.8133)
-
GATSISCI62
Page 2S
NICARAGUA
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
B.
Banldng and other
financial services
(excluding insurance)
w
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
I
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 + 81119)
w
2)
1)
Unbound
1)
I
Unbound
I
2)
Unbound
2)
Unbound
3)
None
3)
None
I
I
Lending of all types,
including, inter alia,
consumer credit,
mortgage credit and
flllancing of commercial
transactions
(CPC 8113)
4)
Unbound, except as indicated in the
horizontal section.
4)
Unbound, except as indicated in the
horizontal section
I
All payment and money
transmission services
(CPC 81339··)
Guarantees and
commitments
(CPC 81199··)
-
-
-
GATSISC/63
Page 9
GATS/SC/63
NICARAGUA (continued)
Modes of supply:
Page 10
1)
Cross-border supply
Sector or subsector
Money market
instruments (cheques,
bills, certificates of
deposits, etc.)
(CPC 81339")
Foreign exchange
(CPC 81333")
Transferable securities
(CPC 81321·)
w
w
i'J
Participation in issues of
all kinds of securities,
including underwriting
and placement as agents
(whether publicly or
privately) and provision
of services related to
such issues
(CPC 8132)
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
I
GATSISC/65
Page 4
NIGERIA
Modes of supply:
Coding
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
8.
Banking and other
Financial Services
excluding Securities and
Insurance
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
,
81115-9
a)
Acceptance of deposits
and other repayable
funds from the public
I)
Subject to a maximum of 40 per cent
equity participation
1)
Composition of the Board should reflect
the ovvnership structure
8113
b)
Lending of all types
including mongage
credit, factoring and
fmancing of commercial
transactions
2)
Unbound with the exception of 'C'
"guarantees and commitments"·
2)
Unbound with the exception of 'C'
"guarantees and commitments"·
81199
c)
Guarantees and
commitments
3)
Companies must be incorporated in
Nigeria
3)
None
8112
d)
Financial leasing
4)
Unbound
4)
Unbound
81339
e)
All payments and money
transmission, services,
including credit, payment
and similar cards.
TraveJlers cheques and
cheques.
w
w
w
Additional
commitments
- -
Guarantees and Commitments are subject to regulations.
I
i
I
I
NIGERIA (continued)
Modes of supply:
Coding
I)
Cross-border supply
Sector or subsec:tor
f)
Trading for account of
Customers:
81339
-
money market
instruments
81333
-
foreign exchange
81321
-
transferable security
81339
-
other negotiable
instruments
81323
g)
Asset management
81339
h)
Settlement and clearing
services for financial
assets (excluding
securities)
8131
i)
Provision and transfer of
financial infonnation and
financial data
9.
TOURISM AND
TRA VEL RELATED
SERVICES A.-D.
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Presence of natural persons
4)
Limitations on national treatment
Additional
commitments
w
w
~
641-643
7471
7472
1). 2). 3). 4) None
I). 2). 3). 4) None
~--
- -
- -
_.-
GATS/SC/65
Pa"~ ~
NORWAY
Modes of supply:
I)
Cross-border supply
Sector or subsector
7.
2)
Consumption abroad
3)
Lboltatlons on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
AddJtlonal commitments
FINANCIAL SERVICES
Norway is undertaking commitments in fmancial services in accordance with the ·Understanding on Commitments in Financial Services· and subject to Annex
2 and the Ministerial Decision on Financial Services. The following restrictions and limitations apply:
A.
Insurance and insurancerelated services
w
w
V1
1)
Intermediation through an authorized
broker of non-life insurance to an insurer
not authorized to operate in Norway as a
company or a branch, is limited to marine
and transport insurance, insurance related
to offshore exploration activities or
insurance contracts regarding domestic
companies with an activity of at least
10 man years or annual sales of at least
NOK 50 million
I), 2) Residents may only purchase non-life
insurance from abroad, with the exception
of insurance against civil liability in respect
of the use of motor vehicles and
compulsory insurance against accidents at
work
---
_._-_.-
1)
None
2)
None
------
GATS/SC/66
Page 31
GATSISC/66
NORWAY (continued)
Modes of supply:
Page 32
I)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
3)
Insurance broker activity must be organized
as a joint stock company
3)
No single or co-ordinated group of
investors may acquire more than 10 per
cent of the share capital in an existing
Norwegian insurance company. The
Ministry of Finance may in special
circumstances make exemptions from this
limitation on single investor ownership in
an insurance company.
0'1
4)
Foreign insurance companies may be
permitted to establish or acquire a fully
owned subsidiary or a branch in Norway in
order to supply insurance services. A
partly owned subsidiary may only be
established if the other owners are foreign
insurance companies or Norwegian
financial institutions. A separation
requirement between life insurance,
non-life insurance and credit risk insurance
applies.
In Norwegian insurance companies the
manager, at least half the members of the
board of directors, half the members of the
corporate assembly and half the members
of the committee of representatives must be
pennaneDl residents of Norway and have
resided there for the last two years. The
Ministry of Industry and Energy may grant
exemptions from these rules.
A minimum capital deposit is required for
branches of foreign insurance companies
4)
Unbound except as indicated in the
horizontal section covering all services
Presence of natural persons
Limitations on national treatment
Foreigners other than foreign insurance
companies may not supply insurance
services in Norway through a subsidiary or
a branch
u.J
u.J
Commercial presence
4)
Unbound except as indicated in the
horizontal section
Additional commitments
I
,
,
NORWAY (continued)
Modes of supply:
1)
Cross-border supply
Banking and other
Financial Services
(excluding insurance)
1)
Active supply of services related to
banking, fmancing, securities brokers
(buying and selling of securities on behalf
of customers, marketing or underwriting of
securities) and collective investment funds
requires a commercial presence in Norway.
The same restrictions apply to trading in
products derivative to securities, including
options and futures, and settlement and
clearing services for financial assets.
Commercial presence
4)
Limitations on national treatment
1)
Presence of natural persons
Additional commitments
None
II
I
!
Financial service suppliers established
abroad may not lead manage public
offerings on the Norwegian capital market
w
W
-....J
3)
Consumption abroad
Limitations on market access
Sector or subsector
B.
2)
2)
3)
Registration of securities, as stated in the
Act relating to the Registry of Securities
regulating the book-entry registration
system for paperless securities, is subject
to a monopoly
2)
Commercial banks, securities firms and
management companies for collective
investment funds must be organized as joint
stock companies. The same restrictions
apply to trading in products derivative to
securities, including options and futures,
and settlement and clearing services for
financial assets.
3)
None
I
In domestically owned Norwegian banks,
i.e. banks where Norwegian investors own
2/3 or more of the share capital, members
of the board of directors and committee of
representatives must be Norwegian citizens
permanently residing in Norway. Except
for the chairman the King may grant
exemptions from this requirement.
GATS/SC/66
Page 33
GATSISC/66
Page 34
NORW A Y (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
One or more foreign banks may be
permitted to establish a new Norwegian
commercial bank if one single foreign bank
owns more than 50 per cent of the share
capital in the new bank
w
w
co
No single or co-ordinated group of
investors may acquire more than 10 per
cent of the share capital in an existing
Norwegian commercial bank or financing
undertaking, or more than 10 per cent of
the equity certificates of savings banks.
The Ministry of Finance may in special
circumstances make exemptions from this
limitation on single investor ownership in
such institutions.
Establishment in Norway of branches of
banks and fmancing undertakings
established abroad is not permitted
At least 20 Norwegian citizens residing in
Norway must participate in the
establishment of a new Norwegian savings
bank
3)
Commercial presence
4)
limitations on national treatment
At least 10 Norwegian citizens residing in
Norway must participate in the
establishment of a new Norwegian
commercial bank. This requirement does
not apply in cases where the King permits
existing Norwegian or foreign banks to
establish a new Norwegian bank.
In foreign-owned Norwegian banks up to
1/3 of the members of the board of
directors and the committee of
representatives may be foreign citizens
permanently residing outside Norway. In
both bodies the chairman must be a
Norwegian citizen permanently residing in
Norway.
Presence of natural persons
Additional commitments
NORWA Y (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Only Norwegian citizens residing in
Norway may establish a fmancing
undertaking in Norway. A foreign
financial institution may however, with
permission from the King, establish a
subsidiary fmancing undertaking in Norway
in order to conduct financing business.
In financing undertakings the members of
decision-making bodies must be Norwegian
citizens permanently residing in Norway.
The King may grant exemptions from this
requirement.
w
w
~
4)
Unbound expect as indicated in the
horizontal section covering all services
4)
Unbound expect as indicated in the
horizontal section
GATS/SC/66
Page 35
340
GATSISC/67
Page 10
PAKISTAN
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
FINANCIAL SERVICES
A.
Insurance and
insurance-related services
Insurance:
Life insurance
(CPC No. 81211)
w
.p.
Re-insurance services
and retrocession
(CPC No. 81299)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Maximum of 25 per cent of foreign
shareholding in existing life insurance
companies
3)
Unbound
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Unbound
3)
Unbound
4)
Unbound
4)
Unbound
~-
-
Presence of natural persons
Additional commitments
PAKISTAN (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Services auxiliary to
insurance (including
broking and agency
services)
(CPC No. 8140)
B
w
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
I)
Unbound
l)
Unbound
2)
None
2)
None
3)
Representative office only
3)
Unbound
4)
Unbound except as indicated under
horizontal measures
4)
Unbound
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
Banking and other
financial services
(excluding insurance)
The following:
.J:>.
I'..J
2)
I)
Acceptance of
deposits of money
and other repayable
funds from the
public
--
-_
..
_-
GATSISC/67
Page JJ
GATS/SC/67
Page 12
PAKISTAN (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Negotiating of loans
and advances for the
purpose of financing
trade, commerce
and fixed
investments
3)
Factoring
4)
Payments, money
collection and
transmission
services
LA)
~
LA)
5)
Guarantees and
commitments
6)
Trading for own
account or for
account of
customers, on an
exchange or an
over-the-counter
market, the
following:
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
3)
Subject to economic needs test, the Central
Bank may grant licences to foreign banks
to undertake pennissible banking activities
through establishment of locally
incorporated subsidiaries with a maximum
shareholding of the bank not exceeding
30 per cent of the total paid-up capital of
the subsidiary. Prior pennission of the
Central Bank is required by any person for
having beneficial ownership of shares of a
banking company in excess of 4 per cent of
paid-up capital of the banking company.
3)
Unbound
4)
Unbound except as indicated under
horizontal measures
4)
Unbound except as indicated under
horizontal measures
4)
Presence of natural persons
Additional commitments
I
i)
---
cheques and other
bills of exchange;
I
PAKISTAN (continued)
Modes of supply:
I)
Sector or subsector
ii)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
foreign exchange;
iii) forward exchange
rate agreements;
iv) approved securities;
v)
other negotiable
instruments.
7)
Participation in
issues and
underwriting of all
kinds of securities
and provision of
services related to
such issues
8)
Money broking
9)
Customers' fund
management
w
t
10) Financial and
investment advisory
services
GATSISCI67
Page 13
GATSISC/67
PAKISTAN (continued)
Page 14
1)
Modes of supply:
Cross-border supply
Sector or subsector
Participation in issuance
of securities including
underwriting and
provision of services
relating to such issues
only
(CPC No. 8132)
lJ1
- -
-_._--
Consumption abroad
3)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
a)
As in measures applicable to all
sectors
3)
None
b)
subject to membership of local stock
exchange
4)
Unbound except as indicated under
horizontal measures
4)
w
+::>
2)
Unbound except as indicated under
horizontal measures
---
--
Presence of natural persons
Additional commitments
-
-
346
PARAGUAY
Modes of supply:
I)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance
Insurance (excluding
reinsurance and
retrocession)
(CPC 8(2)
w
.::.
'-I
Reinsurance and
retrocession
(CPC 81299)
-
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
1)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except for senior personnel and
specialists
4)
Unbound, except for senior personnel and
specialists
I)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except for senior personnel and
specialists
4)
Unbound, except for senior personnel and
specialists
Presence of natural persons
Additional commitments
----
GATS/SC/68
Page I
GATSISC/68
Page 2
PARAGUAY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
B.
2)
Consumption abroad
3)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Presence of natural persons
Additional commitments
Banking-services
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115-81119)
Lending of all types,
including consumer
credit, mongage credit,
etc.
(CPC 8113)
Other services auxiliary
to fmancial
intermediation
(CPC 81331-81334)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except for senior personnel and
specialists
4)
Unbound, except for senior personnel and
specialists
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
None
3)
None
4)
Unbound, except for senior personnel and
specialists
4)
Unbound, except for senior personnel and
specialists
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except for senior personnel and
specialists
4)
Unbound, except for senior personnel and
specialists
I
PERU
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
All insurance and
insurance-related services
a)
Life, accident and health
insuranCe services
Solely:
2)
3)
Consumption abroad
4)
Commercial presence
Limitations on national treatment
Limitations on market access
Presence of natural persons
Additional commitments
I
-
Life insurance
services
(CPC 81211)
w
::.
\0
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
The following limits apply as appropriate
to all the insurance activities included in
the present offer:
3)
None
The General Law on Banking, Financial and
Insurance Institutions, approved by Legislative
Decree No. 769 states that the opening of
branches and agencies by enterprises or entities
in the financial system requires an authorization
by the Banking and Insurance Supervision
Department in confonnity with the general
procedures it establishes. The transfer and
---
I
I
I
I
I
~-
GATSISC/69
Page 25
GATSISC/69
PERU (continued)
Modes of supply:
Sector or subs ector
Page 26
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
closing of offices of enterprises and entities in
the financial system which provide services to
the public also requires an authorization by the
Banking and Insurance Supervision Department,
in accordance with the general procedures it
establishes. Representatives of financial or
reinsurance enterprises not established in Peru
must be authorized by the Banking and Insurance
Supervision Department.
w
V1
Insurance enterprises not working in the
reinsurance field are not authorized to appoint
representatives in Peru. Such representatives
must confine their activities to reinsurance.
a
The Banking and Insurance Supervision
Department keeps a register of foreign
reinsurance enterprises and entry in the Register
is free of charge. An enterprise wishing to be
included in the Register must submit an
application indicating the date on wbicb it was
authorized to operate accompanied by:
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
PERU (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
a)
an authenticated copy of its current
statutes;
b)
a copy of its latest annual report showing
its financial statement duly audited by
external auditors; and
c)
a copy of the Power of Attorney appointing
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
,
I
a Peruvian resident to represent it with full
powers.
I
I
,
The enterprise must prove that:
a)
w
V1
it has been legally established in its country
of origin and has capacity to reinsure risks
ceded from abroad;
i
I
I
,
b)
c)
it has a minimum capital, established in
accordance with the conditions laid down
by the competent national authority; and
I
I
i
that it is in a position to meet its financial
obligations in freely convertible currency
under reinsurance contracts concluded
abroad, in confonnity with the legislation
of its country of origin.
I
!
In addition, foreign fmancial services enterprises
may not make claims through diplomatic
channels in respect of business or operations
carried out in Peru, on the basis of rights
derived from their nationality.
--
-
GATS/SC/69
Page 27
GATSISC/69
Page 28
PERU (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
Peruvian creditors and foreigners domiciled in
Peru have priority rights over the assets of a
foreign financial services enterprise.
4)
b)
Non-life insurance
services, excluding
reinsurance
-
Accident and health
insurance services
(CPC 81291)
-
Motor vehicle insurance
services
(CPC 81292)
-
Marine, aviation and
other transport insurance
services
(CPC 81293)
-
freight insurance services
(CPC 81294)
w
U1
N
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
PERU (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
-
2)
3)
Consumption abroad
Limitations on market access
4)
Commercial presence
Presence of natural persons
Additional commitments
Limitations on national treatment
Fire and other property
damage insurance
services
(CPC 81295)
-
Pecuniary loss insurance
services
(CPC 81296)
-
General liability
insurance services
(CPC 81291)
I
I
I
I
I
I
W
lJ1
W
c)
Reinsurance and
retrocession,
Solely:
-
1)
Unbound
1)
Unbound
I
I
2)
Unbound
2)
Unbound
3)
The same limitations as indicated in 3)
above
3)
None
4)
Unbound
4)
Unbound
1)
The same limitations as indicated in 3)
above
1)
None
2)
The same limitations as indicated in 3)
above
2)
None
3)
The same limitations as indicated in 3)
above
3)
None
4)
Unbound, except as indicated in the
horizontal section. Natural persons are not
authorized to provide reinsurance services.
4)
Unbound, except as indicated in the
horizontal section. Natural persons are not
authorized to provide reinsurance services
Reinsurance services
(CPC 81299+)
I
I
I
I
-
GATSISC/69
Page 29
354
GATs/seno
pmLIPPINES
Modes of supply:
Page 12
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Banking and Other Financial
Services {excluding Insurance}
Coverage of commitment:
commercial banks and
non-bank fmancial
intermediaries except
investment houses
All subsectors
w
VI
VI
3)
Authorization for entities to establish
commercial presence or expand existing
operations in banking and other fmancial
services (excluding insurance) in the
Philippines shall be subject to a
determination by the concerned regulatory
authorities whether public interest and
economic conditions justify the issuance of
such authorization
,
3), 4) Limitations listed in the horizontal section
shall also apply
--
PHILIPPINES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on national treatment
Limitations on market access
Commercial Banking:
1)
Commercial presence is required
1)
None
-
2)
None
2)
None
3)
Foreign equity in existing or new domestic
commercial banks subject to a maximum
30 per cent of voting stock or 40 per cent
upon approval by the President of the
Philippines
3)
None
-
w
VI
.j:::.
-
Acceptance of deposits
and other repayable
funds from the public
Lending of all types,
including consumer
credit, mortgage credit,
and financing of
commercial transaction
Commercial presence
4)
Presence of natural persons
Additional commitments
I
Deposit taking authority extends only to
domestic commercial banks and to the four
grand fathered foreign bank branches
All payment and money
transmission services,
including credit, charge
and debit cards,
travellers cheques and
bankers drafts
Participation of aliens in the Board of
Directors of domestic banks is limited to
one-third of the Board's total membership
Guarantees and
commitments
~
--
Equity ownership ceiling for domestic
banks: individual· 20 per cent;
corporation - 30 per cent
GATSISC170
Page Jl
GATs/seno
Page 14
PIDLIPPINES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subs ector
-
-
Guarantees and commitments; and
-
-
Performance of trust, investment
management and other fiduciary
business.
money market
instruments
(including cheques,
bills, certificates of
deposits);
Underwriting (firm and best efforts basis)
may be performed only by commercial
banks with expanded commercial banking
authority
Vl
-
derivative products
including, but not
limited to, futures
and options
-
exchange rate and
interest rate
instruments,
including products
such as swaps,
forward rate
agreements; and
4)
Prior authority is required for the
following:
Acceptance of deposit substitutes and
other repayable funds from the public;
foreign exchange
Commercial presence
Limitations on national treatment
Limitations on market access
-
-
3)
Consumption abroad
Trading for own account
or for account of
customers, whether on
an exchange, in an
over-the-counter market
or otherwise, the
following:
w
......
2)
4)
None
4)
Foreign service suppliers shall perform
technical functions only, with Filipino
understudy
Presence of natural persons
Additional commitments
PIDLIPPINES (continued)
Modes of supply:
---
I)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
-- -
Sector or subsector
-
Limitations on market access
Limitations on national treatment
Additional commitments
other allowable
negotiable
instruments and
financial assels
I
-
Participation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues.
-
Assel management, such
as cash or portfolio
management, all forms
of collective investment
management, custod ial,
depository and trust
services.
w
V1
00
Financial Advisory Services,
as follows:
-
I)
None
1)
None
2)
None
2)
None
underwriting
--
--
GATS/SCI70
Page J5
GATSISC170
Page 16
PIDLIPPINES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
guarantees and
commitments
2)
Consumption abroad
credit reference and
analysis
Required to be organized as a commercial
bank or a non-bank financial intermediary
3)
None
Presence of natural persons
Additional commitments
For commercial banks, all other limitations
mentioned under mode 3 above for
commercial banks shall apply
investment and portfolio
research and advice
Foreign equity bound at 40 per cent for
non-bank financial intermediary
4)
None
4)
For commercial banks and financing
companies, foreign service suppliers shall
perform technical functions only, with
Filipino understudy
I)
Commercial presence is required
1)
None
2)
None
2)
None
3)
Must be performed by a financing company
only. organized either as a corporation or
general partnership
3)
None
w
V1
ID
Factoring
4)
Commercial presence
Limitations on national treatment
Limitations on market access
3)
3)
i
Subject to foreign equity limitation of
40 per cent
--
PHILIPPINES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
Membership of aliens in the Board of
Directors is limited to one-third of the
Board's total membership in the case of a
corporation; no foreign managing partners
in the case of a general partnership
Financial leasing
W
4)
None
4)
Foreign service suppliers shall perform
technical functions only. with Filipino
understudy
I)
Commercial presence is required
1)
None
2)
None
2)
None
3)
Must be performed by a financing company
only. organized either as a corporation or
general partnership
3)
None
0'1
o
Subject to foreign equity limitation of
40 per cent
Membership of aliens in the Board of
Directors is limited to one-third of the
Board's total membership in the case of a
corporation; no foreign managing
partners in the case of a general
partnership
4)
None
I
I
I
!
4)
Foreign service suppliers shall perform
technical functions only, with Filipino
understudy
GATS/SCI10
Page 17
GATs/seI7D
Page 18
PIDLIPPINES (continued)
Modes of supply:
I)
Cross-border supply
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
Money broking and Foreign
Exchange broking
2)
1)
Commercial presence is required
1)
None
2)
None
2)
None
3)
Required to be organized as a commercial
bank or a non-bank financial intermediary
3)
None
For commercial banks, all other
limitations mentioned under mode 3 above
for commercial banks shall apply
Foreign equity bound at 40 per cent for
non-bank fmancial intermediary
w
'"
Credit card services
4)
None
4)
For commercial banks and financing
companies, foreign service suppliers shall
perform technical functions only, with
Filipino understudy.
1)
Commercial presence is required
I)
None
2)
None
2)
None
3)
Required to be organized as a commercial
bank or a non-bank financial intermediary
3)
None
For commercial banks, all other
limitations mentioned under mode 3 above
for commercial banks shall apply
Foreign equity bound at 40 per cent for
non-bank financial intermediary
Presence of natural persons
Additional commitments
PHILIPPINES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Promotion and provision of
information about the
services/products offered by a
foreign bank
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
None
4)
None
I)
Commercial presence is required
l)
None
2)
None
2)
None
3)
None
3)
None
4)
Presence of natural persons
Additional commitments
I
4)
None
4)
None
l)
Commercial presence is required
1)
None
2)
None
2)
None
3)
Must be organized as a securities
broker/dealer corporation or partnership.
3)
None
I
Securities
Dealership/Brokerage
w
(J\
IV
-
Trading for own account
or for account of
customers. whether in an
exchange. in an
over-the-counter market
or otherwise. the
following:
-
-
Must be a member of the stock exchange.
Membership is limited to 200.
Equities and its
derivative products
such as warrants
and options
Transferable
securities
Underwriting is allowed only on
best-efforts basis.
4)
None
I
I
4)
None
- -
GATSISC170
Palle 19
GATs/seno
PHILIPPINES (continued)
Modes of supply:
I)
Page 20
Cross-border supply
Sector or subsector
Participation in issues of
all kinds of securities,
including underwriting
and placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
2)
3)
Consumption abroad
Limitations on market access
Limitations on national treatment
1)
Commercial presence is required
l)
None
2)
None
2)
None
3)
Must be organized as a securities
broker/dealer corporation or partnership.
3)
None
Must be a member of the stock exchange.
Membership is limited to 200.
Underwriting is allowed only on
best-efforts basis.
w
w
'"
Performance of the functions
of stock transfer agent such as
but not limited to monitoring
the issuance and transfer of
stock certificates
Transactions of an issuer
primarily engaged in the
business of investing,
reinvesting or trading in
securities
Commercial presence
4)
None
4)
None
I)
Commercial presence is required
l)
None
2)
None
2)
None
3)
Must be organized either as a corporation
or partnership with at least one certified
public accountant duly licensed in the
Philippines
3)
None
4)
None
4)
None
l)
Commercial presence is required
l)
None
2)
None
2)
None
4)
Presence of natural persons
Additional commitments
PIDLIPPINES (continued)
Modes of supply:
1)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsector
Limitations on market access
3)
Foreign equity bound at 40 per cent
Limitations on national treatment
3)
None
Additional commitments
All members of the Board of Directors
must be citizens of the Philippines
Sale of contracts for the
payment of benefits or
performance of future services
such as life, education,
pension and internment plans
w
m
.t:o
4)
None
4)
None
I)
Commercial presence is required
I)
None
2)
None
2)
None
3)
Foreign equity bound at 40 per cent
3)
None
4)
None
4)
None
3)
The establishment of new insurance
companies is subject to the approval of the
Insurance Commission which determines
whether public interest and economic
conditions justify such establishment.
Insurance
All subsectors
I
I
4)
Only aliens qualified to hold technical
positions may be employed within the first
five (5) years of operation of the
enterprise, their stay not to exceed
five (5) years upon entry.
Each employed alien should have at least
two (2) Filipino understudies.
3), 4) Limitations listed in horizontal section
shall also apply.
GATs/seno
Page 21
GATS/SC170
Page 22
PIDLIPPINES (continued)
Modes of supply:
I)
Cross-border supply
-
-
Ordinary
Group
Industrial
Health and accident
Annuities
Consumption abroad
3)
Limitations on market access
Sector or subsector
Life insurance as follows:
2)
I)
Commercial presence
4)
Limitations on national treatment
Risks located in the Philippines should be
insured with the companies authorized· to
transact business in the Philippines
I)
2)
Same as (I) above
2)
Unbound
3)
Subject to foreign equity limitation of
40 per cent
3)
None
Presence of natural persons
Additional commitments
Unbound
I
Membership of aliens in the Board of
Directors is limited to the extent of foreign
equity participation
,
I
I
w
0'1
4)
None
4)
None
I)
Risks located in the Philippines should be
insured with the companies authorized to
transact business in the Philippines
I)
Unbound
2)
Same as (1) above
2)
Unbound
3)
Subject to foreign equity limitation of
40 per cent
3)
None
I.J1
General Non-life, as follows:
-
Fire and allied
risks/earthquakes/shockJ
typhoon/floods/tidal
wave
I
---
•
Authorized means the company has been issued a license by the Insurance Commission to transact business in the Philippines.
PIDLIPPINES (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-
W
0'1
0'1
Marine
Ocean marine/
inland marine/
marine hull/
aviation
2)
3)
Consumption abroad
CommerciaJ presence
Limitations on national treatment
Limitations on market access
Membership of aJiens in the Board of
Directors is limited to the extent of foreign
equity participation
4)
None
4)
None
Insurance auxiliary services,
as follows:
1)
CommerciaJ presence is required
1)
Unbound
-
actuariaJ
consul tancies
2)
None
2)
None
-
average adjustors
3)
Subject to foreign equity limitation of
40 per cent
3)
None
4)
None
-
Casualty
motor carl
heallh and accident/
burglary/
engineering
miscellaneous
-
Suretyship
Fidelity/surety
bonds
Membership of aJiens in the Board of
Directors is liiniled to the extent of foreign
equity participation
4)
None
4)
Presence of naturaJ persons
Additional commitments
GATs/senD
Page 24
PIDLIPPINES (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Reinsurance/
Retrocession
2)
3)
Consumption abroad
Limitations on market access
1)
Priority cessions to authorized
insurance/reinsurance companies
Commercial presence
4)
Additional commitments
Limitations on national treatment
1)
None
Foreign unauthorized reinsurers should be
represented by resident agents duly
registered with the Insurance Commission
,
10 per cent of total insurance cessions to
foreign unauthorized reinsurers should be
ceded to the National Reinsurance
Corporation of the Philippines
w
en
2)
Same as (I) above
2)
None
3)
Subject to foreign equity limitation of
40 per cent
3)
None
4)
None
-...J
Membership of aliens in the Board of
Directors is limited to the extent of foreign
equity participation
4)
--
None
Presence of natural persons
~-
-
--
-~-
368
POLAND
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL
SERVICES·
A.
All insurance and
insurance related services
Insurance and related
services
(CPC 812·· except
81212, 81293):
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
4)
Presence of natural persons
Additional commitments
~~
-
----------- -
-
W
0"1
\D
•
Prudential regulations in the financial sector are being elaborated in Poland. They may require alteration of the presently existing rules as well as preparation of the
new laws. Their application will be done in accordance with the provisions of the Annex on Financial Services, paragraph 2 - Domestic Regulation sub-paragraph I.
GATs/se/71
Page 15
GATs/sen 1
Page 16
POLAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-
-
-
direct insurance
(including coinsurance):
life,
non-life;
reinsurjUlce and
retrocession;
brokerage
(CPC 81401, 81402")
3)
Consumption abroad
3)
4)
-
Establishment only in a form of joint stock
company or mutual insurance society
except for brokerage where boriwntal
measures apply. Foreign participation in
the insurance company cannot be lower
than 50 per cent of the minimal guarantee
fund. Insurance funds and company own
assets have to be invested in Poland and
cannot be transferred abroad. Head of a
brokerage company should meet
qualifications of insurance broker.
Nationality requirement for insurance
brokers.
3)
Unbound except for horizontal measures.
Nationality requirement for insurance
brokers.
4)
--_.-
Commercial presence
Llmltatlom on national treatment
Limitations on market access
w
.......
o
2)
4)
Presence of natural persons
Additional commitments
None
I
None
POLAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
a)
b)
Banking services:
Acceptance of deposits
and other repayable
funds
(CPC 81115-81119)
3)
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
,
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Establishment of a bank only in a form of
joint stock company. System of permits in
relation to establishment of all banks based
on prudential grounds. Nationality
requirement for some - at least one - of the
bank executives.
3)
None
Unbound except for horizontal measures.
Nationality requirement for some - at least
one - of the bank executives.
4)
Lending of all types
(CPC 8113)
All payment and money
transmission services
(CPC 81339")
e)
Guarantees and
commitments
(excluding guarantees
and commitments of the
State Treasury)
(CPC 81199**)
'-.J
Consumption abroad
Banking and Other
Financial Services
d)
W
2)
4)
I,
I
i
None
I
I
I
I
-
GATs/sent
Page 17
GATs/senl
Page 18
POLAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
Other financial services:
g)
Participation in issues of
all kinds of securities
(excluding treasury
bonds), including
underwriting and
placement as agent
(whether publicly or
privately) and provision
of services related to
such issues
(CPC 8132)
W
'-J
N
i)
Mutual finds services
(CPC 81323**)
k)
Advisory and other
auxiliary services to
banking activities
included into this
schedule
(CPC 8133)
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Establishment only in a form of joint stock
company. Nationality requirement for
brokers and securities advisors.
3)
None
4)
Unbound except for horizontal measures.
Nationality requirement for brokers and
securities advisors.
4)
None
4)
Presence of natural persons
Additional commitments
POLAND (continued)
Modes of supply:
I)
Cross-border supply
Provision and transfer of
financial information.
and fmandal data
processing and related
software by suppliers of
other financial services
(CPC 8131)
l)
Requirement to use the public
telecommunication network. or the network
of other authorized operator. in the case of
cross-border provision of these services
Commercial presence
Limitations on national treatment
I)
4)
Presence of natural persons
Additional commitments
None
Requirement to use the public
telecommunication network. or the network
of other authorized operator. in the case of
cross-border consumption of these services
2)
3)
Requirement to use the public
telecommunication network or the network
of other authorized operator in the case of
cross-border provision and/or consumption
of these services
3)
None
4)
Unbound except for horizontal measures
4)
None
2)
w
-...J
-
3)
!
w
--
Consumption abroad
Limitations on market access
Sector or subsector
1)
2)
None
I
I,
--
-
GATs/sent
Page 19
374
GATS/SCI72
Page 14
ROMANIA
Modes of supply:
1)
Cross-border supply
-
FINANCIAL SERVICES
A.
Insurance and
insurance-related services
a)
Life insurance services
(8121)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
Sector or subsector
7.
2)
I
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of companies with
foreign participation is allowed only in
partnership with Romanian legal or natural
persons
3)
None
4)
None, only as indicated in the horizontal
measures section
1)
W
-...J
V1
The representatives of foreign companies
and of the associations of foreign insurers
have the right to conclude insurance
contracts ooly with foreign legal and
natural persons
4)
_._----
Unbound, except as indicated in the
horizontal measures section
-
ROMANIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
b)
Non-life insurance
services
(8129)
2)
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Limitations on market access
I)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of companies with
foreign participation is allowed only in
partnership with Romanian legal or natural
persons
3)
None
Presence of natural persons
Additional commitments
The representatives of foreign companies
and of the associations of foreign insurers
have the right to conclude insurance
contracts only with foreign legal and
natural persons and for their goods
w
....J
JI
c)
Reinsurance and
retrocession services
(81299)
-
--
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
I)
None
l)
None
2)
None
2)
None
3)
The establishment of companies with
foreign participation is allowed only in
partnership with Romanian legal or natural
persons
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
-~---
----
- -
GATSISC172
Page 16
ROMANIA (continued)
Modes of supply:
1)
Cross-border supply
Consumption abroad
3)
Services auxiliary to
insurance (including
broking and agency
services)
(8140)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
d)
2)
Additional commitments
l)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
The establishment of companies and
intermediation agencies with foreign
participation is allowed only in partnership
with Romanian legal or natural persons
3)
None
4)
None, only as indicated in the horizontal
measures section
Intermediation agencies are not allowed to
conclude insurance contracts for foreign
insurance companies with Romanian legal
or natural persons or for their goods
W
-....J
-....J
The representatives of foreign insurance
companies and of the associations of
foreign insurers have the right to conclude
only the foUowing types of insurance
contracts:
4)
-
"-----
a)
insurance and reinsurance contracts
with legal and natural foreign persons
or for their goods;
b)
reinsurance contracts with Romanian
insurance companies,
insurance-reinsurance companies and
reinsurance companies
Unbound, except as indicated in the
horizontal measures section
Presence of natural persons
~-
ROMANIA (continued)
Modes of supply:
I)
Cross-border supply
2)
3)
Consumption abroad
Commercial presence
Presence of natural persons
4)
-
Sector or subsector
B.
Banking and other
financial services
(excluding insurance)
a)
Acceptance of deposits
and other reimbursable
funds from the public
(81115-81119)
w
Additional commitments
Limitations on national treatment
Limitations on market access
l)
None
1)
None
2)
The opening of accounts and utilization of
foreign currency resources abroad by
natural and legal Romanian persons is
allowed only with prior permission from
the National Bank of Romania
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
l)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
-..J
00
b)
Lending of all types
(8113)
-
,
-
GATS/SCI72
ROMANIA (continued)
Page 18
1)
Modes of supply:
Cross-border supply
Sector or subsector
d)
w
-....j
U)
e)
All payments and money
transmission services
(81339)
Guarantees and
commitments
(8199)
----
----
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
I)
Allowed only through a resident bank
I)
None
2)
The opening of accounts and utilization of
foreign currency resources abroad by
natural and legal Romanian persons is
allowed only with prior permission from
the National Bank of Romania
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
I)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
I
--
ROMANIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
h)
k)
w
00
Money broking
(81339)
2)
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Limitations on market access
l)
None
I)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
Consultancy and other
auxiliary services
I)
None
I)
None
(8131)
2)
None
2)
None
3)
None
3)
None
4)
Unbound, except as indicated in the
horizontal measures section
4)
None, only as indicated in the horizontal
measures section
Presence of natural persons
Additional commitments
o
Additional information for transparency and clarification purposes:
Normal prudential measures are applied to financial institutions, with a view 10 protecting the investors, depositors and to ensure the stability of the fmancial
system. The establishment and the activity of banking companies are subject to an authorization from the National Bank of Romania. There are no restrictions for
the establishment of a foreign bank in Romania, other than the observance of prudential measures set up by the National Bank of Romania. After the establishment
of a commercial presence, the financial institutions have to carry out their transactions with residents only in the national currency of Romania.
GATS/SC/73
Page 4
SAINT LUCIA
Modes of supply:
l)
Cross-border supply
FINANCIAL SERVICES
A.
All Insurance and
Insurance-tabled Services
c)
Reinsurance
(CPC 81299)
None
l)
None
2)
None
2)
None
3)
Only corporate entities are allowed to
conduct insurance business in SI. Lucia.
All such entities must first be registered by
the Registrar of Insurance
3)
None
4)
Subject to horizontal limitations concerning
Work Permit Regulations
4)
None
w
Commercial presence
Limitations on national treatment
I)
00
-----
3)
Consumption abroad
Limitations on market access
Sector or subsector
7.
2)
4)
Presence of natural persons
Additional commitments
38)
ST. VINCENT AND THE GRENADINES
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Reinsurance
w
2)
-~
----~
1)
None
1)
None
2)
None
2)
None
3)
Subject to Insurance and Insurance
Premium Acts, Commercial Code,
Exchange Control Act
3)
Withholding Tax
4)
Subject to Work Permits and Immigration
Regulations as indicated in horizontal
commitments.
4)
None
~---~----~
~~
--
-
-
-
00
w
GATSISC174
Page 5
384
GATSISC176
Page 24
SINGAPORE
Modes of supply:
l)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Financial Services, including
insurance:
A.
Insurance and InsuranceRelated Services
The commitments on financial services are made in accordance with the General Agreement on Trade in Services (GATS) and the Annex on Financial
Services. All the specific commitments in this sector are subject to entry requirements, domestic laws, guidelines, rules and regulations, terms and conditions
of the Monetary Authority of Singapore (MAS) or any other relevant authority or body in Singapore, as the case may be, which are not inconsistent with the
commitments herein.
a)
w
00
U1
Life insurance services
including annuity,
disability income,
accident and health
insurance services
l)
Unbound
l)
Unbound
2)
None
2)
None
3)
Unbound for foreign acquisition of equity
stakes in locally-owned insurance
companies. Unbound for issuance of new
insurance licences and establishment of
new representative offices.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
SINGAPORE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
b)
Non-life insurance
services including
disability income,
accident and health
insurance and contracts
of fidelity bonds,
performance bonds or
similar contracts of
guarantee
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
l)
Unbound
2)
None except for compulsory insurance of
Motor Third Party Liability and
Workmen's Compensation which can be
purchased only from licensed insurance
companies in Singapore
2)
None
3)
Unbound for foreign acquisition of equity
stakes in locally-owned insurance
companies. Unbound for issuance of new
insurance licences and establishment of
new representative offices.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
None
l)
None
2)
None
2)
None
3)
Reinsurance companies can establish as
branches or subsidiaries. Existing
representative offices must upgrade to
branches or subsidiaries, subject to MAS'
criteria for upgrading, by 1 January 1997.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
4)
Presence of natural persons
Additional commitments
,
w
00
en
c)
Reinsurance and
retrocession
I
---
GATSISC176
Page 25
GATS/SC176
Page 26
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
w
00
......
e)
Insurance intermediation
comprising broking and
agency services
Services auxiliary to
insurance comprising
actuarial, loss adjustors,
average adjustors and
consultancy services
3)
Consumption abroad
Limitations on market access
Sector or subsector
d)
2)
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Agents are not allowed to act for
unregistered insurers. With the exception
of reinsurance risks and risks insured by
protection and indemnity clubs, brokers can
only place domestic risks outside Singapore
with the approval of MAS.
2)
None
3)
Unbound
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
None
1)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
4)
Presence of natural persons
Additional commitments
SINGAPORE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
2)
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Presence of natural persons
Additional commitments
Banking and Other
Financial Services
The commitments on financial services are made in accordance with the GATS and the Annex on Financial Services. All the specific commitments in this
sector are subject to entry requirements, domestic laws, guidelines, rules and regulations, terms and conditions of MAS or any other relevant authority or
body in Singapore, as the case may be, which are not inconsistent with the commitments herein.
a)
w
00
00
Acceptance of deposits
and other repayable
funds from the public
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Only institutions approved as banks,
merchant banks and finance companies can
accept deposits
3)
Commercial banks
Where a foreign financial institution is
subject to legislation in its home country
which requires that institution to confer
lower priority to depositors of its foreign
offices vis-a.-vis the home country
depositors in receivership or winding up
proceedings, the MAS may exercise
appropriate differentiated measures against
that foreign financial institution in
Singapore to safeguard the interest of the
Singapore office's depositors
I
Foreign banks can operate from only one
office (excluding back-office operations).
