Trade in Services Agreement (TISA)

Financial Services Annex

WikiLeaks release: June 19, 2014
This is the secret draft of the Trade in Services Agreement (TISA) Financial Services Annex, currently
under negotiation between Australia, Canada, Chile, Chinese Taipei (Taiwan), Colombia, Costa Rica,
Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama,
Paraguay, Peru, South Korea, Switzerland, Turkey, the United States, and the European Union,
including its 28 member states Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United
Kingdom. The Agreement is meant to liberalize trade in services amongst the world's largest services
providers, and it is being negotiated outside of the WTO framework. TISA members hold the largest
services markets worldwide, with a combined GDP of over two-thirds of the world economy. This text
was drafted just before the 6th round of TISA negotiations held from 28 April - 2 May in Geneva,
Switzerland. The next round of negotiations are set to be held 23-27 June in Geneva.
Description
Keywords: WTO, GATS, TISA, G20, BCBS, IAIS, IOSCO, FATF, OECD, trade
agreement, negotiation, draft, financial services, investment, banking,
credit, privacy
Restraint: Limited - contains TISA-U.S. CONFIDENTIAL Information
Modified handling authorized
Title: Trade in Services Agreement (TISA) Annex [X]: Financial Services,
Consolidation of text proposals
Date: April 14, 2014
Group: Trade in Services Agreement
Author: Trade in Services Agreement country negotiators
Link: http://wikileaks.org/tisa-financial
Pages: 18
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Annex [X]: Financial Services
Consolidation of text proposals as of 14 April 2014
###########################
eason$ %.&'()
Dec*assif+ on$ Five years from entry
into force of the TISA
agreement or, if no
agreement enters into
force, five years from the
close of the negotiations.
" This ,ocument must (e -rotecte, from
unauthori.e, ,isc*osure/ (ut ma+ (e mai*e,
or transmitte, o0er unc*assifie, e-mai* or
fa1/ ,iscusse, o0er unsecure, -hone *ines/
an, store, on unc*assifie, com-uter
s+stems. It must (e store, in a *oc2e, or
secure, (ui*,in3/ room/ or container.
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Annex [X]: Financial Services
*Working consolidated draft among the proponents as of 14 April 2014; draft is without
prejudice to further proposals or positions of the proponents
!!!!!!!!!!!!!!!!!!!!!!!!
Article X.1: Scope
1. This section4Anne1 a--*ies to measures affectin3 the su--*+ of financia* ser0ices
[T: su(5ect to an+ con,itions/ reser0ations an, 6ua*ifications inscri(e, in its
Sche,u*e of s-ecific commitments.]
2. For the -ur-oses of su(-ara3ra-h 7'() of Artic*e I-% of the A3reement/ 8ser0ices
su--*ie, in the e1ercise of 3o0ernmenta* authorit+9 means the fo**o:in3$
(a) acti0ities con,ucte, (+ a centra* (an2 or monetar+ authorit+ or (+ an+ other
-u(*ic entit+ in -ursuit of monetar+ or e1chan3e rate -o*icies;
(b) acti0ities formin3 -art of a statutor+ s+stem of socia* securit+ or -u(*ic
retirement -*ans; an,
(c) other acti0ities con,ucte, (+ a -u(*ic entit+ for the account or :ith the
3uarantee or usin3 the financia* resources of the <art+ or its -u(*ic entities.
3. For the -ur-oses of su(-ara3ra-h 7'() of Artic*e I-% of the A3reement/ if a <art+
a**o:s an+ of the acti0ities referre, to in su(-ara3ra-hs '() or 'c) of -ara3ra-h =
of this Artic*e to (e con,ucte, (+ its financia* ser0ice su--*iers in com-etition
:ith a -u(*ic entit+ or a financia* ser0ice su--*ier/ 8ser0ices9 sha** inc*u,e such
acti0ities.
4. Su(-ara3ra-h 7'c) of Artic*e I-% of the A3reement sha** not a--*+ to ser0ices
co0ere, (+ this Anne1.
Article X.!: "efinitions
For -ur-oses of this Anne14section$
(a) A financia* ser0ice is an+ ser0ice of a financia* nature offere, (+ a financia*
ser0ice su--*ier of a <art+. Financia* ser0ices inc*u,e a** insurance an,
insurance-re*ate, ser0ices an, a** (an2in3 an, other financia* ser0ices
'e1c*u,in3 insurance). Financia* ser0ices inc*u,e the fo**o:in3 acti0ities$
"nsurance and insurance#related ser$ices
(i) ,irect insurance 'inc*u,in3 co-insurance)$
A. *ife;
B. non-*ife;
(ii) reinsurance an, retrocession;
(iii) insurance interme,iation/ such as (ro2era3e an, a3enc+;
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(iv) ser0ices au1i*iar+ to insurance/ such as consu*tanc+/ actuaria*/ ris2
assessment an, c*aim sett*ement ser0ices;
%anking and other financial ser$ices &excluding insurance'
(v) acce-tance of ,e-osits an, other re-a+a(*e fun,s from the -u(*ic;
(vi) *en,in3 of a** t+-es/ inc*u,in3 consumer cre,it/ mort3a3e cre,it/
factorin3 an, financin3 of commercia* transaction;
(vii) financia* *easin3;
(viii) a** -a+ment an, mone+ transmission ser0ices/ inc*u,in3 cre,it/
char3e an, ,e(it car,s/ tra0e*ers chec2s an, (an2ers ,rafts;
(ix) 3uarantees an, commitments;
(x) tra,in3 for o:n account or for account of customers/ :hether on an
e1chan3e/ in an o0er-the-counter mar2et or other:ise/ the fo**o:in3$
(A) mone+ mar2et instruments 'inc*u,in3 chec2s/ (i**s/ certificates
of ,e-osits);
(B) forei3n e1chan3e;
(C) ,eri0ati0e -ro,ucts inc*u,in3/ (ut not *imite, to/ futures an,
o-tions;
(D)e1chan3e rate an, interest rate instruments/ inc*u,in3 -ro,ucts
such as s:a-s/ for:ar, rate a3reements;
(E) transfera(*e securities;
(F) other ne3otia(*e instruments an, financia* assets/ inc*u,in3
(u**ion;
(xi) -artici-ation in issues of a** 2in,s of securities/ inc*u,in3
un,er:ritin3 an, -*acement as a3ent ':hether -u(*ic*+ or -ri0ate*+)
an, -ro0ision of ser0ices re*ate, to such issues;
(xii) mone+ (ro2in3;
(xiii) asset mana3ement/ such as cash or -ortfo*io mana3ement/ a**
forms of co**ecti0e in0estment mana3ement/ -ension fun,
mana3ement/ custo,ia*/ ,e-ositar+ an, trust ser0ices;
(xiv) sett*ement an, c*earin3 ser0ices for financia* assets/ inc*u,in3
securities/ ,eri0ati0e -ro,ucts an, other ne3otia(*e instruments;
(xv) -ro0ision an, transfer of financia* information/ an, financia* ,ata
-rocessin3 an, re*ate, soft:are (+ su--*iers of other financia*
ser0ices;
(xvi) a,0isor+/ interme,iation an, other au1i*iar+ financia* ser0ices on
a** the acti0ities *iste, in su(-ara3ra-hs '0) throu3h '10)/ inc*u,in3
cre,it reference an, ana*+sis/ in0estment an, -ortfo*io research an,
a,0ice/ a,0ice on ac6uisitions an, on cor-orate restructurin3 an,
strate3+.
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(b) A #financial service s$pplier% means an+ natura* or 5uri,ica* -erson of a
<art+ :ishin3 to su--*+ or su--*+in3 financia* ser0ices/ (ut the term 8financia*
ser0ice su--*ier9 ,oes not inc*u,e a -u(*ic entit+.
(c) #p$&lic entity% means$
(i) a 3o0ernment/ a centra* (an2 or a monetar+ authorit+/ of a <art+/ or an
entit+ o:ne, or contro**e, (+ a <art+/ that is -rinci-a**+ en3a3e, in
carr+in3 out 3o0ernmenta* functions or acti0ities for 3o0ernmenta*
-ur-oses/ not inc*u,in3 an entit+ -rinci-a**+ en3a3e, in su--*+in3
financia* ser0ices on commercia* terms; or
(ii) a -ri0ate entit+ -erformin3 functions norma**+ -erforme, (+ a centra*
(an2 or monetar+ authorit+/ :hen e1ercisin3 those functions.
(d) #commercial presence% means an enter-rise :ithin a <art+>s territor+ for the
su--*+ of financia* ser0ices an, inc*u,es :ho**+ or -art*+ o:ne, su(si,iaries/
5oint 0entures/ -artnershi-s/ so*e -ro-rietorshi-s/ franchisin3 o-erations/
(ranches/ a3encies/ re-resentati0e offices or other or3ani.ations;
(e) ['A: #financial instit$tion% means a financia* interme,iar+ or other
commercia* -resence that is authori.e, to ,o (usiness an, re3u*ate, or
su-er0ise, as a financia* institution un,er the ,omestic *a: of the <art+ in
:hose territor+ it is *ocate,;]
(f) A #ne( financial service% is a ser0ice of a financia* nature/ inc*u,in3
ser0ices re*ate, to e1istin3 an, ne: -ro,ucts or the manner in :hich a -ro,uct
is ,e*i0ere,/ that is not su--*ie, (+ an+ financia* ser0ice su--*ier in the
territor+ of a <art+ (ut :hich is su--*ie, in the territor+ of ['A: another
<art+].
(g) ['A: #self)reg$latory organi*ation% means a non-3o0ernmenta* (o,+ that
e1ercises its o:n or ,e*e3ate, re3u*ator+ or su-er0isor+ authorit+ o0er
financia* ser0ice su--*iers or financia* institutions/ inc*u,in3 a securities or
futures e1chan3e or mar2et/ c*earin3 a3enc+/ or other or3ani.ation or
association.]
(h) [+,, ,S: A #non)resi-ent s$pplier of financial services% is a financia*
ser0ice su--*ier of a <art+ :hich su--*ies a financia* ser0ice into the territor+
of another <art+ from an esta(*ishment *ocate, in the territor+ of another
<art+/ re3ar,*ess of :hether such a financia* ser0ices su--*ier has or has not a
commercia* -resence in the territor+ of the <art+ in :hich the financia* ser0ice
is su--*ie,.]
[,S: Article X..: Sche-$ling Financial Services /ommitments
(arket Access
1. Each <art+ sha** [01/: su(5ect to an+ con,itions/ reser0ations/ an, 6ua*ifications
inscri(e, in the Sche,u*e] inscri(e in its Sche,u*e/ -ursuant to Artic*e I-7 of the
A3reement/ a commitment :ith res-ect to
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(a) the su--*+ of financia* ser0ices throu3h commercia* -resence; an,
(b) the su--*+ of financia* ser0ices *iste, in Artic*e ?.@ Across-(or,er tra,eB
:ith res-ect to the su--*+ of a financia* ser0ice from the territor+ of one
<art+ into the territor+ of an+ other <art+/ or in the territor+ of one <art+ to
the ser0ice consumer of an+ other <art+.
)ational *reatment
2. Cith res-ect to the su--*+ of a financia* ser0ice from the territor+ of one <art+
into the territor+ of an+ other <art+/ or in the territor+ of one <art+ to the ser0ice
consumer of an+ other <art+/
(a) Artic*e I-& 'Nationa* Treatment) of the A3reement sha** a--*+ to on*+ the
su--*+ of financia* ser0ices *iste, in Artic*e ?.@ Across-(or,er tra,eB/
un*ess a <art+ other:ise s-ecifies in its Sche,u*e; an,
(b) -ara3ra-h 7 of Artic*e II-= of the A3reement sha** not a--*+.]
[+,, ,S: Article X.2: Stan-still
[+,, ,S: An+ con,itions/ *imitations an, 6ua*ifications to the commitments] [+,:
accor,in3 to Artic*es D/ E/ @ an, F 'Financia* ser0ices -urchase, (+ -u(*ic entities/
commercia* -resence/ cross-(or,er Tra,e/ Tem-orar+ Entr+ of <ersonne*)] [,S: in
Artic*es D/ E an, @ 'Financia* ser0ices -urchase, (+ -u(*ic entities/ commercia* -resence/
cross-(or,er tra,e)] [+,, ,S: sha** (e *imite, to e1istin3 non-conformin3 measures.]
[A,: The con,itions an, 6ua*ifications on commitments [+,: accor,in3 to Artic*es D/ E/
@ an, F] [,S: in Artic*es D/ E an, @] sha** (e *imite, to measures that a <art+ maintains on
the ,ate this A3reement ta2es effect/ or the continuation or -rom-t rene:a* of such
measures.]
Article X.3: 4onopoly ights
[+,, ,S: In a,,ition to 'Artic*e ??4mono-o*ies an, e1c*usi0e ser0ice su--*iers) of the
A3reement/ the fo**o:in3 sha** a--*+$
Each <art+ sha** *ist in its Sche,u*e -ertainin3 to financia* ser0ices e1istin3 mono-o*+
ri3hts an, sha** en,ea0or to e*iminate them or re,uce their sco-e. Not:ithstan,in3
-ara3ra-h = of Artic*e % of this Anne14section/ this -ara3ra-h a--*ies to the acti0ities
referre, to in -ara3ra-h ='c) of Artic*e % of this Anne14section.]