They cannot establish off-premise ATMs
and ATM networking and new
sub-branches. Provision of all other
electronic banking services require MAS'
prior approval.
Location of banks and relocation of banks
and sub-branches require prior approval
from MAS
Establishment and operation of foreign
banks, merchant banks and finance
companies are also subject to the
limitations listed under activities B(a) to
B(I) and the following limitations:
GATS/SC176
Page 27
GATS/SCI76
Page 28
SINGAPORE (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
Commercial banks
No new full and restricted banks.
Unbound for new offshore banks.
Representative offices cannot conduct
business or act as agents.
A single/related group of foreign
shareholders can only hold up to 5 per cent
of a local bank's shares. Aggregate
foreign ownership of each domestic bank's
shares has been increased from 20 per cent
to 40 per cent.
w
00
lO
3)
Commercial presence
4)
Limitations on national treatment
Banks, with MAS' approval, can operate
foreign currency savings accounts only for
non-residents
Restricted banks can only accept foreign
currency fixed deposits from and operate
current accounts for residents and
non-residents. For Singapore dollar
deposits, they can only accept fixed
deposits of S$250,OOO or more per deposit.
Offshore banks can accept foreign currency
fixed deposits from residents and
non-residents. For Singapore dollar
deposits, they can only accept fixed
deposits of S$250,OOO or more per deposit
from non-residents.
Merchant banks
Merchant banks
Unbound for establishment of new
merchant banks
Merchant banks can operate from only one
office (excluding back-office operations).
Location and relocation of merchant banks
require MAS' prior approval.
Presence of natural persons
Additional commitments
SINGAPORE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsedor
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
Merchant banks can, with MAS'
authorization, ~aise foreign currency funds
from residents and non-residents, operate
foreign currency savings accounts for
non-residents and raise Singapore dollar
funds from their shareholders and
companies controlled by their shareholders,
banks, other merchant banks and finance
companies
W
I.D
o
b)
Lending of all types
including consumer
credit, mortgage credit,
factoring and financing
of commercial
transaction
---
Finance ComQanies
Finance ComQanies
No new finance companies. Unbound for
foreign acquisition of shares in finance
companies and transfer or sale of foreign
shareholdings in existing finance companies
to foreign parties. All finance companies,
local and foreign-owned, can only conduct
Singapore dollar business.
Location of fmance companies and
relocation of sub-branches require MAS'
prior approval. Foreign-owned finance
companies cannot establish off-premise
ATMs, ATM networking and new
sub-branches.
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
Unbound
I)
None
2)
None
2)
None
3)
i)
3)
Each offshore bank's lending in Singapore
dollars to residents shall not exceed
S$IOOm in aggregate
Provision of credit and charge card
services require MAS' prior approval
--
GATSISC176
Page 29
GATSISC176
Page 30
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Financial leasing
W
I.D
d)
Payment and money
transmission services,
including credit, charge
and debit cards,
travellers cheques and
bankers drafts
~-
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Limitations on market access
ii)
c)
2)
Offshore banks should not use their related
merchant banks to circumvent the S$I00m
lending limit
Singapore dollar loans, by local and
foreign-owned financial institutions, to
non-residents, non-resident controlled
companies and to residents for use
outside Singapore require MAS' prior
approval
Unbound for establishment of off-premise
cash dispensing machines for credit and
charge cards
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
None
1)
None
2)
None
2)
None
3)
None except as indicated for activity B(b)
above
3)
None except as indicated for activity B(b)
above
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
I)
Unbound
I)
Unbound
2)
None
2)
None
3)
Remittance shops, except where the
remittance business is conducted by banks
and merchant banks, are required to be
majority owned by Singapore citizens and
are required to be licensed by MAS
3)
None
Presence of natural persons
Additional commitments
SINGAPORE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Bankers' drafts can only be issued by
banks
Only the following can issue stored value
cards:a bank in Singapore licensed by MAS; and
a juridical person for the payment only of
goods or services or both goods and
services provided by that person
The limitations indicated in B(b)(3) above
also apply to the activities listed in B(d)
w
~
IV
4)
e)
Guarantees and
commitments
Unbound except as indicated in the
horizontal section
4)
I)
None
1)
None
2)
None
2)
None
3)
None except for the limitations indicated in
activity A(b) for insurance companies
providing contracts of fidelity bonds,
performance bonds or similar contracts of
guarantee, and B(b)(3ii) above
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
Unbound
I
-
GATSISC176
Page 32
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
f)
-
w
lO
w
Trading for own account
or for account of
customers, whether on
an exchange, in an
over-the-counter market
or otherwise, the
following:money market
instruments (including
cheques, bills,
certificates of deposits)
-
foreign exchange
-
derivative products,
including financial
futures and options
-
exchange rate and
interest rate instruments,
including swaps and
forward rate agreements
-
transferable securities
-
other negotiable
instruments and financial
assets, including bullion
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Additional commitments
Limitations on national treatment
1)
Unbound except for trading in products
listed in B(f) for own account. Trading in
money market instruments, foreign
exchange, as well as exchange rate and
interest rate instruments can be conducted
with financial institutions only.
1)
None
2)
None
2)
None
3)
Banks and merchant banks are required to
set up separate subsidiaries to trade
financial futures for customers
3)
None except as indicated for activity
above
Presence of natural persons
B~b)
Financial futures brokers can establish as
branches or subsidiaries. They can trade
in existing fmancial futures products.
Unbound for trading of new financial
futures products.
The offer of derivative products by both
local and foreign owned fmancial
institutions under MAS' supervision are
subject to MAS' prior approval and
conditions which include the following:-
-
the product has been offered by the
financial institution in other
internationally reputable financial
I
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
centres and the supervisory authorities
of those centres agree to the offer of
such products in their markets;
the financial institution's parent
supervisor and its head office must be
aware and have no objection to the
offer of such products in the
Singapore branch/subsidiary, and
MAS is satisfied that the fmancial
institution has and continues to have
the financial strength and adequate
internal controls to trade in these
products
v..J
\.0
.l;:>
i
I
Money changers, except where the
moneychanging business is conducted by
banks and merchant banks, are required to
be majority owned by Singapore citizens
and are required to be licensed by MAS
g)
Participation in issues of
all kinds of securities,
including underwriting
and placement as agent
and provision of service
related to such issues
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
Unbound except for participation in issues
of securities for own account, and
underwriting and placement of securities
through stock broking companies, banks or
merchant banks in Singapore
1)
None
2)
None
2)
None
GATS/SC176
SINGAPORE (continued)
Modes of supply:
Page 34
1)
Cross-border supply
2)
Consumption abroad
3)
Limitations on market access
Sector or subsector
3)
Foreign stockbroking companies can
establish only as non-members of the Stock
Exchange of Singapore (SES).
Representative offices cannot conduct
business or act as agents. Unbound for
new membership on SES and for foreign
acquisition of new and existing equity
interests in SES member companies.
Commercial presence
Limitations on national treatment
I
3)
None except as indicated for activity B(b)
above
4)
Unbound
Unbound for new international
memberships. International members can
deal in foreign securities and SES-quoted
securities with non-residents and resident
companies which are substantially or
beneficially owned by non-residents. They
can also deal with residents in foreign
currency denominated securities quoted on
SES. For Singapore dollar denominated
securities quoted on SES, they can deal
with residents only for transactions above
SS5m each.
W
\.0
\J1
Banks' and merchant banks' membership
on SES must be held through subsidiaries
Unbound for new primary and registered
dealers of Singapore Government Securities
4)
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
h)
i)
lAJ
LD
Cl'
Money broking
Asset management, such
as cash or portfolio
management, all fonns
of collective investment
management, pension
fund management,
custodi~ depository and
trust services
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Unbound for new money brokers
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
I)
Unbound
1)
Unbound
2)
None
2)
None
3)
Both asset management companies and
custodial depositories, with MAS'
approval; and trust services companies can
establish as branches or subsidiaries.
Unbound for custodial depository services
for scripless securities. The Central
Depositary Pte Ltd is authorized to provide
securities custodial depository services
under the scripless trading system.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
4)
Presence of natural persons
Additional commitments
GATS/SCI16
Page 36
SINGAPORE (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
j)
Settlement and clearing
services for fmancial
assets, including
securities, derivative
products and other
negotiable instruments
W
\0
Advisory and other
auxiliary financial
services, including credit
reference and analysis,
investment and portfolio
research and advice,
advice on acquisitions
and on corporate
restructuring and strategy
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Unbound. The settlement and clearing
services for securities, fmancial futures and
Singapore dollar cheques and interbank
funds transfer are provided by the Stock
Exchange of Singapore, the Singapore
International Monetary Exchange and
Banking Computer Services Pte Ltd,
respectively.
3)
Unbound
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
1)
Commercial presence is required for
provision of investment and portfolio
research and advice to the public
1)
None
2)
None
2)
None
3)
Investment advisers can establish as
branches, subsidiaries or representative
offices. Representative offices cannot
conduct business or act as agents.
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
""
k)
2)
--
4)
Presence of natural persons
Additional commitments
SINGAPORE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
I)
w
\.0
00
Provision and transfer of
financial information,
and financial data
processing and related
software by providers of
other financial services
2)
3)
Consumption abroad
LImitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
I)
Unbound
2)
Unbound
2)
Unbound
3)
MAS' approval is required and subject to
domestic laws on protection of
confidentiality of information of customers
of banks and merchant banks
3)
None
4)
Unbound except as indicated in the
horizontal section
4)
Unbound
4)
Presence of natural persons
Additional commitments
GATs/scn7
Page 24
SLOVAK REPUBLIC
Modes of supply:
1)
Sector or subsector
7.
Cross-border supply
1
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
1AddJtlonal commitments
FINANCIAL SERVICES
Measures applicable to all sectors in fmancial services:
w
~
~
1)
Commitments in this Chapter are based on the Agreement on Trade in Services, the Annex on Financial Services and the Understanding on Commitments in
Financial Services.
2)
Market access commitments with respect to the "cross border supply" and "consumption abroad" are bound to the extent of the obligations in
paragraphs 3 and 4 of Market Access of the Understanding subject to limitations listed below in individual sectors.
3)
The purchase or acquisition of fmancial services by public entities of the Slovak Republic is governed in this Schedule by Article XIII of the Agreement.
4)
The admission to the market of new fmancial services and instruments may be subject to the existence of, and consistency with the domestic regulatory
framework.
5)
The commitments on presence of natural persons are bound according to the general limitations applicable to all sectors in this schedule (Part I).
6)
Otherwise, the commitments in this Chapter are subject to the general conditions or limitations applicable to all sectors in this schedule.
A.
All insurance and insurance-related services (CPC 812)
The following insurance services are provided by exclusive suppliers:
Compulsory motor third party liability insurance, compulsory air transport insurance, the liability insurance of employer against injury or occupational disease
have to be effected through the SlOVak Insurance Company. The basic health insurance and pension fund schemes are confmed to the General Health
Company. These exclusive service suppliers act in a manner consistent with obligations under Article II of the GATT and specific commitments.
SLOVAK REPUBLIC (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
a)
Life insurance
(CPC 8121)
b)
Non-life insurance
(CPC 8'129)
c) .
Reinsurance and
retrocession
(CPC 81299)
d)
2)
3)
Consumption abroad
Limitations on nBtlonal treatment
Limitations on market access
1)
None other than:
Commercial presence
1)
None
2)
None
4)
Presence of natural persons
Additional commitments
Commercial presence is required for
supply of:
-
Insurance intermediation
(CPC 8140)
~
o
o
-
2)
the life insurance of persons with
permanent residence in the Slovak
Republic,
the insurance of property on the
territory of the Slovak Republic,
the insurance of liability for loss or
damage caused by the activity of
natural persons and juridical persons
on the territory of the Slovak
Republic,
air and maritime transport insurance,
covering goods, aircraft, hull and
liability .
Insurance services covered by mode (1)
except insurance of air and maritime
transport, covering goods, aircraft, hull
and liability above may not be purchased
abroad
!
GATS/SCI77
Page 26
SLOVAK REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
3)
o
Consumption abroad
3)
License is required for provision of
insurance services. Foreign national may
establish an insurance company with the
seat in the Slovak Republic in the fonn of
a joint stock company or may conduct
insurance business through their
subsidiaries with registered office in the
Slovak Republic under the general
conditions established in the Law on
Insurance. Insurance business means
insurance activity including brokerage and
reinsurance activity.
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Sector or subsector
~
2)
3)
Presence of natural persons
Additional commitments
The majority of the management board of
an insurance company has to be domiciled
in the Slovak Republic
Intermediation activity aimed at the
conclusion of insurance contract between
third party and insurance company may be
provided by natural or juridical person only
domiciled in the Slovak Republic for the
benefit of the insurance company having
the license of the Insurance Supervisory
Authority.
--
SLOVAK REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Intennediation contract aimed at conclusion
of insurance contract by third party with
insurance company may be concluded by
domestic or foreign insurance company
only on the basis of license granted by the
Insurance Supervisory Authority.
The financial resources of specific
insurance funds of licensed insurance
operators derived from insuring or
reinsuring policy holders with residence or
registered office in the Slovak Republic
must be deposited in a resident bank in the
Slovak Republic and may not be
transferred abroad.
~
o
rv
4)
I
Unbound except as indicated in horizontal
section
4)
Unbound except as indicated in horizontal
section
Presence of natural persons
Additional commitments
GATs/se177
SLOV AK REPUBLIC (continued)
Modes of supply:
1)
Page 28
Cross-border supply
Sector or subsector
B.
Banking and Other
Financial Services
a)
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 CPC 81119)
b)
Lending of all types
(CPC 8113)
d)
All payments and money
transmission services
(CPC 81339)
~
o
w
2)
Consumption abroad
3)
Limitations on market access
I), 2)
Limitations on national treatment
I), 2)
i)
Deposit services are confmed to the
banks only
ii)
Only authorized domestic banks,
branches of foreign banks and persons
possessing, a foreign exchange license
may trade in foreign exchange assets
Commercial presence
4)
Presence of natural persons
Additional commitments
None
iii) Non-cash cross-border payments may
be effected only by authorized banks
I
and branches of foreign banks
e)
f)
Guarantees and
commitments
(CPC 81199)
Trading for own account
or for account of
customers, whether on
an exchange, in an overthe counter market or
otherwise as follows:
iv) Foreign exchange licenses issued by
the National Bank of Slovakia is
required for:
a)
b)
c)
d)
opening an account abroad by a
Slovak non-bank resident
capital payments abroad
obtaining fmancial credit from a
foreign exchange non-resident
export and import of Slovak
currency and securities
denominated in this currency.
---
I
SLOVAK REPUBLIC (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
(i)
v)
-/'>
4)
Limitations on national treatment
Foreign exchange assets are required
to be deposited with an authorized
domestic bank or branch of a foreign
bank.
Banking services may be provided only by
established banks duly authorized by The
National Bank of Slovakia in agreement
with the Ministry of Finance. Private
banks may be established as joint stock
companies only. With the authorization of
The National Bank of Slovakia, ac$ing in
agreement with -Ministry of Finance,
foreign banks may establish their branches
in the Slovak Republic or participate
through their capital share in already
established banks.
3)
A minimum of one-third of the Board of
Directors must be citizens of the Slovak
Republic
4)
Unbound except as indicated in horizontal
section
4)
Unbound except as indicated in horizontal
section
(iii) exchange rate and
..p..
Commercial presence
3)
(CPC 81333)
o
3)
Consumption abroad
Limitations on market access
money market
instruments (cheque,
bills, certificates,
deposits, etc.)
(CPC 81339)
(ii) foreign exchange
2)
interest rate
instruments, etc.
including products
such as swaps,
forward rate
agreements, etc.
(CPC 81339)
Presence of natural persons
Additional commitments
GATs/se177
Page 30
SLOVAK REPUBLIC (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Transferable securities
(CPC 81321)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations OD DBtioDal treatment
1)
Unbound
1)
Unbound
2)
None
2)
None
3)
Securities may be traded publicly only if
relevant authorization has been granted and
prospectus covering the security bas been
approved by the Ministry of Finance. The
business of security dealer, stockbroker or
organizer of an over-the-counter market is
subject to approval of the Ministry of
Finance.
Settlement and clearing services for aU
kinds of payments are regulated by the
central bank.
3)
None
Unbound except as indicated in horizontal
section
4)
Presence of natural persons
Additional commitments
I
g)
~
o
Ion
Participation in issues of
all kinds of securities
(CPC 8132)
i)
Asset management
(CPC 8119, CPC 81323)
j)
Settlement and clearing
services for financial
assets
(CPC 81319,
CPC 81339)
4)
--
I
I
Unbound except as indicated in horizontal
section
406
GATS/SC178
Page 18
SOUTH AFRICA
Modes of supply:
1)
Cross-border supply
Sector or subsector
~
7.
FINANCIAL SERVICES
A.
All Insurance and
Insurance Related
Services
a)
Direct life insurance
(CPC 8121 +)
b)
Direct non-life insurance
(CPC 8129 +)
c)
Reinsurance
(CPC 81299 +)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
I)
Unbound
1)
Unbound
2)
None
2)
None
3)
To transact business in South Africa,
insurers (foreign and domestically
controlled) must be incorporated as a
public company in terms of the Companies
Act
3)
None
4)
Unbound except as indicated in the
horizontal section
o
-...J
To ensure that competition is not impaired,
the acquisition of shares or any other
interest (by a resident or non-resident) in a
registered insurer resulting in the holding
of 25 per cent or more of the value of all
the shares or other interest in that business,
requires the written approval of the
Registrar of Insurance
4)
Unbound except as indicated in the
horizontal section, and that the chairman,
public officer and majority of directors
must be resident in South Africa
4)
Presence of natural persons
Additional commitments
SOUTH AFRICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
Banking and Other
Financial Services
(Excluding Insurance)
a)
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 to 81119)
b)
~
a
co
Lending of all types,
including, inter alia,
consumer credit,
mortgage credit,
factoring and financing
of commercial
transactions
(CPC 8113)
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Corporate membership of fmancial
exchanges is unrestricted, except in the
case of the Johannesburg Stock Exchange
3)
None
4)
Presence of natural persons
Additional commitments
No bank or controlling company
(domestically or foreign controlled) may
allot or issue any of its shares to a person
to the extent that the total nominal value of
such shares exceeds in total 49 per cent of
the total nominal value of all the issued
vote-bearing shares in the bank or the
controlling company
I
i
i
!
c)
Financial leasing
(CPC 8112)
--
GATSISC178
Page 20
SOUTH AFRICA (continued)
Modes of supply:
I)
Sector or subsector
~
a
'.0
Cross-border supply
2)
Consumption abroad
Limitations on market access
The Minister of Finance may, however,
grant permission to a bank or controlling
company to issue more than 49 per cent of
its shares to such a person, provided that
competition is not impaired. This
restriction does not apply to the allotment
or issuing of shares in a bank or a
controlling company registered in respect
of that bank, or another bank or an
institution which has been approved by the
Registrar and which conducts business of a
bank in a country other than South Africa.
d)
All payments and money
transmission services,
including credit, charge
and debit cards,
travellers cheques and
bank drafts
(CPC 81339 +)
e)
Guarantees and
commitments
(CPC 81199 +)
f)
Trading for own account
or for account of
customers the following:
Foreign banks wishing to obtain a
controlling interest in a local bank are
required to establish a domestic public
company.
(i)
No person (domestic or foreign) shall
conduct the business of a bank unless such
person is a public company, and is
registered in terms of the Banks Act.
money market
instruments
(ii) foreign exchange
(iii) derivative products
(iv) exchange rate and
interest rate
instruments
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
SOUTH AFRICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
(v) other negotiable
instruments, but
excluding
transferable
securities
(CPC 81339 +)
h)
Money broking
(CPC 81339 +)
2)
3)
Consumption abroad
Limitations on market access
4)
Unbound except as indicated in the
horizontal section, and that membership of
the financial exchanges is, in the case of
natural persons, restricted to South African
citizens
I)
Unbound
Unbound
None
Unbound except as indicated in the
horizontal section
2)
3)
4)
Commercial presence
Limitations on national treatment
4)
Unbound except as indicated in the
horizontal section
I)
Unbound
Unbound
None
Unbound except as indicated in the
horizontal section
2)
3)
4)
- ---
~
o
4)
Presence of natural persons
Additional commitments
GATSISC/82
Page 30
SWEDEN
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
------
7.
4)
Presence of natural persons
rAdditional commitments
FINANCIAL SERVICES
Sweden is undertaking commitments in fmancial services in accordance with the Understanding on Commitments in Financial Services (Understanding) and
subject to the Ministerial Decision on Financial Services as well as the Second Annex on Financial Services.
Subject to conditions and qualifications listed below, market access commitments are bound to the extent of the obligations in the Understanding.
For the purpose of scheduling commitments in accordance with the Understanding the following applies:
~
->
It is understood that a commitment to the obligations set out in paragraph 3 of the Understanding implies a right for a non-resident supplier to, in the territory
of Sweden, actively promote a service, approach a resident purchaser, and to deliver the service. However, a commitment to an obligation under that
paragraph does not imply that the supplier has any right to have a permanent physical representation in Sweden. In addition, it is understood that a
commitment to the obligations set out in paragraph 4 implies that a purchaser in the territory of Sweden has the right to approach a non-resident service
supplier, to conclude an agreement and to have the service, including any remedies connected to the service, delivered in the territory of Sweden, without any
physical movement of the purchaser. It is also understood that limitations on the commitments to the obligations under paragraph 3, do not affect the right of
service supplier to deliver a service, and the rights of a purchaser to have a service delivered, wherever a commitment to an obligation under paragraph 4 is
applicable.
Moreover, it is understood that non-<iiscriminatory limitations on juridical form for incorporation in Sweden of fmancial service suppliers do not constitute a
restriction on commercial presence, nor do non-<iiscriminatory residency requirements.
Furthermore, it is understood that non-<iiscriminatory authorization requirements do not constitute limitations on the supply of fmancial services by
non-resident suppliers.
SWEDEN (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
A.
Insurance
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
I)
The supply of direct insurance is allowed
only through an insurance service supplier
authorized in Sweden, provided that the
two insurance service suppliers belong to
the same group of companies or have an
agreement of co-operation between them
1)
None
2)
None
2)
None
3)
Insurance undertakings not incorporated in
Sweden may establish a commercial
presence only through a resident agent
3)
Insurance undertakings not incorporated in
Sweden are required to deposit assets for
agencies established in Sweden
.p.
Non-life insurance undertakings not
incorporated in Sweden conducting
business in Sweden are - instead of being
taxed according to the net result - subject
to taxation based on the premium income
from direct insurance operations
Insurance broking undertakings not
incorporated in Sweden may establish a
commercial presence only through a branch
~
f'l
A founder of an insurance company shall
be a natural person resident in Sweden or a
legal entity incorporated in Sweden
4)
Modes of delivery (defmitions):
None
4)
None
I) Supply of financial services by non-resident suppliers 2) Purchase by residents in the territory of another Member
3) Commercial presence
4) Temporary entry of personnel
-~
GATS/SC/82
Page 32
SWEDEN (continued)
Modes of supply:
1)
Cross-border supply
Banking and other
financial services
(excluding insurance)
Consumption abroad
3)
Limitations on market access
Sector or subsector
B.
2)
Commercial presence
4)
Limitations on national treatment
1)
None
1)
None
2)
Custody, depository and settlement services
reo securities registered in the (Swedish)
Securities Register Centre
(Virdepapperscentralen VPC SB) can only
be supplied by suppliers who are account
operating institutions. A prerequisite is that
the supplier is supervised by the (Swedish)
Financial Supervisory Authority.
2)
Account operating institutions in the VPC
register who have not got a clearing
account with the central bank (Riksbanken)
have to make a certain deposit
3)
Undertakings not incorporated in Sweden
may establish a commercial presence only
through a branch or, in case of banks, a
representative office
3)
A founder of a banking company shall be a
natural person resident in Sweden or a
foreign bank. A founder of a savings bank
shall be a natural person resident in
Sweden.
4:>
w
Presence of natural persons
Additional commitments
A branch of a fund management company
not incorporated in Sweden may not
operate certain collective investment funds,
where the investor enjoys certain tax
benefits (Allemansfonder).
4)
None
4)
I
I
None
Mono~ly rights:
Certain payments to and from certain governmental entities shall be transmitted through the Swedish Postal Giro system (Postgirot).
Modes of delivery (definitions): I) Supply of financial services by non-resident suppliers 2) Purchase by residents in the territory of another Member
3) Commercial presence
4) Temporary entry of personnel
I
414
SWITZERLAND
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
FINANCIAL SERVICES
Commitments on banking, securities and insurance services in accordance with the "Understanding on Commitments in Financial Services" (hereafter
"Understanding") and subject to limitations and conditions as contained in Part I (horizontal commitments) and as listed below. It is understood that paragrap~
8.4 of the "Understanding" does not impose any obligation to allow non-resident rmancial services suppliers to solicit business.
Monopoly rights as indicated in paragraph
D.l of the "Understanding": a public
monopoly on fire and natural damage
insurance on buildings exists in 19 cantons
(Zurich, Berne, Lucerne, Nidwalden,
Glacis, Zoug, Fribourg, Soleure, DaleVille, Bale-Campagne, Shaffbouse,
Argovie, St-Gall, Grisons, Appenzell
Rhodes Exterieures, Tburgovie, Vaud,
NeucMtel, Jura)
Insurance and Insurance
Related Services
.po
->
U1
-
-
------.~
L-_
---
-
GATS/Se/S3
Page 35
GATS/SC/83
Page 36
SWITZERLAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
2)
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
l)
Commercial presence
Transactions as indicated in paragraph B.3
of the -Understanding-: The underwriting
of aircraft liability insurance requires
commercial presence in Switzerland
l)
Transactions as indicated in paragraph B.4
of the -Understanding-: The underwriting
of aircraft liability insurance requires
commercial presence in Switzerland
2)
Acquisition of real estate by foreigners is
limited as indicated in Part I; in addition
the following specific restrictions apply:
Foreign or foreign controlled insurance
companies are authorized to acquire
property that serves as a security for
mongage loans in case of bankruptcy or
liquidation on condition that the acquirer
sells the property within two years from
date of acquisition; foreign or foreign
controlled insurance companies are
authorized to invest in real estate, provided
the total value of the buyer's property does
not exceed the technical reserves necessary
for the company's Swiss activities,
according to Swiss law.
None
Additional commitments
I
SWITZERLAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
.t:>
......,
4)
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
3)
Commercial presence
Commercial presence does not cover the
setting up of representative offices; the
legal form of a joint-stock company or
mutual association is required for the
provision of insurance services; to be
recognized for participation in the basic
health insurance scheme, health insurance
suppliers must be organized in the form of
mutual association (societe cooperative,
associationlGenossenschaft, Verein) or
foundation (fondationlStiftung); no new
health insurance supplier shall be
recognized for participation in the basic
health scheme until December 31st 1994;
to be recognized for participation in the
statutory pension funds scheme
(prevoyance professionnellel
Berufsvorsorge), pension funds must be
organized in the form of mutual
associations (societe cooperativel
Genossenschaft) or foundations
(fondationlSti ftung)
3)
Unbound except as indicated in Part I
4)
Additional commitments
Before setting up a commercial presence to
provide specific classes of insurance
services, a foreign insurer must have been
authorized to operate in the same classes of
insurance in its country of origin for at
least three years; acquisition of real estate
by foreigners is limited as indicated in
Part I. In addition the following specific
restrictions apply: Foreign or foreigncontrolled insurance companies are
authorized to acquire property that serves
as a security for mortgage loans in case of
bankruptcy or liquidation on condition that
the acquirer sells the property within two
years from date of acquisition; foreign or
foreign-controlled insurance companies are
authorized to invest in real estate, provided
the total value of the buyer's property does
not exceed the technical reserves necessary
for the company's Swiss activities,
according to Swiss law
,
Unbound except as indicated in Part I
~~--~
GATS/SC/83
Page 37
GATs/se/83
Page 38
SWITZERLAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
4)
Limitations on national treatment
Limitations on market access
Banking and Other
Financial Services
(excluding insurance)
Commercial presence
Presence of natural persons
Additional commitments
Monopoly rights as indicated in paragraph
B.I of the "Understanding": Two
mortgage bonds issuance institutes have
been granted a monopoly for the issuance
of specific mortgage bonds ("Schweizer
Pfandbrief"); only Swiss cantonal banks
and Swiss-controlled banks whose
mortgage loans amount to at least 60 per
cent of the balance sheet can be members
of the institutes; the issue of other
mortgage-backed bonds is not affected by
this regulation
I
,
II)
:t
00
Membership in stock and options and
futures exchanges requires a commercial
presence in Switzerland; participation in
settlement and clearing networks is subject
to a commercial presence in Switzerland;
mutual funds (collective investments) have
to be lead-marketed through banks having a
commercial presence in Switzerland; Swiss
franc denominated issues can be lead
managed only by a bank having a
commercial presence (registered office or
branch office) in Switzerland
I)
Acquisition of real estate by foreigners is
limited as indicated in Part I; in addition
the following specific restrictions apply:
Foreign or foreign controlled banks are
authorized to acquire property that serves
as a security for mortgage loans in case of
bankruptcy or liquidation on condition that
the acquirer sells the property within two
years from date of acquisition
-
--
------------
Are covered not only transactions indicated in paragraph B.3 of the "Understanding" but the whole range of banking and other financial services transactions (excluding
insurance).
SWITZERLAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
4)
Limitations on national treatment
2)
Swiss franc denominated issues can be lead
managed only by a bank having a
commercial presence (registered office or
branch office) in Switzerland
2)
None
3)
Commercial presence of foreign fmancial
institutions is subject to specific licensing
requirements relating to the name of firm,
duties towards the Swiss national bank and
regulations on fmancial institutions in the
country of origin; commercial presence
may be denied to financial institutions
whose ultimate shareholders and/or
beneficial owners are persons of a nonMember; representative offices can neither
conclude or deal business nor act as an
agent
3)
Acquisition of real estate by foreigners is
limited as indicated in Part I; in addition
the following specific restrictions apply:
Foreign or foreign controlled banks are
authorized to acquire property that serves
as a security for mortgage loans in case of
bankruptcy or liquidation on condition that
the acquired sells the property within two
years from date of acquisition
Unbound except as indicated in Part I
4)
"""
~
4)
Presence of natural persons
Additional commitments
I
I
i
Unbound except as indicated in Part I; the
majority of the management board of a
bank must be domiciled in Switzerland;
those members of the management board
not domiciled in Switzerland can only sign
collectively with another member of the
management board domiciled in
Switzerland
GATs/se/83
Page 39
420
THAILAND
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance including
reinsurance and
retrocession
a) .
Life insurance services
(CPC 81211)
3)·
Commercial presence
4)
Limitations on national treatment
1)
None
1)
None
2)
None
2)
Life insurance premium is tax deductible
up to a certain amount for holders of
policies issued by local companies
3)
a)
Market access limited to share
acquisition of existing establishments
only. Maximum foreign equity
participation limited to 25 per cent of
registered share capital.
3)
None
b)
Unbound for new licenses
~
~
Non-life insurance
services
(CPC 8129)
Consumption abroad
Limitations on market access
N
b)
2)
4)
Only senior managerial personnel,
specialists and technical assistants with the
approval of the Insurance Commissioner
4)
None
1)
Unbound except for international marine,
aviation and transit and all classes of
reinsurance
1)
Unbound
2)
None
2)
None
Presence of natural persons
Additional commitments
GATS/SC/85
Page 29
GATSISC/85
Page 30
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
-1:>0
rv
rv
3)
Consumption abroad
a)
Market access limited to share
acquisition of existing establishment
only. Maximum foreign equity
participation limited to 25 per cent of
registered share capital
b)
Unbound for new licenses
Commercial presence
4)
Limitations on national treatment
Limitations on market access
3)
d)
2)
3)
None
4)
Only senior managerial personnel,
specialists and technical assistants with the
approval of the Insurance Commissioner
4)
None
l)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Foreign equity participation not to exceed
25 per cent
3)
No limitations as long as foreign equity
participation does not exceed 25 per cent
4)
a)
Only senior managerial personnel,
specialists and technical assistants with
the approval of the Insurance
Commissioner
4)
None
b)
Unbound for individual broker and
agent
Services auxiliary to
insurance (excluding
pensio~ funding services)
Insurance broking and
agency services
(CPC 81401)
(Brokers shall not
induce, advise or do any
acts so as to cause any
person to enter into
insurance contracts with
insurers abroad, except
for reiqsurance contracts)
Presence of natural persons
Additional commitments
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
...,.
"'"
w
Average and loss
adjustment services
(CPC 81403)
Actuarial services
(CPC 81404)
Consumption abroad
3)
Limitations on market access
Sector or subsector
Insurance consultancy
services excluding
pension consulting
services
(CPC 81402)
2)
Commercial presence
4)
Limitations on national treatment
I)
None
1)
None
2)
None
2)
None
3)
None other than that indicated in the
horizontal section
3)
No limitations as long as foreign equity
participation does not exceed 49 per cent
4)
Only senior managerial personnel,
specialists and technical assistants with the
approval of the Insurance Commissioner
4)
None
I)
None
1)
None
2)
None
2)
None
3)
None other than that indicated in the
horizontal section
3)
No limitations as long as foreign equity
participation does not exceed 49 per cent
4)
Only senior managerial personnel,
specialists and technical assistants with the
approval of the Insurance Commissioner
4)
None
1)
None
1)
None
2)
None
2)
None
3)
None other than that indicated in the
horizontal section
3)
No limitations as long as foreign equity
participation does not exceed 49 per cent
Presence of natural persons
Additional commitments
I
I
GATS/SC/85
Page 31
GATSISC/85
Page 32
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
-
Sector or subsector
Limitations on national treatment
Limitations on market access
4)
Only senior managerial personnel.
4)
None
specialists and technical assistants with the
approval of the Insurance Commissioner
Services auxilim to
financial intermediation
other than to insurance
and Qension funding
services
.j:::.
N
.j:::.
Credit card services
(CPC 81133)
(Mobilizing funds from
the public is prohibited •
unless licensed under a
financial law)
Financial consultancy
services
(CPC 81332)
I)
None
1)
None
2)
None
2)
None
3)
a)
As indicated in the horizontal section
3)
No limitations as long as foreign equity
participation does not exceed 49 per cent
b)
Financial institutions must obtain prior
approval from the Bank of Thailand
4)
As indicated in the horizontal section
4)
None
I)
Unbound
1)
None
2)
None
2)
None
3)
None other than that indicated in the
horizontal section
3)
No limitations as long as foreign equity
participation does not exceed 49 per cent
4)
As indicated in the horizontal section
4)
None
Additionsl commitments
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Commercial presence
4)
Limitations on national treatment
Limitations on market access
Presence of natural persons
Additional commitments
I
Banking and other
financial services
{excluding insurance}
~
Acceptance of deposits
and other payable funds
from the public
I)
None for financial advisory and financial
data processing. Unbound for all other
services.
I)
None
Lending of all types,
including consumer
credit, mortgage credit,
factoring and financing
of commercial
transactions
2)
None for financial advisory and financial
data processing. Unbound for all other
services.
2)
None
3)
a)
3)
a)
Re~resentative
office of banks
Re~resentative
office of banks
None
None
N
<J1
Financial leasing
Payment and money
transmission services
including credit, charge
and debit cards,
travellers' cheques and
bankers drafts
b)
Foreign bank branches
I.
Bound for existing foreign bank
branches under present shareholding
structure. Unbound for new licences.
II.
ATM operations pennitted under the
following conditions only:
b)
Foreign bank branches
None for existing foreign bank
branches. Unbound for new licenses.
Guarantees and
commitments
I
I
GATS/SC/85
Page 33
GATSISC/85
Page 34
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
b)
c)
d)
money market
instruments
foreign exchange
exchange rate and
interest rate
instruments
transferable
securities
3)
Consumption abroad
Limitations on market access
Trading for own account,
or for account of
customers in the
following:
a)
2)
i)
joining ATM pools operated by Thai
banks; or
ii)
operation within own premises or
sharing the facilities with other
commercial banks in Thailand
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
III. One service-point permitted per one
foreign bank branch. No additional
branch, sub-branch, office, or
service-point allowed.
c)
Locally incorporated banks
I.
Market access limited to share
acquisition of existing banks only.
Unbound for new licenses.
II.
Maximum foreign equity participation
limited to 25 per cent of paid-up
registered capital. Combined
shareholding of an individual and
hislher related persons not to exceed
5 per cent of bank's paid-up registered
capital.
c)
Locally incorporated banks
~
N
en
Participation in issues of
all kinds of securities,
including underwriting
and placement as agents
(whether publicly or
privately) and provision
of services related to
such issues
--
No limitations for foreign participation
of up to 25 per cent of paid-up
registered capital
-
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Asset management as
follows:
- cash or portfolio
management
- collective investment
management
- custodial and
depository services
Advisory, intermediation
and other auxiliary
fmancial services
1=>0
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
III. At least three-fourths of the directors
must be Thai nationality
I
d)
International Banking Facili1Y '
I.
Licenses required from the Ministry of
Finance.
II.
Bound for the 20 International
Banking Facilities licenses granted to
foreign banks without commercial
presence in Thailand as of
March 1993
d)
International Banking Facili1Y
I
I
None for existing IBF units. Unbound
for new licenses.
I
I
I
I
N
-.J
Provision and transfer of
financial information,
and financial data
processing and related
software
I
III. BIBF will be pennitted to set up
additional branches outside Bangkok
Metropolis in 1994, subject to the
terms and conditions to be announced
I
I
IV. Not more than five BIBF's in (II) will
be pennitted to undertake full-branch
business by 1997 subject to the terms
and conditions to be announced
-
-----
IBF units pennitted to operate only tbe banking and investment banking business as specified in the Ministerial Order and Bank of Thailand Announcements issued
on 16 September 1992, and Notification of the Bank of Thailand dated 14 December 1993.
GATS/SC/85
Page 35
GATS/SC/85
Page 36
THAILAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
e)
Finance com(!anies and credit foncier
com(!anies
I.
None for representative offices
II.
Market access limited to share
acquisition of existing companies only.
Unbound for new licenses.
3)
Commercial presence
4)
Limitations on national treatment
e)
Finance com(!anies and credit foncier
companies
No limitations for foreign equity
participation of up to 25 per cent of
paid-up registered capital
III. Maximum foreign equity participation
limited to 25 per cent of paid-up
registered capital. Combined
shareholding of an individual and
hislher related persons not to exceed
10 per cent.
IV. At least three-fourths of the directors
must be Thai nationality
f)
Securities com(!anies
I.
None for representative offices
II.
Market access for securities companies
limited to share acquisition of existing
establishment only. Unbound for new
licenses.
f)
Securities companies
No limitations for foreign equity
participation of up to 49 per cent of
paid-up registered capital
Presence of natural persons
Additional commitments
THAILAND (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
III. Maximum foreign equity participation
limited to 49 per cent of paid-up
registered capital
IV. Separate licenses required for each
activity: securities brokerage.
securities dealing. investment
advisory. securities underwriting.
mutual fund management and private
fund management.
g)
Financial leasing services
Can only be provided by leasing
companies which are subject to
maximum foreign equity participation
of 49 per cent of paid-up registered
capital. or by fmance companies
which are subject to maximum foreign
equity participation of 25 per cent of
paid-up registered capital
g)
Financial leasing services
None
h)
Factoring services
Can only be provided by factoring
companies which are subject to
maximum foreign equity participation
of 49 per cent of paid-up registered
capital. or by fmance companies
which are subject to maximum foreign
equity participation of 25 per cent of
paid-up registered capital
h)
Factoring services
None
~
-.J
o
GATS/SC/85
Page 37
GATS/SC/85
Page 38
THAILAND (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on national treatment
Limitations on market access
4)
Limitations on the number of non-resident
foreign personnel per foreign bank branch:
a)
2 persons for banks operating as
representative office
b)
6 persons for banks operating as
full-licensed brancb
c)
4 persons for banks operating as IBF
brancb only
d)
8 persons for banks operating as
full-licensed and IBF branch
Commercial presence
4)
4)
Presence of natural persons
Additional commitments
None
~
v
.:>
For finance companies:
a)
2 persons for a representative office
b)
Maximum of 4 directors or specialists
pennitted for finance companies
-
GATSISC/86
TRINIDAD AND TOBAGO
Modes of supply:
I)
Page 6
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A.