Article X.5: Financial Services '$rchase- &y '$&lic +ntities
[+,, ,S: Not:ithstan,in3 ASection4Artic*e ?B of the A3reement Aon 3o0ernment
-rocurementB an, su(5ect to an+ con,itions/ *imitations an, 6ua*ifications that a <art+
sha** set out in its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/ each <art+ sha**
ensure that financia* ser0ice su--*iers of an+ other <art+ esta(*ishe, in its territor+ are
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accor,e, most-fa0ore,-nation treatment an, nationa* treatment as re3ar,s the -urchase or
ac6uisition of financia* ser0ices (+ -u(*ic entities of the <art+ in its territor+.]
Article X.6: /ommercial 'resence
1. [+,, ,S: Su(5ect to an+ con,itions/ *imitations an, 6ua*ifications that a <art+
sha** set out in its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/] [A,:
Su(5ect to an+ terms *imitations/ con,itions/ an, 6ua*ifications that the <art+ sha**
set out in its Sche,u*e/] AEBAeBach <art+ sha** 3rant financia* ser0ice su--*iers of
an+ other <art+ the ri3ht to esta(*ish or e1-an, :ithin its territor+/ inc*u,in3
throu3h the ac6uisition of e1istin3 enter-rises/ ['A: an, :ithout the im-osition of
numerica* restrictions/
%
] a commercia* -resence.
%(is. A <art+ ma+ im-ose terms/ con,itions an, -roce,ures for authori.ation of the
esta(*ishment an, e1-ansion of a commercia* -resence in so far as the+ ,o not
circum0ent the <art+>s o(*i3ation un,er -ara3ra-h % an, the+ are consistent :ith the
other o(*i3ations of this A3reement ['A: in -articu*ar$
(a) im-ose a term or con,ition on the esta(*ishment of a,,itiona* commercia*
-resences an, ,etermine the institutiona* an, 5uri,ica* form to (e use, to
su--*+ a s-ecifie, financia* ser0ice or to carr+ out of a s-ecifie, acti0it+;
(b) -rohi(it a -articu*ar financia* ser0ice or acti0it+. Such a -rohi(ition ma+ not
a--*+ to a** financia* ser0ices or to a com-*ete financia* ser0ices su(-sector
such as (an2in3; or
(c) re6uire that a financia* ser0ice su--*ier of another <art+ (e en3a3e, in the
(usiness of -ro0i,in3 financia* ser0ices in the territor+ of that other <art+/
:ithout -re5u,ice to other forms of -ru,entia* re3u*ation.]
2. ['A: Each <art+ sha** -ermit financia* ser0ice su--*iers of an+ other <art+ that
o:ns or contro*s a financia* institution in the <art+>s territor+ to esta(*ish in that
territor+ as man+ a,,itiona* commercia* -resences as ma+ (e necessar+ for the
su--*+ of the fu** ran3e of financia* ser0ices a**o:e, un,er the ,omestic *a: of
the <art+ at the time of esta(*ishment of the a,,itiona* commercia* -resences.]
Article X.7: /ross)8or-er Tra-e
1. [+,, ,S: Su(5ect to an+ con,itions/ *imitations an, 6ua*ifications that a <art+
sha** set out in its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/] [A,:
Su(5ect to an+ terms *imitations/ con,itions an, 6ua*ifications that the <art+ sha**
set out in its Sche,u*e/] AeBAEBach <art+ sha** -ermit non-resi,ent su--*iers of
financia* ser0ices to su--*+/ as a -rinci-a*/ throu3h an interme,iar+ or as an
1 For the -ur-ose of this Artic*e/ 8numerica* restrictions9 means *imitations
im-ose, either on the (asis of a re3iona* su(,i0ision or on the (asis of the entire territor+ of a
<art+/ on the num(er of financia* institutions :hether in the form of a numerica* 6uota/ a
mono-o*+/ an e1c*usi0e ser0ice su--*ier or the re6uirements of an economic nee,s test.
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interme,iar+/ ['A, +,, 9or(ay: an, un,er terms an, con,itions that accor,
nationa* treatment/]$ the fo**o:in3 ser0ices$
(a) insurance of ris2s re*atin3 to$
(i) maritime shi--in3 an, commercia* a0iation an, s-ace *aunchin3
an, frei3ht 'inc*u,in3 sate**ites)/ :ith such insurance to co0er an+
or a** of the fo**o:in3$ the [9or(ay: -assen3ers an,] 3oo,s (ein3
trans-orte,/ the 0ehic*e trans-ortin3 the [9or(ay: -assen3ers an,]
3oo,s an, an+ *ia(i*it+ arisin3 therefrom;
(ii) [9or(ay: ocean-3oin3 fishin3 0esse*s];
(iii)[9or(ay: e1-*oration/ ,e0e*o-ment/ -ro,uction acti0ities/ an,
-ro-erties in the offshore ener3+ sector (+ *ar3e customers
=
]; an,
(iv) 3oo,s in internationa* transit]:
(b) reinsurance an, retrocession;
(c) ser0ices au1i*iar+ to insurance as referre, to in su(-ara3ra-h 'a)'i0) of
Artic*e = of the Anne1;
(d) -ro0ision an, transfer of financia* information an, financia* ,ata
-rocessin3 [,S: an, re*ate, soft:are] as referre, to in su(-ara3ra-h 'a)
'10) an, a,0isor+ an, other au1i*iar+ ser0ices/ e1c*u,in3 interme,iation/
re*atin3 to (an2in3 an, other financia* ser0ices as referre, to in
su(-ara3ra-h 'a)'10i)/ (oth of Artic*e = of the Anne1.
(e) [,S, /A, /0: in0estment a,0ice to a co**ecti0e in0estment scheme
*ocate, in the <art+>s territor+;]
(f) [,S, /0: -ortfo*io mana3ement ser0ices to a co**ecti0e in0estment
scheme *ocate, in the <art+>s territor+/ e1c*u,in3
(i) trustee ser0ices;
(ii) custo,ia* ser0ices an, e1ecution ser0ices that are not re*ate, to
mana3in3 a co**ecti0e in0estment scheme.
7
]
2 [9or(ay: :ith an acti0it+ of at *east %G man-+ears or annua* sa*es of a(o0e
USD %G mi**ionB
3 Custo,ia* ser0ices are inc*u,e, in -ara3ra-h 'e) on*+ :ith res-ect to in0estments
for :hich the -rimar+ mar2et is outsi,e of the territor+ of the <art+.