Insurance
c)
Reinsurance
(81299)
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
1)
None
I)
None
2)
None
2)
None
3)
None (Registration and Certification
requirements)
3)
None
4)
None
4)
None
4)
Presence of natural persons
Additional commitments
--
-
TUNISIA
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
A)
All insurance and
insurance related services
Direct insurance
(CPC 8121-8129)
2)
3)
Consumption abroad
Limitations on market access
1)
Risks situated in Tunisia and persons
domiciled there may be insured only under
contracts concluded with resident insurance
enterprises (Insurance Code, Article 44)
4)
Commercial presence
Limitations on national treatment
l)
Presence of natural persons
Additional commitments
Unbound
----
t:>-
lJJ
lJJ
GATSISe/87
Page 7
GATs/se/8?
Page 8
TUNISIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
The air, sea and land transport of goods
for import must be insured in Tunisia
2)
None, for natural and legal persons
resident abroad
2)
Unbound
3)
a)
Commercial presence of foreign
supplier in the fonn of a subsidiary
company:
3)
Unbound
-
set up in accordance with Tunisian
law;
-
as a public limited company or mutual
society;
-
minimum capital requirements
b)
Commercial presence of the foreign
supplier in the fonn of a branch
office:
-
work with non-residents
r.:.
v
r.:.
4)
-
Unbound, expect as indicated in the
horizontal section
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
TUNISIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
C.
Reinsurance and
retrocession services
(CPC 81299)
2)
Consumption abroad
3)
Limitations on market access
1)
Prior approval of reinsurers wishing to
accept reinsurance operations from the
Tunisian market (Insurance
Code, Article 68)
Commercial presence
Limitations on national treatment
1)
Unbound
2)
Unbound
3)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
Appointment of a representative accepted
by the Minister of Finance (Insurance
Code, Article 68)
2)
3)
None
Approval prior to acceptance of
reinsurance operations
10>
U
n
Appointment of a responsible officer
accepted by the Minister of Finance
4)
Unbound, except as indicated in the
horizontal section
--
GATs/se/87
Page 9
GATs/se/8?
Page 10
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
4)
Presence of natural persons
Additional commitments
Insurance intermediation
a)
·)
b)
Insurance agents for life
insurance
(CPC 81401)
Insurance broking
Other auxiliary services
Claim assessment
(CPC 8(403)
-
1)
Tunisian nationality required (lnsurance
Code, Article 73)
l)
Unbound
2)
None
2)
Unbound
3)
Tunisian nationality required (Insurance
Code, Article 73). Approval of the
Minister of Finance
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
l)
None, except for horizontal limitations
l)
Unbound
2)
None
2)
Unbound
3)
Tunisian nationality required. Approval of
the Minister of Finance
3)
Unbound
4)
Unbound. except as indicated in the
horizontal section
4)
Unbound
l)
Tunisian nationality required (Decree
No.92-2260 of 31 December (992)
I)
Unbound
2)
None
2)
Unbound
.
-
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Financial services other
than insurance
(CPC 811)
J:>,
W
-....J
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
3)
Tunisian nationality required (Decree
No.92-2260 of 31 December 1992)
3)
Unbound
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound
1),2) None
3)
~Resident~ bank (Law No.67-51 of
7 December 1967):
-
Approval of the Ministry of Finance
-
Limited company under Tunisian law
or any other legal status accepted in
the authorization
-
Minimum capital requirements.
4)
Presence of natural persons
Additional commitments
1),2) Unbound
3)
None
I
I
---
GATs/se/8?
Page 11
GATs/se/87
Page 12
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
"Non-resident" bank (Law No.85-108 of
6 December 1985):
-
Foreign banks, branches or agencies
of foreign banks whose registered
place of business is abroad;
-
Public limited company under
Tunisian law;
-
Approval of the Ministry of Finance
3)
Commercial presence
Limitations on national treatment
Unbound
Financial leasing companies:
~
w
00
-
Approval of the Ministry of Finance;
-
Resident public limited companies
under Tunisian law;
None
-
Financial leasing companies may be
set up under Law No. 85-108 of
6 December 1985 for the promotion of
banking and finance institutions
working essentially with non-residents.
Unbound
Investment companies:
-
Authorization of the Ministry of
Finance;
4)
Presence of natural persons
Additional commitments
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
Resident public limited companies
under Tunisian law established under
one of the following two categories:
~
lJ.J
..0
a)
Closed-ended investment company
with a minimum capital requirement;
b)
Open-ended investment company with
a minimum capital requirement:
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
None
Investment companies may be set up under
Law No.85-108 of 6 December 1985 for
the promotion of banking and finance
institutions working essentially with nonresidents.
Unbound
Stock-market intermediaries
Unbound
---
3)
I
I
i
Must be approved by the Stock
Exchange Board and be Tunisian
natural or legal persons or Tunisian
banks
---
GATs/se/87
Page 13
GATs/se/87
TUNISIA (continued)
Modes of supply:
Page 14
I)
Cross-border supply
Sector or subs ector
2)
Consumption abroad
3)
Limitations on market access
4)
Unbound, except for the foreign
supervisory staff of non-resident fmancial
institutions: none
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
4)
For resident fmancial institutions, the
chainnan and managing director of a bank
established under Tunisian law must be of
Tunisian nationality; if the function of
chainnan of the board of directors and that
of managing director are separated, one of
these positions must be filled by a Tunisian
national
The chairman and managing director or the
managing director of a bank established
under Tunisian law must have resident's
status within the meaning of the exchange
regulations. The manager of the Tunisian
establishments of a foreign bank must have
resident's status in Tunisia within the
meaning of the exchange regulations.
However, special exemptions may be
granted by the Central Bank. No one may
simultaneously manage, run or have
authority to commit two banks, a bank and
a financial institution, or a bank and an
insurance company.
~
~
o
I
-
----
Additional commitments
11JNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Inter-bank (wholesale
deposit services)
(CPC 81115)
2)
3)
Consumption abroad
Limitations on market access
Commercial presence
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
None, for subsidiaries and branches of
Tunisian banks established abroad and for
Tunisian natural persons residing abroad
2)
Unbound
3)
None for resident institutions
4)
Unbound
4)
Presence of natural persons
Additional commitments
However, residents are subject to
authorization
3)
~
~
4)
None, but non-resident institutions
established in Tunisia are authorized to
receive funds from residents. Such funds
must not exceed:
-
for each non-resident institution
established in Tunisia, the subscribed
amount of its participation, out of its
own foreign-currency shareholders'
equity, in the capital of resident
enterprises
-
for all non-resident institutions
established in Tunisia as a whole, the
ceiling of 1.5 per cent of the deposits
of deposit banks
Unbound
GATSISe/S7
Page 15
GATs/se/8?
Page 16
TIJNISIA (continued)
Modes of supply:
1)
Cross-border supply
-
Sector or subsector
Other bank deposit
services
(CPC 81116)
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1)
Unbound
1)
Unbound
2)
None, however residents are subject to
authorization
2)
Unbound
3)
None, but non-resident institutions
established in Tunisia are authorized to
receive funds from residents. Such funds
must not exceed:
3)
None for resident institutions
4)
Unbound
-
for each non-resident institution
established in Tunisia, the subscribed
amount of its participation, from its
own foreign-currency shareholders'
equity, in the capital of resident
enterprises
-
for all non-resident institutions
established in Tunisia as a whole, the
ceiling of 1.5 per cent of the deposits
of deposit banks
,.,.
l'>
o
4)
Unbound
4)
Presence of natural persons
Additional commitments
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Mortgage loan services
(CPC81131)
t
w
Personnel instalment loan
services
(CPC 81132) and credit
card services
(CPC 81133)
Unit trust services
(CPC 81191)
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
I)
Unbound
I)
None
2)
Unbound
2)
Unbound
3)
None, but non-resident institutions
established in Tunisia are subject to
authorization
3)
None
4)
Unbound
4)
Unbound
1)
None, solely for non-resident financial
institutions established in Tunisia with a
ceiling of IOMDT/year for other
enterprises and subject to authorization for
private individuals
I)
None
2)
Unbound
2)
Unbound
3)
None for resident institutions
3)
None
4)
Unbound
4)
Unbound
I)
Unbound
I)
None
2)
Unbound
2)
None
3)
None
3)
None
4)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
GATSISe/87
Page 17
GATs/se/87
Page 18
TUNISIA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Property unit trust
services
(CPC 81192)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
l)
Unbound
l)
None
2)
Unbound
2)
None
3)
Unbound
3)
None
4)
Unbound
4)
Unbound
l)
Unbound
1)
None
2)
Unbound
2)
None
3)
None, but stock market intermediaries must
be natural or legal persons of Tunisian
nationality or Tunisian banks
3)
None
I
Intennediation services
(CPC 81199)
r:.
r:.
I'"
i
I
Securing broking
services
(CPC 81321)
4)
Unbound
4)
Unbound
1)
Unbound
1)
None
2)
Unbound
2)
None
3)
None, but stock market intennediaries must
be natural or legal persons of Tunisian
nationality or Tunisian banks
3)
None
4)
Unbound
4)
Unbound
-
TUNISIA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Portfolio management
services
(CPC 81323)
Loan broking services
(CPC 81331)
,.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
l)
Unbound
I)
None
2)
Unbound
2)
None
3)
None, but stock market intermediaries must
be natural or legal persons of Tunisian
nationality or Tunisian banks
3)
Unbound
4)
Unbound
4)
Unbound
I)
None
l)
None
2)
None
2)
None
3)
None
3)
None
4)
Unbound
4)
Unbound
4)
Presence of natural persons
Additional commitments
:.
'1
GATS/SC/87
Page 19
GATs/se/87
TUNISIA (continued)
Modes of supply:
Page 20
I)
Cross-border supply
Sector or subsector
Financial consultancy
services (excluding
exchange offices)
(CPC 81332)
-- - - - - - - - - - - - - - - -
I'>
I'>
J)
2)
Consumption abroad
3)
Limitations on market access
4)
Commercial presence
Limitations on national treatment
1)
None
I)
None
2)
None
2)
None
3)
None
3)
None
4)
None
4)
None
~
-
-
Presence of natural persons
Additional commitments
GATSISC/88
TURKEY
Modes of supply:
Page 20
I)
Sector or subsector
7.
Cross-border supply
2)
Consumption abroad
Limitations on market access
FINANCIAL SERVICES
Measures applicable to all sectors In financial services
Banking
Establishment of a bank which has to be in the
fonn of a joint-stock company and opening of
the first branch of a foreign bank require
authorization from the Council of Ministers.
Foreign banks wishing to establish branches or
representative offices must not be prohibited
from performing banking operations in their
country of origin or in the countries where they
operate.
j::.
1::.
....
According to the Banks Act, lending limits for
the branches of foreign banks are based on
branch capital rather than world-wide capital.
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
TURKEY (continued)
Modes of supply:
Sector or subsector
1)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
The establishment of domestic or foreign banks
as well as the first branch of a non-resident bank
are subject to the same amount of minimum
capital requirement. Acquisition or transfer of
the shares representing a ratio equal or higher
than 10,33 and 50 per cent of the capital is
subject to the authorization of the
Undersecretariat of Treasury and Foreign Trade.
Insurance
~
00
Insurance and reinsurance companies to be
established in Turkey have to be in the forms of
a joint-stock or a mutual company.
Establishment of an insurance and reinsurance
company and opening of the branch of a foreign
insurance and reinsurance company require prior
permission of the Ministry of State, to which the
Undersecretariat of Treasury and Foreign Trade
is attached. In addition to this permission,
obtaining a licence for the operation of these
enterprises is needed from the Undersecretariat
of Treasury and Foreign Trade.
Foreign insurance and reinsurance companies
operating in Turkey by opening branches must
have the branch managers residing in Turkey.
Insurance intermediaries must reside in Turkey.
Foreign commercial presence regarding services
auxiliary to insurance is permitted only for
consultancy and risk assessment services.
Foreign insurance companies wishing to establish
branches must not be prohibited from
performing insurance operations in their country
of origin or in the countries where they operate.
GATS/SC/88
Page 21
GATSISC/88
TURKEY (continued)
Modes of supply:
Sector or subsector
Page 22
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Limitations on national treatment
The establishment of domestic or foreign
insurance companies by a real or legal person is
subject to the same amount of minimum capital
requirement. Acquisition or transfer of the
shares representing a ratio equal to or higher
than 10,33 and 50 per cent of the capital is
subject to the authorization of the
Undersecretariat of Treasury and Foreign Trade.
Securities market
f::>
f::>
-D
For the establishment of capital market
institutions the permission of the Capital Market
Board is required. If banks or insurance
companies apply to the Board to form a mutual
fund, the opinion of the Undersecretariat of
Treasury and Foreign Trade has to be obtained
to finalize the applications. Creation of branches
and agencies by non-bank intermediary
institutions established in Turkey also requires
the Board's permission.
In order to participate in intermediary operations
regarding the securities to be registered by the
Capital Market Board, banks and non-bank
intermediary institutions must be established in
Turkey and have to get Authorization Certificate
from Capital Market Board in accordance with
the Capital Market Law.
Intermediary institutions and investment
corporations can only be established in the form
of a joint-stock company.
Establishment of branches and representative
offices of foreign non-bank intermediary
institutions is not permitted.
Presence of natural persons
Additional commitments
TURKEY (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
Additionally, operations of all capital market
institutions are subject to the permission of the
Board. While giving such permission, the Board
issues· Authorization Certificates· for the
activities to be carried out by each institution.
Authorized institutions
(Foreign exchange dealers)
""
V1
o
In order to engage in activities as an authorized
institution, the permission of the
Undersecretariat of Treasury and Foreign Trade
must be obtained.
,
If non-resident legal entities engage in activities
as an authorized institution by establishing a
company or participating in the existing
companies as well as by opening a branch, the
document certified by the authorities of the
country in which the company was incorporated
is required, showing that the company was in the
business of foreign exchange trading and was not
subject to any restriction on this mailer.
Authorized institutions must be incorporated in
the form of a joint-stock company.
Establishment of an authorized institution and
opening a branch of foreign legal entities
performing similar activities necessitates a
minimum capital requirement which is an equal
amount for both residents and non-residents.
GATSISCI88
Page 23
GATSISC/88
Page 24
TURKEY (continued)
Modes of supply:
I)
Cross-border supply
Insurance and insurance
related services
a)
Direct insurance
i)
Non-life
1),2) Unbound except:
a)
The hull insurance of the aeroplanes,
helicopters and ships which were
purchased through a foreign loan or
leased through a rwancial leasing
contract, can be done abroad provided
that the insurance period must be
limited to the term of either a credit or
a leasing contract;
b)
Marine liability insurance;
c)
Transponation insurance concerning
impons and expons;
d)
Individual accident and motor vehicle
insurance for people who are going to
travel abroad.
""
Ion
-
-
Consumption abroad
Limitations on market access
Sector or subsector
A.
2)
3)
Commercial presence
Limitations on national treatment
1),2) None
4)
Presence of natural persons
Additional commitments
TURKEY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
None
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
3)
Commercial presence
3)
Additional commitments
Compulsory traffic insurance for the public
sector vehicles can only be done by the
insurance companies the majority of whose
capital as well as the members of the board
of directors and the auditors must be
Turkish.
Insurance premiums paid for the workers
and other employees cannot be deducted
from coq>Orations tax, should those
personnel be insured by the branches of
foreign insurance companies.
r::.
.n
,v
ii)
Life
4)
None
4)
None
3)
None
3)
In order to deduct the insurance premiums
from gross wages for detennining the real
taxable-income, those employees must not
be insured by the branches of foreign
insurance companies.
4)
None
4)
None
GATS/SC/88
Page 2S
TURKEY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
b)
Reinsurance and
retrocession
~
U1
W
c)
d)
Insurance intermediation
Services auxiliary to
insurance
2)
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
1),2) After holding the necessary retention,
certain percentage of the value of
remaining non-life insurance premiums
collected in Turkey can be reinsured and
retroceded in Turkey or abroad. However,
if the retention amount reaches 75 per cent
of total non-life insurance premiums, all
the remaining value, without being subject
to the restriction in the first sentence, can
be reinsured and retroceded in Turkey or
abroad.
1),2) None
3)
None
3)
None
4)
None
4)
None
1),2) Insurance intermediation can only be done
on behalf of insurance companies
established in Turkey. Foreign companies
not operating in Turkey cannot sell policies
by any means.
1),2) None
3)
Insurance intermediaries may only operate
in insurance related fields.
3)
None
4)
Unbound except administrative and
technical personnel.
4)
None
4)
Presence of natural persons
Additional commitments
I
1),2) None except adjusters.
1),2) Adjusters should be Turkish citizens.
3)
None
3)
None
4)
None except adjusters.
4)
Adjusters should be Turkish citizens.
,
i
GATSISC/88
Page 25
GATS/SC/88
Page 26
TURKEY (conlinued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
B.
Banking and Other
Financial services
e)
Acceptance of deposit
f)
Lending of all types
2)
3)
Consumption abroad
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Limitations on market access
1),2) None
1),2) None
3)
No real person or legal entity other than
those authorized under the Banks Act or
under specific laws may accept deposits.
3)
None
4)
None
4)
None
1),2) None
1),2) None
3)
None
3)
None
4)
None
4)
None
1:>-
n
1'>0
g)
Financial leasing
1),2) Lease must be penni ned by the
Undersecretariat of Treasury and Foreign
Trade.
1),2) None
3)
Foreign financial leasing companies may
open a branch in Turkey provided that they
are involved in financial leasing in their
home country or in the countries where
they operate. Pennission of the Ministry
to which the Undersecretariat of Treasury
and Foreign Trade is attached is required.
3)
The minimum paid-in capital for opening a
branch by a foreign leasing company is
more than that of establishing a leasing
company.
4)
None
4)
None
Additional commitments
TURKEY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
h)
i)
.j::,.
V1
V1
j)
All payment and money
transmission services
Guarantees and
commitments
Consumption abroad
3)
Limitations on market access
Limitations on national treatment
1),2) None
1),2) None
3)
Transfers of foreign exchange abroad must
be carried out through the banking system.
3)
None
4)
None
4)
None
1),2) None except that performance bonds with
Commercial presence
4)
Presence of natural persons
Additional commitments
1),2) None
the transactions specified in the State
Tender Law must be obtained from a bank
operating in Turkey.
3)
None
3)
None
4)
None
4)
None
Trading for own account
or for account of
customer
i)
7
2)
Money market
instruments
1),2) None
1),2) None
3)
Capital Market Institutions1 engage in
trading of money market instruments
3)
None
4)
None
4)
None
According to the Capital Market Law, capital market institutions are specified as follows:
a) Banks and non-bank intermediary institutions;
b) Investment Corporations;
c) Mutual Funds;
d) Other capital market institutions permitted to operate in the capital market such as clearing and custodial houses, rating, auditing and advisory institutions, etc.
GATS/SC/88
Page 27
GATS/SC/88
Page 28
TIJRKEY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
ii)
Foreign exchange
iv) Exchange rate and
interest rate
instruments
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1),2) None
1),2) None
3)
Banks and authorized institutions engage in
foreign exchange trading.
3)
None
4)
None
4)
None
1),2) None
1),2) None
3)
Banks can engage in trading of these
instruments. Capital Market institutions
other than banks, authorized to act as
intennediaries for the contracts regarding
financial indicators, capital market
instruments, commodities and precious
metals, can also engage in trading of these
instruments.
3)
4)
None
4)
4)
Presence of natural persons
Additional commitments
None
i
v)
Transferable
securities
-
None
1),2) None
1),2) None
3)
The Capital Market Institutions can engage
in trading of transferable securities.
3)
None
4)
None
4)
None
I
I
----- --
TURKEY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
vi) Other negotiable
instruments
including bullion
Underwriting and
placement
~
V1
-..,J
m)
-
Asset management
portfolio
management
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
1),2) None
1),2) None
3)
The capital market institutions can engage
in trading of these instruments and assets.
However, banks, authorized institutions
and intermediary institutions operating in
Gold Exchange can engage in trading of
bullion.
3)
None
4)
4)
k)
2)
4)
Presence of natural persons
Additional commitments
None
,
None
1),2) None
1),2) None
3)
Banks and non-bank intermediary
institutions can provide underwriting and
placement services for the securities to be
issued after being registered by the Capital
Market Board.
3)
None
4)
None
4)
None
1),2) None
1),2) None
3)
Banks, intermediary institutions and
portfolio management institutions can
provide these services.
3)
None
4)
None
4)
None
!
- - - - --
GATS/SC/88
Page 29
GATS/SC/88
Page 30
TURKEY (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Collective
investment
management
Custodial,
depository and trust
services
0)
Settlement and clearing
services
Provision and transfer of
financial infonnation
Commercial presence
Limitations on national treatment
1),2) None
1),2) None
3)
Mutual funds and investment corporations
can engage in collective investment
management.
3)
None
4)
The majority of the members of the board
of directors of an investment corporation
must have Turkish nationality.
4)
None
1),2) None
1),2) None
3)
The Capital Market Institutions can provide
these services.
3)
None
4)
None
4)
None
n
n)
3)
Consumption abroad
Limitations on market access
~
X)
2)
1),2) None
1),2) None
3)
Only the clearing house established within
the Stock Exchange of Istanbul provides
these services.
3)
None
4)
None
4)
None
1),2) None
1),2) None
3)
None
3)
None
4)
None
4)
None
4)
Presence of natural persons
Additional commitments
I
TURKEY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
p)
Advisory, intermediation
and other auxiliary
services
-------
2)
Consumption abroad
3)
Commercial presence
Limitations on national treatment
Limitations on market access
1),2) None
1),2) None
3)
Intermediation services can be provided by
banks and intermediary institutions.
3)
None
4)
None
4)
None
4)
Presence of natural persons
Additional commitments '
------ - -
-'="
V1
1.0
GATSISC/88
Page 31
GATS/SC/90
Page 54
THE UNITED STATES OF AMERICA
Modes of supply:
I)
Cross-border supply
2)
Consumption abroad
3)
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
Sector or subsector
Commercial presence
7
FINANCIAL SERVICES
A.
INSURANCE: (Limited to Insurance): Commitments in this subsector are undertaken pursuant to the alternative approach to scheduling commitments set forth in the
Understanding on Commitments in Financial Services.
Direct Insurance
a)
Life, Accident, and Health
Insurance Services (except
workers compensation
insurance)
b)
Non-Life Insurance Services
I)
None
1)
A one per cent federal excise tax is imposed
on all life insurance premiums and a four per
cent federal excise tax is imposed on all
non-life insurance premiums covering US
risks that are paid to companies not
incorporated under US law, except for
premiums that are earned by such companies
through an office or dependent agent in the
United States.
Some states and some municipalities impose
premium taxes on insurance policies covering
risks located within the jurisdiction.
I
,
,I
:
When more than 50 per cent of the value of
a maritime vessel whose hull was built under
federally guaranteed mortgage funds is
insured by a non-US insurer, the insured
must demonstrate that the risk was
substantially first offered in the US market.
2)
None
2)
Unbound
-
,
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption
abroad
-
3)
Limitations on market access
3)
Government -owned or government -controlled
3)
insurance companies. whether US or foreign. are
not authorized to conduct business in: Alabama.
Alaska. Arkansas. Colorado. Connecticut.
Delaware. Georgia. Hawaii. Idaho. Kansas.
Kentucky. Maryland. Nevada. New York
(non-life companies are authorized; life and
health companies are not). North Carolina. NortIJ
Dakota. Oklahoma. Oregon. Pennsylvania.
Rhode Island. South Dakota. Tennessee.
Washington. West Virginia. Wyoming.
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
None
I
Insurance companies owned or controlled by
governments outside the United States are not
authorized to conduct business in: North
Carolina. North Dakota and Tennessee.
Branches are not permitted to provide surety
bonds for US federal government contracts.
The following states have no mechanism for
licensing initial entry of a non-US insurance
company as a subsidiary. unless that company is
already licenced in some other US state:
Minnesota. Mississippi. and Tennessee.
-
GATSISCI90
Page 55
GATS/SC/90
Page 56
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
The following states have no mechanism for
licensing initial entry of a non-US insurance
company as a branch, unless that company is
already licenced in some other US state:
Arkansas, Arizona, Georgia, Hawaii, Kansas,
Minnesota, Nebraska, New Jersey, North
Carolina, Oregon, Pennsylvania, Tennessee,
Utah, Vermont, Wisconsin, Wyoming, West
Virginia.
I
US citizenship is required for members of the
board of directors of locally established and
licenced companies in the following states and in
the following shares or numbers: 100 per cent
required in Louisiana; three-quarters in
Washington (for mutual life companies);
two-thirds required in Oklahoma (for stock and
mutual companies) and Pennsylvania; a majority
required in California (for insurers operating as
authorized insurers only in the state of
California), Florida (for stock and mutual
insurers), Georgia (for stock and mutual
insurers), Idaho (for stock and mutual insurers),
Indiana, Kansas (for stock insurers), Kentucky,
Mississippi, Ohio (for legal reserve life
insurers), South Dakota (except if more than
1000 persons are entitled to vote for the board of
directors and a majority of the voters reside.
I
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
outside the state, or less than one per cent of the
shares are owned by state residents), Wyoming
(for an insurer operating as an authorized insurer
only in Wyoming); seven in Tennessee (for
mutual life insurance companies; three in Illinois
(for stock, mutual, or legal reserve insurers) and
Missouri (life and accident).
.
,
4)
I
US citizenship for incorporators of insurance
companies is required in the following states and
in the following per centages or numbers: 100
per cent in Hawaii, Idaho (for stock or mutual
insurer), South Dakota and Washington;
two-thirds in Arizona (for stock and mutual
insurers), Georgia (for stock and mutual
insurers); a majority in Alaska, Florida (for
stock and mutual insurers), Kansas (all life
insurance companies and mutual insurers other
than life), Kentucky (for mutual or stock
insurers); Montana (stock or mutual insurers),
Wyoming (for reserve stock and mutual
insurers).
4)
Unbound, except as indicated in the horizontal
section
None
- -
GATS/SCI90
Page
~7
GATS/SC/90
Page 58
THE UNITED STATES OF AMERICA (continued)
M.,des of supply:
1)
Cross-border supply
Sector or subsector
c)
Reinsurance & Retrocession
2)
Consumption abroad
3)
Limitations on market access
1)
Insurance companies incorporated in Nevada
I)
may purchase reinsurance only from an insurer
admitted to Nevada. Unbound for Maine for the
provision of reinsurance for workers'
compensation.
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
A one per cent federal excise tax is imposed
on all premiums covering US risks that are
paid to companies not incorporated under US
law, except for premiums that are earned by
such companies through an office or
dependent agent in the United States.
Some states and some municipalities impose
premium taxes on insurance policies covering
risks located within the jurisdiction.
2)
Insurance companies incorporated in Nevada
2)
may purchase reinsurance only from an insurer
admitted to Nevada. Unbound for Maine for the
provision of reinsurance for workers'
compensation.
Unbound
3)
Government -owned or government -controlled
3)
insurance companies, whether US or foreign, are
not authorized to conduct business in: Alabama,
Alaska, Arkansas, Colorado, Connecticut,
Delaware, Georgia, Hawaii, Idaho, Kansas,
Kentucky, Maryland, Nevada, New York
(non-life companies are authorized; life and
health companies are not), North Carolina, North
Dakota, Oklahoma, Oregon, Pennsylvania,
Rhode Island, South Dakota, Tennessee,
Washington, West Virginia, Wyoming.
None
I
--
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Commercial presence
4)
Presence of natural persons
Additional commitments
Limitations on national treatment
Limitations on market access
The following states have no mechanism for
licensing initial entry of a non-US insurance
company as a subsidiary, unless that company is
already licenced in some other US state:
Minnesota, Mississippi, and Tennessee. After a
licence is obtained in some other US state,
licensing and entry into the states listed above is
permitted.
The following states have no mechanism for
licensing initial entry of a non-US insurance
company as a branch, unless that company is
already licenced in some other US state:
Arkansas, Arizona, Georgia, Kansas, Minnesota,
Nebraska, New Jersey, North Carolina, Oregon,
Pennsylvania, Tennessee, Utah, Vermont,
Wisconsin, Wyoming, West Virginia. After a
licence is obtained in some other US state,
licensing and entry into the states listed above is
permitted.
4)
Unbound, except as indicated in the horizontal
section
4)
None
-----~-
-
OATSISCI90
P.ge 59
GATS/SC/90
THE UNITED STATES OF AMERICA (continued)
Mooes of supply:
1)
Cross-border supply
Sector or subsector
d)
i)
Services Auxiliary to
Insurance:
Brokerage Services
2)
Page 60
Consumption abroad
3)
Limitations on market access
Commercial presence
None
1)
None
2)
None
2)
Unbound
3)
Generally, brokerage firms can offer services in
most states by obtaining licences as "brokers"
and in other states by obtaining licences to
operate as "agents". Brokerage licences are not
issued in: Florida, Iowa, Kentucky, Michigan,
Minnesota, Mississippi, Oregon, Tennessee,
Texas, Virginia, West Virginia, Wisconsin.
3)
None
Unbound, except as indicated in the horizontal
section. In addition, generally, brokerage firms
can offer services in most states by obtaining
licences as "brokers" and in other states by
obtaining licences to operate as "agents".
Brokerage licences are not issued .in: Florida,
Iowa, Kentucky, Michigan, Minnesota,
Mississippi, Oregon, Tennessee, Texas,
Virginia, West Virginia, Wisconsin.
4)
I
I
4)
Presence Qf natural persons
Limitations on national treatment
I)
I
4)
Additional commitments
I
I
I
I
Brokerage licences are not issued to
non-residents in: South Dakota, Wyoming.
Brokerage licences are issued to
non-residents for only certain lines of
insurance in: Alabama (all except life,
accident & health), Arkansas (property,
casualty, surety & marine), Louisiana
(property & casualty), New Mexico (property
& casualty).
Higher licence fees for non-residents may be
charged in: Alaska, Arizona, Arkansas,
California, Georgia, Hawaii, Indiana,
Kansas, Louisiana, Maine, Maryland,
Massachusetts, Montana, Nebraska, Nevada,
New Hampshire, New Jersey, New Mexico,
._-
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
North Carolina, North Dakota, Ohio,
Oklahoma, Pennsylvania, Rhode Island,
South Carolina, Utah, Vermont.
ii)
Agency Services
I)
None
1)
None
2)
None
2)
Unbound
3)
None
3)
Agency licences are issued to non-residents
for only cenain lines of insurance in:
Florida (general lines, life & health), Hawaii
(property & operations), Kentucky (general
lines, life & health), Louisiana (life &
health), New Mexico (life & health), Ohio
(all except life & casualty), Rhode Island (all
except general lines).
I
I!
Higher licence fees for non-residents may be
charged in: Alaska, Arizona, Arkansas,
California, Florida, Georgia, Hawaii,
Indiana, Iowa, Kansas, Kentucky, Louisiana,
Maine, Maryland, Massachusetts,
Mississippi, Montana, Nebraska, Nevada,
New Hampshire, New Jersey, New Mexico,
North Dakota, Oklahoma, Pennsylvania,
Rhode Island, South Carolina, South Dakota,
Tennessee, Utah, Vermont, Wisconsin,
Wyoming.
,
i
i
I
4)
None
~---~.
OATS/SCI90
Pa«e 61
GATS/SC/90
Page 62
THE UNITED STATES OF AMERICA (continued)
I)
Modes of supply:
Cross-border supply
Sector or subsector
I iii)
i
Consultancy. Actuarial. Risk
Assessment. and Claim
Settlement Services
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
AddJtlonal commitments
I
4)
Unbound. except as indicated in the horizontal
section
l)
None
l)
None
2)
None
2)
Unbound
3)
None
3)
None
4)
Unbound. except as indicated in the horizontal
section
4)
In-state residency is required for licensure in:
California (for adjusters; and for life and
disability insurance analysts). Georgia (for
inspection when not accompanied by a
licenced resident adjuster). Illinois (for
non-resident public adjusters who are
licenced in a state which does not permit
equal treatment to Illinois residents).
Mississippi (for independent adjusters). and
Nevada (for appraisers and adjusters).
!
I,
I
-----
-
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
B.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
FINANCIAL SERVICES (LIMITED TO BANKING AND OTHER FINANCIAL SERVICES AND EXCLUDING INSURANCE): Commitments in these sub sectors are
undertaken in accordance with the Understanding on Commitments in Financial Services (the Understanding), which is incorporated by reference into this schedule, and under
Article XVII of the General Agreement on Trade in Services (GATS). These subsectors are unbound with respect to Article XVI of the GATS.
In addition, I) this subsector shall be unbound with respect to market access through modes 1 and 3 for the expansion of existing operations, the establishment of a new
commercial presence (in mode 3 only) or the conduct of new activities, and 2) service suppliers choosing to supply a service through a juridical person constituted under the
laws of the United States are subject to non-discriminatory limitations on juridical form.
National treatment commitments are subject to the following limitation:
National treatment will be provided according to the foreign bank's "home State" in the United States, as that tenn is defmed under the International Banking Act. 21
All Subsectors
~~-~---
21
-----
-
1)
None
I)
None
2)
None
2)
Unbound
---
---
-
-~----
.~--
---
--
'-----
~-
Foreign banking organizations are generally subject to geographic limitations in the United States on a national treatment basis. Where geographic limits do not conform
to national treatment, they have been reserved as market access restrictions. For purposes of illustration, under this approach the following situations do not accord
national treatment and are therefore scheduled as limitations: 1) where a foreign bank from a particular home State is accorded less favourable treatment than that
accorded to a domestic bank from that State with respect to expansion by branching, and 2) where a foreign bank is treated less favourably than a domestic bank holding
company from the foreign bank's home State with respect to expansion through acquisition or establishment of a bank subsidiary.
GATS/SC/90
Page 63
GATS/SC/90
Page 64
THE UNITED STATES OF AMERICA (continued)
Mj>des of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
3)
All directors of a national bank must be citizens I 3)
unless a national bank is an affiliate or subsidiary
of a foreign bank, in which case only a majority
of the board need be citizens.
Foreign ownership of Edge corporations is
limited to foreign banks and US subsidiaries of
foreign banks, while domestic non-bank firms
may own such corporations.
Federal and state law do not permit a credit
union, savings bank, home loan or thrift business
in the United States to be provided through
branches of corporations organized under a
foreign country's law.
In order to accept or maintain domestic retail
deposits of less than $100,000, a foreign bank
must establish an insured banking subsidiary.
This prohibition does not apply to a foreign bank
branch that was engaged in insured
deposit-taking activities on December 19, 1991.
Commercial presence
4)
Presence of natural persons
Limitations on national treatment·
Foreign banks are required to register under
the Investment Advisers Act of 1940 to
engage in securities advisory and investment
management services in the United States,
while domestic banks are exempt from
registration. The registration requirement
involves record maintenance, inspections,
submission of reports and payment of a fee.
Foreign banks cannot be members of the
Federal Reserve System, and thus may not
vote for directors of a Federal Reserve Bank.
Foreign-owned bank subsidiaries are not
subject to this measure.
Branch, agency and representative offices of
foreign banks are required to be charged for
the cost of Federal Reserve examinations.
Additional commitments
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
Sector or subsector
I)
Cross-border supply
2)
Consumption abroad
Limitations on market access
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
Initial entry or expansion by a foreign person
(but not a domestic person) through acquisition
or establishment of a commercial bank subsidiary
is prohibited or otherwise limited in the
following states: Alabama; Arkansas; California
(limit on foreign non-bank ownership of
international banlting corporation); Colorado;
Indiana; Kansas; Louisiana; Minnesota;
Mississippi; Montana; Nebraska; New Jersey;
North Carolina; North Dakota; Oregon;
Tennessee; Vermont; Virginia; Washington;
West Virginia; Wisconsin. The limitations in
this paragraph do not apply to establishment or
acquisition of a national bank subsidiary by a
foreign person that does not already have a
banking presence in the United States.
The boards of directors of depository institutions
organized under the following states' laws are
subject to citizenship requirements of up to the
specified proportions: Alabama (all); Colorado
(majority); District of Columbia (all); Florida
(majority); Georgia (all); Indiana (3/4); Iowa
(all); Kentucky (all); Louisiana (3/5);
r
GATSISCI90
Pair'" 65
GATS/SC/90
Page 66
THE UNITED STATES OF AMERICA (continued)
Modes of
I
--
-
1)
C
bord
- - -
2)
G
-
broad
Limitations on market access
Sector or subsector
I
I
,
•
•
3)
G
.a1
-
4)
Pr,
f
Limitations on national treatment
Massachusetts (all); Mississippi (all); Missouri
(all); New Hampshire (majority); New Mexico
(3/4); New York (all); North Carolina (3/4);
North Dakota (majority); Ohio (majority);
Oklahoma (3/4); Oregon (majority);
Pennsylvania (all); South Dakota (3/4);
Tennessee (3/4); Virginia (majority).
Citizenship is also required for the incorporators
or organizers of depository institutions organized
under state law.
Establishment of a direct branch or agency by a
foreign bank is limited as specified in the
following states:
State branch licence subject to specified
limitations -- California (no trustlfiduciary
powers); Illinois (limited trust/fiduciary powers
and restricted to Chicago business district);
Massachusetts; Oregon; Pennsylvania.
Washington (limited trust/fiduciary powers and
to one office per bank). These limitations do not
apply to Federal branches.
State branch licence not available. but state
agency licence is in Idaho.
-~
aI
Additional commitments
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
•
•
No state branch or agency licence available -Ariwna; Arkansas; Colorado; Indiana; Iowa;
Maine; Maryland; Minnesota; Montana;
Nebraska; Nevada; New Hampshire; New
Mexico; North Dakota; Ohio; OkJahoma; Rhode
Island; South Carolina; South Dakota;
Tennessee; Utah; Vermont. These limitations do
not apply to Federal offices.
Branch licence not available but agency licence
is, subject to any specified limitations -Delaware (state licence limited to one office per
bank and cannot operate in a manner likely to
result in a substantial detriment to existing bank);
Florida (available only to a foreign bank with at
least $25 million in capital or that is one of five
largest banks in its home country); Mississippi;
Missouri; Georgia (available only to foreign
bank with at least $50 million in capital); Hawaii
(foreign bank must have $10 billion in assets and
be at least 10 years old); Louisiana (limited to
parishes with more than 350,000 residents);
Michigan (Federal branch licences available);
Texas (limited to counties with at least 1.5
million residents).
•
No branch or state agency licence available -Wyoming.
•
No branch or agency licence available -Alabama; Connecticut; Kansas; New Jersey;
North Dakota; Virginia.
3)
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
AddJtlonal commitments
The following states require direct branches
or agencies of foreign banks to register under
securities broker-dealer or investment adviser
measures, while bank subsidiaries are exempt
from such registration: Alabama; California;
District of Columbia; Idaho; Illinois;
Louisiana; Missouri; Nebraska; New
Hampshire; Texas; Vermont. These
limitations do not apply to Federally licenced
branches or agencies.
Texas allows pre-judgement seizure remedies
and civil discovery requests to be applied
against foreign bank agencies, while
subsidiaries are exempt. Texas also prohibits
agencies from acting as fiduciaries in Texas.
GATS/SC/90
Page 67
GATSISC/90
Page 68
THE UNITED STATES OF AMERICA (continued)
~es
of supply:
I)
Cross-border supply
Consumption abroad
3)
Representative offices of foreign banks are not
permitted in the following states: Arizona;
Arkansas; Colorado; Connecticut; Kansas;
Kentucky; Mississippi; Montana; Nevada; New
Hampshire; New Jersey; North Dakota;
Oklahoma; Oregon; Rhode Island; South
Carolina; South Dakota; Tennessee; Vermont;
Virginia; West Virginia; Wisconsin; Wyoming.
Other states require incorporation of
representative offices.
4) Unbound, except as indicated in the horizontal
section.
I), 2), 3) Federal law prohibits the offer or sale of
futures contracts on onions, options contracts on
onions, and options on futures contracts on
onions in the United States, and services related
thereto
Commercial presence
I 4)
1), 3)None (except as noted in the headnote above)
Unbound with respect to mode 2
Unbound with respect to the use of simplified
registration and periodic reporting forms for
securities issued by small business corporations
Unbound, except as indicated in the horizontal
section
Presence of natural persons
None
Unbound for the authority to act as a sole trustee
of an indenture for a bond offering in the United
States
4)
4)
LimItations on national treatment
Limitations on market access
Sector or subsector
Trading of Securities and
Derivative Products and Services
Related Thereto; Participation in
Securities Issues
2)
4)
None
Additional commitments
THE UNITED STATES OF AMERICA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
1), 2) None
Commercial presence
4)
Presence of natural persons
Limitations on national treatment
Additional commitments
1), 2) None
,
I
:
4)
- ---
3)
I
3)
-----
Consumption abroad
Limitations on market access
Participation in Issues of
Government Debt Securities
--
2)
---
Unbound for the granting or continuation of
Federal Reserve designation as a primary dealer
in US government debt
Unbound, except as indicated in the horizontal
section
-----
- -
3)
None (except as noted in the headnote above)
4)
None
--
GATS/SCI90
Page 69
GATSISC/91
Page 10
URUGUAY'
Modes of supply:
t)
Cross-border supply
Sector or subsector
~
-..J
-..J
7.
FINANCIAL SERVICES
B.
Banking and other
fmancii!l services
(excl udinginsurance)
a)
Acceptance of deposits
and other repayable
funds from the public
(CPC 81115 + 81119)
2)
3)
Consumption abroad
Limitations on market access
1),2)None
3)
For banks, commercial presence is subject
to the following quantitative limit: -in any
one year the number of authorizations for
new banks to operate may not exceed 10
per cent (ten per cent) of the banks existing
in the year immediately preceding. This
provision applies exclusively to those
institutions which are defmed by the law as
banks and does not affect other financial
intermediation enterprises.
Commercial presence
4)
Limitations on national treatment
Additional commitments
1),2) None
3)
Presence of natural persons
None
Financial intermediation enterprises
comprise: banks, fmancial intermediation
co-operatives, finance houses, off-shore
financial institutions, consortium managers,
and investment banks.
The banks carry out all types of financial
operations and, jointly with the fmancial
intermediation co-operatives, are the only
ones authorized:
--
URUGUA Y (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
Limitations on market access
a)
to accept current account deposits and
allow them to be drawn on against
cheques;
b)
to accept demand deposits;
c)
to accept term deposits from residents.
3)
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
The finance houses may carry out all
financial intermediation activities, except
those restricted to the banks and cooperatives, drawing their resources
exclusively from non-residents.
I::.
--J
Xl
The off-shore financial institutions operate
exclusively with non-residents.
The consortium management firms are
those which organize or manage groups,
associations or consortia whose members
contribute funds to be applied, mutually or
jointly, for the purchase of particular goods
or services.
---
GATSISCI9J
Page JJ
GATSISC/91
Page 12
URUGUAY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
4)
Commercial presence
Limitations on national treatment
The investment banks may onJy accept
deposits from and extend loans to nonresidents for terms of more than one year;
issue negotiable bonds or debentures;
fmance the issue of or place securities,
bonds, debentures, stocks and shares on
behalf of non-fmancial enterprises; acquire
shares or capital interests in enterprises for
the purpose of launching investment
projects or reorganization, development or
conversion schemes; accept and place bills
linked with those enterprises and carry out
bank giro operations with them (except for
accepting current account deposits);
medium and long-term credits and loans;
arrange bonds, references, guarantees and
security; do trust and commission business
and advise on investments and business
administration.
/:>.
~
'.0
4)
Unbound, except as indicated in the
horizontal section
Presence of natural persons
Additional commitments
I
I
I
4)
Unbound, except as indicated in the
horizontal section
--
URUGUAY (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
c)
k)
r-.
00
o
Financial leasing with
purchase option
(CPC 8112)
Advisory and other
auxiliary financial
services on all the
activities listed in
Article I B of
MTN .1"NCIW ISO,
including credit reference
and analysis, investment
and portfolio research
and advice, advice on
acquisitions and on
corporate restructuring
and strategy
(CPC 8131 and 8133)
2)
3)
Consumption abroad
Limitations on market access
1),2) None
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
AddJtlonal commitments
I), 2) None
3)
Limitation as a) acceptance of deposits
3)
None
4)
Unbound, except as indicated in the
horizontal section
3)
Unbound, except as indicated in the
horizontal section
I), 2) None
I), 2) None
3)
Limitation as a) acceptance of deposits
3)
None
4)
Unbound, except as indicated in the
horizontal section
4)
Unbound, except as indicated in the
horizontal section
GATS/SC/9J
Page 13
VENEZUELA
Modes of supply:
I)
Cross-border supply
Sector or subsector
7.
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Presence of natural persons
4)
Additional commitments
Limitations on national treatment
FINANCIAL SERVICES
I)
Unbound
1)
Unbound
Insurance
2)
Unbound
2)
Unbound
(CPC 812, excluding
Pension Funds)
.t:-
oo
a)
Life insurance services
(81211 )
b)
Non-life insurance
services
(8129)
----
I
3)
Insurance companies in the capital of which
foreigners hold a share of more than 20 per
cent cannot be authorized. Must take the
form of public limited companies
3)
None, without prejudice to the contents of
the market access column
_
..
_-
-
--
~
GATSISC/92
Page 11
GATS/SC/92
Page 12
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
Consumption abroad
3)
4)
4)
Unbound, except for managers, executives
and specialists in accordance with the offer
for the presence of natural persons. The
President and at least three-quarters of the
Vice-Presidents, Directors, Managers,
Assistant Managers and technical or legal
consultants of insurance companies must be
Venezuelans domiciled in the country
4)
None, without prejudice to the contents of
the market access column
1)
Unbound
I)
Unbound
2)
The law requires national insurance
companies to cede on the domestic market
at least 40 per cent of reinsurance
premiums from their automatic contracts,
and also to cede to national companies any
reinsurance surplus that remains after they
have exhausted their capacity for automatic
reinsurance
2)
None, without prejudice to the content of
the market access column
3)
Foreign participation in the capital of
reinsurance companies incorporated in
Venezuela cannot exceed 20 per cent.
Must take the form of public limited
company
3)
None, without prejudice to the content of
the market access column
.t:-
oo
IV
-_._--
Commercial presence
Limitations on national treatment
Limitations on market access
Reinsurance
--
2)
Presence of natural persons
Additional commitments
VENEZUELA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
The law requires national insurance
companies to cede on the domestic market
at least 40 per cent of reinsurance
premiums from their automatic contracts,
and also to cede to national companies any
reinsurance surplus that remains after they
have exhausted their capacity for automatic
reinsurance
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
for the presence of natural persoDS. The
President and at least three-quarters of the
Vice-Presidents, Directors, Managers,
Assistant Managers and technical or legal
consultants of reinsurance companies must
be Venezuelans domiciled and residing in
the country
4)
None, without prejudice to the content of
the market access column
l)
Unbound
1)
Unbound
.f>-
00
w
Insurance. AuxiliID
services, excluding
Pension Funds
(CPC 814)
----
-----
GATS/SC/92
Page 13
GATSISC/92
Page 14
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
Limitations on market access
Insurance and reinsurance
brokerage
(Cpe 81401)
2)
Insurance contracts concluded abroad are
void in Venezuela even if concluded by
national enterprises, unless the premium
has actually been paid to an enterprise in
Venezuela, in accordance with national
rates, in the following cases:
a)
Insurance of persons, if at the time when
the contract was signed the insured person
was domiciled in Venezuela
b)
Insurance on goods located in the national
territory
c)
Insurance on ships, aircraft and other
vehicles registered in Venezuela
Commercial presence
Limitations on national treatment
2)
The National Executive may determine other
types of insurance which must be contracted in
the country in order to be operative in Venezuela
~
Additional commitments
I
~
-_._-
Presence of natural persons
None, without prejudice to the content of
the market access column
00
~
4)
-
-
VENEZUELA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Consumption abroad
3)
3)
Companies of which foreigners hold more
than 20 per cent of the capital cannot be
authorized. Nor can the establishment in
the country of agencies or subsidiaries of
foreign insurance brokerage firms or
representatives of agents or brokers of
foreign insurance companies not domiciled
or residing in the country. They must take
the form of public limited companies or
private limited-liability companies
4)
Unbound. except for managers. executives
and specialists. in accordance with the offer
for natural persons. The President and at
least three-quarters of the Vice-Presidents.
Directors. Managers. Assistant Managers.
and technical and legal consultants of
insurance and reinsurance brokerage
companies authorized in the country must
be Venezuelans domiciled and residing in
the country
1)
Unbound
VI
Commercial presence
4)
Limitations on national treatment
Limitations on market access
J::.
00
Banks and credit
institutions
(CPC 81115-81116-
2)
3)
None. without prejudice to the content of
the market access column
I
4)
None. without prejudice to the content of
the market access column
I
1)
Unbound
Presence of natural persons
Additional commitments
8112-8113-81333-81339)
GATSISC/92
Page 15
GATSISC/92
Page 16
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
3)
Consumption abroad
Commercial presence
4)
Limitations on national treatment
Umltatlons on market access
a)
Acceptance of deposits
and other repayable funds
from the public
(CPC 81115-81116)
2)
Unbound
2)
Unbound
b)
Lending of all types,
including inter alia
consumer credit,
mortgage credit, factoring
and financing of
commercial transactions
(CPC 8113 excluding
81139)
3)
New banking institutions cannot be
authorized unless they are lOOper cent
Venezuelan-owned. • Representative offices
of foreign banks may be authorized but
they may not tap funds in Venezuela. They
may only act as intermediaries for lending
3)
None, without prejudice to the content of
the market access column
c)
Financial leasing with
option to purchase
(CPC 8112)
to.
00
0"1
•
2)
Presence of natural persons
Additional commitments
Branches of foreign banks other than those
of Latin American countries are subject to
operating restrictions and cannot: accept
saving deposits of residents, accept deposits
of public entities, issue negotiable
certificates of deposit, increase their capital
The foreign participation stiB retained by national financial institutions (not more than 20 per cent of the capital) may be ceded to other foreign investors,
but if it is reduced it cannot subsequently be raised again.
VENEZUELA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
:>0
00
.....
d)
Payment and money
transmission services
(CPC 81339)
e)
Guarantees
(CPC 81339)
f)
Foreign exchange
operations
(CPC 81333)
g)
New operations and
services·
Foreign exchange houses
(CPC 81333)
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Presence of natural persons
Additional commitments
or offices, issue bonds of any kind, issue
capitalization securities and sell foreign
exchange acquired from the Central Bank
of Venezuela. They cannot have callable
liabilities in excess of fourteen times their
net worth
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
for the presence of natural persons. The
President and three-quarters of the VicePresidents, Directors, Managers,
Secretaries and other executives of banks
and credit institutions must be Venezuelans
residing in the country··
4)
None, without prejudice to the content of
the market access column
I)
Unbound
1)
Unbound
I
-~
•
In the Gase of new services or operations, these must be compatible with the nature of the bank in question, with the limitations established by the National
Executive, after receiving the opinion of the Central Bank of Venezuela.
••
This provision does not apply to branch offices of banks currently operating in Venezuela.
GATS/SC/92
Page 17
GATSISC/92
Page 18
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
00
00
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
2)
Unbound
2)
Unbound
3)
Only Venezuelan-owned enterprises may be
authorized
3)
None, without prejudice to the content of
the market access column
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
on the presence of natural persons
4)
None, without prejudice to the content of
the market access column
Capital markets
1)
Unbound
1)
Unbound
Mutual funds
(CPC 81191)
2)
None
2)
None
3)
Must take the form of public limited
companies. Must invest their funds
exclusively in lawful securities
3)
None, without prejudice to the content of
the market access column
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
on the presence of natural persons
4)
None, without prejudice to the content of
the market access column
Buying and selling of
foreign bank notes and
travellers cheques from
or to the public
~
2)
Presence of natural persons
Additional commitments
VENEZUELA (continued)
Modes of supply:
1)
Cross-border supply
Sector or subsector
Mutual fund management
companies
(CPC 81319)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
1)
Unbound
1)
Unbound
2)
Unbound
2)
Unbound
3)
Must take the fonn of public limited
companies. Mutual fund management
companies may not simultaneously provide
services to more than one mutual fund
when the investment goals and sales plans
are of the same type, in the opinion of the
National Securities Commission.
If they are administered by other
companies, mutual funds established in
Venezuela must be managed by a
management company likewise constituted
in Venezuela for that purpose
3)
None, without prejudice to the content of
the market access column
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
on the presence of natural persons
4)
None, without prejudice to the content of
the market access column
1)
Unbound
1)
Unbound
2)
None
2)
None
~
00
1.0
Investment advisory
services
(CPC 81332)
2)
Presence of natural persons
Additional commitments
------
GATS/SC/92
Page 19
GATS/SC/92
Page 20
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
3)
Consumption abroad
In Ihe case of advisory services relating to
investment in foreign securities or for
acting as a contact wilh foreign brokers or
representing Ihem, such aulhorization
depends on Ihe country's economic and
financial situation in Ihe opinion of Ihe
Commission
4)
Limitations on national treatment
Limitations on market access
3)
Commercial presence
3)
Presence of natural persons
Additional commitments
None, wilhout prejudice to Ihe content of
Ihe market access column
,
The National Securities Commission may
revoke or cancel aulhorizations relating to
advisory services for investment in foreign
securities or for acting as a contact wilh
brokers abroad or representing Ihem when
in its opinion Ihe country's economic and
financial conditions are unsuitable for such
activities
~
.0
o
Securities brokerage
(CPC 81321, 81323)
4)
Unbound, except for managers, executives
and specialists, in accordance with Ihe offer
on Ihe presence of natural persons
4)
None, wilhout prejudice to Ihe content of
Ihe market access column
1)
Unbound
1)
Unbound
!
2)
- ---
r
None
2)
None
"
VENEZUELA (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
4)
Limitations on national treatment
Authorization of the public offering of
foreign securities in Venezuela depends on
whether this is in the national interest, with
the prior assent of the National Executive
3)
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
on the presence of natural persons.
Administrators of a brokerage house must
be resident in the country
4)
None, without prejudice to the content of
the market access column
I)
None·
1)
None·
2)
None·
2)
None·
3)
None·
3)
None·
4)
Unbound, except for managers, executives
and specialists, in accordance with the offer
on the presence of natural persons
4)
None, without prejudice to the content of
the market access column
3)
Presence of natural persons
Additional commitments
None, without prejudice to the content of
the market access column
,
I
,
Banks and credit
institutions, insurance and
capital market
.f:>,
lO
Provision and transfer of
financial information, and
financial data processing
and related software by
providers of other
financial services
(sub-paragraph (0) of the
Annex on Financial
Services)
-
•
-----
Without prejudice to the right of Venezuela to protect personal information, privacy and the confidential nature of personal records and accounts.
GATSISC/92
Page 21
492
ZIMBABWE
Modes of supply:
1)
Cross-border supply
Sector or subsector
7.
FINANCIAL SERVICES
B.
Banking Services
a)
Acceptance of deposits
and other repayable
funds from the public
b)
Lending of all types,
including consumer
credit, mortgage, credit,
factoring and fmancing
of commercial
transaction
c)
Financial leasing
~
1.0
w
---
2)
Consumption abroad
3)
Limitations on market access
Commercial presence
Limitations on national treatment
4)
Presence of natural persons
Additional commitments
I
i
I)
None
I)
None
2)
None
2)
None
3)
- Foreign equity participation in fmancial
institutions is bound at 60 per ceot.
- Commercial banks may not lend for
building.
- Building societies may not lend for
working capital requirements of firms, and
may not issue cheque books.
- Only commercial banks and merchant
banks are authorized to accept deposits of
money withdrawable by cheque, draft or
order payable on demand.
3)
None
-
GATSISC/94
Page 5
GATSISC/94
Page 6
ZIMBABWE (continued)
Modes of supply:
I)
Cross-border supply
Sector or subsector
~
d)
All payment and money
transmission services,
including credit, charge
and debit cards,
travellers cheques and
bankers drafts
e)
Guarantees and
commitments
Merchants banks are also
authorized to:
-
3)
Consumption abroad
Commercial presence
Limitations on national treatment
Limitations on market access
Commercial banks and merchant banks
may not engage on their own account in
wholesale or retail trade, including
export/import trade except as necessary in
the course of recovering debts and may not
acquire or hold immovable property except
as related to providing housing amenities
for staff.
- Commercial banks may not take equity in
non-banking institutions.
4)
Unbound except as indicated in the
horizontal section
o
~
2)
underwrite new
issues
manage portfolios
raise development
capital
arranging financing
for mergers and
takeovers
-
4)
Unbound except as indicated in the
horizontal section
4)
Presence of natural persons
Additional commitments
495
27.10.1994
Interim Group on Financial Services
COMPILATION OF ARTICLE II (MFN) EXEMPTIONS
FINANCIAL SERVICES SECTOR
Infonnal Note by the Secretariat
In conjunction with compiling commitments on fmancial services as requested at the 12 October 1994
meeting of the Interim Group on Financial Services, the Secretariat has compiled exemptions from
MFN treatment in fmancial services as reflected in final lists of Article II (MFN) exemptions. This
sectoral compilation should be read in conjunction with the infonnal Secretariat note entitled "Compilation
of Article II (MFN) Exemptions: All Sectors" of 21 June 1994.
This document does not in any way replace the content of fInal exemption lists. Exemptions which
have been translated from the original language in which they were submitted are considered authentic
in the original language only.
ll-TOC
rll'fI"\I'fvII"\L ...... ,Vlvl:O:»
Table of Contents
page
Australia
Brunei Darussalam
Canada
Czech Republic
EI Salvador
European Communities
and their Member States
Honduras
Hong Kong
Hungary
India
Indonesia
Israel
Korea
Liechtenstein
Malaysia
Pakistan
Peru
Philippines
Singapore
Slovak Republic
South Africa
Swaziland
Switzeriand
Thailand
Turkey
United States of America
Venezuela
1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
33
35
37
41
43
45
47
49
51
53
55
finmfn-TOC
Page 2
Sector or subsedor
Financial Services
(securities)
-
~
----
Description of measure
Indicating Its Inconsistency
with Article 0
Members of foreign stock
exchanges who wish to become
members of the Australian Stock
Exchange are only able to do so
if the foreign stock exchange
provides access to Australian
Stock Exchange members on
terms and conditions which are
reasonable and not more onerous
than those applying to applicants
for membership of the
Australian Stock Exchange
---
Countries to which the
measure applies
Intended duration
Conditions creating the need
for the exemption
I
I
AIl countries
Indefinite
To promote non-discriminatory
liberalization of access to stock
exchange membership. A
number of GATS Members
regard their stock exchanges as
fully independent of government
and, therefore, outside the scope
of Article 1:3.
-----
BRUNEIDARUSS~
Sector or subsector
Financial Services
w
Reinsurance and
retrocession
Description or measure
Indicating Its Inconsistency
with Article D
Countries to wblch the
measure appUes
Treatment with respect to the
granting of approval to establish
offshore banks and merchant
banks, to expand existing
operations and conduct new
activities in the fmancial services
sector may be accorded to
service suppliers of another
member in a differentiated
manner or on the basis of
reciprocity and at the discretion
of the relevant authority.
All countries
Exception granted to ASEAN
Reinsurance Corporation
(ASEAN Re), a private-sector
venture with equal shareholdings
from six ASEAN countries, to
be established with paid-up
capital of 8$6 million instead
out the minimum 8$10 million
stipulated in the Insurance Act.
Other than this, ASEAN Re is
subject to the same rules and
regulations applied to all
reinsurers in 8runei Darussalam.
ASEAN
Intended duration
Indefmite
Indefmite
Conditions creating the need
ror the exemption
To accord differentiated
treatment to another member
which accords favourable
treatment to 8runei Darussalam
financial institutions.
To promote greater cooperation
among ASEAN in the
reinsurance sector.
GATS/ELl95
Page 3
I
I
GATS/ELl95
BRUNEI DARUSSALAM (continued)
Sector or subsedor
Banking and other
financial services
Description of measure
Indicating Its Inconsistency
witb Article 0
Under a currency
interchangeability agreement
between Brunei Darussalam and
Singapore, the currency issuing
authorities of Brunei Darussalam
and Singapore would:
-
accept from banks, notes
and coins by the other
issuing authority. at par
and without charge and to
exchange such notes and
coins into the currency of
the country concerned;
and
-
arrange for repatriation at
the expanse of the
respective currency issuing
authority, the notes and
coins issued by the other
currency issuing authority
and to receive at par the
equivalent in any agreed
currency.
~
I
-
----"
Page 4
Countries to whlcb tbe
measure applies
Singapore
Intended duration
Indefinite, until either country
terminates the agreement.
--
-------
Condltlom creating tbe need
for tbe exemption
The currency interchangeability
agreement was entered into in
1967 arising from special
historical and economic ties
between Brunei Darussalam and
Singapore.
i
Sector or subsector
Banking, Trust and
Insurance Services
U1
Description of measure
Indicating Its Inconsistency
wltb Article D
Licences for establishment will
be granted to service suppliers
of other countries on the basis of
reciprocity
Countries to whlcb tbe
measure applies
All countries
Intended duration
Conditions creating tbe need
for tbe exemption
Conditional upon the level of
commitments and exemptions
undertaken by other members.
The measures referred to in
column 5) will be suspended
from the entry into force of the
agreement establishing the WTO
until the end of a period six
months after the entry into
force.
Maintenance of existing
reciprocity measures designed to
enhance access of Canadian
financial service suppliers to
foreign financial markets
Insurance
Intermediation:
Agency Services
Preferential access to the
Ontario insurance services
market is provided to
non-resident individual US
insurance agents
All states in the United States
Indeterminate
Reciprocity
Financial Services,
including lending of
all types and trading
for own account of
certain securities by
loan and investment
companies
Preferential treatment in Qu~bec
for allocation of licences is
provided by the Province of
Qu~bec to loan and investment
companies incorporated under
the laws of the Parliament of the
United Kingdom and Ireland for
purposes of obtaining a licence
to carry on business
Great Britain and Northern
Indeterminate
Maintenance of existing
historical preference
----
Ireland, Republic of Ireland
-
GATS/ELl16
Page 3
i
\';~\';H
kJ£PUBLll.:
Sector or subsedor
Financial Services
Description of measure
Indicating Its Inconsistency
with Article D
Authorization for a service
supplier of another Member to
establish a commercial presence
or conduct new activities may be
denied in cases when Czech
suppliers are denied such access
and treatment in the country of
origin of service supplier
concerned
Countries to wblch the
measure applies
All countries concerned
Intended duration
Indefinite
Conditions creating the need
for the exemption
To obtain equal market access
possibilities for Czech services
providers
-..J
GATS/ELl26
Page 3
~&.I
Ul"1&.J".&
Sector or subsector
Financial services
~
rage
&.&1'-' ~
Description of measure
Indicating Its Inconsistency with
Article n
Convention on facilitating the
financial integration of countries of
the Central American Isthmus
After 1 January 1995, if the
signatory countries have reached a
satisfactory degree of
harmonization and homogenization
of their macroeconomic policies,
resources received by subsidiaries
in one signatory State may be
invested in other signatory States
Countries to which the
measure appHes
El Salvador, Honduras and
Nicaragua
Intended duration
Indefinite
~
Conditions creating the need
for the exemption
To facilitate the integration
of countries of the
Central American Isthmus
10
EUROP~i
COMMUNITIES AND THEIR MEMBER STATES
Sector or subsector
Direct non-life
insurance
.....
.....
Financial services
~-
Description of measure
Indicating Its Inconsistency
wltb Article D
Intended duration
Countries to which the
measure applies
Measures based on a bilateral
agreement between the European
Communities and Switzerland on
direct insurance other than life
insurance. This agreement
provides on a reciprocal basis
for freedom of establishment and
the right to take up or pursue
non-life insurance business for
agencies and branches of
undenakings whose head office
is situated in the territory of the
other contracting party.
Switzerland
Measure granting favourable tax
treatment (off-shore regime) in
Italy to service suppliers trading
with the countries to which the
measure applies.
States in Central. Eastern and
South-Eastern Europe. and all
Members of the Commonwealth
of Independent States
Indefinite
Conditions creating the need
for tbe exemption
Need to remove obstacles to the
taking up and pursuit of non-life
insurance business in the
framework of an agreement
between the European
Communities and Switzerland on
non-life insurance consistent
with the provisions of paragraph
3 of the Annex of Financial
Services
!
!
,
I
-~~--
-
10 years
The need to aid the countries
concerned in their transition to a
market economy.
---
GATS/ELl31
Page 7
12
page 1.
HUNDU~S
.....
w
Sector or subsector
Description of measure indicating
its inconsistency with Article II
Financial services
Monetary and financial integration,
free transfer of capital, facilitation
of the establishment and operation
of banks and insurance companies,
branches, subsidiaries and other
financial entities
Countries to wblch the
measure applies
Guatemala, EI Salvador,
Nicaragua, Costa Rica
and Panama
Intended duration
Indefinite
Conditions creating the need
for the exemption
Central American integration of
the financial sector
j
14
HONG KUNG
Sector or subsedor
Banking and other
fmancial services
(excluding
insurance)
Description of measure
Indicating Its Inconsistency
witb Article D
Full banking licences are only
granted to banks incorporated
outside Hong Kong on the basis
of reciprocity.
Countries to whlcb tbe
measure .ppDes
All countries
Intended duration
Conditions creating tbe need
for tbe exemption
The reciprocity requirement will
remain in place until similar
measures maintained by other
countries in this sector are
removed.
The reciprocity requirement is
put in place to ensure that banks
incorporated in Hong Kong will
be accorded equivalent market
access in places outside
Hong Kong.
!
I
!
I
j
.....
U1
GATS/EL/39
Page 1
16
HUNGAkI
Sector or subsector
Financial services
Description of measure
Indicating Its Inconsistency
with Article D
A Government licence may be
granted to the establishment of
such foreign service supplier.
the country of origin of which
grants Hungarian service
suppliers access to its market in
the form of commercial presence
similar to that provided for by
Act No. LXIX of 1991 on
Financial Institutions and
Financial Institutional Activities
CountritS to which the
measure applitS
All countries
Intended duration
Indefmite
Conditions creating the need
for the exemption
To obtain equal market access
possibilities for Hungarian
service providers
---
-- --
-
-.&
.....
GATS/ELl40
Page 3
18
INDIA
Sector or subsector
.....
\D
Description of measure
Indicating Its Inconsistency
wltb Article D
Countries to whlcb tbe
measure applies
Intended duration
Conditions creating tbe need
for tbe exemption
BANKING
SERVICES
Favourable treatment in respect
of licences for entry and
expansion in the form of
branches will be granted to
banks incorporated outside India
on the basis of reciprocity.
All countries
The reciprocity requirement will
remain in place until similar
measures maintained by other
countries in this sector are
removed.
To enable favourable treatment
to be accorded to another
Member which is based on the
treatment or access accorded by :
that member to India.
OTHER
FINANCIAL
SERVICES
INCLUDING
INSURANCE
Favourable treatment relating to
approval for the establishment of
commercial presence including
foreign equity participation by
foreign service suppliers in
Indian companies will be granted
on the basis of reciprocity.
All countries
The reciprocity requirement will
remain in place till similar
measures maintained by other
countries in this sector are
removed.
To enable favourable treatment
to be accorded to another
Member which is based on the
treatment or access accorded by
that member to India.
--
GATS/ELl42
Page 3
20
li'I.AI!'~ut.
Sector or subsector
Banking Services
Description or measure
Indicating Its Inconsistency
wltb Article D
Measures relating to a
joint-venture bank of national
and foreign origin under which
entry of a foreign bank in
Indonesia is allowed on a
reciprocity basis
(Pursuant to Articles 14(3) the
Ministry of Finance Decrees
No. 2201KMK.017/1993 dated
26th February 1993)
Countries to whlcb tbe
measure applies
All countries which adopt
reciprocal policies regarding
Indonesian banks
Intended duration
Conditions creating tbe need
ror tbe exemption
To guarantee equal treatment of
Indonesian banks wishing to
establish offices abroad
Indefinite
I
I
I
I
....
"-I
With respect to joint-venture
banks, licenses can only be
granted to foreign banks of
countries which adopt reciprocal
policies regarding Indonesian
banks
I
I
-
----
I
---
GATS/ELl43
Page 1
22
ISRAEL
Page 2
Sedor or subsector
Description of measure
Indicating its Inconsistency
with Article D
Financial Services Banking
A licence may be granted to the
establishment of foreign service
supplier. to the country of origin
of which grants Israeli suppliers
access to its market in the form
of similar commercial presence.
Countries to which the
measure applies
All countries
Indefinite
-------------
IV
W
Conditions creating the need
for the exemption
Intended duration
-
----
To obtain equal market access
possibilities for Israeli banks.
--
- -
24
Page 2
n.v~n
Sector or subsector
Description or measure
Indicating Its Inconsistency
with Article n
Banking and other
fmancial services
(including insurance)
Future liberalization measures
affecting the entry and provision
of fmancial services in or
relating to the Republic of Korea
will be granted only to those
countries that accord MFN
treatment to financial services or
fmancial service suppliers of the
Republic of Korea.
Countries to which the
measure applies
All countries
Conditions creating the need
ror the exemption
Intended duration
To reserve the right to take
appropriate action, whenever
necessary, in response to
discriminatory treatment
accorded to fmancial services or
fmancial service suppliers of the
Republic of Korea by any other
country.
Indefinite
!
N
U1
--
----
-
- - - - - - - L -_ _ _ _ _ _
----
-
26
LIEClfI'}.l,'" rEIN
Sector or subsector
Insurance services
Banking and other
fmancial services
(excluding
insurance)
IV
......
Description of measure
Indicating Its Inconsistency
with Article D
Countries to wblch the
measure applies
To grant permit for
establishment to insurance
companies from countries other
than Liechtenstein only to
companies which are supervised
by the Swiss insurance
supervision authority
All countries
To allow persons established in
Switzerland, without requiring a
commercial presence in
Liechtenstein, to participate in
settlement and clearing networks
and to lead-manage Swiss franc
denominated issues
Switzerland
Intended duration
Indefinite
Conditions creating the need
for the exemption
Measure to ensure supervision
of foreign insurance companies
:
Indefinite
Measures ensuing from the
monetary union between
Liechtenstein and Switzerland
GATSIElJ83-A
Page 3
I
28
Sector or subsector
All Financial
Services, including
Insurance
Description of measure
Indicating Its Inconsistency
wltb Article D
Preferential treatment for the
supply of fmancial services to
Malaysians may be accorded to
financial services and service
suppliers of another Member in
a differentiated manner and at
the discretion of the relevant
authorities
Intended duration
Countries to whlcb tbe
measure applies
All countries
Indefmite
IV
1.0
--~
----
-----------~
Conditions creating tbe need
for tbe exemption
To enable differentiated
treatment to be accorded to
another Member which
commensurates with the
commitments of that Member to
assist Malaysia to achieve
specific economic and fmancial
targets, enhance trade and
investment and promote
technological innovation and
expansion of its financial sector
which would result in net benefit
to Malaysia
-
GATS/ELl52
Page 1
30
PAKISTAN
Sector or subsedor
Banking and other
fmancial services
w
Description of measure
Indicating Its Inconsistency
witb Article n
Countries to wblcb tbe
measure applies
Intended duration
Conditions creating tbe need
for tbe exemption
Foreign service promoters are
granted licenses on the basis of
reciprocity
All countries
The reciprocity requirement will
remain in place until similar
measures maintained by other
countries in this sector are
removed
The reciprocity requirement is
put in place to ensure that
Pakistani banks are accorded
equivalent market access in
places outside Pakistan
Financial institutions set up to
undertake Islamic fmancing
transactions
All countries
Indefmite
The financing transactions are
determined and governed by
Religious Boards set up for the
purpose by each Islamic
financial institution
Separate banking regulations
may be laid down for banks
which are owned and controlled
by the Federal Government or a
Provincial Government engaged
in fmancing the commodity
operation programmes and other
price support schemes of the
Government
All countries
Indefmite
Commodity operation
programme is an essential
government function undert~en
through government banks.
These are non-profitable
transactions of the banks. The
exemption will eventually come
to be restricted to the National
Bank of Pakistan.
Financial institutions set up as
joint ventures under the
framework of ECO or other
protocols signed amongst the
ECO member countries
ECO member countries
Indefmite
The Treaty ofIzmir and the
Istanbul Summit held in
July 1993 amongst others
decided for the establishment of
fmancial institutions by the
governments of ECO Member
States with the obligation of
meeting the goals of regional
economic integration
GATS/ELl67
Page 1
32
&
a:..n.v
Sector or subsector
Financial
intermediation
services
(Banking and
securities services)
Description of measure
Indicating Its Inconsistency
with Article D
.
Peru reserves the right not to
apply the most-favoured-nation
clause to those countries that do
not apply it automatically and
unconditionally to Peru as
provided for in Article II of the
GATS
Countries to wblch the
measure appUes
All countries
Conditions creating the need
for the exemption
Intended duration
Reciprocity
Indefmite
--
-
----
-
w
w
GATS/ELl69
Page 3
34
rDlLlrrll'I I!A).
w
U1
Sector or subsector
Description of measure
Indicating Its Inconsistency
witb Article D
Banking and Other
Financial Services
(including insutance)
With respect to the granting of
authorization for the
establishment of commercial
presence or expansion of
existing operations in Financial
Services in the Philippines,
favourable treatment would be
accorded, on a discretionary
basis, to fmancial service
suppliers of another Member
that accords favourable treatment
to financial service suppliers of
the Philippines
Countries to wblcb tbe
measure applies
All countries
Intended duration
Indefinite
Condltlons creating tbe need
for tbe exemption
To promote greater
liberalization in fmancial
services between the Philippines
and other Members in a manner
that would contribute to the
attainment of Philippine
development objectives in the
fmancial sector
~-
GATS/EL170
Page 3
36
...,.&,~r.....a "'~
Description of measure
Indicating Its Inconsistency
with Article n
Sector or subsec:tor
Countries to whlcb the
measure applies
Intended duration
Conditions creating tbe need
for tbe exemption
FINANCIAL SERVICES I
Reinsurance and
retrocession
Exception granted to ASEAN
Reinsurance Corporation
(ASEAN Re), a private-sector
venture with equal shareholdings
from the 6 ASEAN countries, to
be established with a paid-up
capital of S$ 6 million instead of
the minimum S$ 10 million
stipulated in the Insurance Act.
Other than this, ASEAN Re is
subject to the same rules and
regulations applied to all
reinsurers in Singapore.
ASEAN
ASEAN Re has committed itself
to increase its paid-up capital
when its premium income
increases. Presently, ASEAN
Re writes a relatively small
amount of business.
To promote greater cooperation
among ASEAN in the
reinsurance sector
Banking and other
fmancial services
Under a currency interchangeability agreement between
Singapore and Brunei, the
currency-issuing authorities of
Singapore and Brunei would:
Brunei
Indefinite, until either country
terminates the agreement
The currency inter-changeability
agreement was entered into
in 1967 arising from special
historical and economic ties
between Singapore and Brunei
W
-.J
Supplementarv information provided for transparency
The Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX) have established trading linkages with the exchanges of some
countries to facilitate the trading of securities and futures. The establishment of trading linkages is a commercial decision of the SES and SIMEX.
GATS/EL176
Page 5
,
GATS/EL176
Page 6
SINGAPORE (continued)
Sector or subsector
Description of measure
Indicating Its Inconsistency
"Ub Article D
accept from banks, notes and
coins issued by the other
issuing authority, at par and
without charge and to
exchange such notes and coins
into the currency of the
country concerned; and
w
00
arrange for repatriation at the
expense of the respective
currency issuing authority, the
notes and coins issued by the
other currency issuing
authority and to receive at par
the equivalent in any agreed
currency.
Countries to wblcb tbe
measure .pplles
Intended duration
Conditions creatln& tbe need
for tbe txtIDptloD
I
_a •• _ .. ____
\"".V .........""-..,
Sector or subsector
Financial services
W
\0
Description or measure
Indicating Its Inconsistency
wltb Article D
Treatment with respect to the
granting of approval to establish
offshore banks and merchant
banks, to expand existing
operations and conduct new
activities in the fmancial services
sector may be accorded to
service suppliers of another
Member in a differentiated
manner or on the basis of
reciprocity and at the discretion
of the Mo.netary Authority of
Singapore or the relevant
authority
Countries to which tbe
measure applies
All countries
Intended duration
Indefmite
Conditions creating the need
ror the exemption
To accord differentiated
treatment to another Member
which accords favourable
treatment to Singapore fmancial
institutions
I
-------
GATS/EL176
Page 7
40
Sector or subsector
Financial Services
Description or measure
Indicating Its Inconsistency
with Article D
Countries to which the
measure applies
Authorization for a service
supplier of another Member to
establish a commercial presence
or conduct new activities may be
denied in cases when Slovak
suppliers are denied such access
and treatment in the country of
origin of service supplier
concerned
All countries concerned
Intended duration
Indefinite
Conditions creating the need
ror the exemption
To obtain equal market access
possibilities for Slovak services
providers
--
.a::.
.....
GATS/EL177
Page 3
42
i:tVU In 1\..1' IU\"A
Sector or subsector
Financial Services
Description of measure
Indicating Its Inconsistency
witb Artlde D
Members of the Common
Monetary Area enjoy
preferential access to the South
African capital and money
markets and the transfer of
funds, to or from the area of
any other member of the
Common Monetary Area, is
exempt from exchange controls
Countries to wblcb tbe
measure appUes
Lesotho
Namibia
Swaziland
Intended duration
Indefinite
Conditions creating tbe need
for tbe exemption
The Common Monetary Area
Agreement is aimed at the
sustained economic development
of the area as a whole. In
particular, it encourages the
advancement of the less
developed members of the area
through preferential access to
South Africa's capital and
money markets.
~
w
GATS/EL178
Page 1
44
Sector or subsector
Financial Services
---
--
- -
Description or measure
Indicating Its Inconsistency
with Article D
Countries to which the
measure applies
Members of the Common
Monetary Area enjoy
preferential access to the
Swaziland capital and money
markets and the transfer of
funds, to or from the area of
any other member of the
Common Monetary Area, is
exempt from exchange controls
South Africa, Namibia, Lesotho
----
-
-
Intended duration
----
The Common Monetary Area
Agreement is aimed at the
sustained economic development
of the area as a whole
Indefinite
----
Conditions creating the need
ror the exemption
--
.c::.
U1
GATS/ELlS 1
Page 1
46
:SWI"I"LEkLANV
Sedor or subsector
Banking and other
fmancial services
(excluding
insurance)
,J::o.
.....
Description or measure
Indicating Its Inconsistency
wltb Article D
Countries to whlcb tbe
measure applies
Intended duration
Conditions creating tbe need
ror tbe exemption
To allow persons established in
the Principality of Liechtenstein,
without requiring a commercial
presence in Switzerland, to
participate in settlement and
clearing networks and to
lead-manage Swiss franc
denominated issues
Principality of Liechtenstein
Indefmite
Measures ensuing from the
monetlU}' union between
Switzerland and the Principality
of Liechtenstein
New licences are granted to
foreign fmancial services
providers whose home country
authorities provide adequate
market access opportunities for
Swiss fmancial services
providers
All countries
Conditional upon the level of
commitments undertaken by
other Members.
Measures resulting from Swiss
legislation which aims at
enhancing access to foreign
financial markets on a
non-discriminatory basis
The application of the legislation
referred to under column (5) is
withheld until the conclusion of
a period ending no later than six
months after the entry into force
of the Agreement Establishing
the WTO
GATS/ELl83
Page 3
48
Page b
IUAlL~1J
Sector or subsector
Banking and other
fmancial services
~
\0
Description of measure
Indicating Its Inconsistency
with Article D
The application of future
measures affecting the supply of
banking and other fmancial
services would be accorded on a
favourable basis to the services
providers of countries which
accord favourable treatment to
Thai financial service providers
Countries to which the
measure applies
All countries
Intended duration
Indefinite
Conditions creating the need
for the exemption
To address the problem of
systemic instability and/or the
issue of balanced exchange of
offers
-~
Sedor or subsector
Financial Services
Banking)
....
U1
Description of measure
Indicating Its Inconsistency
with Article n
Should national banks wishing to
open branches in the countries
whose banks have already
opened or will open branches in
Turkey, are forced to meet
stricter conditions which they
will be subject to under the
legislation of those countries, or
which are to be made stricter
afielWards, than those imposed
in the Turkish Banks Act,
foreign banks compliance with
the same conditions and the
annulment of the permissions of
those failing to comply with
such condition should be
required.
Countries to which the
measure applies
All countries
Intended duration
Indefinite
Conditions creating the need
for the exemption
Desire to ensure equal treatment
to Turkish banks in the other
countries.