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(g) [,S: e*ectronic -a+ment ser0ices for -a+ment car, transactions
&
into its
territor+ from the territor+ of another <art+ (+ a -erson of that <art+. For
the -ur-oses of this su(section$
(i) a 8-a+ment car,9 inc*u,es a cre,it car,/ char3e car,/ ,e(it car,/
chec2 car,/ automate, te**er machine '8ATM9) car,/ -re-ai, car,/
an, other simi*ar car, or access ,e0ice/ an, the uni6ue account
num(er associate, :ith that car, or access ,e0ice; an,
(ii) 8e*ectronic -a+ment ser0ices for -a+ment car, transactions9 ,oes
not inc*u,e the transfer of fun,s to an, from transactors> accounts.
Furthermore/ 8e*ectronic -a+ment ser0ices for -a+ment car,
transactions9 inc*u,es on*+ those -a+ment net:or2 ser0ices that
use -ro-rietar+ net:or2s to -rocess -a+ment transactions.]
2. ['A: Each <art+ sha** -ermit a -erson *ocate, in its territor+/ an, its nationa*s
:here0er *ocate,/ to -urchase a financia* ser0ice from a cross-(or,er financia*
ser0ice su--*ier of another <art+ *ocate, in the territor+ of another <art+.]
[,S, +,: Su(5ect to an+ con,itions/ *imitations an, 6ua*ifications that a <art+ sha** set
out in its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/] [+,, 9or(ay, ,S: AeB
AEBach <art+ sha** -ermit its resi,ents to -urchase in the territor+ of an+ other <art+ the
financia* ser0ices in,icate, in$
'a) -ara3ra-h %'a);
'() -ara3ra-hs %'() an, %'c); an,
'c) su(-ara3ra-hs 'a)'0) to '10i) of Artic*e ?.=.]
3. ['A: Cithout -re5u,ice to other means of -ru,entia* re3u*ation of cross-(or,er
tra,e in financia* ser0ices/ a <art+ ma+ re6uire the re3istration of cross-(or,er
financia* ser0ice su--*iers of another <art+ an, of financia* instruments.]
[+,: Article X.;: Temporary +ntry of 'ersonnel <to &e a-apte- to hori*ontal 42
provisions=
1. Su(5ect to an+ con,itions/ reser0ations an, 6ua*ifications that a <art+ sha** set out
in its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/ [A,: Su(5ect to an+
terms *imitations/ con,itions an, 6ua*ifications that the <art+ sha** set out in its
4 For 3reat certaint+/ the e*ectronic -a+ment ser0ices for -a+ment car,
transactions referre, to in this commitment fa** :ithin su(-ara3ra-h 'h) of the ,efinition of
8financia* ser0ice9 in Artic*e =/ an, :ithin su(cate3or+ E%HF7 of the Unite, Nations Centra*
<ro,uct C*assification/ Iersion =.G/ an, inc*u,e on*+ the -rocessin3 of financia* transactions such
as 0erification of financia* (a*ances/ authori.ation of transactions/ notification of (an2s 'or cre,it
car, issuers) of in,i0i,ua* transactions an, -ro0ision of ,ai*+ summaries an, instructions
re3ar,in3 the net financia* -osition of re*e0ant institutions for authori.e, transactions.
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Sche,u*e/] each <art+ sha** -ermit tem-orar+ entr+ into its territor+ of the
fo**o:in3 -ersonne* of a financia* ser0ice su--*ier of an+ other <art+ that is
esta(*ishin3 or has esta(*ishe, a commercia* -resence in the territor+ of the <art+$
(i) senior mana3eria* -ersonne* -ossessin3 -ro-rietar+ information
essentia* to the esta(*ishment/ contro* an, o-eration of the ser0ices
of the financia* ser0ice su--*ier; an,
(ii) s-ecia*ists in the o-eration of the financia* ser0ice su--*ier.
2. Su(5ect to con,itions/ reser0ations an, 6ua*ifications that a <art+ sha** set out in
its Sche,u*e in accor,ance :ith Artic*e ?.& 'Stan,sti**)/ [A,: Su(5ect to an+
terms *imitations/ con,itions an, 6ua*ifications that the <art+ sha** set out in its
Sche,u*e/] each <art+ sha** -ermit/ su(5ect to the a0ai*a(i*it+ of 6ua*ifie,
-ersonne* in its territor+/ tem-orar+ entr+ into its territor+ of the fo**o:in3
-ersonne* associate, :ith a commercia* -resence of a financia* ser0ice su--*ier of
an+ other <art+$
(i) s-ecia*ists in com-uter ser0ices/ te*ecommunication ser0ices an,
accounts of the financia* ser0ice su--*ier; an,
(ii) actuaria* an, *e3a* s-ecia*ists.]
Article X.1>: 9e( Financial Services
Each <art+ sha** -ermit financia* ser0ice su--*iers of an+ other <art+ esta(*ishe, in its
territor+ to ['A, ,S: su--*+ an+ ne: financia* ser0ice that the <art+ :ou*, -ermit its o:n
*i2e financia* ser0ices su--*ier to su--*+ :ithout a,o-tin3 a *a: or mo,if+in3 an e1istin3
*a:.
H
]
[+,: to offer in its territor+ an+ ne: financia* ser0ice.]
['A, +,: A <art+ ma+ ,etermine the 5uri,ica* form throu3h :hich the ser0ice ma+ (e
-ro0i,e, an, ma+ re6uire authori.ation for the -ro0ision of the ser0ice. Chere such
authori.ation is re6uire,/ a ,ecision sha** (e ma,e :ithin a reasona(*e time an, the
authori.ation ma+ on*+ (e refuse, for -ru,entia* reasons.]
[,S: Not:ithstan,in3 'Mar2et Access/ -ara3ra-h on 5uri,ica* form)/ a <art+ ma+
,etermine the institutiona* an, 5uri,ica* form throu3h :hich the ne: financia* ser0ice
ma+ (e su--*ie,/ an, ma+ re6uire authori.ation for the su--*+ of the ser0ice. Chere a
<art+ re6uires a financia* ser0ice su--*ier to o(tain authori.ation to su--*+ a ne:
financia* ser0ice/ the <art+ sha** ,eci,e :ithin a reasona(*e time :hether to issue the
authori.ation an, the authori.ation ma+ on*+ (e refuse, for -ru,entia* reasons.]
5 For 3reater certaint+/ a <art+ ma+ issue a ne: re3u*ation or other su(or,inate
measure in -ermittin3 the su--*+ of the ne: financia* ser0ice.