- -
3
If the other countries remove this measure, Turkey will also remove it.
GATS/ELl88
Page 7
Vi ..... • ':'1.1
.n.~
Sector or subsector
Banking and Other
Financial Services
(excluding
Insurance)
U1
W
Banking and Other
Financial Services
(excluding
Insurance)
VI'
Page 12
~l'u!'K.l'--1\.
Description of measure
Indicating Its Inconsistency
witb Article U
Countries to whlcb tbe
measure applies
Conditions creating tbe need
for tbe exemption
iDtended duration
Differential treatment of
countries due to application of
reciprocity measures or through
international agreements
guaranteeing market access or
national treatment
To be determined before the
expiry of six months from the
entry inot force of the WTO
Agreement
Punuant to the Ministerial
Decision on Financial Services,
the measures described in this
exemption will be suspended
from the entry into force of the
WTO Agreement until the end
of a period six months after
entry into force. No other
measures are subject to this
suspension
Need to protect existing
activities of US service suppliers
abroad and to ensure
substantially full market access
and national treatment in
international financial markets
A broker-dealer registered under
US law that has its principal
place of business in Canada may
maintain its required reserves in
a bank in Canada subject to the
supervision of Canada
Canada
Indefinite
Maintenance of established
preference
Permission to establish
state-licensed branches or
agencies, or to own commercial
bank subsidiaries, is based on a
reciprocity test in the following
states: California, Connecticut,
Florida, Georgia, Hawaii,
Illinois, Kentucky, Louisiana,
Massachusetts, Michigan,
Oregon, Pennsylvania, Texas.
Washington.
All
Indefmite
Need to protect existing
activities of US service suppliers
abroad and to ensure
substantially market access and
national treatment in
international fmancial markets
-,.,--
UNITED STATES OF AMERICA (continued)
-----
Sector or subsector
~rlptlon
or measure
Indicating Its Inconsistency
with Article
Countries to wblch the
measure applies
n
Authority to act as a sole trustee
of an indenture for a bond
offering in the United States is
subject to a reciprocity test
AU
Designation as a primary dealer
in US government debt securities
is conditioned on reciprocity
All
----
-
-
-
Intended duration
Indefinite
Indefmite
-
--
-
--
--
Conditions creating tbe need
for the exemption
Need to ensure US financial
service suppliers are permitted
to provide trustee services in
foreign markets
Need to ensure US fmancial
service suppliers are afforded
national treatment in foreign
government debt markets
---
~
GATS/ELl90
Page 13
I
Yage b
-
Sedor or subsector
Financial services
.
-
V1
V1
Banking
(CPC 81ltS·
81116-81128113-8133381339)
Insurance
(CPC 812-814)
Description of measure
indicating Its Inconsistency
wltb Article D
Authorizations for the enuy of
foreign capital into the national
market through participation in
existing institutions, the opening
of subsidiaries or the creation of
new suppliers of fmancial
services may be subject to
reciprocity when the National
Executive considers it
appropriate
Countries to whlcb tbe
measure applies
All countries
Intended duration
Ten years
Conditions creating tbe need
for tbe exemption
A reasonable interval is
necessary for implementation of
the new law on banks and other
fmancial institutions, which
entered into force on
1 January 1994. The same
applies to the new law on
insurance and reinsurance
enterprises, which it is hoped
will be approved during 1994.
I
DEPARTMENT
OF
THE
'IREASURY (U)
TREASURY
NEWS
_~......!17Hq
--
OmCE OF PCBUC A}<'FAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHI~GTON. D.C. • 20220 • (202) 622-2960
FOR IMMEDIATE RELEASE
TEXT AS DELIVERED
May 3, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
CENTER FOR NATIONAL POLICY
WASHINGTON, D.C.
I'm going to speak this morning about financial modernization and a few other
items relating to the financial markets. Before doing that, let me try to put in context
just at word or two about the things we've been working on in general on the President's
approach to economic issues.
At its core, the President's economic program has one central goal, and that is
recognizing the enormous changes that have taken place in the global economy, and the
critical importance of being competitive and effective in the global economy. So the
President has been directed toward doing that which is necessary to prepare ourselves
for the global economy, and number two, internationally, engaging so we can be effective
participants in the global economy. The global economy we're in today is one that will
be even more part of our lives in the years and decades ahead.
And part of this is preparing the work force, focusing on education, on training,
and the problems of the inner cities, and all of the domestic initiatives, which while some
may view as social programs, he views, and I think he's absolutely dead right on this, he
views as economic initiatives that are critical to future productivity and competitiveness
in that global environment.
Preparing the economy also requires that we reduce the cost of capital, and that
we promote the availability of capital to all who are creditworthy, and the efficiency of
our financial services industries and our financial markets. And that takes us from the
broad thrust of the President's economic strategy to the issues of this morning's remarks.
The goal then, looking at financial markets, the financial services industry, is to
improve capital costs, improve capital access for business and consumers in every
community -- downtown, uptown, suburban, rural, wealthy or poor.
RR-270
2
The question of access to capital and the cost of capital has been at the top of the
domestic agenda from the very beginning of this administration. We began with the
1993 deficit reduction program. It was a massive and powerful program to reverse the
increase in deficits that has taken place during the past 12 years. As a consequence, we
now have a lower cost of capital than this country's had in a long time. In fact, it is at
the lowest point relative to the business cycle than the cost of capital has been in well
over 20 years. In our judgment, the deficit premium has largely been wrung out of long
term interest rates, so the system will work the way it ought to work. That is to say that
interest rates go up with growth and go down with slower periods and we've taken out
the artificial impediment to growth, the deficit premium.
However, it is not enough to restore fiscal discipline, although that is absolutely
critical. And it has been, as I said, a powerful commitment and accomplishment of this
President, not only in the 1993 program, but carrying forward deficit reduction in this
year's budget, which adds $81 billion in additional deficit reduction over the next five
years. And, as the president has said so often, his commitment to deal with the problem
of federal health care entitlements, in the context of health care reform.
However, in addition to deficit reduction, it is necessary also to increase
competitiveness and the efficiency of our markets, which dictates modernizing our legal
and regulatory structure so that it is as modern as the marketplace.
Within months of taking office, the President called a group of people from
Treasury and the White House down to the Cabinet Room and he put in place,
particularly with the leadership of Treasury, a targeted administrative effort to remove
unnecessary regulatory impediments and thereby deal with what was then a very
important issue, the question of the credit crunch. There is no question in my mind that
the regulatory changes he made at that time made a real contribution, they weren't the
total answer, but a real contribution to reducing significantly the credit crunch.
The next major step was interstate banking legislation. The President signed
interstate banking legislation seven months ago, and in doing so took a major step, one
that the banking industry had rightly tried to accomplish for a long time, one that will be
of great importance as we go forward toward removing the impediments government
has placed in the way of the efficient operation of our banking system.
If you look at the history of the financial industry in the United States -- for that
matter, if you look at market history more generally -- you'll find and that where markets
are artificially restrained, market participants find a way to work around that restraint
over time. That's precisely what happened in interstate banking. We had a prohibition
against interstate banking, and yet we had what in effect was a rather crude system of
interstate banking until this legislation was enacted. The old system was inefficient -- it
added time, confusion and cost to the process, not just to the financial institutions but
also for the customers.
3
Congress agreed and, as this legislation is fully implemented, it will make a big
difference, allowing banks to be more efficient and easier for customers to use. Again, it
was a case of getting government out of the way where it was impeding the system
without improving its safety or soundness.
There are, however, areas of our country where whatever may be done to improve
efficiency, mainstream financial institutions have been reluctant to do business. That is
why the President proposed, and a huge bipartisan majority in Congress passed, the
Community Development Financial Institution legislation last year. It is a lifeline to
community development financial institutions and to entrepreneurs who create jobs and
build opportunity and create economic activity in our rural areas, in our distressed inner
cities, and on our Indian reservations. It makes capital available, and this is a very
important point, to capital-worthy borrowers, ones who want to take advantage of a
business opportunity in areas where capital and credit has been hard to come by.
Let me say just a word, if I may, about the actions on the Hill concerning
recisions in this years' CDFI appropriation.
We all recognize the need for budgetary restraint. As I said a moment ago, this
President has dramatically reversed 12 years of fiscal profligacy, roughly speaking
quadrupled the outstanding federal debt, and we have a powerful program in this budget
and the commitment to reduce federal health expenditures within the context of health
care reform going forward. Under the President's existing budget the deficit is brought
down from roughly 5 percent of GDP when he took office to 2.7 percent of GDP today,
a projection of 2 percent by the year 2000, and 1.6 percent in the year 2005. And, as I
said a moment ago, in addition to that, the President is a strong advocate of controlling
federal health care expenditures in the context of federal health care reform.
However, fiscal restraint, reducing the deficit, should not be done with arbitrary
dates and arbitrary cuts but should be done in a thoughtful fashion so we can make the
right long term judgments for the economy. In that context, I believe it is shortsighted to
reduce the appropriation for CDFI institutions.
Leveraging the modest initial appropriation of $125 million with private resources
could mean $5 billion or more in new credit for Americans who want it and need it and
are creditworthy. And this is an important part of the economic and social imperative of
dealing with the problems of the inner cities.
There is one other initiative along the same lines I want to discuss before looking
at the major item on our agenda this year.
4
I'm referring to the Community Reinvestment Act regulatory reform announced
recently by President Clinton. It is a reform we are very proud of. The CRA, as you
know, is intended to incentivize financial institutions to meet the credit needs of their
entire communities, making sure that creditworthy borrowers, again, creditworthy
borrowers, particularly in low- and middle-income communities, have access to capital
and credit.
CRA reform emphasizes performance over paperwork. We've replaced 12 old
CRA tests with just three simple tests -- a lending test, a service test, and an investment
test.
Whether a bank is complying with the CRA is going to be based on its actual
performance -- what loans were made, what services were provided, what investments
were made in the community, not on paperwork.
Making the CRA work better gets more capital into our communities. It makes it
easier for working families to own their homes, easier for our small husinesses to grow,
and easier for family farms to find backing they need. It also makes certain that banks
don't simply raise deposits in a community while ignoring the credit needs of that
community.
There was an interesting item in a magazine put out by the Cato Institute the
other day written by Federal Reserve Board Governor Lawrence Lindsey, defending
CRA against its critics.
Let me quote from what he wrote: "Economic opportunity is a cornerstone of
American Capitalism. Spreading opportunity widely benefits not only the individuals
directly affected, hut all of us with a stake in our democratic capitalist system." .. , This
was a very good comment. I commend this to you, these particular few sentences from
the Cato Institute. And we agree. Governor Lindsey has estimated that CRA is
responsible for channelling $4 billion to $6 billion a year into low- and middle-income
neighborhoods.
Let me make a point about where we are in the CRA process.
These changes have just been announced. In fact it was about two weeks ago,
and there already are proposals that would substantially weaken the eRA, and that's
after reform that was the result of a two-year effort with the participation of thousands
of financial institutions and community groups.
5
I received a letter the other day that was signed by a number of the very active
community groups and by some of the largest banks in the country, endorsing CRA
reform. The new rules we are now implementing need to be given an opportunity to
work. They are going to be put in place over a period of two years. It is far too early to
think of trying something different -- and it would be a terrible disservice to the
institutions, the many many organizations that participated in this process.
Accordingly, the administration will strongly oppose any effort to weaken the
CRA legislatively. We strongly support sensible regulatory reform. The Vice President
has led an aggressive effort to deal with the question of regulation, rationalizing
regulation. But we will vigorously fight any campaign to roll back the work so many have
just finished.
That brings me to the last point I'd like to make on the next item on our agenda
with respect to financial markets.
Earlier this year the administration outlined its proposal for reforming GlassStegall.
We have at the moment industries that are pushing far ahead of our legal
structure. It's precisely the situation that required changing the old interstate banking
restrictions. The problem is two-fold. One, we have an antiquated legal structure that
must be modernized. Second, we have a system that is Balkanized, a patchwork and
piecemeal system. We must change it to allow our financial services industry to operate
with greater efficiency.
Thus, the final element in our program of financial modernization is to break
down the walls between investment banking, commercial banking, insurance and other
forms of financial services, while preserving protection for taxpayers and depositors.
For six decades our laws have, in effect, divided up the markets among the
providers of various financial services. However good the reasons may have been at one
time for so doing, in our judgment those laws are now outmoded. Dividing up markets
amongst the providers of the various financial services, deprives Americans not only of
the convenience of buying a variety of services from a single source, but also of the
benefits of heightened competition among suppliers.
We want to bring down the barriers to permit more competitive and efficient
operations in our financial service industries and our financial markets. There is broad
conceptual agreement -- that's a very important point -- broad conceptual agreement and
support for financial modernization on both sides of the aisle and in both houses of
Congress. Chairman Leach and Congressman Gonzales and many other members of the
House Banking Committee have contributed greatly to moving this process forward.
6
We look forward to working with Chairman D'Amato and Senator Sarbanes and the
other members of the Senate Banking Committee when the process reaches the Senate.
There is real potential, for the first time in a long time, to get a good bill in this
Congress. But there are a few points to be made.
There are differences in the various proposals. I believe that, at the end of the
day, the best approach is to not only take down the barriers between banking and
securities, but also to take down the barriers between banking and insurance. There
maybe tactical reasons to avoid the insurance question at the moment, but I believe that
a Congress dedicated to a thorough review of government regulations should include
insurance in financial modernization before that Congress completes its work.
In addition, we believe it would be useful for the legislation to establish a
National Council on Financial Services -- drawn from the regulatory community and
coordinated by Treasury -- to provide a forum for policy coordination on modernization
issues, to define what activities should be considered financial activities, and to deal with
other financial modernization questions as they arise in a rapidly changing world. This
is similar to the approach that has already been proposed in two of the bills before
Congress.
I also believe we should permit the marketplace to decide what organizational
structure is best for each operation. It would be a mistake to impose a rigid holding
company structure on all diversified institutions, to remove to new affiliates the large
numbers of activities now being performed safely and lawfully in our banks, or to
preclude banks from conducting lawful activities through their subsidiaries.
Let me give just one example of how flexibility may be advantageous: If a bank is
able to conduct a new activity through its own subsidiary, the bank itself will realize the
profits of that activity. At the same time, any exposure to its depositors or the FDIC
would be limited to the amount of its investment in the subsidiary, which would be
restricted by regulation under our proposal and which would not count toward the bank's
regulatory capital. If the bank were forced to move that activity to a sister company, it
no longer realizes the benefit of that profit.
Safety and soundness is not the issue here. I do not believe there is difference
that affects safety and soundness between a subsidiary structure and a sister corporation
structure. The issue is the same in either case -- observing requirements so you don't
have a piercing the corporate veil problem.
The decisions about what product lines to place in what portion of the
organizational chart should be made by the companies themselves, not by the
government in Washington.
7
Let me add more generally that we do not believe that anything that takes place
in the context of financial modernization should in any way decrease the safety and
soundness of our financial system.
Four years ago, Congress adopted an entirely new approach to bank capital
requirements and gave the banking regulators a strong mandate to intervene promptly
when capital begins to erode. This is our main line of defense against threats to the
interests of depositors and taxpayers, and we believe we have a sound system. With
strong firewalls and sound internal controls -- all of which are required in the new
legislation -- I think we can enhance the safety and soundness through appropriate
diversification of financial services.
Everything I have said this morning is an integral element in the central economic
goal of this administration -- to prepare our economy to compete, to operate as
efficiently as possible, and to provide the capital and credit every segment of our society
needs to grow, create jobs and prosper.
I believe Congress shares our desire to remove needless restrictions on our
financial sector -- consistent with safety and soundness and fairness access to capital to
all creditworthy borrowers. When we began to pursue meaningful financial
modernization almost two and a half years ago, the goal was to make credit and capital
available in to all creditworthy borrowers and to increase the efficiency of our financial
services industry and our financial markets by removing unnecessary and outmoded
impediments. Much has been accomplished toward those ends. Now we must make
sure that none of that is reversed. And we must go on to accomplish the remaining item
on our agenda, Glass-Stegall reform, and the other components of financial
modernization.
Thank you.
-30-
DEPARTMENT
OF
THE
TREASURY
NEWS
omCE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASIllNGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
MAY 5, 1995
STATEMENT BY UNITED STATES TREASURER MARY ELLEN WITHROW
Thank you, Paul.
I am honored to be here today. Most people see and use paper money every day of their
lives without realizing the great skill, dedication and individual artistry that goes into the
creation of each and every note.
Mr. Blackmer spoke of his pride in the Bureau's work force and their dedication to doing
the job well. I would also like to praise the Bureau's employees. I want to emphasis their
dedication to making their community a better place. In April of 1990, the employees of the
Bureau of Engraving and Printing established a voluntary program to provide assistance to the
needy in the metropolitan area. This Community Outreach Program quickly designed a
strategy flexible enough to assist those in crisis situations and to address much-needed, longrange projects.
The Outreach Program has done many exciting things over the past five years: adopting
a teenaged mother and her two children and providing them with material, educational, and
moral support; and adopting Grandma's House, special homes in Washington, D. c., for
children who have been exposed to the HIV virus. BEP employees completely furnished a
room in one of these houses. The Outreach Program also provides recreational games to
senior citizen residents at the Mount Vernon House so that they might enjoy their leisure
time.
Other exciting outreach activities are with the D.C. Public Schools. Bureau employees
decided to focus their attention on youth for two reasons: to serve as role models and to help
develop the future workforce of the Bureau. The Bureau Police Force has been assisting the
Harrison Elementary School for about nine years. They support the school financially as well
as personally. At least once a week an officer is at the school talking to the students.
Recently, they purchased software for the science department computer and donated winter
jackets to those who needed them.
RR-271
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
We are happy to have 25 fifth graders from Harrison Elementary School here today for
this ceremony. Please stand. Let's give them a hand. The Bureau also maintains a
partnership with McKinleylPenn Senior High School. The Adopt-A-School Program was
designed to help prepare high school students for the workplace and motivate them for jobs
involving new technology by exposing them to and involving them in BEP's professional
work environment.
Last October, a ceremony was held here at the Bureau to honor the eight McKinleyfPenn
students who successfully completed an eight-week School-to Work program the previous
summer. Prior to their eight weeks at the Bureau, the students participated in tours and
\vorkshops at the Bureau to gain first-hand knowledge about operations and overall
professional behavior in the workplace.
BEl' has made a finn long-tenn commitment to this partnership with McKinleylPenn
High School, incorporating it into the Human Resource Development part of BEP 2000. The
success of this program complements BEP's dedication to expanding the quality of life
options for a few Washington's youth and to making long-tem1 investment in the development
of BEP's future labor force.
-30-
NEWS
IREASURY
ornCE OF PUBliC AFFAIRS. 1500 PEN'NSYLVANIAAYEr,1U)':, N.W .• WASHINGTON, D.C.. 20220 • (202) 622-2960
?
, 1
FOR IMMEDIATE RELEASE
('untact:
May], 1995
I lamilton Dix
(202) 622-2 9()()
MEDIA ADVI SOR Y
The ceremony introducing the currency hearing Treasur~ Secretary Rohert L. Rubin' s
signature at 10 a.m. this Friday. May 5. 1995. will be open press.
The ceremony and tour of the LiCility to view production of the new currencv will he
at the Bureau of Engraving and Printing. Washington. D.C.
Secretary Ruhin will he joined hy {1.S. Treasurer \Jarv Fllen Withrnv•. \vhose
signature also appears on the currency. and 25 fifth graders from Ilarris()Il Flementary School
in the District of Columbia.
Three out of four stops on the currency production tour will be pooled press. Those
not in the pool will be escorted to the open press location. Pool tape \\ill he fed on the pool
switch and pool 9. For further pool information call Emi Iy Schultze at (:::02) 457-4444.
Media should usc the Visitors Center entrance
9 a.m. Cameras should he in place hy 9:45 a.I11,
011
15th Street. 1\, \\', heginning at
To have access to security areas. all journalists, rcgardlcs:-, of credentials. must provide
name and organization by 5 p.m., Thursday. May 4. to Dawn I laky. Bureau of tngraving and
Printing Public Affairs at (202) 874-3913.
- 30 -
RR-272
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEW
S
•••••••••••••••••••••
'IREASURV
':- -J-.. ~".~'J:
,':~ ~
'. ()r'~~.,;-
-'to
OffiCE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.· 20220· (202) 622-2960
FOR RELEASE WHEN AUTHORIZED AT PRESS CONFERENCE
May 3, 1995
CONTACT:
Office of Financing
202-219-3350
TREASURY MAY QUARTERLY FINANCING
The Treasury will auction $17,500 million of 3-year notes
and $12,500 million of 10-year notes to refund $32,135 million of
publicly-held securities maturing May 15, 1995, and to pay down
about $2,125 million.
The Treasury will also auction a 38-day
cash management bill on May 11, 1995.
Details about the cash
management bill are given in a separate announcement.
In
Federal
million
issuing
addition to the public holdings, Government accounts and
Reserve Banks, for their own accounts, hold $5,444
of the maturing securities that may be refunded by
additional amounts of the new securities.
The maturing securities held by the public include $1,340
million held by Federal Reserve Banks as agents for foreign
and international monetary authorities.
Amounts bid for these
accounts by Federal Reserve Banks will be added to the offering.
For both auctions, competitive yields must be expressed with
three decimals, for example, 7.123 percent.
The 10-year note being offered today is eligible for the
STRIPS program.
Tenders will be received at Federal Reserve Banks and
Branches and at the Bureau of the Public Debt, Washington, D. C.
This offering of Treasury securities is governed by the terms and
conditions set forth in the Uniform Offering Circular (31 CFR
Part 356) for the sale and issue by the Treasury to the public
of marketable Treasury bills, notes, and bonds.
Details about the notes are given in the attached offering
highlights.
000
Attachment
RR-273
HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC
MAY 1995 QUARTERLY FINANCING
May 3, 1995
Offer i ng Amount
Description of Offering:
Term and type of security
Series
ClJSIP number
Auction date
Issue dilte
Dated dilte
Maturity date
Interest rate
Yield
Interest payment dates
Minimum bid amount
Multiples
Accrued interest payable
by investor
Premium or discount
STRIPS Information:
Minimum amount required
Corpus CUSIP number
Due dates and CUSIP numbers
for additional TINTs
$17,500 million
$12,500 million
3-year notes
X-1998
912827 17 7
May 9, 1995
May 15, 1995
MilY 15, 1995
May 15, 1998
Determined based on the average
of accepted competitive bids
Determined at auction
November 15 and May 15
10-year notes
B-2005
912827 T8 5
Mily 10, 1995
May 15, 1995
May 15, 1995
May 15, 2005
Determined based on the average
of accepted competitive bids
Determined at auction
November 15 and May 15
$5,000
$1,000
$1,000
$1,000
None
Determined at auction
None
Determined at auction
Not applicable
Not applicable
Determined at auction
912820 BN 6
Not applicable
Not applicable
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Accepted in full up to $5,000,000 at the average yield of accepted competitive bids_
Competitive bids
(1) Must be expressed as a yield with three decimals, e.g., 7.123%_
(2) Net long position for each bidder must be reported when the sum of the total bid amount,
at all yields, and the net long position is $2 billion or greater_
(3) Net long position must be determined as of one half-hour prior to the closing time
for receipt of competitive tenders.
Maximum Recognized Bid
35% of public offering
at a Single Yield
35% of public offering
Maximum Award . . . . .
Receipt of Tenders:
Prior to 12:00 noon Eastern Daylight Saving time on auction day
Noncompetitive tenders
Prior to 1:00 p.m. Eastern Daylight Saving time on auction day
Competitive tenders
Payment Terms _ . . . .
Full payment with tender or by charge to a funds account at a Federal Reserve Bank on issue date
'IREASURY
..
NEWS
..------------
------------~8q~
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.· 20220 • (202) 622·2960
FOR RELEASE WHEN AUTHORIZED AT PRESS CONFERENCE
May 3, 1995
CONTACT:
Office of Financing
202-219-3350
TREASURY TO AUCTION CASH
MANAG~MENT
BILL
The Treasury will auction approximately $17,000
million of 38-day Treasury cash management bills to be
issued May 15, 1995.
Competitive and noncompetitive tenders will be
received at all Federal Reserve Banks a~d Branches.
Tenders will not be accepted for bills to be maintained on
the book-entry records of the Department of the Treasury
(TREASURY-DIRECT).
Tenders will not be received at the
Bureau of the Public Debt, Washington, D.C.
Additional amounts of the bills may be issued to
Federal Reserve Banks as agents for foreign and
international monetary authorities at the average price of
accepted competltive tenders.
This offering of Treasury securities lS governed by
the terms and conditions set forth in the Uniform Offering
Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable.Treasury bills, notes,
and bonds.
Details about the new security are glven In the
attached offering highlights.
000
Attachment
RR-274
HIGHLIGHTS OF TREASURY OFFERING
OF 38-DAY CASH MANAGEMENT BILL
May 3, 1995
. $17,000 million
Offering Amount .
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
Minimum to hold amount
Multiples to hold
Submission of Bids:
Noncompetitive bids
Competitive bids
38-day Cash Management Bill
912794 S7 0
May 11, 1995
May 15, 1995
June 22, 1995
December 22, 1994
$25,720 million
$10,000
$1,000
$10,000
$1,000
Accepted in full up to $1,000,000 at
the average discount rate of accepted
competitive bids.
(1) Must be expressed as a discount rate
with two decimals, e.g., 7.10%.
(2) Net long position for each bidder must
be reported when the sum of the total
bid amount, at all discount rates, and
the net long position is $2 billion m
greater.
(3) Net long position must be determined
as of one half-hour prior to the
closing time for receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders .
Payment Terms .
Prior to 12:00 noon Eastern Daylight
Saving time on auction day
Prior to 1:00 p.m. Eastern Daylight
Saving time on auction day
Full payment with tender or by charge
to a funds account at a Federal
Reserve Bank on issue date
For Release Upon Delivery
Expected at 9:30 A.M.
May 3, 1995
ORAL STATEMENT OF
LESLIE B. SAMUELS
ASSISTANT SECRETARY (TAX POLICY)
DEPARTMENT OF THE TREASURY
BEFORE THE SENATE FINANCE COMMITTEE
CHAIRMAN PACKWOOD AND MEMBERS OF THE COMMITTEE:
I WELCOME THE OPPORTUNITY THIS MORNING TO DISCUSS THE
ADMINISTRATION'S VIEWS ON THE ALTERNATIVE MINIMUM TAX.
SINCE THEIR INCEPTION, BOTH THE INDIVIDUAL AND CORPORATE AMT
HAVE SERVED ONE OVERARCHING PURPOSE: TO ENSURE THAT TAXPAYERS
WITH ECONOMIC INCOME PAY AT LEAST SOME TAX.
IN 1985, PRESIDENT
REAGAN PROPOSED MAJOR CHANGES IN THE CORPORATE AMT.
HIS
PROPOSALS RECOGNIZED THAT "THE PROSPECT OF HIGH-INCOME
CORPORATIONS PAYING LITTLE OR NO TAX THREATENS PUBLIC CONFIDENCE
IN THE TAX SYSTEM."
CONGRESS AGREED, AND IN THE TAX REFORM ACT OF 1986 ENACTED
MAJOR REFORMS TO BOTH THE CORPORATE AND INDIVIDUAL AMT.
THE
REPORT OF THIS COMMITTEE EXPLAINED THAT ALTHOUGH TAX INCENTIVES
MAY SERVE WORTHY GOALS, THEY BECOME COUNTERPRODUCTIVE WHEN
TAXPAYERS ARE ALLOWED TO USE THEM TO AVOID ALL OR MOST TAX
LIABILITY. THE COMMITTEE NOTED THAT THIS UNDERMINES RESPECT FOR
THE TAX SYSTEM. THE COMMITTEE STATED: "IT IS INHERENTLY UNFAIR
FOR HIGH-INCOME INDIVIDUALS AND PROFITABLE CORPORATIONS TO PAY
LITTLE OR NO TAX .... "
THE ADMINISTRATION BELIEVES THAT THESE PRINCIPLES REMAIN
VALID. WE RECOGNIZE THAT THE AMT IS NOT A PERFECT SYSTEM. THE
PERCEIVED FLAWS FADE, HOWEVER, WHEN MEASURED AGAINST THE
POTENTIAL DAMAGE TO OUR TAX SYSTEM IF WEALTHY INDIVIDUALS AND
PROFITABLE CORPORATIONS ARE ABLE TO PAY LITTLE OR NO TAX.
FOR INSTANCE, THE HOUSE-PASSED TAX LEGISLATION (H.R. 1215)
EVENTUALLY WOULD REPEAL THE CORPORATE AMT, WHILE WEAKENING THE
INDIVIDUAL AMT.
IT WOULD ALSO PROVIDE SIGNIFICANT ADDITIONAL
BENEFITS TO INDIVIDUAL AND CORPORATE TAXPAYERS -- NOTABLY THE SoCALLED NEUTRAL COST RECOVERY SYSTEM.
IF THIS LEGISLATION WERE TO
BE ENACTED, WE ESTIMATE THAT APPROXIMATELY 76,000 CORPORATIONS
THAT OTHERWISE WOULD HAVE PAID TAX IN 2005 WOULD AVOID PAYING ANY
TAX.
THE CHART THAT I HAVE HERE ILLUSTRATES THE SHARE OF THE
ASSETS OF CURRENTLY TAXPAYING CORPORATIONS REPRESENTED BY THESE
76,000 COMPANIES. ON THE CHART, THE RED SLICE REPRESENTS $2.1
2
TRILLION, OR 13.7 PERCENT OF THE ASSETS, AND REFLECTS THE IMPACT
OF AMT REPEAL ALONE.
THE ORANGE SLICE REPRESENTS $600 BILLION,
OR FOUR PERCENT OF THE ASSETS, AND REFLECTS THE IMPACT OF THE
NEUTRAL COST RECOVERY SYSTEM. ALTOGETHER, UNDER THE HOUSE-PASSED
LEGISLATION, CORPORATIONS WITH $2.7 TRILLION, OR 18 PERCENT OF
ALL THE ASSETS OF CURRENTLY TAXPAYING CORPORATIONS, WOULD AVOID
PAYING ANY TAX. THUS, INCOME ON $2.7 TRILLION OF CORPORATE
ASSETS WOULD NOT BE SUBJECT TO TAX.
WE BELIEVE THAT RECENT EFFORTS TO IMPROVE THE AMT HAVE
ALREADY ADDRESSED SOME OF THE MOST SIGNIFICANT PROBLEMS OF THE
AMT SYSTEM.
IN ITS 1993 BUDGET, FOR INSTANCE, THE ADMINISTRATION
PROPOSED SIGNIFICANT AMT RELIEF FOR CAPITAL INVESTMENT BY
CORPORATIONS. AS ENACTED IN OBRA 1993, THIS RELIEF REMOVED
DEPRECIATION FROM THE SO-CALLED ACE ADJUSTMENT.
BECAUSE
DEPRECIATION IS BY FAR THE LARGEST SOURCE OF AMT REVENUE, THESE
CHANGES ARE EXPECTED TO MAKE FEWER CORPORATIONS SUBJECT TO THE
AMT, EASE COMPLIANCE COSTS, AND CONTRIBUTE TO THE DOWNWARD TREND
IN CORPORATE AMT LIABILITIES.
I HAVE HERE A CHART WHICH SHOWS THE HISTORICAL REVENUE
PATTERN FROM THE CORPORATE AMT.
AS YOU CAN SEE, CORPORATE AMT
LIABILITIES INCREASED AFTER 1986, PEAKED IN 1990 AS A RESULT OF
THE SWITCH IN AMT CALCULATIONS, AND ARE NOW DECLINING.
IN
ADDITION TO THE RELIEF ENACTED IN OBRA 1993, SEVERAL FACTORS HAVE
CONTRIBUTED TO THIS DOWNWARD TREND.
ONE MAJOR FACTOR IS THAT DEPRECIATION ADJUSTMENTS -- BY FAR
THE LARGEST SOURCE OF AMT REVENUES -- AFFECT ONLY THE TIMING,
RATHER THAN THE TOTAL AMOUNT OF DEPRECIATION DEDUCTIONS.
IN
TIME, THESE DEPRECIATION ADJUSTMENTS REVERSE. WE HAVE NOW
REACHED THE PERIOD WHERE THIS REVERSAL IS OCCURRING FOR POST-1986
INVESTMENT.
ANOTHER FACTOR IN THE DECLINE IN NET CORPORATE AMT REVENUES
RELATES TO THE USE OF AMT CREDITS. AMT LIABILITY IN ONE YEAR MAY
BE CREDITED AGAINST REGULAR-TAX LIABILITY IN FUTURE YEARS. THE
CHART SHOWS HOW AMT CREDITS HAVE STEADILY INCREASED SINCE 1986.
AS AMT LIABILITIES DECLINE, CORPORATIONS USE AN INCREASING AMOUNT
OF AMT CREDITS TO REDUCE THEIR REGULAR-TAX LIABILITY. THE
ECONOMIC RECOVERY WILL LIKELY CONTRIBUTE TO THIS TREND,
ALTHOUGH THE OVERALL STOCK OF AMT CREDITS IS NOT EXPECTED TO
DECREASE IN COMING YEARS.
IT SHOULD BE NOTED THAT LARGE FIRMS PAY MOST OF THE
CORPORATE AMT. TABLE THREE IN MY WRITTEN TESTIMONY SHOWS THAT
CORPORATIONS WITH ASSETS OVER $500 MILLION GENERALLY PAY 75
PERCENT OF THE CORPORATE AMT.
SMALLER CORPORATIONS ARE LARGELY
ELIMINATED FROM THE CORPORATE AMT BY THE $40,000 EXCLUSION.
3
TABLE FOUR IN MY WRITTEN TESTIMONY SHOWS THAT MOST CORPORATIONS
THAT PAY AMT DO NOT PAY IT FOR MORE THAN ONE OR TWO YEARS.
THE TAX LIABILITY GENERATED BY THE INDIVIDUAL MINIMUM TAX
HAS FLUCTUATED SUBSTANTIALLY.
I HAVE HERE A CHART SHOWING
INDIVIDUAL AMT AND CREDITS CLAIMED SINCE 1987. AS YOU CAN SEE,
IN THIS PERIOD, INDIVIDUAL AMT COLLECTIONS DECLINED UNTIL 1990
AND HAVE NOW INCREASED APPROXIMATELY TO THEIR 1987 LEVEL.
LIKE CORPORATIONS, INDIVIDUALS SEEM TO PAY AMT ONLY
INFREQUENTLY.
IN RECENT YEARS, ONLY A TINY PERCENTAGE OF
INDIVIDUALS HAVE BEEN SUBJECT TO THE AMT IN SUCCESSIVE YEARS.
WE BELIEVE THAT THE AMT HAS ACCOMPLISHED ITS GOALS OF
ENSURING THAT TAXPAYERS WITH SIGNIFICANT ECONOMIC INCOME PAY SOME
INCOME TAX.
MY WRITTEN TESTIMONY DETAILS THE EVIDENCE THAT, AS A
RESULT OF THE INDIVIDUAL AMT, VERY FEW HIGH-INCOME INDIVIDUALS
HAVE BEEN ABLE TO ESCAPE ALL TAX LIABILITY. THE EVIDENCE ALSO
INDICATES THAT MOST OF THE NON-TAXPAYING CORPORATIONS ARE
RELATIVELY SMALL, AND MANY PROBABLY QUALIFIED FOR THE AMT
EXEMPTION.
THE CORPORATE AMT HAS BEEN CRITICIZED FOR ADVERSELY
AFFECTING ECONOMIC GROWTH.
IT HAS BEEN ARGUED THAT THE CORPORATE
AMT REDUCES INCENTIVES TO INVEST, CREATES DIFFERING INCENTIVES
FOR DIFFERENT CORPORATIONS, AND MAY ENCOURAGE MERGERS AND
ACQUISITIONS TO AVOID THE AMT OR BETTER UTILIZE AMT CREDITS.
WHILE THERE IS SOME VALIDITY TO THESE CONCERNS, THEY MAY
EASILY BE OVERSTATED.
IN FACT, THE LOWER AMT RATE CAN INCREASE
THE INCENTIVE TO INVEST IF THE CORPORATION WERE TO REMAIN SUBJECT
TO THE LOWER AMT RATE OVER THE LIFE OF THE ASSET.
LIKEWISE, IT
MAY INCREASE THE INCENTIVE TO INVEST FOR A FIRM NOT CURRENTLY
SUBJECT TO THE AMT IF IT ANTICIPATES THAT IT WILL BE SUBJECT TO
THE AMT AFTER A FEW YEARS.
SUCH A FIRM WILL BE ABLE TO CLAIM
REGULAR-TAX DEPRECIATION NOW, WHILE A PORTION OF THE RETURNS WILL
BE TAXED AT THE LOWER 20 PERCENT AMT RATE IN LATER YEARS.
MOREOVER, BY DESIGN, THE AMT REDUCES THE INCENTIVE TO INVEST
IN TAX-FAVORED ASSETS. THUS, THE OVERALL EFFICIENCY OF
INVESTMENT MAY BE ENHANCED BY THE AMT'S PROPENSITY TO CREATE A
MORE NEUTRAL TAX SYSTEM.
ANY POTENTIAL ADVERSE EFFECT OF THE AMT ON INVESTMENT IS
MITIGATED BY THE FACT THAT FEW CORPORATIONS ARE SUBJECT TO THE
CORPORATE AMT.
IN 1992, FOR INSTANCE, ONLY ABOUT ONE PERCENT OF
NON-SUBCHAPTER S CORPORATIONS WERE SUBJECT TO THE AMT.
MOREOVER, MOST CORPORATIONS THAT PAY AMT DO SO ONLY
TEMPORARILY.
IN ADDITION, FIRMS SUBJECT TO THE AMT DO NOT
PERMANENTLY LOSE THEIR TAX BENEFITS, BECAUSE AMT LIABILITY
GENERATES CREDITS THAT CAN BE USED IN FUTURE YEARS.
4
CONCERN HAS ALSO BEEN VOICED ABOUT COMPLIANCE COSTS OF THE
AMT.
WE SHARE THIS CONCERN ABOUT COMPLEXITY.
THIS CONCERN WAS
ADDRESSED IN PART IN OBRA 1993 BY THE REPEAL OF THE ACE
DEPRECIATION ADJUSTMENT.
THIS PROVISION WILL SIGNIFICANTLY
REDUCE THE APPLICATION OF AMT TO TAXPAYERS, AS WELL AS EASE THE
COMPLIANCE COSTS FOR THOSE LIKELY TO BE SUBJECT TO THE AMT.
IT
WILL ALSO INCREASE THE PACE AT WHICH AMT CREDITS MAY BE USED.
THE ADMINISTRATION WELCOMES THE OPPORTUNITY TO WORK WITH THE
CONGRESS TO DEVELOP MEASURES THAT WOULD SIMPLIFY THE AMT ON A
REVENUE-NEUTRAL BASIS, EITHER WITHIN THE AMT OR BY IDENTIFYING
OTHER ACCEPTABLE REVENUE OFFSETS.
IN ADDITION, THE
ADMINISTRATION IS ALSO COMMITTED TO SIMPLIFYING THE AMT THROUGH
ADMINISTRATIVE MEASURES, WHERE POSSIBLE.
FOR INSTANCE, LAST
NOVEMBER THE TREASURY DEPARTMENT ISSUED REGULATIONS THAT GREATLY
SIMPLIFY ADJUSTED GROSS INCOME CALCULATIONS FOR AMT PURPOSES.
FINALLY, THE ADMINISTRATION IS VERY CONCERNED ABOUT THE
POTENTIAL EFFECTS OF THE HOUSE-PASSED TAX LEGISLATION.
AS I HAVE
NOTED, WE BELIEVE THAT BY REPEALING THE CORPORATE AMT AND
WEAKENING THE INDIVIDUAL AMT, THIS LEGISLATION WOULD SERIOUSLY
UNDERMINE THE OBJECTIVE OF ENSURING THAT TAXPAYERS WITH ECONOMIC
INCOME PAY AT LEAST SOME TAX.
THE ADMINISTRATION IS ALSO VERY CONCERNED ABOUT THE
POTENTIAL EFFECTS OF THE HOUSE-PASSED TAX LEGISLATION ON THE
FEDERAL DEFICIT.
THE TAX PROVISIONS ARE ESTIMATED TO LOSE ABOUT
$178 BILLION OVER THE FIVE-YEAR BUDGET WINDOW.
BY THE YEAR 2005,
THE ANNUAL COST OF THESE PROVISIONS IS ESTIMATED TO BE ALMOST
$100 BILLION.
THE REVENUE LOSSES ANTICIPATED FOR THE PROPOSED
CHANGES TO THE AMT ALONE ARE ABOUT $19 BILLION OVER THE FIVE-YEAR
WINDOW AND $36 BILLION OVER THE TEN-YEAR WINDOW.
THESE ESTIMATED TAX LOSSES, WHICH MAKE THE COMMITMENT TO
FISCAL RESPONSIBILITY MORE DIFFICULT, REFLECT ONLY ONE DIMENSION
OF THE IMPACT OF THE HOUSE-PASSED LEGISLATION ON THE AMT.
THESE PROVISIONS WOULD FACILITATE TAX AVOIDANCE AND REDUCE THE
PERCEIVED AND ACTUAL FAIRNESS OF THE INCOME TAX.
IN CONCLUSION, ALTHOUGH NET AMT REVENUES HAVE DECLINED, THE
ADMINISTRATION BELIEVES THAT THE AMT SYSTEM HAS NOT DIMINISHED IN
IMPORTANCE.
WHILE THE ADMINISTRATION OPPOSES PROPOSALS THAT
SERIOUSLY WEAKEN THE OBJECTIVES OF THE AMT, WE WELCOME THE
OPPORTUNITY TO WORK WITH THE CONGRESS TO SIMPLIFY THE AMT ON A
REVENUE-NEUTRAL BASIS, EITHER WITHIN THE AMT OR BY IDENTIFYING
OTHER ACCEPTABLE REVENUE OFFSETS.
I WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE
AT THIS TIME.
Impact of Neutral Cost Recovery System and
Repeal of Corporate Alternative Minimum Tax
Share of Assets of Currently Taxable Corporations
Nontaxable under
AMT Repeal
~~ /
/
Taxable under NCRS and
AMT Repeal
Nontaxable
under NCRS
4.0
Corporate
Alternative Minimum Tax and Credits
1987 -1993
Billions of dollars - - - - - - - - - - - - - - - - - - - - - - - ,
8
7 ~
6
r--
•
AMT before credits
~
AMT credits
claimed
5
4
3
2
1
o
1987
1988
1993 data are projections.
1989
1990
1991
1992
1993-Proj
Individual
Alternative Minimum Tax and Credits
1987 -1993
Billions of dollars - - - - - - - - - - - - - - - - - - - - - - - - ,
8
7
6
• AMT before credits
~ AMT credits claimed
~
5
4
3
2
1
o
1987
199~
nrltrl
1988
~rA nrAlimin~nl
1989
1990
1991
1992
1993-Prel
PUBLIC DEBT NEWS
Department of the Treasury •
Bureau of the Public Debt • Washington, DC 20239
I
I.
C
FOR RELEASE AT 3:00 PM
May 4, 1995
Contact: Peter Hollenbach
(202) 219-3302
PUBLIC DEBT ANNOUNCES ACTIVITY FOR
SECURITIES IN THE STRIPS PROGRAM FOR APRIL 1995
Treasury's Bureau of the Public Debt announced activity figures for the month of April 1995,
of securities within the Separate Trading of Registered Interest and Principal of Securities
program (STRIPS).
Dollar Amounts in Thousands
Principal Outstanding
(Eligible Securities)
$829,760,374
Held in Unstripped Form
$602,707,457
Held in Stripped Form
$227,052,917
Reconstituted in April
$9,151,570
The accompanying table gives a breakdown of STRIPS activity by individual loan description.
The balances in this table are subject to audit and subsequent revision. These monthly figures
are included in Table VI of the Monthly Statement of the Public Debt, entitled "Holdings of
Treasury Securities in Stripped Form."
Information about "Holdings of Treasury Securities in Stripped Form" is now available on the
Department of Commerce's Economic Bulletin Board (EBB). The EBB, which can be
accessed using personal computers, is an inexpensive service provided by the Department of
Commerce. For more information concerning this service call 202-482-1986.
000
PA-182
(RR-275)
TABLE VI - HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM, APRIL 30, 1995
(In thousands)
II
PrinCJpal Amount Outstanding
Matunty Date
Loan Descnplion
11·114% Note B-1995
10-112% Note C·1995
9-1/2% Note 0·1995 ...
8-718% Note A-1996 ..
7-3/8% Note C-1996 .
7-114% Note D-1996 ...
8-112% Note A-1997 ... .
8-5/8% Note B-1997 .. .
8-7/8% Note C-1997 .. .
8-118% NoteA-1998
9% Note B-1998 .
9-114% Note C-1998 ...
8-7/8% Note 0-1998 ....
8-718% NoteA-1999.
9-1/8% Note B-1999 ....
8% Note C-1999 ...
7-7/8% Note 0-1999 ...
8-112% Note A-2000 .
8-718% Note B-2000 ....
8-3/4% Note C-2000 ..
8-1/2% Note 0-2000.
7-314% Note A-2001
8% Note B-200L
7-7/8% Note C-2001.
7-112% Note 0·200L
7-112% Note A·2002 ....
6-3/8% Note B·2002 ..
6-1/4% Note A-2003 ..
5-3/4% Note B-2003 ..... .
5-7/8% Note A-2004 ..... .
7-114% Note B-2004 .. .
7-114% Note C·2004 ... ..
7-7/8% Note 0-2004 .. .
7-112% Note A-2005 .... ..
11-518% Bond 2004 .. .
12% Bond 2005
10-3/4% Bond 2005 ..
9-3/8% Bond 2006 ......
11-314% Bond 2009-14 ..
11-1/4% Bond 2015 ..
10-518% Bond 2015
9-7/8% Bond 2015 .. ..
9-114% Bond 2016 .. .
7-1/4% Bond 2016
7-1/2% Bond 2016 .......
8·314% Bond 2017 ..
8-7/8% Bond 2017
9-118% Bond 2018 ..
9% Bond 2018 ..
8-7/8% Bond 2019
8-1/8% Bond 2019 ..
8-112% Bond 2020 ..
8-314% Bond 2020 ...
8-314% Bond 2020 ...... .
7-7/8% Bond 2021.
8-1/8% Bond 2021.. ..
8-1/8% Bond 202L
8% Bond 202L.
7-1/4% Bond 2022 .....
7-5/8% Bond 2022 .
7-1/8% Bond 2023
6-114% Bond 2023
7-1/2% Bond 2024
7-518% Bond 2025
Total
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
05115195
08115/95
11115195
02115196..
05115196 .
11115/96....
05115197.
08/15/97.....
11115/97....
02115198..
05115/98.. .
08115198..
11/15198...
02115199. .
05/15199..
08115199...
11115199
02115/00...
05115100...
08115100......
11115100....
0211510L
05/15/0L
0811510L
11115/01.
05115102......
08/15102
02115/03....
08/15103. .
02115/04.....
05115104..
08/15104.
11115/04....
02115105..
11115/04..
05115105...
08115105..
02115/06.....
11115114... ...
02115/15..
06115115..
11/15/15......
02115116.....
05/15/16.....
11/15/16......
05/15/17......
08115/17...
05/15/18....
11115/18...
02115119..
08/15119......
02115/20..
05/15/20.
08/15/20..
0211512L
05/15/2L....
08115/21.
11115/21..
08115/22..
11/15/22.
02115/23
08/15/23
11115/24..
02115/25.
7,127,086
7,955,901
7,318,550
8,449,835
20,085,643
20,258,810
9,921,237
9,362,836
9,808,329
9,159,068
9,165,387
11,342,646
9,902,675
9,719,623
10,047,103
10,163,644
10,773,960
10,673,033
10,496,230
11,080,645
11,519,682
11,312.802
12,398,083
12,339,185
24,226,102
11,714,397
23,859,015
23,562,691
28,011,028
12,955,077
14,440,372
13,346,467
14,373,760
13,834,754
8,301,806
4,260,758
9.269,713
4,755,916
6,005,584
12,667,799
7,149,916
6.899,859
7,266,854
18,823,551
18,864,448
18,194.169
14,016,858
8,708,539
9,032,870
19,250,798
20,213,832
10,228,868
10,156,883
21,418,606
11,113,373
11,958,888
12,163,482
32,798,394
10,352,790
10,699.626
18.374,361
22,909,044
11,469.662
11,725.170
829,760,374
I
Reconstituttd
II
II
This Month'1
portion Held in
Stripped Form
Portion Held in
Unstripped Form
Total
------11
4,542,126
4,911,901
3.458,950
6,744,235
17,972,043
17,510,810
6,811,237
7,716,436
7,307,529
7,939,228
6,730,387
8,863,446
7,174,875
8,162,823
6,789,503
7,857,294
7,700,360
8,802,233
6,003,430
7,601,126
8,383,282
9,216,002
9,851,908
10,044,785
22,158,662
10,888,477
22.804.615
23,101,251
27,461,428
12,955,077
14,440,372
13,315,267
14,373.760
13,834,754
5,836,206
2,770,858
8,410,513
4,753,164
2,280,784
6,542,999
1,682,076
2,563,859
6,310,054
18,335,551
18,082,528
7,185,369
7,989,658
1,811,039
2,197,070
5,729,198
16,592,072
5,060,868
3,064,483
4,531,086
10,126,173
4,386,328
4,965,082
8,271,294
7,566,390
2,758,826
14,747,161
22.627.444
8,863.742
11,033,970
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
602,707.457
I
2,584,960 II
3,044,000 II
3,859,600 II
1,705,600 I
2,113,600 I
2,748,000 I
1,110,000 I
1,646,400 I
2,500,800 I
1,219,840 I
2,435,000 I
2,479,200 I
2,728,000 I
1,556,800 I
3,257,600 I
2,306,350 I
3,073,600 I
1,870,800 I
4,492,800 I
3,479,520 I
3,136,400 I
2,096,800 I
2,546,175 I
2,294,400 I
2,067,440 I
825,920 I
1,054,400 I
461,440 I
549,600 I
011
0 II
31,200 II
011
011
2,465.600 II
1,489,900 II
859,200 II
2,752 II
3,724,600 II
6,124,800 II
5,267,840 II
4,336,000 II
956,800 I
488,000 I
781,920 I
11,008,800 I
6,027,200 I
6,897,600 I
6,835,800 I
13,521,600 I
3,621,760 I
5,166,000 I
7,094,400 I
16,687,520 I
987,200 I
7,570,560 I
7,198,400 I
24,527,100 I
2,786,400 I
7,940,800 II
3,627,200 II
281,600 II
2,605,920 II
691.200 II
I
I
227,052,917
II
I
ao,~
9,6((
83.lIl:
10.4:1
131.1::,'
91.8<:
69f::
116.0:,:
97,6:,
16M:,:
54,41:
96;(
4.!i:
192(':
21,61:
80.«':
59.2t:
111.0:'
129.61:
84,1&:
10,8((
48.00:
11.0:;
105.6:':
90,00:
22,":
570.'::
696,16:
2981(
1151::
128.E
4,6(
365,6):
513):':
92.10
4164:
280.0:
m.'f;:
3W
2187:
698.11
240(>:
158':
11C(
282";
200)::
115;::
376)::
21;;
18\1>:
4111::
-
9,151:
=================================== ================================================================================:=~
#1 Effective May 1, 1987. secuntles held In stnpped form were eligible for reconstitution to their unstripped form.
Note On the 4th worl<.day of each month Table VI Will be available after 3.00 p m. eastem time on the Commerce Department's
EconomiC Bulletin Board (EBB) The telephone number for more Information about EBB IS (202) 482-1986 The balances
In thiS table are subject to audit and subsequent adjustments
~NEWS
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220 • (202) 622-2960
C()ntac(
FOR IMMEDIATE RELEASE
May 4. 1995
lUll
Murchinsol1
(202) h222960
FEDERAL FINANCING BANK ANNOliNCTS C:\U. OPTION PRICING PROGRAM
The Treasury Department ann()unced today tlidt h()rnl\\ers lrom [he Federal Financing
Bank. such as rural electric cooperatives. \\i11 he ahle
t()
refinance their debt
throu~h
the
purchase of call option:; for future finane i flg
The Federal Financing Bank il1lrouuced a rcgular l·all opti()Jl pncing rmgram that will
allow borrowers
tn
take aJvantage \)1 interest
r~\te
declInc"
~il1d
pass
as a result. The FFB intends t() inc()['porate call npll()Il PrlCll1g IIltn
Oil
'<i\'ings to cust()Jl1ers
I()~ln"
tor borrnwers {r()In
Rural Utilities Services (formerl\' the Rural Lkctriticatinfl \dmmistratIl1ll) heginning July I.
1995.
Call options for other hnrr()\vers will {(lll()\\
"During the last year the h.'ueral Financ1l1g IbnK ha" heen L'ngagcJ in a reinvention
effort Jesigneu to make the hanK lll()re efficient and rc:-,p(lll"i\e tn horrum:rs" neeus," said
Treasury Secretary Robert E. Rubin.
"Call ()ptl()Il'o arc all 111lp()rtallt step in that process. 13\
allowing horrowers to hetter plan fllr Iluctuatiorl', in interest rates. the I:cueral Financinf:
Bank is helping to meet the needs
()f
rural America.·'
The Federal Financing Bank. is a government c()rpnrati()[1 under the general
supervision of the Secretary of the Treasury.
centralize and reuuce the cost nf Federal
11 was cre;lted hy Congre s ." In
~lIld feder~t1I~
also designed to correct debt managemcnt pmhlcl1l"
;l""l"ted horrowing
rC'oliltin.~ tmI11
which had tlooded the government securit ie" market With ;\ \ariely
securities that competed with Trcasury securitIc:-,
197~
to
The FFB
W~t"
()tl-hudgct financing
ur gn\crnlllenl-hackeu
It \1;1" "Lltut\)ry auth(lrity tn purchase any
ohligation which is issued. sold or guaranteed hy a h'der:ti agency in (lruer to ensure that
fully guaranteed ohligations are financed in the 1l1()st dfiClent lIIanner.
March 31. 1995, the FrB hau
$98~
:\s of
hill ion in loans oUISL!lIllIng I(l horr(l\Ver" in
~9
states
-3U-
For press releases, speeches, public schedules and official biographies, call our 24~our fax line at (202) 622-2040
RR-276
DEPARTMENT
OF
THE
TREASURY
NEWS
ADV 10 A.M. EDT
Text as prepared for delivery
May 5, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
INTRODUCTION OF CURRENCY BEARING RUBIN SIGNATURE
I don't want to make a long speech. What I'd like to do is take the tour with you,
the young students who are with us today from Harrison Elementary School. I run
Treasury and I've never had the chance to see how we print the money here or down in
Fort Worth. I understand that Ms. Alexander, the counselor at Harrison, and your
teachers have been going over some of the details about producing our currency.
Before going on, let me say that I think what the Bureau police arc doing in the
way of volunteering with Harrison, and raising money to purchase educational materials
such as computer software, is an excellent way to help make a difference in our
communities. It's enormously important that we involve ourselves in projects such as the
adopt-a-school program hecause over the long term, programs of this sort can he critical
to providing the quality public education that is essential to preparing our young men
and women so that America can maintain its leadership in the world economy. So let
me say thank you for the contribution you are making by helping in our communities.
Having your name on the currency is quite an honor. It symholized a continuity
of responsibility with respect to American economic matters that goes back to the
heginning of the nation. I am the 70th Secretary of the Treasury. It is my responsibility.
and that of all of the members of the economic team in our administration, to do
everything we can to make certain that our country retains its economic leadership and
pre-eminence in the years to come.
One key way we can do that is hy making sure that young men and w()men such
as Ollr guests today have the hest education available.
If you look at economies around the world that have come a great distance in thL
past 10 or 20 years, it's clear that you find the most progress where you find the most
attention being paid to education.
RR-277
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
*
2
I just came hack from a meeting of finance ministers in Asia and I was looking
around the tahle and I saw so many countries represented that once received aid from
the United States hut have had strong education programs and now are not just
important trading partners, they're our competition. And education was key in the
transformation.
The point here is first, that education will hring you a better job, greater
satisfaction and a higher standard of living and, second, that we all must keep learning
and expanding our knowledge and skills if this country is going to have the productivity
and competitiveness re4uired for success in the glohal economy.
So, the Clinton Administration is committed to supporting the kinds of programs
that improve education and training levels in the United States so that we can stay not
just competitive but also a leader in the \vorld economy.
With that, let me conclude with thanks to the very talented staff here at the
Bureau of Engraving and Printing, and with a word for our guests: Mrs. Withrow, the
Treasurer, and I have signed some hills so our guests from the Harrison school can have
a souvenir of today's visit. I'm always trying to encourage Americans to save, and I hope
our guests are saving, hut I would suggest that you not deposit these dollars in your
savings accounts hecause they're special souvenirs.
I want to ask the officers who have heen working with the students from Harrison
and the students to join me at the tahle \"hilc I sign a few more hills to make this
official.
-3()-
DEPARTMENT
OF
THE
TREASURY
NEWS
'IREASURY
~~I7B~9~. . . . . . . . . . . . . . . . . . . . . . . . . .. .
............................
OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE. N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
May 5, 1995
STATEMENT OF TREASURY SECRETARY ROBERT RUBIN
In consultation with the Justice Department, we have carefully adhered to the law,
and we will continue to do so. The Speaker's letter has no practical effect on our financial
support for Mexico.
-30-
RR - 278
D EPA R T 1\1 E N T
0 F
THE
T REA SUR Y
omCE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
Contact: Michelle Smith
FOR IMMEDIATE RELEASE
May 5, 1995
(101)
622~2960
Treasury Statement on IMF Approval of
Turkey's Extended and Augmented Stand~By Credit
The Treasury Department welcomes the April 21, 1995 decision of International
Monetary Fund to approve a request by the Government of Turkey to extend for six months
the current stand-by credit and to increase the amount available under it by SDR 101.2
million (about $160 million) to a total of SDR 610.5 million (aboLit $966 million). This IMF
stand-by credit supports Turkey's economic and reform policies for 1995.
Starting in 1994, and with the support of the IMF. Turkey began implementing an
ambitious stabilization program. The results of this program are evident in Turkey's
strengthened fiscal balance and current account pos itian as well as the increase in its
international reserves position. Progress in the structural area includes the establishment of
the legal framework for privatization. Important progress has been made, but more remains
to be done.
For 1995 Turkey has developed a program that builds on these accomplishments and
advances the reform agenda with even stronger macroeconomic policies and additional
structural reforms. The credibility of this program, however, hinges on its meticulous and
vigorous implementation.
The United States strongly supports Turkey in its policy reform efforts. We believe
that this approach will enable Turkey to improve its economic performance and achieve
sustained growth and stability.
-30-
RR-279
':?ur press relecues, speeches, public schedules and official biographies, call our 24~our fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
OFFICE OFPUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHlNGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
MAY 5,1995
STATEMENT OF TREASURY SECRETARY ROBERT E. RUBIN
The financial community and the developing world have lost a highly valued and
respected friend. We are all saddened by the death of Lewis Preston.
Before turning to public service, Lewis Preston was a well-respected and
influential figure in the global banking world through his leadership of Morgan Guaranty
Trust and J.P. Morgan & Co., and he played a key role in resolving problems such as the
Latin American debt crisis.
With a steady hand, a keen intellect and a quick wit, he set in motion changes
that have improved the internal operations of the World Bank, broadened its
membership, deepened its influence in response to global change, and increased the
effectiveness of Bank assistance being delivered throughout the world. It is that final
point that will be his legacy, because Lewis Preston changed lives around the world for
the better.
-30-
RR-280
DEPARTMENT
__
OF
THE
TREASURY
NEWS
..-_ _ _ _ _ __
~8:t:9
OmCE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C. • 20220 • (202) 622-2960
STATEMENT OF RONALD K.NOBLE
UNDER SECRETARY OF THE TREASURY FOR ENFORCEMENT
FEDERAL LAW ENFORCEMENT OFFICER'S ASSOCIATION (FLEOA)
NEWARK, NEW JERSEY
MAY 5,1995
WE MEET TODAY IN THE WAKE OF ONE OF THE MOST DEVASTATING
INCIDENTS IN AMERICAN LAW ENFORCEMENT HISTORY. SIXTEEN DAYS
AGO, OUR FELLOW LAW ENFORCEMENT OFFICERS WERE KILLED IN A
SENSELESS ACT OF TERRORISM IN OKLAHOMA CITY. LET ME FIRST
HONOR THOSE FEDERAL LAW ENFORCEMENT EMPLOYEES WHO DIED IN
THE BOMBING:
SECRET SERVICE:
SPECIAL AGENT DONALD LEONARD
ASSISTANT SPECIAL-AGENT-IN-CHARGE ALAN WHICHER
SPECIAL AGENT CINDY CAMPBELL BROWN
SPECIAL AGENT MICKEY MARONEY
OFFICE MANAGER LINDA MCKINNEY
INVESTIGATIVE ASSISTANT KATHY SEIDL
U.S. CUSTOMS SERVICE:
SENIOR SPECIAL AGENT PAUL ICE
SENIOR SPECIAL AGENT CLAUDE MEDEARIS
DEA:
SPECIAL AGENT KENNETH MCCULLOUGH
OFFICE ASSISTANT CARROL FIELDS
I ATTENDED THE FUNERALS OF THE TREASURY ENFORCEMENT
EMPLOYEES WHO WERE KILLED IN THE BOMBING. I ALSO MET WITH
RESCUE WORKERS, AND PEOPLE WHO WERE PRESENT IN THE BUILDING
WHEN THE BOMB EXPLODED. I HAVE SEEN GREATER DEVASTATION THAN
I HAD EVER SEEN IN MY LIFE. AND YET, I ALSO SAW AND HEARD OF
ENORMOUS COURAGE, HEROISM, SELFLESSNESS, AND HUMAN DECENCY. I
KNOW THAT IN YOUR DAILY WORK YOU SEE, AND PERFORM, SIMILAR
COURAGEOUS ACTS.
RR-281
For press releases, speeches, public schedules and official biographies, call our 24·llOur fax line at (202) 622-2040
3
AN EXAMPLE FROM OKLAHOMA CITY EXEMPLIFIES THE BEST IN
COOPERATIVE LAW ENFORCEMENT: TIMOTHY MCVEIGH WAS ARRESTED
BY AN OKLAHOMA STATE TROOPER ON TRAFFIC AND FIREARMS CHARGES
SHORTLY AFTER THE BOMBING. WHEN MCVEIGH'S NAME BECAME KNOWN
TO LAW ENFORCEMENT AS THE PERSON IDENTIFIED AS "JOHN DOE #1", AN
ATF AGENT QUERIED THE NCIC DATABASE FOR THE NAME "TIMOTHY
MCVEIGH." HE FOUND THAT A NOBLE COUNTY SHERIFF HAD QUERIED
THE DATABASE FOR THE SAME NAME SHORTLY AFTER THE BOMBING. A
FOLLOW-UP PHONE CALL REVEALED THAT MCVEIGH WAS IN THE NOBLE
COUNTY JAIL. THUS, AN ATF AGENT WORKING AS PART OF AN FBI-LED
INVESTIGATIVE TEAM, USED AN FBI DATABASE TO LOCATE A PERSON
HELD BY LOCAL POLICE BASED ON AN ARREST BY STATE AUTHORITIES.
DESPITE OUR SUCCESSES, WE ARE UNDER ATTACK FROM ALL SIDES.
THE NATIONAL RIFLE ASSOCIATION HAS LAUNCHED AN UNCONSCIONABLE
PUBLICITY CAMPAIGN AGAINST ATF AND OTHER FEDERAL LAW
ENFORCEMENT AGENCIES. ITS RECENT FUND-RAISING LETTER SAID THAT
THE SEMI-AUTOMATIC WEAPONS BAN, "GIVES JACK-BOOTED
GOVERNMENT THUGS MORE POWER TO TAKE A WAY OUR
CONSTITUTIONAL RIGHTS, BREAK IN OUR DOORS, SEIZE OUR GUNS,
DESTROY OUR PROPERTY, AND EVEN INJURE OR KILL US ... NOT TOO
LONG AGO, IT WAS UNTHINKABLE FOR FEDERAL AGENTS WEARING NAZI
BUCKET HELMETS AND BLACK STORM TROOPER UNIFORMS TO ATTACK
LA W-ABIDING CITIZENS. NOT TODAY."
WHAT WAS TRULY UNTHINKABLE UNTIL NOT TOO LONG AGO, WAS
THAT FEDERAL LAW ENFORCEMENT AGENTS WOULD BE SUBJECTED TO
SLANDEROUS ATTACKS LIKE THESE.
I RECOGNIZE THAT THE STATEMENTS IN THE LETTER DO NOT
REFLECT THE VIEWS OF ALL THE MEMBERS OF THE NRA. I AM SURE THAT
THE LAW ENFORCEMENT OFFICERS WHO ARE MEMBERS OF THE NRA ARE
AS DISGUSTED AS I WAS BY THIS LETTER. IT IS A POIGNANT EXAMPLE,
HOWEVER, OF HOW FEDERAL LAW ENFORCEMENT AGENTS HAVE BECOME
TARGETS FOR CRITICISM BECAUSE THEY ENFORCE CONTROVERSIAL
LAWS.
OTHER EXAMPLES ABOUND. WASHINGTON D.C. TALK SHOW HOST G.
GORDON LIDDY HAS ADVISED HIS LISTENERS TO SHOOT ATF AGENTS IF
THEY APPROACH A HOUSE. HE ALSO TELLS HIS LISTENERS TO SHOOT FOR
THE HEAD, BECAUSE THE AGENTS WEAR BULLET-PROOF VESTS.
4
PAMPHLETS AND MATERIALS ISSUED BY OTHER GROUPS, INCLUDING
MILITIAS, ADVOCATE A WAR AGAINST THE FEDERAL GOVERNMENT, CALL
FOR THE KILLING OF FEDERAL AGENTS, AND MAKE VILE COMMENTS
ABOUT THE PRESIDENT AND THE ATTORNEY GENERAL.
MEMBERS OF CONGRESS HAVE ALSO USED FEDERAL LAW
ENFORCEMENT AS A TARGET. DURING THE HOUSE DEBATE ON THE CRIME
BILL THIS WINTER, ATF AND IRS WERE EXEMPTED FROM THE
EXCLUSIONARY RULE REFORM PROPOSAL BECAUSE OF THEIR ALLEGED
"LAWLESS" BEHAVIOR. ON THE FLOOR OF THE HOUSE OF
REPRESENTATIVES, ATF AGENTS WERE CALLED "JACK-BOOTED FASCISTS."
SOME PORTION OF SOCIETY WILL ALWAYS OPPOSE THE POLITICAL
POLICIES OF THE ADMINISTRATION IN POWER. CERTAINLY, SOME OF THIS
ADMINISTRATION'S LAW ENFORCEMENT POLICIES, ESPECIALLY ITS
POLICIES ON GUN CONTROL, HAVE BEEN CONTROVERSIAL. IT IS
REPREHENSIBLE, HOWEVER, WHEN DEDICATED LAW ENFORCEMENT
OFFICERS LIKE YOU ARE SLANDERED AND DEMEANED AS A TOOL OF
POLITICAL OPPOSITION.
IT IS LEGITIMATE TO CRITICIZE THE LAW IF YOU DON'T LIKE IT. IT
IS ILLEGITIMATE TO CRITICIZE THE PERSON WHO ENFORCES THE LAW,
HOWEVER, JUST FOR DOING HIS OR HER JOB.
I DO NOT MEAN TO SAY THAT WE SHOULD BE ABOVE CRITICISM.
WHEN WE ARE WRONG -- ON THE RARE OCCASIONS WHEN WE OVERSTEP
OUR LEGITIMATE AUTHORITY -- WE MUST BE ABLE TO CONCEDE OUR
MISTAKES, LEARN FROM THEM, AND MOVE FORWARD. WHEN, HOWEVER,
WE ARE CARRYING OUT OUR SWORN DUTY TO ENFORCE THE LAW, AND
WE ARE DOING IT LEGALLY AND CONSTITUTIONALLY, WE SHOULD NOT BE
UNFAIRLY CRITICIZED SIMPLY BECAUSE SOMEONE DOES NOT LIKE THE
UNDERLYING LAW.
UNFORTUNATELY, IT IS NOT JUST THE MEDIA AND POLITICIANS WHO
USE FEDERAL LAW ENFORCEMENT AS A TARGET. MOST DANGEROUSLY,
WE ARE INCREASINGLY UNDER ACTUAL PHYSICAL ATTACK.
WE ARE ALSO UNDER ATTACK IN THE COURTROOM. MORE THAN
EVER, DEFENSE LAWYERS ARE ATTACKING THE INTEGRITY OF
INVESTIGATIVE AGENTS AS A MEANS TO GAIN THEIR CLIENT'S ACQUITTAL.
AGENTS HAVE BEEN WRONGFULLY, AND VICIOUSLY, ACCUSED OF
BRUTALITY, RACIAL OR ETHNIC TARGETING, AND FALSIFYING EVIDENCE.
5
SO WHAT ARE WE GOING TO DO ABOUT ALL THESE ATTACKS ON
FEDERAL LAW ENFORCEMENT? FIRST, WE ARE GOING TO CONTINUE
WHAT WE HAVE ALWAYS DONE: WE ARE GOING TO CONTINUE APPLYING
THE RULE OF LAW WITHOUT FEAR, FAVOR, OR PREJUDICE; WE ARE GOING
TO CONTINUE USING ALL OF OUR LAWFUL POWERS TO FIGHT CRIME; AND
MOST IMPORTANTLY, WE ARE GOING TO CONTINUE RESPECTING AND
PROTECTING THE CIVIL AND CONSTITUTIONAL RIGHTS OF ALL CITIZENS.
SECOND, THIS ADMINISTRATION IS GOING TO GET YOU WHAT YOU
NEED TO DO YOUR JOBS WELL, AND TO DO THEM AS SAFELY AS HUMANLY
POSSIBLE. PRESIDENT CLINTON, SECRETARY RUBIN, ATTORNEY GENERAL
RENO, AND THE ENTIRE ADMINISTRATION SUPPORT STRONG LAW
ENFORCEMENT. HERE, TOO, FLEOA'S LEADERSHIP HAS BEEN FORCEFUL IN
MAKING CONGRESS AWARE OF THE NEEDS OF FEDERAL LAW
ENFORCEMENT AGENTS. THE ADMINISTRATION IS DOING ALL THAT IT
CAN TO GET YOU NEW RESOURCES AND NEW STATUTORY AUTHORITIES TO
ASSIST YOU IN DOING YOUR DIFFICULT WORK. FOR EXAMPLE, THE
PRESIDENT'S ANTI-TERRORISM PACKAGE ASKS CONGRESS FOR
ADDITIONAL FUNDING FOR LAW ENFORCEMENT AND FOR MORE LAW
ENFORCEMENT OFFICERS. LAST YEAR'S CRIME BILL ALSO PROVIDED
NEEDED FUNDS FOR FEDERAL LAW ENFORCEMENT.
WE KNOW THAT YOU ARE LITERALLY ON THE FIRING LINE EVERY
DAY. WE KNOW THAT ASSAULT WEAPONS ARE A THREAT TO EVERY LAW
ENFORCEMENT OFFICER, SO WE ARE GOING TO VIGOROUSLY DEFEND THE
ASSAULT WEAPONS BAN. TREASURY AND JUSTICE ARE WORKING
TOGETHER TO DEVELOP STRONGER LAWS AGAINST COP-KILLER BULLETS.
WE ALSO RECOGNIZE THE GROWING THREAT TO THE SAFETY OF
FEDERAL OFFICERS AND THEIR FAMILIES FROM GROUPS THAT
CHALLENGE THE LEGITIMACY OF THE FEDERAL GOVERNMENT. WE HAVE
ALL SEEN A RISE IN MILITIAS AROUND THE COUNTRY -- THERE HAVE BEEN
ESTIMATES THAT MILITIAS EXIST IN AS MANY AS 48 STATES. EVEN BEFORE
THE OKLAHOMA CITY BOMBING, THE TREASURY AND JUSTICE
DEPARTMENTS WERE WORKING TOGETHER TO (1) SHARE ALL AVAILABLE
INFORMATION ABOUT MILITIAS AND (2) TO DEVELOP INVESTIGATIVE
APPROACHES THAT ARE CONSISTENT WITH CONSTITUTIONAL RIGHTS BUT
THAT ALLOW US TO IDENTIFY CRIMINAL CONDUCT AT THE EARLIEST
POSSIBLE TIME. THESE EFFORTS CONTINUE.
6
WE ARE ALSO LOOKING MORE CLOSELY AT THE SAFETY PROBLEM
THAT MILITIAS AND OTHER ANTI-GOVERNMENT GROUPS POSE TO
FEDERAL LAW ENFORCEMENT AGENTS AND THEIR FAMILIES. WE ARE
SEEING MORE AND MORE CONFRONTATIONS BETWEEN FEDERAL
EMPLOYEES DOING THEIR LEGITIMATE GOVERNMENT WORK AND
MEMBERS OF THESE GROUPS, WHO ARE OFTEN ARMED. THE PRESIDENT'S
ANTI-TERRORISM LEGISLATION CONTAINS EXPANDED PENALTIES FOR
ASSAULTS ON CURRENT OR FORMER FEDERAL OFFICERS AND THEIR
FAMILIES.
THIRD, WE MUST GET OUT THERE AND TELL THE PUBLIC THE TRUTH
ABOUT WHAT YOU DO. WE ALL KNOW THAT THE FIRE IN WACO WAS SET
BY THOSE INSIDE THE COMPOUND. THE WIRETAP EVIDENCE AT THE
BRANCH DAVIDIAN'S TRIAL PROVED THIS. NEVERTHELESS, TOO MANY
PEOPLE WRONGLY SAY, AND BELIEVE, THAT THE FBI SET THE FIRE. WE
KNOW THAT THE FOUR BRAVE ATF AGENTS WHO YOU HONOR THIS
EVENING WERE SLAUGHTERED AT WACO WHILE TRYING TO SERVE
LAWFUL WARRANTS ISSUED BY A FEDERAL MAGISTRATE. NEVERTHELESS,
TOO MANY PEOPLE WRONGLY SAY, AND BELIEVE, THAT ATF ILLEGALLY
"AMBUSHED" THE COMPOUND. I AM SURE THAT THERE ARE COUNTLESS
SIMILAR MISCONCEPTIONS IN EVERY STATE IN THIS COUNTRY. EVERY
ONE OF US HAS AN OBLIGATION TO CORRECT THESE MISPERCEPTIONS.
FINALLY, WE MUST RECOGNIZE THAT WE HAVE DEFENDERS. AND,
AS THE TRUTH BECOMES KNOWN ABOUT THOSE WHO FOMENT THE
ATTACKS ON FEDERAL LAW ENFORCEMENT, WE WILL HAVE EVEN MORE
DEFENDERS. WE ARE ALREADY BEGINNING TO SEE MORE PUBLIC SUPPORT
FOR FEDERAL LAW ENFORCEMENT. LAST FRIDAY, SENATOR DAVID PRYOR
OF ARKANSAS CALLED THE NRA'S RECENT FUND-RAISING LETTER "A
REVOLTING EXAMPLE OF HATEFUL, INCENDIARY, IRRESPONSIBLE
SPEECH."
SIMILARLY, A SHAMEFUL ANTI-LAW ENFORCEMENT ADVERTISEMENT
BY THE NRA ON THE ANNIVERSARY OF THE SIGNING OF THE BRADY BILL
WAS CRITICIZED BY REP. CHUCK SCHUMER OF NEW YORK, SEN. BOB
KERREY OF NEBRASKA, REP. JIM LIGHTFOOT OF IOWA (WHO IS HIMSELF A
MEMBER OF THE NRA), THE INTERNATIONAL ASSOCIATION OF CHIEFS OF
POLICE, THE FRATERNAL ORDER OF POLICE, AND BY VIC OBOYSKI ON
BEHALF OF FLEOA.
AN EDITORIAL IN YESTERDAY'S NEW YORK TIMES SAID,
"RESPONSIBLE LEADERS IN CONGRESS, ESPECIALLY IN LIGHT OF
7
INFLAMMATORY COMMENTS BY THEIR IRRESPONSIBLE COLLEAGUES,
MUST WORK TO DISPEL THE GROWING MYTHOLOGY THAT PICTURES THE
BATF AS THE AGENTS OF SOME NEFARIOUS GOVERNMENT PLOT TO
SUBVERT THE CONSTITUTION AND ROB AMERICANS OF THEIR
TRADITIONAL CIVIL LIBERTIES."
THIS PAST l\tIONDA Y, THE PHILADELPHIA INQUIRER PUBLISHED AN
OP-ED ARTICLE ENTITLED "NO REASON TO AVENGE WACO." THE WRITER
WAS ONE OF THE THREE INDEPENDENT REVIEWERS OF THE TREASURY
DEPARTMENT INTERNAL REVIEW OF THE WACO INCIDENT. HE POINTED
OUT THAT THE BRANCH DAVIDIANS HAD ACCUMULATED MORE THAN 100
ASSAULT RIFLES, ALONG WITH GRENADES, THOUSANDS OF ROUNDS OF
AMMUNITION, AND CHEMICALS FOR MANUFACTURING EXPLOSIVES. THEY
WERE HARDLY "LAW ABIDING CITIZENS." ATF AGENTS RAIDED THE
COMPOUND ONLY AFTER A U.S. MAGISTRATE ISSUED LAWFUL SEARCH AND
ARREST WARRANTS BASED ON PROBABLE CAUSE TO BELIEVE THAT A
FEDERAL CRIME WAS OCCURRING. THEY WERE NOT "NAZI STORM
TROOPERS" OR "JACK BOOTED FASCISTS."
MEMBERS OF CONGRESS HAVE CALLED FOR NEW HEARINGS INTO
WACO AND RUBY RIDGE. IF THESE HEARINGS OCCIJR, WE WILL PROUDLY
TELL CONGRESS AND THE AMERICAN PEOPLE WHAT WE DID AND WHY WE
DID IT. WE WILL SHOW THEM THAT THESE WERE NOT OUT-OF-CONTROL
FEDERAL AGENTS PICKING ON INNOCENT MEMBERS OF SOCIETY. WE
WILL ALSO SHOW THEM THAT, EVEN IF MISTAKES WERE MADE IN THESE
OPERATIONS, THESE MISTAKES WERE ABERRATIONS; THEY SHOULD NOT
TAR THE OUTSTANDING AND COURAGEOUS WORK DONE EVERY DAY BY
OUR FEDERAL LAW ENFORCEMENT OFFICERS.
SOME HAVE SUGGESTED THAT THE BOMBING IN OKLAHOMA CITY
W AS SOMEHOW CAUSED OR JUSTIFIED BY THE FEDERAL GOVERNMENT'S
ACTIONS AT WACO AND RUBY RIDGE. THIS IS SHAMEFUL. THIS
ADMINISTRATION IS COMMITTED TO PROVING TO THE AMERICAN PEOPLE
THE FALSENESS OF THIS CLAIM. WE ARE COMMITTED TO SEPARATING
THE REALITY ABOUT FEDERAL LAW ENFORCEMENT FROM THE MYTH
THAT OUR ATTACKERS ARE SPREADING.
AMERICANS MUST RECOGNIZE THAT FEDERAL LAW ENFORCEMENT
OFFICERS ARE NOT NAMELESS, FACELESS ROBOTS. YOU ARE FATHERS,
MOTHERS, SONS, AND DAUGHTERS. YOU ARE MEMBERS OF YOUR LOCAL
COMMUNITIES -- THE SAME COMMUNITIES THAT YOU DEDICATE YOUR
PROFESSIONAL LIVES TO PROTECTING. YOU, LIKE YOUR NEIGHBORS,
8
WANT LESS CRIME, SAFER STREETS, AND CAREFULLY PROTECTED RIGHTS.
YOU MUST MAKE SURE THAT YOUR NEIGHBORS KNOW THAT.
-30-
UBLIC DEBT NEWS
Department of the Treasury •
FOR IMMEDIATE RELEASE
Ma y 8, 19 9 5
I
Bureau of the Public Debt • Washington, DC 20239
I
I ...
1,-
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $12,911 million of 13-week bills to be issued
May 11, 1995 and to mature August 10, 1995 were
accepted today (CUSIP: 912794U44).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.62%
5.63%
5.63%
Investment
Rate
5.80%
5.81%
5.81%
Price
98.579
98.577
98.577
$10,000,000 was accepted at lower yields.