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Article X.11: ['A: "ata 'rocessing an- Treatment of /ertain Information] [+,:
Transfers of Information an- 'rocessing of Information] [,S: Transfer of
Information]
1. ['A, +,: No <art+ sha** ta2e measures that -re0ent transfers of information or the
-rocessin3 of financia* information/ inc*u,in3 transfers of ,ata (+ e*ectronic
means/ into an, out of its territor+/ for ,ata -rocessin3 or that/ su(5ect to
im-ortation ru*es consistent :ith internationa* a3reements/ -re0ent transfers of
e6ui-ment/ :here such transfers of information/ -rocessin3 of financia*
information or transfers of e6ui-ment are necessar+ for the con,uct of the
or,inar+ (usiness of a financia* ser0ice su--*ier. Nothin3 in this -ara3ra-h
restricts the ri3ht of a <art+ to -rotect -ersona* ,ata/ -ersona* -ri0ac+ an, the
confi,entia*it+ of in,i0i,ua* recor,s an, accounts so *on3 as such ri3ht is not use,
to circum0ent the -ro0isions of this A3reement.]
2. ['A: Not:ithstan,in3 -ara3ra-h %/ a <art+ is not re6uire, to furnish or a**o:
access to$
(a) information re*ate, to the financia* affairs an, accounts of an in,i0i,ua*
customer of a financia* institution or a cross-(or,er financia* ser0ice
su--*ier; or
(b) confi,entia* information :hich if ,isc*ose, :ou*, im-e,e *a:
enforcement or other:ise contrar+ to the -u(*ic interest or -re5u,ice
*e3itimate commercia* interests of a -articu*ar commercia* -resence.]
[,S: Each <art+ sha** a**o: a financia* ser0ice su--*ier of another <art+ to transfer
information in e*ectronic or other form/ into an, out of its territor+/ for ,ata -rocessin3
:here such -rocessin3 is re6uire, in the financia* ser0ice su--*ier>s or,inar+ course of
(usiness.]
[1: The sco-e of financia* information :i** (e ,efine, (+ each <art+>s ,omestic *a:s
an, re3u*ations.]
Article X.1!: 'ayment an- /learing Systems
Un,er terms an, con,itions that accor, nationa* treatment/ each <art+ sha** 3rant to
financia* ser0ice su--*iers of an+ other <art+ esta(*ishe, in its territor+ access to -a+ment
an, c*earin3 s+stems o-erate, (+ -u(*ic entities/ an, to officia* fun,in3 an, refinancin3
faci*ities a0ai*a(*e in the norma* course of or,inar+ (usiness. This -ara3ra-h is not
inten,e, to confer access to the <art+>s *en,er of *ast resort faci*ities.
Article X.1.: Self)eg$latory ?rgani*ations
['A, +,: Chen mem(ershi- or -artici-ation in/ or access to/ an+ se*f-re3u*ator+ (o,+/
securities or futures e1chan3e or mar2et/ c*earin3 a3enc+/ or an+ other or3ani.ation or
association/ is re6uire, (+ a <art+ in or,er for financia* ser0ice su--*iers of an+ other
<art+ to su--*+ financia* ser0ices on an e6ua* (asis :ith financia* ser0ice su--*iers of the
<art+/ or :hen a <art+ -ro0i,es ,irect*+ or in,irect*+ such entities/ -ri0i*e3es or
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a,0anta3es in su--*+in3 financia* ser0ices/ the <art+ sha** ensure that such entities accor,
nationa* treatment to financia* ser0ice su--*iers of an+ other <art+ resi,ent in the territor+
of the <art+.] ['A: su(5ect to an+ con,itions an, 6ua*ifications set out in its Sche,u*e.]
[,S: Chere a <art+ re6uires a financia* ser0ice su--*ier of another <art+ to (e a <art+ of/
-artici-ate in/ or ha0e access to/ a se*f-re3u*ator+ or3ani.ation to -ro0i,e a financia*
ser0ice in or into the territor+ of that <art+/ the <art+ sha** ensure o(ser0ance of the
o(*i3ations of Artic*es AI-&B 'Nationa* Treatment) an, A11B 'Most Fa0ore, Nation
Treatment) (+ such se*f-re3u*ator+ or3ani.ation.]
1. ['A: For -ur-oses of the nationa* treatment o(*i3ations in Artic*e ?.E
'Cross-Jor,er Tra,e)/ a <art+ sha** accor, to a cross-(or,er financia* ser0ice
su--*ier of another <art+ treatment no *ess fa0ora(*e than that it accor,s to its o:n
financia* ser0ice su--*iers/ in *i2e circumstances/ :ith res-ect to the su--*+ of the
re*e0ant ser0ice.]
2. ['A: Differences in mar2et share/ -rofita(i*it+ or si.e ,o not in themse*0es
esta(*ish a (reach of the o(*i3ations un,er this Artic*e.]
'A: Article X.12: Senior 4anagement an- 8oar-s of "irectors
1. ['A: A <art+ ma+ not re6uire a financia* institution of another <art+ to en3a3e
natura* -ersons of an+ -articu*ar nationa*it+ as senior mana3eria* or other
essentia* -ersonne*.]
2. ['A: A <art+ ma+ not re6uire that more than a sim-*e ma5orit+ of the (oar, of
,irectors of a financia* institution of another <art+ (e com-ose, of nationa*s of
the <art+ or natura* -ersons resi,in3 in the territor+ of the <art+.]
Article X.13 9on)-iscriminatory meas$res
1. Each <art+ sha** en,ea0or to remo0e or to *imit an+ si3nificant a,0erse effects on
financia* ser0ice su--*iers of an+ other <art+ of$
(a) non-,iscriminator+ measures that -re0ent financia* ser0ice su--*iers from
offerin3 in the <art+>s territor+/ in the form ,etermine, (+ the <art+/ a** the
financia* ser0ices -ermitte, (+ the <art+;
(b) non-,iscriminator+ measures that *imit the e1-ansion of the acti0ities of
financia* ser0ice su--*iers into the entire territor+ of the <art+;
(c) measures of a <art+/ :hen such a <art+ a--*ies the same measures to the
su--*+ of (oth (an2in3 an, securities ser0ices/ an, a financia* ser0ice
su--*ier of an+ other <art+ concentrates its acti0ities in the -ro0ision of
securities ser0ices; an,
(d) other measures that/ a*thou3h res-ectin3 the -ro0isions of the A3reement/
affect a,0erse*+ the a(i*it+ of financia* ser0ice su--*iers of an+ other <art+
to o-erate/ com-*ete or enter the <art+>s mar2et;
-ro0i,e, that an+ action ta2en un,er this -ara3ra-h :ou*, not unfair*+ ,iscriminate
a3ainst financia* ser0ice su--*iers of the <art+ ta2in3 such action.
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2. Cith res-ect to the non-,iscriminator+ measures referre, to in Asu(-ara3ra-hs
A1'a) an, '() 'imme,iate*+ a(o0e)BB a <art+ sha** en,ea0or not to *imit or restrict
the -resent ,e3ree of mar2et o--ortunities/ nor the (enefits a*rea,+ en5o+e, (+
financia* ser0ice su--*iers of another <art+ as a c*ass in the territor+ of the <art+/
-ro0i,e, that this commitment ,oes not resu*t in unfair ,iscrimination a3ainst
financia* ser0ice su--*iers of the <art+ a--*+in3 such measures.
['A: Article X.15: Transparent eg$lations
1. The <arties reco3ni.e that trans-arent re3u*ations an, -o*icies 3o0ernin3 the
acti0ities of financia* institutions an, financia* ser0ice su--*iers are im-ortant in
faci*itatin3 access of financia* institutions an, financia* su--*iers to/ an, their
o-erations in/ each other>s mar2ets.
2. Each <art+ sha** ma2e a0ai*a(*e to intereste, -ersons ,omestic re6uirements an,
a--*ica(*e -roce,ures for com-*etin3 a--*ications re*atin3 to the su--*+ of
financia* ser0ices. U-on re6uest of an a--*icant/ the <art+ concerne, sha** inform
the a--*icant of the status of its a--*ication. If the <art+ concerne, re6uires
a,,itiona* information from the a--*icant/ it sha** notif+ the a--*icant :ithout
un,ue ,e*a+.
3. Chere a *icense or an authori.ation is re6uire, for the su--*+ of a financia*
ser0ice/ the com-etent authorities of a <art+ sha** ma2e the re6uirements for such
a *icense or authori.ation -u(*ic*+ a0ai*a(*e. The -erio, of time norma**+ re6uire,
to reach a ,ecision concernin3 an a--*ication for a *icense or an authori.ation
sha**$
(a) (e ma,e a0ai*a(*e to the a--*icant u-on re6uest;
(b) (e ma,e -u(*ic*+ a0ai*a(*e; or
(c) (e ma,e a0ai*a(*e (+ a com(ination of (oth.]
[+,, T: Article X.15 +ffective an- Transparent eg$lation
1. Each <art+ sha**/ to the e1tent -ractica(*e/ -ro0i,e in a,0ance to a** intereste,
-ersons an+ measure of 3enera* a--*ication that the <art+ -ro-oses to a,o-t in
or,er to a**o: an o--ortunit+ for such -ersons to comment on the measure. Such
measure sha** (e -ro0i,e,$
(a) (+ means of an officia* -u(*ication; or
(b) in other :ritten or e*ectronic form.
2. Each <art+ sha** ma2e a0ai*a(*e to intereste, -ersons its re6uirements for
com-*etin3 a--*ications re*atin3 to the su--*+ of financia* ser0ices.
On the re6uest of an a--*icant/ the concerne, <art+ sha** inform the a--*icant of the
status of its a--*ication. If the concerne, <art+ re6uires a,,itiona* information from the
a--*icant/ it sha** notif+ the a--*icant :ithout un,ue ,e*a+. A-ara. = ma+ nee, to (e
a,a-te, to D cha-terB
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3. [+,: Each <art+ sha** ma2e its (est en,ea0ors to ensure that] [T: <arties are
encoura3e, to ensure that4 <arties sha** ta2e into consi,eration/ :here a--ro-riate/
that4 S-ecia* re3ar, sha** (e 3i0en that] internationa**+ a3ree, stan,ar, for
re3u*ation an, su-er0ision in the financia* ser0ices sector an, for the fi3ht a3ainst
ta1 e0asion an, a0oi,ance are im-*emente, an, a--*ie, in its territor+. Such
internationa**+ a3ree, stan,ar,s are/ inter a*ia/ those a,o-te, (+ the G=G/ the
Financia* Sta(i*it+ Joar, 'FSJ)/ the Jase* Committee on Jan2in3 Su-er0ision
'JCJS)/ the Internationa* Association of Insurance Su-er0isors 'IAIS)/ the
Internationa* Or3ani.ation of Securities Commissions 'IOSCO)/ the Financia*
Action Tas2 Force 'FATF) an, the Or3ani.ation for Economic Coo-eration an,
De0e*o-ment 'OECD).
The <arties [+,: a*so ta2e note of the] [T: sha**/ :hene0er a--ro-riate ,ra: 3ui,ance
from the] 8Ten Ke+ <rinci-*es for Information E1chan3e9 -romu*3ate, (+ the GE/ an,
:i** ta2e a** ste-s necessar+ to tr+ to a--*+ them in their (i*atera* contacts.]
[,S: Article X.15: Transparency
1. Artic*es A??B of Anne1 A??B 'Domestic e3u*ations an,4or Trans-arenc+) sha**
not a--*+ to measures :ithin the sco-e of this Anne1.
2. The <arties reco3ni.e that trans-arent re3u*ations an, -o*icies 3o0ernin3 the
acti0ities of financia* ser0ice su--*iers are im-ortant in faci*itatin3 their a(i*it+ to
3ain access to an, o-erate in each other>s mar2et. Each <art+ commits to -romote
re3u*ator+ trans-arenc+ in tra,e in financia* ser0ices.
3. Each <art+ sha** ensure that a** measure of 3enera* a--*ication to :hich this
Anne1 a--*ies are a,ministere, in a reasona(*e/ o(5ecti0e/ an, im-artia* manner.
4. Each <art+ sha**/ to the e1tent -ractica(*e/
(a) -u(*ish in a,0ance an+ re3u*ations of 3enera* a--*ication re*atin3 to the
su(5ect matter of this Anne1 that it -ro-oses to a,o-t an, the -ur-ose of
the re3u*ation; an,
(b) -ro0i,e intereste, -ersons an, <arties a reasona(*e o--ortunit+ to
comment on such -ro-ose, re3u*ations.
5. At the time it a,o-ts a fina* re3u*ation/ a <art+ shou*,/ to the e1tent -ractica(*e/
a,,ress in :ritin3 su(stanti0e comments recei0e, from intereste, -ersons :ith
res-ect to the -ro-ose, re3u*ation.
6. Each <art+ shou*,/ to the e1tent -ractica(*e/ a**o: reasona(*e time (et:een
-u(*ication of a fina* re3u*ation of 3enera* a--*ication an, its effecti0e ,ate.
. Each <art+ sha** ensure that a ru*e of 3enera* a--*ication a,o-te, or maintaine, (+
se*f-re3u*ator+ or3ani.ations of the <art+ is -rom-t*+ -u(*ishe, or other:ise
ma,e a0ai*a(*e in such a manner as to ena(*e intereste, -ersons to (ecome
ac6uainte, :ith it.
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!. Each <art+ sha** maintain or esta(*ish a--ro-riate mechanisms for res-on,in3 to
in6uires from intereste, -ersons re3ar,in3 a measure of 3enera* a--*ication
co0ere, (+ this Anne1.