Tenders at the high discount rate were allotted 46%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
5.57 -- 98.592
RR-282
Received
$47,322,517
Accepted
$12,911,219
$41,596,681
1,480,126
$43,076,807
$7,185,383
1,480,126
$8,665,509
3,688,010
3,688,010
557,700
$47,322,517
557,700
$12 911,219
1
UBLIC DEBT NEWS
Department of the Treasury •
FOR IMMEDIATE RELEASE
May 8, 19 9 5
ll" '
Bureau of the Public Debt • Washington, DC 20239
,
.
\
".'
' v
'
I
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
TeLders for $12,950 million of 26-week bills to be issued
May 11, 1995 and to mature November 9, 1995 were
accepted today (CUSIP: 912794V68).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.63%
5.65%
5.65%
Investment
Rate
5.89%
5.91%
5.91%
Price
97.154
97.144
97.144
Tenders at the high discount rate were allotted 30%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
5.64--97.149
RR-283
Received
$48,212,851
Accepted
$12,949,778
$41,545,812
1,367,339
$42,913,151
$6,282,739
1,367,339
$7,650,078
3,400,000
3,400,000
1,899,700
$48,212,851
1, 899,700
$12,949,778
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.
ETARY OF THE TREASURY
ROBERT E. RUBIN
SECRETARY OF THE TREASURY
Robert E. Rubin was sworn in as the 70th Secretary of the Treasury on
January 10, 1995.
From January 20, 1993 to January 10, 1995, Mr. Rubin served in the White House as
Assistant to the President for Economic Policy. In that capacity he directed the activities of
the National Economic Council. The NEC's principal functions include: overseeing the
Administration's domestic and international economic policy making process, coordinating
economic policy recommendations to the President, ensuring that economic policy decisions
and programs are consistent with the President's stated goals, ensuring that those goals are
effectively pursued, and monitoring the implementation of the President's economic policy
goals.
Prior to joining the Administration, Mr. Rubin spent 26 years at Goldman,
Sachs & Co. in New York City. He joined Goldman in 1966 as an associate, became a
general partner in 1971 and joined the management committee in 1980. Mr. Rubin was V ice
Chairman and Co-Chief Operating Officer from 1987 to 1990 and served as Co-Senior
Partner and Co-Chairman from 1990 to 1992. Before joining Goldman, he was an attorney
at the firm of Cleary, Gottlieb, Steen & Hamilton in New York City from 1964 to 1966.
Mr. Rubin's previous activities included membership on the Board of Directors of the
New York Stock Exchange, Harvard Management Company, New York Futures Exchange,
New York City Partnership and the Center for National Policy. He has also served on the
Board of Trustees of the Carnegie Corporation of New York, Mt. Sinai Hospital and Medical
School, the President's Advisory Committee for Trade Negotiations, the Securities and
Exchange Commission Market Oversight and Financial Services Advisory Committee, the
Mayor of New York's Council of Economic Advisors and the Governor's Council on Fiscal
and Economic Priorities for the State of New York.
Mr. Rubin graduated summa cum laude from Harvard College in 1960 with an A.B.
in economics. He received a L.L.B. from Yale Law School in 1964 and attended the
London School of Economics.
Mr. Rubin was born in New York City on August 29, 1938. He is married to Judith
Oxenberg Rubin, who served as the New York City Commissioner of Protocol for four years
under Mayor David M. Dinkins. The Rubins have two adult sons, James and Philip.
-Sl .~
',0·/
e
.-~/
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.
MARY ELLEN WITHROW
TREASURER OF THE UNITED STATES
Mary Ellen Withrow was confirmed unanimously by the Senate to be the 40th Treasurer
of the United States on February 10, and sworn into office March 1, 1994.
She is the first person to have held the post of treasurer at all three levels of government
-- local, state and national. She was elected Treasurer of her native Marion County, Ohio, in
1976 and 1980. She was elected as Ohio State Treasurer in 1982 and re-elected in 1986 and
1990.
As Treasurer of the United States, Withrow is responsible for the operations of both the
U.S. Mint and the Bureau of Engraving and Printing. She is also the National Honorary
Director of the U.S. Savings Bond program, and in that capacity represents the Treasury
Secretary nationwide to promote the sale of savings bonds.
During her tenure as Ohio's Treasurer, Withrow's innovative programs, management
efficiencies and record earnings for Ohio earned her nationwide recognition. In March 1992 she
received the Donald L. Scantlebury Memorial Award from the Treasury's Joint Financial
Management Improvement Program for financial excellence and improvement in government.
She was named the nation's Most Valuable State Public Official by City & State Newspaper in
1990.
She is past president of the National Association of State Treasurers, and past president
of the National Association of State Auditors, Comptrollers and Treasurers. She also is a
member of the Anthony Commission on Public Finance, a panel addressing state and local
government financing.
Withrow, who began her career in public service in 1969 as the first woman elected to
the Elgin Local School Board in Marion County, is an inductee into the Ohio Women's Hall of
Fame and a recipient of a Women Executives in State Government fellowship to Harvard
University.
Withrow was born in Marion County, Ohio. She and her husband, Norman, have four
daughters and four grandchildren.
PETER HUGHES DALY
Director
U. S. Bureau of Engraving and Printing
Department of the Treasury
o
Appointed in 1988 by the Secretary of the Treasury as Chief Executive Officer of
this 3000 employee, financially independent, advanced technology organization
engaged in the secure design and high volume manufacture of U. S. Securities most notably U. S. Currency - at multi-union facilities in both Washington, D. C.
and Fort Worth, Texas. In 1995 the BEP will produce 9.5 billion currency
notes, 30 billion U. S. postage stamps and a variety of other securities. Its
budget approaches $500 billion.
o
Responsible for the BEP's organizational integrity, operating effectiveness, and
financial solvency. Unique among government agencies, BEP operates as a
business with its operating and capital investments budgets derived solely from
the sales of its products to customer agencies and public corporations. Its
performance, therefore, is measured by a bottom line of price quality, and
productivity .
o
Has lead U. S. delegations and presented technical and policy papers at
conferences in China, the Philippines, Australia, Mexico, South America, and
throughout Europe and Scandinavia. Was invited to the U. S. S. R. in 1990 as
part of a group advising the state bank on the modernization of its cash systems.
In 1990-91 chaired the long range planning committee of a twenty nation
consortium for technical research and development, charting its financial and
technical future through 1995. Is a guest lecturer at the John F. Kennedy
School of Government at Harvard on the subject of managing organizational
change, and most recently consulted in Eastern Europe.
o
Currently serves as a principal on an interagency committee which provides the
Secretary of the Treasury and the Chairman of the Federal Reserve Board with
plans for the currency redesign and domestic and international counterfeit
deterrence.
Personal
o
Holds a degree in Economics from Villanova University, with graduate study
(Honors) also in Economics.
o
Married, two daughters.
DEPARTMENT
lREASURY
OF
THE
TREASURY
NEWS
OFFICE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
SECRETARIES OF THE TREASURY
NAME
STATE
TERM OF SERVICE
FROM
TO
2.
Alexander Hamilton
Oliver wolcott
New York
Connecticut
September 19, 1789 January 31, 1795
February 3, 1795
December 31, 1800
3.
Samuel Dexter
Massachusetts January I, 1801
March 13, 1801
4.
Albert Gallatin
Pennsylvania
March 14, 1801
February 8, 1814
5.
6.
George W. Campbell
Alexander J. Dallas
William H. Crawford
Tennessee
Pennsylvania
Georgia
February 9, 1814
October 6, 1814
October 22, 1816
October 5, 1814
October 21, 1816
March 6, 1825
13 .
Richard Rush
Samuel D. Ingham
Louis McLane
William J. Duane
Roger B. Taney
Levi Woodbury
Pennsylvania
Pennsylvania
Delaware
Pennsylvania
Maryland
New Hampshire
March 7, 1825
March 6, 1829
August 8, 1831
March 29, 1833
September 23, 1833
July I, 1834
March 5, 1829
June 20, 1831
May 28, 1833
September 22, 1833
June 25, 1834
March 3, 1841
14.
Thomas Ewing
Ohio
March 04, 1841
September II, 1841
15.
16.
17.
Walter Forward
John C. Spencer
George M. Bibb
Pennsylvania
New York
Kentucky
September 13, 1841 March I, 1843
March 8, 1843
May 2, 1844
July 4, 1844
March 7, 1845
18.
19.
Robert J. Walker
William M. Meredith
Mississippi
Pennsylvania
March 8, 1845
March 8, 1849
March 5, 1849
July 22, 1850
20.
Thomas Corwin
James Guthrie
Howell Cobb
Philip F. Thomas
John A. Dix
Salmon P. Chase
William P. Fessenden
Hugh McCulloch
Ohio
Kentucky
Georgia
Maryland
New York
Ohio
Maine
Indiana
July 23, 1850
March 7, 1853
March 7, 1857
December 12, 1860
January 15, 1861
March 7, 1861
July 5, 1864
March 9, 1865
March 6, 1853
March 6, 1857
December 8, 1860
January 14, 1861
March 6, 1861
June 30, 1864
March 3, 1865
March 3, 1869
George S. Boutwell
William A. Richardson
Benjamin H. Bristow
Lot M. Morrill
Massachusetts
Massachusetts
Kentucky
Maine
March 12, 1869
March 17, 1873
June 4, 1874
July 7, 1876
March 16, 1873
June 3, 1874
June 20, 1876
March 9, 1877
33.
John Sherman
William Windom
Ohio
Minneapolis
March 10, 1877
March 8, 1881
March 3, 1881
November 13, 1881
34.
35.
36.
Charles J. Folger
Walter Q. Gresham
Hugh McCulloch
New York
Indiana
Indiana
November 14, 1881
September 9, 1884
October 31, 1884
September 4, 1884
October 30, 1884
March 7, 1885
1.
7.
8.
9.
10.
11.
12.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
ADMINISTRATION
Washington
Washington
J. Adams
J. Adams
Jefferson
Jefferson
Madison
Madison
Madison
Madison
Monroe
J.Q. Adams
Jackson
Jackson
Jackson
Jackson
Jackson
Van Buren
Harrison
Tyler
Tyler
Tyler
Tyler
Polk
Polk
Taylor
Fillmore
Fillmore
Pierce
Buchanan
Buchanan
Buchanan
Lincoln
Lincoln
Lincoln
A. Johnson
Grant
Grant
Grant
Grant
Hayes
Hayes
Garfield
Arthur
Arthur
Arthur
Arthur
Cleveland
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
NAME
STATE
TERM OF SERVICE
FROM
TO
37.
38.
39.
40.
Daniel Manning
Charles S. Fairchild
William Windom
Charles Foster
New York
New York
Minneapolis
Ohio
March 8,
April 1,
March 7,
February
41.
John G. Carlisle
Kentucky
March 7, 1893
March 5, 1897
42.
Lyman J. Gage
Illinois
March 6, 1897
January 31, 1902
43.
44.
45.
46.
47.
48.
49.
L.M. Shaw
George B. Cortelyou
Franklin MacVeagh
W.G. McAdoo
Carter Glass
David F. Houston
Andrew W. Mellon
Iowa
New York
Illinois
New York
virginia
Missouri
Pennsylvania
February
March 4,
March 8,
March 6,
December
February
March 4,
March 3,
March 7,
March 5,
December
February
March 3,
February
50.
51.
52.
Ogden L. Mills
New York
William H. Woodin
New York
Henry Morganthau, Jr. New York
53.
54.
55.
56.
57.
Fred M. Vinson
John W. Snyder
George M. Humphrey
Robert B. Anderson
C. Douglas Dillon
58.
59.
60.
61.
62.
63.
1885
1887
1889
25, 1891
1, 1902
1907
1909
1913
16, 1918
2, 1920
1921
ADMINISTRAT;Q
March 31, 1887
March 6, 1889
January 29, 1891
March 6, 1893
1907
1909
1913
15, 1918
1, 1920
1921
12, 1932
February 13, 1932
March 15, 1933
January 1, 1934
March 4, 1933
December 31, 1933
July 22, 1945
Kentucky
Missouri
Ohio
Connecticut
New Jersey
July 23,
June 25,
January
July 29,
January
June 23, 1946
January 20, 1953
July 29, 1957
January 20, 1961
April 1, 1965
Henry H. Fowler
Josheph W. Barr
David M. Kennedy
John B. Connally
George P. Shultz
William E. Simon
Virginia
Indiania
Utah
Texas
Illinois
New Jersey
April 1, 1965
December 21, 1968
January 22, 1969
February 11, 1971
June 12, 1972
May 8, 1974
December 20, 1968
January 20, 1969
February 10, 1971
June 6, 12, 1972
May 8, 1974
January 20, 1977
64.
65.
66.
67.
68.
W. Michael Blumenthal
G. William Miller
Donald T. Regan
James A. Baker, III
Nicholas F. Brady
Michigan
Rhode Island
New Jersey
Texas
New Jersey
January 23, 1977
August 7, 1979
January 22, 1981
February 4, 1985
September 15, 1988
August 4, 1979
January 20, 1981
February 1, 1985
July 17, 1988
January 20, 1993
69.
70.
Lloyd Bentsen
Robert E. Rubin
Texas
New York
January 21, 1993
January 1, 1995
December 23, 1993
present
1945
1946
21, 1953
1957
21, 1961
Cleveland
Cleveland
Harrison
Harrison
Cleveland
Cleveland
MCKinley
McKinley
Roosevelt
Roosevelt
Roosevelt
Taft
Wilson
Wilson
Wilson
Harding
Coolidge
Hoover
Hoover
Roosevelt
Roosevelt
Truman
Truman
Truman
EisenhoweI
EisenhoweI
Kennedy
Johnson
Johnson
Johnson
Nixon
Nixon
Nixon
Nixon
Ford
Carter
Carter
Reagan
Reagan
Reagan
Bush
Clinton
Clinton
DEPARTMENT
OF
THE
TREASURY
<~NEWS
/
1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I"~~8.~9~___
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622·2960
TREASURERS OF THE UNITED STATES
NAME
STATE
TERM OF SERVICE
FROM
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
Michael Hillegas
Samuel Meredith
Thomas T. Tucker
William Clark
John Campbell
William Selden
John Sloan
Samuel Casey
William C. Price
F.E. Spinner
John C. New
A.U. Wyman
James Gilfillan
A.U. Wyman
Conrad N. Jordon
James W. Hyatt
J.N. Huston
Enos H. Nebecker
D.N. Morgan
Ellis H. Roberts
Charles H. Treat
Lee McClung
Carmi A. Thompson
John Burke
Frank White
H.T. Tate
W.O. Woods
W.A. Julian
Georgia Neese Clark
Ivy Baker Priest
Elizabeth Rudel
Smith
Kathryn O'Hay
Granahan
Dorothy Andrews
Elston Kabis
Romana Acosta
Banuelos
Francine Irving
Neff
Azie Taylor
Morton
Angela Buchanan
Katherine Davalos
Ortega
Catalina Vasquez
Villalpando
Mary Ellen Withrow
TO
Pennsylvania
Pennsylvania
South Carolina
Pennsylvania
Virginia
Virginia
Ohio
Kentucky
Missouri
New York
Indiana
Wisconsin
Connecticut
Wisconsin
New York
Connecticut
Indiana
Indiana
Connecticut
New York
New York
Tennessee
Ohio
North Dakota
North Dakota
Tennessee
Kansas
Ohio
Kansas
Utah
July 29, 1775
September 11, 1789
December 10, 1801
June 4, 1828
May 26, 1829
July 22, 1839
November 27, 1850
April 4, 1853
February 28, 1860
March 16, 1861
June 30, 1875
July 1, 1876
July 1, 1877
April 1, 1883
May 1, 1885
May 24, 1887
May 11, 1889
April 25, 1891
June 1, 1893
July 1, 1897
July 1, 1905
November 1, 1909
November 22, 1912
April 1, 1913
May 2, 1921
May 31, 1928
January 18, 1929
June 1, 1933
June 21, 1949
January 28, 1953
September 11, 1789
October 31, 1801
March 2, 1828
May 31, 1829
July 20, 1839
November 23, 1850
April 6, 1850
December 22, 1859
March 21, 1861
June 3D, 1875
July 1, 1876
June 3D, 1877
March 31, 1883
April 30, 1885
May 23, 1887
May 10, 1889
April 24, 1891
May 31, 1893
June 3D, 1897
June 3D, 1905
October 30, 1909
November 21, 1912
March 31, 1913
January 5, 1921
May 1, 1928
January 17, 1929
May 31, 1933
May 29, 1949
January 27, 1953
January 29, 1961
California
January 30, 1961
April 13, 1962
Pennsylvania
January 3, 1963
November 20, 1966
Delaware
May 8, 1969
July 3, 1971
California
December 17, 1971
February 14, 1974
New Mexico
June 21, 1974
January 1977
Texas
September 12, 1977
Washington, D.C.March 17, 1981
January 20, 1981
July 1, 1983
New Mexico
September 22, 1983
June 30, 1989
Texas
Ohio
November 18, 1989
March 1, 1994
January 20, 1993
present
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
MAY 5, 1995
STATEMENT BY UNITED STATES TREASURER MARY ELLEN WITHROW
Thank you, Paul.
I am honored to be here today. Most people see and use paper money every day of their
lives without realizing the great skill, dedication and individual artistry that goes into the
creation of each and every note.
Mr. Blackmer spoke of his pride in the Bureau's work force and their dedication to doing
the job well. I would also like to praise the Bureau's employees. I want to emphasis their
dedication to making their community a better place. In April of 1990, the employees of the
Bureau of Engraving and Printing established a voluntary program to provide assistance to the
needy in the metropolitan area. This Community Outreach Program quickly designed a
strategy flexible enough to assist those in crisis situations and to address much-needed, longrange projects.
The Outreach Program has done many exciting things over the past five years: adopting
a teenaged mother and her two children and providing them with material, educational, and
moral support; and adopting Grandma's House, special homes in Washington, D. C., for
children who have been exposed to the HIV virus. BEP employees completely furnished a
room in one of these houses. The Outreach Program also provides recreational games to
senior citizen residents at the Mount Vernon House so that they might enjoy their leisure
time.
Other exciting outreach activities are with the D.C. Public Schools. Bureau employees
decided to focus their attention on youth for two reasons: to serve as role models and to help
develop the future workforce of the Bureau. The Bureau Police Force has been assisting the
Harrison Elementary School for about nine years. They support the school financially as well
as personally. At least once a week an officer is at the school talking to the students.
Recently, they purchased software for the science department computer and donated winter
jackets to those who needed them.
RR-271
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
We are happy to have 25 fifth graders from Harrison Elementary School here today for
this ceremony. Please stand. Let's give them a hand. The Bureau also maintains a
partnership with McKinleylPenn Senior High School. The Adopt-A-School Program was
designed to help prepare high school students for the workplace and motivate them for jobs
involving new technology by exposing them to and involving them in BEP's professional
work environment.
Last October, a ceremony was held here at the Bureau to honor the eight McKinleylPenn
students who successfully completed an eight-week School-to Work program the previous
summer. Prior to their eight weeks at the Bureau, the students participated in tours and
workshops at the Bureau to gain first-hand knowledge about operations and overall
professional behavior in the workplace.
BEP has made a finn long-tenn commitment to this partnership with McKinleylPenn
High School, incorporating it into the Human Resource Development part of BEP 2000. The
success of this program complements BEP's dedication to expanding the quality of life
options for a few Washington's youth and to making long-tenn investment in the development
of BEP's future labor force.
-30-
BUREAU OF ENGRAVING AND PRINTING· DEPARTMENT OF THE TREASURY
The Bureau of Engraving and Printing
Reaches Out in the Community
The Bureau of Engraving and Printing takes pride in a past rich
in tradition and success, here at the Bureau we place great value
on people and strive to create a work environment built on trust,
partnership, integrity and mutual respect.
The Bureau also has a tradition of excellence in community
outreach activities.
In April of 1990, the Bureau established a
voluntary program, operated by a group of BEP employees, to
provide assistance to the needy in the Washington, D.C.
metropolitan area. The "Community Outreach Committee" members
developed a strategy which was designed to be flexible enough to
assist those in crisis situations as well as much needed long
range community projects.
The Bureau's outreach efforts have varied from, adopting a family
and a school, to completely furnishing a room for "Grandma's
House", to assisting senior citizen residents at the Mount Vernon
Home, and providing food to numerous families during the holiday
season.
The Bureau's own police force has been assisting with the
Harrison Elementary School, Washington, D.C.
For nine years the
officers have served as mentors to the students at Harrison.
In
the past they have provided the school with computer software for
the Science Department, winter coats, field trips to various
locations around the D.C. area and at least once a week an
officer goes over to the school to offer counseling to students.
Of the 237, 4th and 5th graders enrolled, 104 students had a
perfect attendance record and 66 students are on the honor roll.
,
,
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Eu"ency 'Productidn
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~Printing
Presses
ting presses capable of printing S,OOO
he printing process, blank currency sheets
ses and are forced into the engraved plates
bf
notes are printed first in green ink.
'backs are put into a semi-vault holding
The semi-vaults may be holding at any
ion dollars worth of blank engraved
ts are printed wi~h black ink. The
another 4S-72 hours before they are
of currency production.
~ __ ~~~e'
might be as much as $200 million in
ilding. The Federal Reserve decides how
going to print and in which denominations.
Mechanical Examining
The Mechanical Examining Section shows one of the several
inspections the currency undergoes.
The sheets, which contain 32
notes, are trimmed and split into sheets of 16 notes.
Then, the
sheets go through a conveyor machine one at a time and examlners
are responsible for pulling out defective sheets.
The examiners
are looking for ink spots, smears, discolorations or irregular
cuts. We call these defects "MUTS", an abbreviation for
Mutilations.
Some of the MUTS are shredded and sold to you in
our Visitor's Center.
(
~
COPE/PAl<
This is the third and final stage of currency production before
the money is sent to one of the twelve Federal Reserve Districts.
COPE/PAK stands for Currency Overprinting, Processing Equipment
and Packaging.
These 16 note sheets are now fed into COPEjPAK,
where they will receive the green Treasury seals, the block
Federal Reserve seals, bank number and serial numbers.
The
numbers are printed in a sequential order, on each bill while it
is still in one sheet containing 16 notes. One hundred of these
sheets at a time are stacked into an elevator that passes the
sheets to a conveyor that passes through two very sharp
quillotine cutters.
The first cut which is made is horizontal and leaves the notes in
pairs. The second cut is vertical and for the first time you are
seeing individuals notes, 100 to a strap. Once cut, the notes
are bound with denomination bands and then they go through their
final quality check.
If the examiner finds any discrepancies,
the strap is pulled. Once the strap makes it through the final
check it gets packaged together with nine other straps and shrink
wrapped. That makes a bundle, which contains 1000 notes.
Four
of these bundles are then wrapped together to make a brick, which
contains 4000 notes. These "bricks" of money go into a vault to
await delivery to the Federal Reserve Banks.
'.
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lt~JiM.~"',.~""~,~\I!"'."\'!,,",' b~fore and just after the American Revolution, Americans
",,"i-".",'
nr,~~pgya:~~b~[lki·noltes were issued in New London, Connecticut and were
".,.,.,"'....,.ewJ1¥0ndon bank.
:e;''':,
authorized the issuance of currency to fmance the
.were redeemable in Spanish Milled Dollars. Paul Revere, a
of the first plates for this ContineJ.ltal Currency. However,
ve rise to the expression ''not worth a Continental ..."
.,.tM"~'w&
an incorporated financial institution, was given a
Congress. Later, the Bank of New York was chartered
Secretary of the Treasury, Alexander Hamilton.
"
adopted the doUar as the unit for national currency.
was established through the creation of the U.S. Mint.
system were minted.
:!v"f·...'I'n
_ ....... " .... banks were closed. A proliferation of local state chartered
.
of paper currency in a wide assortment of colors and
....""'.I'....L3.~These rtotes were easily counterfeited. That, along with alarmingly high bank failures, caused the State Bank Notes to become worthless.
1861 The United States government, on the brink of bankruptcy, first issued paper
currency during the early years of the Civil War. Congress authorized non-interest bearing
Treasury notes caUed Demand Notes.
1862 Congress authorized a new issue of currency, Legal Tender Notes or United States
Notes, commonly called "greenbacks." The Secretary of the Treasury was empowered to
have notes engraved and printed.
1863 The Bureau of Engraving and Printing, which produces all U.S. paper currency,
printed its first notes.
1865 Extensive counterfeiting of the national currency led to the establishment of the
Department of the Treasury's U.S. Secret Service in order to maintain the integrity of this
currency.
1887 The Bureau of Engraving and Printing assumed all functions relating to the
production of paper money from engraving to printing.
1913 The Federal Reserve Act of 1913 created the Federal Reserve System as the
nation's central bank to regulate the flow of money aDd credit to promote economic stability
and growth. The twelve Federal Reserve Districts are the channels through which
practically all cash is circulated.
1929 The basic design of U.S. currency was standardized to include uniform portraits
and randomly dispersed security fibers. The size of the notes was reduced by about an inch
in height and over an inch in length.
1942 Hawaiian currency was issued for the exclusive use of the territory to protect the
currency should an invasion take place. The notes had brown serial numbers, Treasury
seals, and the word "Hawaii" printed on the face. Regular currency was withdrawn from
the islands until 1944 when the special currency was terminated.
1943 Military and occupational currency was printed as a medium of exchange for
goods and services in occupied countries. Security enhancements included overlapping
designs, special inks, and pigments.
1957 The first currency issued with ''In God We Trust" was required by Congress in
1955. Thereafter, the inscription would appear on aU United States paper currency and coin.
The $1 Silver Certificates were made from newly configured plates using the electrolytic
process and with the inscription, "In God We Trust."
1976 April 13 marked the first day of issue and reintroduction of the $2 bill after almost
a decade of retirement.
1991 A security thread and microprinting were introduced into paper currency to deter
counterfeiting by advance copiers and printers. Denominations featuring the thread and
microprinting are the $100, $50, $20, and $10 (aU Series 1990). It is planned that the
enhancements will be incorporated into the $5 bill with the next change in the series of
currency.
Department of the 1reasury
Bureau of Engraving and Printing
FACTS ABOUT THE DOLLAR BILL
The basic face and back designs of all denominations of United States paper currency, except the
Jacks of the $1 and $2 denominations in general circulation today, were adopted in 1928.
The front of the bills feature portraits of famous, deceased American statesmen: Washington on
the $1, Jefferson on the $2, Lincoln on the $5, Hamilton on the $10, Jackson on the $20, Grant on the
~50, and Franklin on the $100. Notes of higher denominations, while no longer produced, featured
KcKinley on the $500, Cleveland on the $1000, Madison on the $5000, and Chase on the $10,000.
The backs of the bills feature images reflective of the history of our nation: the Great Seal of the
!Jnited States on the $1, the. signing of the Declaration of Independence on the $2, the Lincoln Memorial
tn the $5, the Treasury Building on the $10, the White House on the $20, the Capitol on the $50, and
[ndependence Hall on the $100. Denominations higher than the $100 feature ornate impressions of the
lumerical value of the note, such as an ornate "500."
A popular and often asked about design is the one that appears on the back of the $1, the Great
~ealof the United States. The front of the seal shows an American bald eagle behind our national
lhield. The eagle holds an olive branch, which symbolizes peace, with 13 berries and 13 leaves. In the
left talon, the eagle holds 13 arrows, which represents war. The 13 units represent the original colonies.
fhe eagle's head is turned toward the olive branch, showing a desire for peace.
The top of the shield represents the Congress, the head of the eagle the Executive branch, and the
!line tail feathers the Judiciary branch of our government. The 13-letter motto,
"E Pluribus Unum," on the ribbon held in the eagle's beak means "Out of Many, One."
On the reverse of the seal is a pyramid with 1776 in Roman numerals at the base. The pyramid
,tands for permanence and strength. The pyramid is unfinished, signifying the United States' future
~rowth and goal of perfection. A sunburst and an eye are above the pyramid, representing the overseeng eye of a deity. The 13-letter motto, "Annuit Coeptis" means "He has favored our undertakings."
lJelow the pyramid the motto, "Novus Ordo Seclorum" means "A new order of the ages," standing for
:he new American era.
The most recent major change in the design of our currency was the addition of the inscription,
"In God We Trust." The motto first appeared on U.S. coins in 1864. However, it was not until 1955
~hat a law was passed which stated that thereafter all new designs for coins and currency would bear
:he inscription.
··.:t:/~t~1~f;
;: ." -v:" .~"> .:~
produces 35 million notes a day with a face ~alue of:. .
t
"~_''''.TD p~a~~l~ tJ~¢;:~D,OlteSTpjjfilted each year are used to replace notes already in circulation.
'~"ort:v-e:ie:l1ll'
are $1 notes.
Treasury first issued paper currency of the United States in
.t):l;~ollr.iand the need to finance the Civil War.
Bureau of Engraving and Printing was called upon to print
25¢, and 50¢. The reason for this is that people hoarded
which created a drastic shortage of circulating coins.
is?jre<l[uc:ed to about 2/3's of its former size when production was
,¥U-'UQ.. portraits and back designs of our currency were also
1..,.......... contain over 14-112 million notes.
is .032 troy ounce (12 ounces to a pound). There are
, 'y.
"add spent one every second of every day, it would require 317 years
tbr'()l(~iti~U.J:;f1t yoU' had 77 billion dollars you could spend a dollar every second for 2,442
years.
Currency paper is composed of 25% linen and 75% cotton. Red and blue synthetic fibers of various lengths are distributed evenly throughout the paper. Prior to World War I the fibers were made
of silk.
Have you ever wondered how many times you could fold a piece of currency before it would tear?
About 4,000 double folds (first forward and then backwards) are required before a note will tear.
The following information regarding the average life of a Federal Reserve note was provided by
the Federal Reserve System - please note that the life of a note depends on its denomination:
$ 1 .... .
$ 5 .... .
$ 10 ....
$ 20 ••..
$ 50 •.•.
$100 ....
18 Months
2 Years
3 Years
4 Years
9 Years
9 Years
Our present sized currency measures 2.61 inches wide by 6.14 inches long, and the thickness is
.0043 inch. If each currency note scheduled to be printed in 1991 were laid end to end, they would
stretch around the earth's equator approximately 24 times. Larger sized notes in circulation before
1919 measured 3.125 inches by 7.4218 inches.
The 100 dollar bill has been the largest denomination of currency printed since 1969.
The obverse and reverse of the Great Seal of the United States appeared in a currency design for
the first time when the $1 Silver Certificate, Series 1935, was issued. The Seal dates back to 1782 before the Constitution.
The legend, ''In God We Trust," became a part of the design of United States currency in 1957
and has appeared on all currency since 1963.
The largest note ever printed by the Bureau of Engraving and Printing was the $100,000 Gold
Certificate, Series 1934. These notes were printed from December 18, 1934 through January 9, 1935
and were issued by the Treasurer of the United States to Federal Reserve Banks only against an
equal amount of gold bullion held by the Treasury. They were not circulated among the general public by the Federal Reserve Banks.
The origin of the "$" sign has been variously accounted for, however, the most widely accepted
explanation is that the symbol is the result of evolution, independently in different places, of the
Mexican or Spanish ''P's'' for pesos, or piastres, or pieces of eight. The theory, derived from a study
of old manuscripts, is that the "S" gradually came to be written over the ''P,'' developing a close
equivalent of the "$" mark. It was widely used before the adoption of the United States dollar in
1785.
Contrary to popular belief, the automobile pictured on the back of the $10 note is not a Model
"1'" Ford. It is merely a creation of the designer of the bill.
The hands of the clock in the steeple of Independence Hall on the reverse of the $100 Federal
Reserve Note are set at approximately 4:10.
The beginning of an establishment for the engraving and printing of United States currency can
be traced as far back as August 29, 1862, to a single room in the basement of the Main Treasury
Building where two men and four women separated and sealed by hand $1 and $2 United States
notes which had been printed by private bank note companies. Today there are approximately 2,800
employees who work out of two buildings in Washington, D.C. and a new facility in Fort Worth,
Texas.
The Process of Currency Production
Tour stop 1 and 2
Pooled press
Section 4 - Intaglio Printing Presses
These are intaglio printing presses capable of printing 8,000
sheets per hour.
In the printing process, blank currency sheets
are fed into the presses and are forced into the engraved plates
under 20 to 30 tons of pressure.
The back of the currency notes are printed first in green ink.
The ink on the printed backs are put into a semi-vault holding
area to dry for 72 hours.
The semi-vaults may be holding at any
given time $30 to $40 million dollars worth of blank engraved
currency sheets.
Then the faces of the sheets are printed with black ink.
The
sheets are set to dry for another 48-72 hours before they are
taken to the second phase of currency production.
At anyone moment, there might be as much as $200 million in
production in this building.
The Federal Reserve decides how
much currency we are going to print and in which denominations.
Tour stop 3
Open press
Mechanical Examining
The Mechanical Examining Section shows one of the several
inspections the currency undergoes.
The sheets, which contain 32
notes, are trimmed and split into sheets of 16 notes.
Then, the
sheets go through a conveyor machine one at a time and examiners
are responsible for pulling out defective sheets.
The examiners
are looking for ink spots, smears, discolorations or irregular
cuts.
We call these defects "MUTS", an abbreviation for
Mutilations.
Some of the MUTS are shredded and sold to you in
our Visitor's Center.
Tour stop 4
Pooled press
COPE/PAK
This is the third and final stage of currency production before
the money is sent to one of the twelve Federal Reserve Districts.
COPE/PAK stands for Currency Overprinting, Processing Equipment
and Packaging.
These 16 note sheets are now fed into COPE/PAK,
where they will receive the green Treasury seals, the block
Federal Reserve seals, bank number and serial numbers.
The
numbers are printed in a sequential order, on each bill while it
is still in one sheet containing 16 notes.
One hundred of these
sheets at a time are stacked into an elevator that passes the
sheets to a conveyor that passes through two very sharp
quillotine cutters.
The first cut which is made is horizontal and leaves the notes in
pairs.
The second cut is vertical and for the first time you are
seeing individuals notes, 100 to a strap.
Once cut, the notes
are bound with denomination bands and then they go through their
final quality check.
If the examiner finds any discrepancies,
the strap is pulled.
Once the strap makes it through the final
check it gets packaged together with nine other straps and shrink
wrapped.
That makes a bundle, which contains 1000 notes.
Four
of these bundles are then wrapped together to make a brick, which
contains 4000 notes.
These "bricks" of money go into a vault to
await delivery to the Federal Reserve Banks.
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
For Release Upon Deliyery
Expected at 9:30 A.M.
May 9. 1995
STATEMENT OF
CYNTHIA G. BEERBOWER
DEPUTY ASSISTANT SECRETARY (TAX POLICY)
DEPARTMENT OF THE TREASURY
BEFORE THE
SUBCOMMITTEE ON OVERSIGHT
COMMITTEE ON WAYS AND MEANS
UNITED STATES HOUSE OF REPRESENTATIVES
Madam Chair and distinguished Members of the Subcommittee:
I am pleased to present the views of the Treasury Department
today on the extension of various expired or expiring tax
provisions set forth in the Subcommittee's Notice of Hearing
dated April 19, 1995.
As discussed in more detail below, the Administration has
previously supported and continues to support the revenue-neutral
extension of many of these expired or expiring tax provisions,
and looks forward to working with this Subcommittee to achieve
that goal. These provisions include the exclusion for employerprovided educational assistance, the research tax credit, the tax
credit for orphan drug clinical testing expenses, the tax
deduction for contributions of qualified appreciated stock to
private foundations, and the rules regarding allocation of
research expenditures. The Administration would also support the
extension of the targeted jobs tax credit if the problem~
underlying the credit's effectiveness were addressed.
As a matter of tax policy, the Administration believes that
any extensions of tax incentives generally should be made on a
permanent basis. Temporary extensions undercut the desired
incentive by creating uncertainty and making it difficult for
taxpayers to make long-term business plans. Temporary extensions
also contribute to complexity for taxpayers and may create
administrative problems when the provisions are allowed to expire
and are then reinstated retroactively. Nevertheless, the
Administration is mindful of budgetary constraints in considering
permanent extensions of these incentives.. The Administration is
happy to work with the Congress on a bipartisan basis in
developing acceptable options for financing these extensions.
(Attachment A shows the receipts effect of permanent extension of
the expiring provisions.)
The Administration opposes extending the delayed effective
date of the 4.3 cents per gallon tax on commercial aviation fuel
enacted as part of the Omnibus Budget Reconciliation Act of 1993
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2 -
(OBRA 1993). The Administration also opposes extension of the
production credit for nonconventional fuels.
In addition to the various expiring provisions that are the
subject of this hearing today, several other provisions of the
tax code either have already expired or are scheduled to expire
soon.
As indicated in the Administration's Fiscal Year 1996
budget, the Administration supports. extension of these
provisions, which are described below:
-- oil spill liability tax. Under prior law, a 5 cents perbarrel tax was levied on each barrel of domestic and imported
crude oil entering a U.S. port. This tax, which was deposited in
the oil Spill Liability Trust Fund, was to expire on the earlier
of December 31, 1994, or the date on which the unobligated
balance in the fund reached $1 billion. This tax expired on
December 31, 1994.
-- Generalized system of preferences (GSP). Under GSP,
duty-free access is provided to over 4,000 items from about 142
eligible developing countries that meet certain worker rights and
other criteria. This program, which was extended for 10 months
under the Uruguay Round Agreements Act of 1994, is scheduled to
expire after July 31, 1995.
-- Environmental tax on corporate taxable income. A tax
equal to 0.12 percent of alternative taxable income in excess of
$2 million is levied on all corporations and deposited in the
Hazardous Substance Superfund Trust Fund. This tax expires on
December 31, 1995. In addition, the Administration also supports
extension of the excise taxes deposited in the Superfund, which
are scheduled to expire December 31, 1995. These environmental
excise taxes are the crude oil tax (9.7 cents per barrel for
domestic crude oil and imported petroleum products), the tax on
feedstock chemicals, and the tax on certain imported substances.
The Administration's detailed views regarding the expiring
provisions that are the subject of today's hearings follow.
1.
Exclusion for Employer-Provided Educational Assistance
Background
The exclusion for employer-provided educational assistance
was first enacted on a temporary basis as part of the Revenue Act
of 1978.
It has been extended seven times.
In its Fiscal Year
1994 budget" the Administration proposed permanently extending
the exclusion for employer-provided educational assistance.
OBRA
1993, however, provided only a temporary extension. The
exclusion expired for taxable years beginning after December 31,
1994.
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3 -
Current Law
Prior to expiration, section 127 provided that amounts paid
by an employer with respect to an employee under an educational
assistance program were excluded from the employee's gross income
and wages for employment tax purposes to the extent that the
value of the assistance did not exceed $5,250 per year,
regardless of whether the expense would otherwise be deductible.
Such programs were subject to nondiscrimination rules to ensure
that the assistance was not provided primarily to higher-paid
employees.
Education expenses incurred directly are deductible only if
the education is related to the person's employment, and then
only as a miscellaneous itemized deduction subject to the two
percent of adjusted gross income floor.
A deduction for
education expenses is allowed only if the education maintains or
improves a skill required in the individual's employment or other
trade or business, or is required by the individual's employer,
or by law or regulation for the individual to retain his or her
current job.
Employer reimbursement of such expenses, however, may be
excluded from income as a working-condition fringe benefit under
section 132(d), and, unlike education expenses paid for by the
employee, is not subject to the two-percent floor, nor is the
deduction subject to a ceiling. The educational expense,
however, must be job-related.
In the absence of section 127, the value of employerprovided educational assistance is included in an employee's
income and employment-tax wages unless the cost of the assistance
would qualify as a deductible, job-related expense of the
employee if the employee had incurred the expense directly.
Administration's Recommendation
As stated in the Administration's Fiscal Year 1996 budget,
the Administration supports extension of the exclusion for
employer-provided educational assistance on a revenue-neutral
basis.
The exclusion encourages employers to provide educational
assistance and thereby increase the nation's productivity.
In
addition, the absence of the exclusion would impose significant
administrative burdens on employers, workers, and the IRS in
distinguishing between job-related expenses (which are excludable
from gross income under current law when paid by the employer)
and other employer-provided educational expenses.
As noted above, absent the exclusion, the value of employerprovided educational assistance is excludable from gross income
-
4 -
only for employment-related educational expenses.