". Each <art+>s re3u*ator+ authorities sha** ma2e -u(*ic*+ a0ai*a(*e to intereste,
-ersons the re6uirements/ inc*u,in3 an+ ,ocumentation re6uire,/ for com-*etin3
an a--*ication re*atin3 to the su--*+ of financia* ser0ices.
1#.On the re6uest of an a--*icant/ a <art+>s re3u*ator+ authorit+ sha** inform the
a--*icant of the status of its a--*ication. If the authorit+ re6uires a,,itiona*
information from the a--*icant/ it sha** notif+ the a--*icant :ithout un,ue ,e*a+.
11.A <art+>s re3u*ator+ authorit+ sha** ma2e an a,ministrati0e ,ecision on a
com-*ete, a--*ication of a financia* ser0ice su--*ier of another <art+ re*atin3 to
the su--*+ of a financia* ser0ice :ithin %=G ,a+s/ an, sha** -rom-t*+ notif+ the
a--*icant of the ,ecision. An a--*ication sha** not (e consi,ere, com-*ete unti* a**
re*e0ant hearin3 are he*, an, a** necessar+ information is recei0e,. Chere it is not
-ractica(*e for a ,ecision to (e ma,e :ithin %=G ,a+s/ the re3u*ator+ authorit+
sha** notif+ the a--*icant :ithout un,ue ,e*a+ an, sha** en,ea0or to ma2e the
,ecision :ithin a reasona(*e time thereafter.
12.On the re6uest of an unsuccessfu* a--*icant/ a re3u*ator+ authorit+ that has ,enie,
an a--*ication sha**/ to the e1tent -ractica(*e/ inform the a--*icant of the reasons
for ,enia* of the a--*ication.]
Article X.16: 'r$-ential 4eas$res
1. Not:ithstan,in3 an+ other -ro0ision of the A3reement/ a <art+ sha** not (e
-re0ente, from ['A, +,: ta2in3] [,S: a,o-tin3 or maintainin3] measures for
-ru,entia* reasons/ inc*u,in3 for$
(a) the -rotection of in0estors/ ,e-ositors/ ['A, ,S financia* mar2et users]/
-o*ic+-ho*,ers or -ersons to :hom a fi,uciar+ ,ut+ is o:e, (+ a financia*
ser0ice su--*ier; or
(b) to ensure the inte3rit+ an, sta(i*it+ of a <art+>s financia* s+stem.
2. Chere such measures ,o not conform :ith the -ro0isions of this A3reement/ the+
sha** not (e use, as a means of a0oi,in3 the <art+>s commitments or o(*i3ations
un,er the A3reement.
[,S, +, Article X.17: Treatment of Information
Nothin3 in this A3reement sha** (e construe, to re6uire a <art+ to ,isc*ose
information re*atin3 to the affairs an, accounts of in,i0i,ua* consumers or an+
confi,entia* or -ro-rietar+ information in the -ossession of -u(*ic entities.]
[+,, ,S: Article X.1;: ecognition
1. A <art+ ma+ reco3ni.e a -ru,entia* measure of an+ other countr+ in ,eterminin3
ho: the <art+>s measure re*atin3 to financia* ser0ices sha** (e a--*ie,. Such
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reco3nition/ :hich ma+ (e achie0e, throu3h harmoni.ation or other:ise/ ma+ (e
(ase, u-on an a3reement or arran3ement :ith the countr+ concerne, or ma+ (e
accor,e, autonomous*+.
2. A <art+ that is a -art+ to such an a3reement or arran3ement referre, to in
-ara3ra-h A%B/ :hether future or e1istin3/ sha** affor, a,e6uate o--ortunit+ for
other intereste, <arties to ne3otiate their accession to such a3reements or
arran3ements/ or to ne3otiate com-ara(*e ones :ith it/ un,er circumstances in
:hich there :ou*, (e e6ui0a*ent re3u*ation/ o0ersi3ht/ im-*ementation of such
re3u*ation/ an,/ if a--ro-riate/ -roce,ures concernin3 the sharin3 of information
(et:een the <arties to the a3reement or arran3ement. Chere a <art+ accor,s
reco3nition autonomous*+/ it sha** affor, a,e6uate o--ortunit+ for an+ other
<art+ to ,emonstrate that such circumstances e1ist.]
[+,, ,S: Article X.!>: "isp$te Settlement [+,: may nee- to &e a-apte- to "S
section]]
1. [+,, ,S: A <ane* for ,is-utes on -ru,entia* issues an, other financia* matters
sha** ha0e the necessar+ e1-ertise re*e0ant to the s-ecific financia* ser0ice un,er
,is-ute.]
2. [,S: Chere a A<ane*B fin,s a measure to (e inconsistent :ith this A3reement an,
the measure affects$
(a) on*+ a sector other than the financia* ser0ices sector/ the com-*ainin3
<art+ ma+ not sus-en, (enefits in the financia* ser0ices sector; or
(b) the financia* ser0ices sector an, an+ other sector/ the com-*ainin3 <art+
ma+ sus-en, (enefits in the financia* ser0ices sector that ha0e an effect
e6ui0a*ent to the effect of the measure in the <art+>s financia* ser0ices
sector.]
[,S: Article X.!1: +xpe-ite- Availa&ility of Ins$rance
The <arties reco3ni.e the im-ortance of maintainin3 an, ,e0e*o-in3 re3u*ator+
-roce,ures to e1-e,ite the offerin3 of insurance ser0ices (+ *icense, su--*iers. These
-roce,ures ma+ inc*u,e a**o:in3 intro,uction of -ro,ucts un*ess those -ro,ucts are
,isa--ro0e, :ithin a reasona(*e time; not re6uirin3 -ro,uct a--ro0a* or authori.ation of
insurance *ines for insurance other than insurance so*, to in,i0i,ua*s or com-u*sor+
insurance; an, not im-osin3 *imitations on the num(er or fre6uenc+ of -ro,uct
intro,uctions. If a <art+ maintains re3u*ator+ -ro,uct a--ro0a* -roce,ures re*ate, to the
offerin3 of -ro,ucts :ithin the sco-e of an insurance *icense/ the <art+ sha** en,ea0or to
maintain or im-ro0e these e1istin3 -roce,ures.]
[,S: Article X.!!: S$pply of Ins$rance &y 'ostal Ins$rance +ntities
1. The ,isci-*ines set out in this section a--*+ :here a <art+ a**o:s its -osta*
insurance entit+ to un,er:rite an, su--*+ ,irect insurance ser0ices to the 3enera*
-u(*ic. The ser0ices co0ere, (+ this -ara3ra-h ,o not inc*u,e the su--*+ of
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insurance re*ate, to the co**ection/ trans-ort an, ,e*i0er+ of *etters or -ac2a3es
(+ a <art+>s -osta* insurance entit+.
2. No <art+ [1: to the e1tent -ossi(*e] a,o-t or maintain a measure that creates
con,itions of com-etition that are more fa0ora(*e to a -osta* insurance entit+
:ith res-ect to the su--*+ of insurance ser0ices ,escri(e, in -ara3ra-h % as
com-are, to a -ri0ate su--*ier of *i2e insurance ser0ices in its mar2et/ inc*u,in3
(+$
(a) im-osin3 more onerous con,itions on a -ri0ate su--*ier>s *icense to
su--*+ insurance ser0ices than the con,itions the <art+ im-oses on a
-osta* insurance entit+ to su--*+ *i2e ser0ices; or
(b) ma2in3 a ,istri(ution channe* for the sa*e of insurance ser0ices a0ai*a(*e
to a -osta* insurance entit+ un,er terms an, con,itions more fa0ora(*e
than those it a--*ies to -ri0ate su--*iers of *i2e ser0ices.
3. Cith res-ect to the su--*+ of insurance ser0ices ,escri(e, in -ara3ra-h % (+ a
-osta* insurance entit+/ a <art+ sha** a--*+ the same [1: *e0e* of] re3u*ations
an, enforcement acti0ities as a--*+ to the su--*+ of *i2e insurance ser0ices (+
-ri0ate su--*iers.
4. In im-*ementin3 its o(*i3ations un,er -ara3ra-h 7/ a <art+ sha** re6uire a -osta*
insurance entit+ that su--*ies insurance ser0ices ,escri(e, in -ara3ra-h % to
-u(*ish an annua* financia* statement :ith res-ect to the su--*+ of such ser0ices.
The statement sha** -ro0i,e the *e0e* of ,etai* an, meet the au,itin3 stan,ar,s
re6uire, un,er the 3enera**+ acce-te, accountin3 an, au,itin3 -rinci-*es/ or
e6ui0a*ent ru*es/ a--*ie, in the <art+>s territor+ :ith res-ect to -u(*ic*+ tra,e,
-ri0ate enter-rises su--*+in3 *i2e ser0ices.
[1: The statement sha** -ro0i,e the *e0e* of ,etai* an, meet the au,itin3 stan,ar,s
re6uire, un,er the 3enera**+ acce-te, accountin3 an, au,itin3 -rinci-*es/ or e6ui0a*ent
ru*es/ a--*ie, in the <art+>s territor+ :ith res-ect to -u(*ic*+ tra,e, -ri0ate enter-rises
su--*+in3 *i2e ser0ices.]
5. If a <ane* un,er ADis-ute Sett*ementB fin,s that a <art+ is maintainin3 a measure
inconsistent :ith an+ of the commitments in -ara3ra-hs = throu3h &/ the <art+
sha** notif+ the com-*ainin3 <art+ or <arties an, -ro0i,e an o--ortunit+ for
consu*tations -rior to a**o:in3 the -osta* insurance entit+ to$
(a) issue a ne: insurance -ro,uct/ or mo,if+ an e1istin3 -ro,uct in a manner
e6ui0a*ent to the creation of a ne: -ro,uct/ in com-etition :ith *i2e
insurance -ro,ucts su--*ie, (+ a -ri0ate su--*ier in the <art+>s mar2et; or
(b) increase an+ *imitation on the 0a*ue of insurance/ either in tota* or :ith
re3ar, to an+ t+-e of insurance -ro,uct/ that the entit+ ma+ se** to a sin3*e
-o*ic+ho*,er.
[1: If a <ane* un,er ADis-ute Sett*ementB fin,s that a <art+ is maintainin3 a measure
inconsistent :ith an+ of the commitments in -ara3ra-hs = throu3h &/ the <art+ sha**
This Document Contains TISA- U.S.CONFIDENTIAL Information
MODIFIED HANDLING AUTHOI!ED"
LIMITED
notif+ the com-*ainin3 <art+ or <arties an, -ro0i,e an o--ortunit+ for consu*tations -rior
to a**o:in3 the -osta* insurance entit+ to$
(a) issue a ne: insurance -ro,uct/ or mo,if+ an e1istin3 -ro,uct in a manner
e6ui0a*ent to the creation of a ne: -ro,uct/ in com-etition :ith *i2e
insurance -ro,ucts su--*ie, (+ a -ri0ate su--*ier in the <art+>s mar2et; or
(b) increase an+ *imitation on the 0a*ue of insurance/ either in tota* or :ith
re3ar, to an+ t+-e of insurance -ro,uct/ that the entit+ ma+ se** to a sin3*e
-o*ic+ho*,er.]
6. This section ,oes not a--*+ to a -osta* insurance entit+ in the territor+ of a <art+$
(a) that the <art+ neither o:ns nor contro*s/ ,irect*+ or in,irect*+/ as *on3 as
the <art+ ,oes not maintain an+ a,0anta3e that mo,ifies the con,itions of
com-etition in fa0or of the -osta* insurance entit+ in the su--*+ of
insurance ser0ices as com-are, to a -ri0ate su--*ier of *i2e insurance
ser0ices in its mar2et; or
(b) if neither the sa*e of ,irect *ife nor non-*ife insurance un,er:ritten (+ the
-osta* insurance entit+ accounts for more than ten -ercent of tota* annua*
-remium income in the re*e0ant se3ment of the <art+>s mar2et as of
ADATE CETAINB.
. If a -osta* insurance entit+ in the territor+ of a <art+ e1cee,s the -ercenta3e
thresho*, referre, to in -ara3ra-h D'() after the ,ate the <art+ si3ns the
A3reement/ the <art+ sha** [1: to the e1tent -ractica(*e/] ensure that the -osta*
insurance entit+ is$
(a) re3u*ate, (+ an, su(5ect to the enforcement of the same authorities that
re3u*ate an, con,uct enforcement acti0ities :ith res-ect to the su--*+ of
insurance ser0ices (+ -ri0ate su--*iers; an,
(b) su(5ect to the financia* re-ortin3 re6uirements a--*+in3 to financia*
ser0ices su--*ies su--*+in3 insurance ser0ices.
!. For -ur-oses of this section/ -osta* insurance entit+ means an entit+ that
un,er:rites an, se**s insurance to the 3enera* -u(*ic an, is o:ne, or contro**e,/
,irect*+ or in,irect*+ (+ a -osta* entit+ of the <art+.]
[,S: A--itional proposal on sectoral cooperatives selling ins$rance $n-er
consi-eration.]
This Document Contains TISA- U.S.CONFIDENTIAL Information
MODIFIED HANDLING AUTHOI!ED"
LIMITED