Because of the
breadth of prior training and current job responsibilities,
employer-provided education benefits provided for higher-income,
higher-skilled employees are more likely to qualify as
employment-related and thus be deductible regardless of the
extension of section 127. In contrast, the educational
objectives of lower-income, lower-skilled employees are more
likely to include associate or undergraduate degrees and training
for new employment, which do not qualify for exclusion in the
absence of section 127.
2.
Research Tax Credit
Background
The research tax credit initially was enacted as part of the
Economic Recovery Tax Act of 1981 and was scheduled to expire on
December 31, 1985. The Tax Reform Act of 1986 modified the
credit and extended it through December 31, 1988. The credit was
further modified and extended by the Technical and Miscellaneous
Revenue Act of 1988- (extension through December 31, 1989), and
the Omnibus Budget Reconciliation Act of 1989 (extension through
December 31, 1990), which also modified the method for
calculating a taxpayer's base amount. The credit was
subsequently extended by the Omnibus Budget Reconciliation Act of
1990 (extension through December 31, 1991), the Tax Extension Act
of 1991 (extension through June 30, 1992), and the Omnibus Budget
Reconciliation Act of 1993 (OBRA 1993) (retroactive extension
from July 1, 1992 through June 30, 1995). The credit is
currently scheduled to expire on June 30, 1995.
Current Law
The research tax credit applies on an incremental basis to a
taxpayer's "qualified research expenditures" for a taxable year.
The credit is equal to 20 percent of the amount by which the
taxpayer's qualified research expenditures for the taxable year
exceed a base amount. The base amount is the product of the
taxpayer's "fixed base percentage" and the average of the
taxpayer's gross receipts for the four preceding years (subject
to a maximum rate of .16). The base amount cannot be less than
50 percent of the taxpayer's qualified research expenditures for
the taxable year.
For most taxpayers, the fixed based percentage is the ratio
of the taxpayer's qualified research expenditures to its gross
receipts during the period from 1984 until 1988. For certain
-
5 -
"start-up companies," the fixed base percentage is determined
under special rules added by OBRA 1993.'
Qualified research expenditures consist of (1) "in house"
expenses of the taxpayer for research wages and supplies used in
research, (2) certain time-sharing costs for computer use in
research, and (3) 65 percent of amounts paid by the taxpayer for
contract research conducted on the taxpayer's behalf. To be
eligible for the credit, research must be undertaken for the
purpose of discovering information which is technological in
nature, the application of which is intended to be useful in the
development of a new or improved business component of the
taxpayer, and must relate to functional aspects, performance,
reliability or quality of a business component. Research does
not qualify for the credit if it is conducted after the beginning
of commercial production of the business component, if it is
related to the adaptation of an existing business component to a
particular customers requirements or need, or if it is related to
the duplication of an existing business component from a physical
examination of the component itself (or from similar information
such as blueprints). Similarly, qualified research does not
include efficiency surveys, market research or development,
routine quality control, or research in the social sciences,
arts, or humanities.
The credit does not apply to research conducted outside the
United States, or to research funded by another person or
governmental entity.
Administration's Recommendation
The Administration has consistently supported the research
tax credit and included a proposal for its permanent extension in
the 1994 budget. As indicated in the Administration's budget for
Fiscal Year 1996, we continue to support the revenue-neutral
extension of the research tax credit.
'Under these rules, a taxpayer's fixed base percentage is
set at .03 for the first five taxable years after 1993 in which
the taxpayer incurs qualified research expenditures.
For the
next five years (assuming extension of the credit), the fixed
base percentage is phased-in based on the taxpayer's actual ratio
of qualified research expenditures to gross receipts.
Thereafter, the percentage is based entirely upon the taxpayer's
actual ratio for any five years selected by the taxpayer from its
fifth through tenth taxable years after 1993.
Prior to amendment by OBRA 1993, a start-up company's fixed
base percentage was set at .03 for all years.
-
6 -
The Administration recognizes the importance of technology
to our national ability to compete in the global marketplace.
Fostering the development of new technology is a cornerstone of
our economic and national security strategy. We are committed to
working with the private sector to enhance the role that
technology plays in promoting competitiveness, creating high-wage
jobs, maintaining America's defense capabilities, improving our
quality of life, and fostering sustainable development.
The research tax credit is one tool that could be useful in
supporting and fostering American technology. The credit
provides incentives for private-sector investment in research and
innovation that can help increase America's economic
competitiveness and enhance u.s. productivity. These incentives
are particularly important, as the u.s. economy becomes
increasingly reliant on technological know-how, because privatesector investment in research often creates benefits for the
economy that are not captured by an individual company.
The Administration continues to believe that for the
research tax credit to be most effective, it should be made
permanent, to provide taxpayers with greater certainty in making
long-range business plans.
It is also important that the cost of
any extension of the research tax credit be fully offset.
Increasing the Federal deficit could have an adverse impact on
research expenditures (by drawing capital away from privatesector investments) and could thus offset the benefits resulting
from the extension of the research tax credit.
3.
Orphan Drug Tax Credit
Background
An orphan drug tax credit was first enacted as a part of the
Orphan Drug Act of 1983. The Act's purpose was to provide
incentives and direct Federal grant support for developing drugs
for rare diseases and conditions.
In addition to the incentive
of a 50 percent credit for the expenses of clinically testing
drugs for rare diseases, the Act also provided a seven-year
exclusive marketing period for rare disease drugs approved for
use by the Food and Drug Administration (FDA).
Under the 1983 Act, a "rare disease or condition" was
defined as any disease or condition which occurs so infrequently
in the united States that there is no reasonable expectation that
the cost of developing and making available in the United states
a drug for such disease or condition will be recovered from sales
in the united States. This facts-and-circumstances test proved
difficult to administer and, as a part of the Tax Reform Act of
1986, the definition was expanded to include any disease or
condition which affects less than 200,000 persons in the United
states.
- 7 -
This credit was originally scheduled to expire at the end of
1987, but was subsequently extended to the end of 1990 by the
1986 Act; to the end of 1991 by the Omnibus Budget Reconciliation
Act of 1990; to June 30, 1992 by the Tax Extension Act of 1991;
and to December 31, 1994 by the Omnibus Budget Reconciliation Act
of 1993.
Since the inception of the orphan drug program, FDA has made
(through March 31, 1995) 598 designations of orphan drugs related
to particular diseases or conditions (some drugs have been
designated with respect to more than one disease or condition).
Of these orphan drugs, 104 have been approved for marketing.
Included among the diseases and conditions for which marketing
approval has been given are metastatic renal cell carcinoma;
advanced adenocarcinoma of the ovary; tuberculosis infections;
intractable spasticity caused by spinal cord injury or diseases;
and hairy cell leukemia. About 20 percent of the approved drugs
are to treat children.
Current Law
Prior to its expiration at the end of 1994, the orphan drug
tax credit equaled 50 percent of qualified clinical testing
expenses for drugs being tested under an exemption for a rare
disease or condition under section 50S(i) of the Federal Food,
Drug, and Cosmetic Act. The testing must occur after the drug is
designated under section S26 of the Act and before the drug is
approved for use.
Expenses funded by a government grant or by
any person other than the taxpayer do not qualify.
Qualified
clinical testing expenses are taken into account in determining
base period research expenses, but not qualified research
expenses for purposes of the credit for increasing research
activities (the R&E credit). The orphan drug tax credit can
offset regular income tax liabilities entirely, but cannot be
used to reduce alternative minimum tax liabilities. Amounts
normally deductible as a business expense are reduced by the
amount of any credit claimed. The credit cannot be claimed by
any corporation that has elected the section 936 possessions tax
credit.
Administration's Recommendation
As indicated in the Administration's Fiscal Year 1996
budget, the Administration supports making the orphan drug tax
credit permanent, subject to identifying acceptable revenue
offsets for any package of extensions, and will work with the
Congress to achieve that goal. As a complement to other
provisions of the Orphan Drug Credit Act, this credit, as noted
above, has been helpful in making new drugs for rare diseases and
conditions available to the least fortunate among us, those
suffering from rare diseases but whose numbers are insufficient
to provide adequate market incentives for developing remedial
-
8 -
drugs.
If this provision is extended, one option to consider is
making the credit permanent, so that developers of potential new
drugs, when they make initial commitments of venture capital, can
plan on the credit being in place if their research is successful
to the point of securing FDA approval for clinical trials.
The
Administration would be willing to consider allowing excess
orphan drug credits to be carried forward or backward, as a means
to allow smaller drug firms to take advantage of this provision.
4. Full Fair-Market Value Deduction for Gifts of Qualified
Appreciated stock
Background
In the Deficit Reduction Act of 1984, Congress enacted
section 170(e) (5), which provided a full fair-market value
deduction for gifts of qualified appreciated stock to private
foundations. At the time section 170(e) (5) was enacted,
taxpayers who donated appreciated property to private foundations
were permitted a deduction for their adjusted basis in the
property plus sixty percent of the appreciation. This benefit
for property other than qualified appreciated stock was
eliminated as part of the Tax Reform Act of 1986. The House
report accompanying the qualified appreciated stock legislation
explained that improved treatment for gifts of all kinds to
private foundations was warranted to acknowledge "the SUbstantial
role of nonoperating foundations in private philanthropy." It
added that the publicly traded stock proposal was appropriate
because it offered little potential for abuse.
The full fair-market value deduction for gifts of publicly
traded stock expired on December 31, 1994.
Current Law
Prior to its expiration, section 170(e) (5) allowed a
taxpayer who contributed qualified appreciated stock to a private
foundation to deduct the full fair market value of the
contributed stock, rather than the adjusted basis of the
contributed stock. Qualified appreciated stock is defined as
stock for which a market quotation is readily available and which
has been held for more than one year (i.e., long-term capital
gain property). This special treatment applies only to the
extent that the qualified appreciated stock does not exceed 10
percent of the total outstanding stock of the corporation.
section 170(e} (5) is an exception to the general rules on
gifts of appreciated property to private foundations, which
currently allow a deduction only for the donor's adjusted basis
in the contributed property. By contrast, the rules on gifts of
appreciated property to public charities generally allow a
deduction for the full fair-market value of contributed long-term
- 9 capital gain property.
(If a donor gives appreciated tangible
personal property to a public charity which does not use it to
further its exempt purposes, a deduction is allowed only for the
donor's adjusted basis in the property.)
Administration's Recommendation
As set forth in the Administration's budget for Fiscal Year
1996, the Administration recommends reinstating the full fair
market value deduction for gifts of qualified appreciated stock
to private foundations, provided that it can be done on an
acceptable revenue-neutral basis.
Private foundations perform an important role in the
charitable sector. They provide grants and funding for
charitable projects that they believe are promising. Thus,
encouraging the formation and funding of private foundations
through the full fair-market value deduction for gifts of
qualified appreciated stock works to the benefit of the
charitable sector as a whole.
Allowing a full fair-market value deduction for gifts of
publicly traded stock to private foundations encourages taxpayers
to devote the stock exclusively to charitable purposes. As
government is restructured and reduced in size, the charitable
sector will be expected to take on an increasing number of
publicly beneficial projects. This incentive for charitable
giving will help prepare for that future.
5.
Tarqeted Jobs Tax Credit
Background
The TJTC was enacted by the Revenue Act of 1978 as a
sUbstitute for what had been a broad-based new jobs tax credit.
Congress concluded that the unemployment rate had declined
sufficiently so that it was appropriate to focus employment
incentives on individuals with high unemployment rates and other
groups with special employment needs.
The credit initially was scheduled to expire on December 31,
1981 and applied to wages earned in the first and second years of
employment. The first-year credit was equal to 50 percent of the
first $6,000 earned by a TJTC-hire and the second-year credit was
25 percent of the first $6,0~0 earned.
The TJTC has been extended on a short-term basis numerous
times over the years. Revisions also have been made by a number
of tax laws to adjust the amount of the credit, close loopholes,
and alter the targeted groups of individuals covered by the
credit.
- 10 The TJTC was amended and extended for one year through
December 31, 1982, by the Economic Recovery Tax Act of 1981.
This Act eliminated retroactive certification of employees
already on the payroll and also required that one targeted group
-- cooperative education students -- be economically
disadvantaged in order to be covered by the credit. without this
constraint, employers were able to receive subsidies for hiring
individuals they likely would have hired in the absence of the
credit. other changes made by the 1981 Act included increasing
the number of targeted groups and modifying certain restrictions
on eligibility within existing categories.
The TJTC was extended for two more years through December
31, 1984, by the Tax Equity and Fiscal Responsibility Act of
1982. This Act extended the credit to employers hiring
economically disadvantaged 16- and 17-year-olds for summer
employment. The 1982 Act also deleted one of the targeted groups
-- former public service employment participants under the
Comprehensive Employment and Training Act.
The Deficit Reduction Act of 1984 extended the TJTC for
another year through December 31, 1985, after which it expired.
It was extended retroactively for three more years through
December 31, 1988, by the Tax Reform Act of 1986. The 1986 Act
reduced the amount of the credit to 40 percent of the first
$6,000 earned and eliminated the second-year credit.
Employees
also were required to work for a minimum of 90 days or 120 hours
to be covered by the credit (14 days or 20 hours for summer
youths). A minimum employment period was imposed to limit the
"churning" of employees by some employers.
"Churning" involves
maximizing the amount of credit by rapidly turning over workforce
to hire additional targeted members.
The Omnibus Budget Reconciliation Act of 1987 eliminated the
credit for wages paid to individuals who perform duties similar
to those of workers who are participating in or are affected by a
strike or lockout. The Technical Corrections and Miscellaneous
Revenue Act of 1988 extended the credit for an additional year
through December 31, 1989; reduced the summer youth credit from
85 percent to 40 percent of the first $3,000 earned; and
eliminated 23- and 24-year-olds from the targeted group of
economically disadvantaged youths.
The TJTC was extended for nine more months through September
30, 1990, by the Omnibus Budget Reconciliation Act of 1989. This
Act also reduced the burden placed on local Employment Service
offices of verifying worker eligibility. The 1989 Act required
employers requesting certification of a job applicant for which
there had not been a written preliminary determination of
eligibility (a voucher) to specify at least one, but not more
than two, targeted groups to which the individual might belong.
The employer also had to certify that it had made a good faith
- 11 effort to determine the individual's eligibility. The prior
practice of asking local Employment Service offices to verify
TJTC-eligibility of all new hires burdened these offices without
creating new jobs. The employer firms already had decided to
hire the individuals, although the individuals had not yet been
put on the payroll.
The Omnibus Budget Reconciliation Act of 1990 retroactively
extended the TJTC for 15 months through December 31, 1991. The
conference agreement also clarified the definition of one of the
targeted groups. This group -- "ex-convicts" -- was defined to
include persons who are placed on probation by State courts
without a finding of guilty. The TJTC was fUrther extended for
six months through June 30, 1992, by the Tax Extension Act of
1991.
Most recently, the credit was extended retroactively
months by the Omnibus Budget Reconciliation Act of 1993.
1993 Act extended the TJTC to cover individuals who begin
for an employer after June 30, 1992 and before January 1,
for 30
The
work
1995.
Current Law
Before its expiration, a TJTC was available to employers for
up to 40 percent of the first $6,000 of wages paid to a certified
worker in the first year of employment. This translates into a
potential credit of $2,400 per targeted worker. The worker must
be employed for at least 90 days or work at least 120 hours.
(The credit for summer youth is 40 percent of the first $3,000 of
wages, or $1,200, and these individuals must work for 14 days or
20 hours.)
The employer's deduction for wages is reduced by the
amount of the TJTC.
certified workers must be economically disadvantaged or
disabled individuals in one of nine targeted groups. These
groups are (1) youth 18-22 years old; (2) summer youth age 16-17;
(3) cooperative-education students age 16-19; (4) ex-offenders;
(5) Vietnam-era veterans; (6) vocational rehabilitation
referrals; and individuals receiving (7) general assistance, (8)
Supplemental Security Income, or (9) Aid to Families with
Dependent Children.
For purposes of the TJTC, a worker is economically
disadvantaged if the worker's family income is 70 percent or less
of the "lower living standard income level." This level is
revised periodically to account for changes in the Consumer Price
Index and varies by geographic and urban area.
To claim the credit for an employee, an employer must
receive a written certification that the employee is a targeted
group member. certifications for employees are generally
provided by State Employment Security Agencies. The employer
- 12 -
must have received or filed a written request for a certification
on or before the date a targeted member begins work.
If the
employer has received a written preliminary determination that
the employee is a member of a targeted group, the employer may
file a written certification request within five calendar days
after the targeted group member begins work.
The TJTC is jointly administered by the Treasury Department
through the Internal Revenue Service (IRS) and the Department of
Labor through its Employment Service. The IRS is responsible for
tax-related aspects of the program and the Employment Service,
through the network of State Employment Security Agencies, is
responsible for defining and documenting worker eligibility.
Administration's Recommendation
The employment of economically disadvantaged and disabled
workers is one of the Administration's most pressing concerns.
Because we are very concerned about the efficient use of
government revenues and the need to find revenue offsets,
however, we believe that the problems undermining the credit's
effectiveness must be addressed before pursuing an extension of
the credit.
The most recent example of criticism of the program is an
August 1994 report by the Labor Department's Office of Inspector
General. The Inspector General's report raises significant
concerns regarding the effectiveness of the credit. Although the
report notes that the TJTC provides some benefits, the report
concludes that the TJTC is not cost-effective and recommends that
the Secretary of Labor discourage further extensions of the
credit.
I would like to highlight three of the credit's main
problems and offer very general options and principles for
addressing those concerns. These problems are that the credit
(1) provides a windfall to employers, (2) subsidizes short-term
employment, and (3) promotes only limited training of employees
for advanced career positions.
A.
Employer windfall
Perhaps the most significant problem with the TJTC is that
it often provides a "windfall" to employers.
The credit provides
a windfall to the extent it confers a benefit on employers for
doing what they would have done without that benefit.
The most direct way to reduce any windfall is to require
certification of eligibility before the hiring decision is made.
In this way, the TJTC can serve as an incentive in the hiring
decision. We are mindful that pre-hiring certification may be
perceived as conferring a stigma on job applicants.
However, the
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13 -
TJTC was designed to overcome any negative employer perception
about the likely productivity of targeted workers by rewarding
employers for hiring them.
In order for the program to work
effectively, employers need to be aware that they are hiring
targeted workers at the time the hiring decision is made. A precertification system would ensure that the credit was limited to
employers that knowingly hired targeted workers.
One drawback of a pre-certification system is that it would
place a larger burden on the Employment Service Agencies that
perform the certifications. Treasury would be very wary,
however, of endorsing any "self-certification" system under which
individuals or their employers would certify targeted status with
reduced oversight by government agencies. We would be concerned
that such an "honor system" is too susceptible to abuse to be
workable. Under the current regime, the principal checks against
abuse are that Employment Agencies make the certifications and
their actions are subject to audit by the Department of Labor.
We believe these checks are important to curbing potential abuse
and should not be replaced by more lax measures.
B.
Employee turnover
Another serious criticism of the TJTC is that it subsidizes
short-term positions that are less likely to promote job skills
that are beneficial to more advanced job positions.
The Treasury and Labor Departments have explored two broad
approaches to the churning problem. Under one approach, churning
would be curbed by increasing the number of hours an employee
must work with an employer before his or her wages could be taken
into account in computing the credit. The current minimum
employment period, which is the lesser of 90 days or 120 hours,
translates into as little as three weeks of full-time work.
The other approach would "backload" the credit. Under
current law, the credit is 40 percent of the first $6,000 in
wages paid to a targeted individual. Under the backloading
approach, the credit rate applying to wages above some threshold
would be higher than the credit rate applying to the initial
wages.
This shifts the incentive of employers in the direction
of paying higher wages and keeping their employees on the job
longer.
There are possible downsides to these reform proposals, such
as a reduction in the initial hiring incentive and increased
administrative burdens that would need to be considered.
C.
Training of employees
To the extent the TJTC influences hiring and retention
decisions, it helps hard-to-employ individuals develop basic job
- 14 -
skills. These include such fundamental skills as showing up for
work on time, taking directions from managers, asking questions
when instructions are not clear, and successfully completing
assigned tasks. Nevertheless, the low-wage jobs traditionally
subsidized by the credit typically do not offer more extensive
training that could directly serve as a springboard to more
advanced job positions.
To bolster the TJTC's impact on training, the Department of
Labor has suggested that the credit might be expanded to apply to
individuals participating in approved "school-to-work" programs.
Although it is appropriate that a broad range of options be
considered, attempts to redesign the TJTC to encourage training
present special challenges. Any broad training initiative in the
TJTC should attempt to ensure that the credit's special emphasis
on hiring economically disadvantaged individuals is retained. A
broad-based training option also could lose significant revenue
because of the size of the potentially eligible population.
Before extending the TJTC to school-to-work participants, it
also would be necessary to understand the relationships of this
possible category to existing categories and the precise criteria
used in establishing eligibility. We would also need to evaluate
whether redesigning the TJTC to include a new training component
is allocating government resources to programs that work the
best.
6.
Tax Credit for producing Fuel From Nonconventional Sources
Background
As originally enacted in 1980, the nonconventional fuels
production credit was available for qualified fuels produced
domestically from a well drilled or a facility placed in service
before January 1, 1990, and sold to an unrelated person before
January 1, 2001.
In 1988, the placed-in-service date for both
wells and facilities was extended to January 1, 1991.
In 1990,
the placed-in-service date for both wells and facilities was
extended to January 1, 1993, and the production-credit sunset
date was extended, so that sales of qualifying fuels occurring
before January 1, 2003, would be eligible for the credit.
The Energy Policy Act of 1992 included a provision which
treated biomass facilities and facilities that produce synthetic
fuels from coal as being placed in service before January 1
1993, if such facility was placed in service before January'l,
1997, pursuant to a binding written contract in effect before
January 1, 1996. The 1992 act also extended the productioncredit sunset date to 2008.
- 15 Current Law
Under section 29 of the tax code, certain fuels produced
from nonconventional sources are eligible for a production credit
equal to $3 (generallr adjusted for inflation) per barrel or Btu
oil barrel equivalent.
(For calendar year 1993, the credit is
$5.76 per barrel-of-oil equivalent of qualified fuels.)
Qualified fuels must be produced domestically from a well drilled
before January 1, 1993; or from a facility that produces gas from
biomass or that produces liquid, gaseous or solid synthetic fuels
from coal (including lignite) and that is placed in service
before January 1, 1997, pursuant to a written binding contract in
effect before January 1, 1996. 3 The production credit is
available for qualified fuels from a well sold to unrelated
persons before January 1, 2003 and from a facility sold to
unrelated persons before January 1, 2008.
Qualified fuels include (1) oil produced from shale and tar
sands, (2) gas produced from geopressured brine, Devonian shale,
coal seams, a tight formation, or biomass (i.e., any organic
material other than oil, natural gas or coal (or any product
thereof», and (3) liquid, gaseous or solid synthetic fuels
produced from coal (including lignite), including such fuels when
used as feedstocks.
Administration's Recommendation
The Administration opposes any general extension of the
placed-in-service date or the production-credit sunset date for
facilities that produce gas from biomass or that produce liquid,
gaseous or solid synthetic fuels from coal.
When Congress enacted the nonconventional fuels production
credit in 1980, an objective was to support the development of
new alternative technologies to recover oil and gas. 4 By
increasing the profitability of these projects, the credit
encourages investment in projects that might not have been
undertaken without the tax incentive. Another objective of the
credit was to encourage industries to develop alternative energy
2A barrel-of-oil equivalent generally means that amount of
the qualifying fuel which has a 5.8 million Btu content.
3In the case of a facility that produces coke or coke gas,
however, this provision applies only if the original use of the
facility commences with the taxpayer.
4S ena te Report No. 96-394, 96th Congress, 1st Session, p.
87.
- 16 5
sources that would be competitive with conventional fuels.
The
credit was intended to apply only for a limited period of time,
however, after which Congress expected "no special incentive will
be needed" because the affected industries would have matured and
become competitive without government assistance over the life of
the credit. 6 The 1992 extension for biomass and coal facilities
was intended to be a transition rule for taxpayers with
facilities that were soon to be placed in service. This
transition period is now almost over and no extension is
warranted.
7.
Transportation Fuels Excise Tax Exemption for Fuels Used in
commercial Aviation
Background
The Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)
generally provided for a 4.3 cents per gallon fuels excise tax on
all transportation fuels, with the exception of fuel for
commercial aviation, effective October 1, 1993. Gasoline and jet
fuel used in commercial aviation is subject to the tax beginning
on October 1, 1995.
Current Law
OBRA 1993 imposed a permanent excise tax of 4.3 cents per
gallon on:
(1) all transportation fuels currently subject to the
Leaking Underground Storage Tank Trust Fund ("LUST") excise tax,
except for jet fuels used in commercial aviation, (2) liquefied
petroleum gases currently taxable as special fuels, (3) diesel
fuel used in noncommercial motorboats, and (4) compressed natural
gas (CNG) used in highway motor vehicles or motorboats (at 48.54
cents per mcf). Taxable fuels include motor fuels (gasoline,
diesel fuel and special motor fuels) used for highway
transportation or in motorboats; gasoline used in aviation;
gasoline used in off-highway non-business uses (e.g., small
engines and recreational trail uses); diesel fuel used in trains;
and fuels used in inland waterways transportation. Most fuel
uses that are exempt from the LUST tax are exempt from this tax.
OBRA 1993 provided a temporary exemption from the 4.3 cents per
gallon fuels tax for gasoline and jet fuels used in commercial
aviation prior to October 1, 1995.
The provision was effective on October 1, 1993 (with
appropriate floor stocks taxes being imposed on that date).
In
addition, gasoline and jet fuel used in commercial aviation was
- 17 subject to the tax beginning on October 1, 1995 (with appropriate
floor stocks taxes being imposed on that date).
Revenues from this transportation fuels tax are deposited in
the General Fund of the Treasury.
This tax is separate from, and
in addition to, any user-based excise taxes imposed on the same
fuels to fund the Highway Trust Fund, the Airport and Airway
Trust Fund, the Leaking Underground storage Tank Trust Fund, the
Inland waterways Trust Fund, the Aquatic Resources Trust Fund, or
the National Recreational Trails Trust Fund.
Administration's Recommendation
The Administration opposes any delay of the effective date
of the 4.3 cents per gallon excise tax on fuel used in commercial
aviation.
No legislative action is required for this tax to go
into effect.
When Congress enacted the 4.3 cents per gallon excise tax on
fuels used in transportation, the effective date of the tax with
respect to commercial aviation fuel was delayed from October 1,
1993, to October 1, 1995, because of concerns that the commercial
airline industry generally was experiencing losses.
The date
certain for making the provision applicable to commercial
aviation indicates that there was no intention that commercial
aviation should be permanently exempted from the generally
applicable excise tax on transportation fuels dedicated to the
General Fund and used for deficit reduction.
An excise tax of 4.3 cents a gallon on commercial aviation
fuel will not significantly affect the economic condition of the
airline industry.
This tax rate is well within the range over
which jet fuel prices have fluctuated in recent years.
During
1993 and 1994 average monthly jet fuel prices ranged from 50.7 to
61.3 cents per gallon. Moreover, we expect that airlines will
pass a portion of these taxes on to passengers and shippers in
the form of higher fares and rates.
The revenues and profits of the airline industry have
recovered in 1993 and 1994 from recession lows.
The Federal
Aviation Administration reports that in fiscal year 1994, U.s.
commercial airlines had operating profits of $2.6 billion and net
profits of $1.2 billion.
Passenger enplanements were up 8.2
percent over the prior year and revenue passenger miles up 5.5
percent.
The FAA forecasts domestic enplanements to grow at an
average rate of 5.8 percent per year over the 1995-97 period and
at a rate OI 4 percent per year over the next 12 years.
International enplanements for u.s. carriers are expected to grow
at a 5.8 percent annual rate over the next 12 years.
A tax on jet fuel will not affect the competitiveness of the
U.S. carriers, because the tax will apply to foreign carriers
- 18 operating in the u.s. and will not apply to u.s. carriers (or
foreign carriers) in their international operations.
8.
Allocation of Research Expenditures
Background
u.s. persons are taxed on their worldwide income, i.e.,
their taxable income from both u.s. and foreign sources. To
prevent double taxation of foreign-source income that may also be
subject to foreign income taxes, u.s. persons may credit foreign
income taxes paid against their u.s. tax liability.
The foreign tax credit is limited to the taxpayer's U.S. tax
liability on its foreign-source income. without this limitation,
the u.s. effectively would subsidize higher tax rates of foreign
jurisdictions by reducing a taxpayer's tax liability with respect
to U.S.-source income to compensate for higher taxes imposed by
foreign jurisdictions on foreign-source income. A taxpayer's
foreign tax credit limitation (i.e., the ability to use its
foreign tax credits) increases with the level of its foreign
source income.
Consequently, a taxpayer with excess foreign tax credits
(creditable foreign taxes in excess of its foreign tax credit
limitation) has an obvious incentive to characterize as much
income as possible as foreign source and to characterize as many
deductions as possible as domestic source.
In order to preserve
the integrity of the foreign tax credit limitation so that
foreign-source income is not taxed twice and foreign taxes do not
offset the u.s. tax on U.S.-source income, it is important to
accurately measure taxpayers' foreign-source income. This
requires both an accurate measurement of a taxpayer's foreign
source gross income, and of the deductions that are properly
associated with that income.
sections 861 and 862 provide rules for determining whether
income and deductions are from u.s. or foreign sources.
Prior to
1977, there were either no final regulations interpreting the
expense allocation rules of sections 861 and 862, or regulations
that simply restated the statutory rule with little elaboration.
In 1977, Treasury issued final regulations governing the sourcing
of expenses and other deductions as Treas. Reg. §1.861-8.
The 1977 regulations require research and development (R&D)
expenses to be allocated among two-digit Standard Industrial
Classification (SIC) code categories. R&D expenses associated
with each such category are separately apportioned.
R&D expenses
that are incurred solely to meet the legal requirements of a
particular jurisdiction and that cannot reasonably be expected to
generate income (beyond de minimis amounts) outside that
jurisdiction are allocated directly to gross income from the
- 19 geographic source that includes that jurisdiction. The remaining
R&D expense is apportioned under either the sales method or the
gross income method.
Under the sales method, thirty percent of the R&D deduction
is exclusively apportioned to income arising from the geographic
location where more than 50 percent of the taxpayer's R&D
activities are performed. The remaining 70 percent is
apportioned between u.s. and foreign source income on the basis
of relative amounts of domestic and foreign- source gross sales
receipts. A II look through rule" treats sales of certain
controlled parties, such as foreign subsidiaries, and
uncontrolled licensees as sales of the taxpayer for purposes of
determining domestic and foreign gross sales receipts.
As an alternative to the sales method, a taxpayer may
apportion R&D expenses based on the relative amounts of gross
income from u.s. and foreign sources. Under this method,
however, an exclusive allocation based on the place of
performance is not permitted. As a further limitation, the
portion of the R&D expenses apportioned to u.s.- and foreignsource income cannot be less than 50 percent of the amount that
would be apportioned to u.s.- and foreign-source income under the
sales method.
The 1977 regulations have been the subject of ten temporary
modifications since 1981. A chronology of these modifications
follows:
The Economic Recovery Tax Act of 1981 (ERTA) directed the
Treasury to study the impact of the 1977 regulations on u.s.based R&D and on the availability of the foreign tax credit. ERTA
also suspended application of the 1977 regulations to U.S.-based
R&D expenses for taxpayers' first two years beginning after
August 13, 1981. During this period, 100 percent of U.S.-based
R&D expenses were apportioned to U.S. source income.
Expenses
for foreign-based R&D were apportioned between U.S. and foreign
source income under the rules of the 1977 regulations.
In 1983, Treasury published a report entitled liThe Impact of
the Section 1.861-8 Regulation on U.S. Research and Development."
This Report described the 1977 regulations as an objective
attempt to satisfy the statutory requirement that R&D be properly
allocated and apportioned to domestic and foreign source income
and described the ERTA regime as an incentive. The Report
concluded that, compared to the 1977 regulations, the ERTA regime
reduced U.S. tax liabilities of affected taxpayers by $100 to
$240 million in 1982. The Report also noted that the ERTA regime
had different effects on different corporations, but that the
additional tax liability avoided in 1982 would (if paid) have
reduced domestic R&D spending in that year by between $40 million
- 20 and $260 million. On the basis of these findings, the Report
recommended a two-year extension of the ERTA regime.
The Deficit Reduction Act of 1984 extended the ERTA regime
for an additional two-year period (the first two taxable years
beginning after August 13, 1983).
The Consolidated Omnibus Budget Reconciliation Act of 1985
extended the ERTA regime for an additional one-year period (the
first taxable year beginning after August 13, 1985).
The Tax Reform Act of 1986 suspended the 1977 regUlations
for one year (the first taxable year beginning after August 1,
1986) as it applied to U.S.-based R&D. During this one-year
suspension, 50 percent of U.S.-based R&D expenses were
exclusively apportioned to U.S. source income (a reduction from
the 100 percent rule of ERTA). This 50 percent exclusive
apportionment was available to taxpayers electing the gross
income method, as well as the sales method of apportionment. The
taxpayer's remaining R&D expense was apportioned under the 1977
regulations, except that no limitation was imposed on the use of
the gross income method of apportionment with respect to the
remaining U.S.-based R&D expenses.
The Technical and Miscellaneous Revenue Act of 1988
suspended the R&D regulations (which had been in effect during
1987) for a four-month period (the first four months of the first
taxable year beginning after August 1, 1987), during which time
64 percent of U.S.-based R&D expenses were apportioned directly
to U.S. source income and 64 percent of foreign-based R&D
expenses were apportioned directly to foreign source income. This
rule was codified in section 864(f). The taxpayer's remaining R&D
expense was apportioned under the rules of the 1977 regUlations
except that, for taxpayers who elected the gross income method of
apportionment, the amount apportioned to foreign source income
was required to be at least 30 percent of the amount that would
have been apportioned to foreign source income under the sales
method. For the remaining eight months of that taxable year and
the following year, the 1977 regulations were in effect.
The Omnibus Budget Reconciliation Act of 1989 reinstated
Code section 864(f) for the first nine months of taxpayers' first
taxable year beginning after August 1, 1989.
The Omnibus Budget Reconciliation Act of 1990 reinstated
Code section 864(f) for a fifteen-month period (the last three
months of the first taxable year beginning after August 1, 1989
and the first taxable year beginning after August 1, 1990).
The Tax Extension Act of 1991 extended Code section 864(f}
for the first six months of the first taxable year beginning
after August 1, 1991.
- 21 In 1992, Treasury issued Revenue Procedure 92-56, 92-2 C.B.
409, which administratively reinstated the provisions of Code
section 864(f} for the last six months of a taxpayer's first
taxable year beginning after August 1, 1991, and during the
immediately succeeding taxable year.
The Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)
extended the provisions of Code section 864(f) for taxpayers'
first taxable year (beginning on or before August 1, 1994)
following the taxpayer's last taxable year to which Rev. Proc.
92-56 applies or would have applied had the taxpayer elected the
benefits of that Revenue Procedure. The 1993 Act also reduced
the exclusive allocation percentage from 64 percent to 50
percent. Therefore, for calendar-year taxpayers, the OBRA 1993
extension expired on December 31, 1994.
Current Law
Prior to its expiration, section 864(f) provided that fifty
percent of research and development expenses (other than amounts
incurred to meet certain legal requirements, and thus allocable
to one geographical source) were exclusively apportioned to
income sourced in the place of performance of the research. The
remaining research and development expenses were apportioned on
the basis of either sales or gross income, but subject to the
condition that if the gross income based apportionment was used,
the amount apportioned to foreign source income could be no less
than 30 percent of the amount that would have been apportioned to
foreign source income had the sales method been used.
Administration's Recommendation
As stated in the President's fiscal year 1996 budget, the
Administration supports the revenue-neutral extension of section
864 (f) .
In Revenue Procedure 92-56, Treasury stated that it was
undertaking a review of Treas. Reg. §1.861-8(e) (3) and further
stated that, if necessary, it would propose appropriate
amendments to that regulation. This Revenue Procedure also
stated that the Treasury and the IRS were undertaking a review of
the 1977 R&D allocation regulations. Treasury contemplates
proposing new regulations in the near future that are likely to
be more favorable to taxpayers than the 1977 regulations.
This concludes my prepared remarks.
I would be pleased to
respond to any questions that you may have at this time.
Receipts Effect of Pennanent Extension of Expiring Provisions 11
Fiscal Years
1998
1999
($'8 in billions)
1996
1997
-0.835
-1.108
-0.991
-0.042
-0.076
-0.262
-0.561
-1.352
-0.700
-0.034
-0.060
-0.265
-0.597
-1.647
-0.735
-0.038
-0.065
-0.361
-0.627
-1.867
-0.771
-0.043
-0.070
-0.449
-0.657
-2.048
-0.810
-0.048
-0.076
-0.526
-3.277
-8.022
-4.007
-0.205
-0.347
-1.865
7/31195
12131195
0.373
-0.602
0.307
0.220
-0.489
0.520
0.222
-0.461
0.530
0.223
-0.428
0.536
0.224
-0.431
0.540
1.262
-2.411
2.433
12131/96
10/1/95
0.000
-0.379
-0.020
-0.406
-0.110
-0.422
-0.250
-0.431
-0.725
-0.437
-1.105
-2.075
Exeiration Date
2000 1995-2000
Pennanent Extension
Exclusion for employer provided educational assistance 21
Research tax credit
Research and experimentation (R&E) allocation rules 31
Orphan drug tax credit 21
Full fair market value deduction for gifts of qualified appreciated stock 21
Targeted jobs tax credit 21 41
12131/94
6/30/95
8/1194
12131194
12131/94
12131/94
Other extensions supported by Administration:
Oil spill liability tax 2J 51
Generalized system of preferences (GSP) 21
Environmental tax on corporate taxable income 51
12131194
Other expiring provisions to be considered at the hearing:
Nonconventional fuels production credit 61
Airline fuels excise tax exemption
Department of the Treasury
Office of Tax Analysis
11 Actual timing of receipts effect will be determined by date of enactment. Five-year totals will generally not be affected.
21 Assumes retroactive extension with enactment date of 10/1/95.
31 Assumes extension for taxable years beginning after 811194.
41 Does not take into account possible program modifications.
51 Assumes statutory caps are adjusted so as not to be binding.
61 Credit is available for facilities placed in service before 111197, pursuant to a binding contract in effect before 111/96.
UBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
i.
i
.
~
FOR IMMEDIATE RELEASE
May 9, 1995
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 3-YEAR NOTES
Tenders for $17,508 million of 3-year notes, Series X-1998,
to be issued May 15, 1995 and to mature May 15, 1998
were accepted today (CUSIP: 912827T77).
The interest rate on the notes will be 6 1/8%. The range
of accepted bids and corresponding prices are as follows:
Low
High
Average
Yield
6.140%
6.200%
6.165%
Price
99.959
99.798
99.892
Tenders at the high yield were allotted 40%.
TENDERS RECEIVED AND ACCEPTED ( in thousands)
TOTALS
Received
$34,598,407
Acce:Qted
$17,508,347
The $17,508 million of accepted tenders includes $805
million of noncompetitive tenders and $16,703 million of
competitive tenders from the public.
In addition, $210 million of tenders was awarded at the
average price to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $3,444 million
of tenders was also accepted at the average price from Federal
Reserve Banks for their own account in exchange for maturing
securities.
RR-285
DEPARTMENT
OF
THE
TREASURY
NEWS
FOR RELEASE AT 2:30 P.M.
May 9, 1995
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $26,400 million, to be issued May 18,
1995. This offering will result in a paydown for the Treasury of
about $1,900 million, as the maturing weekly bills are
outstanding in the amount of $28,296 million.
Federal Reserve Banks hold $6,729 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,553 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the .new securities are given in the
attached offering highlights.
000
Attachment
RR-286
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line
at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED MAY 18, 1995
May 9, 1995
Offering Amount .
$13,200 million
$13,200 million
Description of Offering:
Term and type of security
CUSIP number
Auction Qate
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
'Mul t iples .
91-day bill
912794 US 1
May 15, 1995
May 18, 1995
August 17, 1995
February 16, 1995
$14,408 million
$10,000
$ 1,000
182-day bill
912794 T5 3
May 15, 1995
May 18, 1995
November 16, 1995
November 17, 1994
$17,480 million
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
@FedFRASER