Scope and Definition Back to top
(a) This Annex applies
to measures affecting the supply of financial services. Reference to the supply of a
financial service in this Annex shall mean the supply of a service as defined in paragraph
2 of Article I of the Agreement.
(b) For the
purposes of subparagraph 3(b) of Article I of the Agreement, services supplied in
the exercise of governmental authority means the following:
activities conducted by a central bank or monetary authority or by any other public entity
in pursuit of monetary or exchange rate policies;
activities forming part of a statutory system of social security or public retirement
activities conducted by a public entity for the account or with the guarantee or using the
financial resources of the Government.
(c) For the
purposes of subparagraph 3(b) of Article I of the Agreement, if a Member allows any of the
activities referred to in subparagraphs (b) (ii) or (b) (iii) of this paragraph to be
conducted by its financial service suppliers in competition with a public entity or a
financial service supplier, services shall include such activities.
Subparagraph 3(c) of Article I of the Agreement shall not apply to services covered by
Domestic Regulation Back
Notwithstanding any other provisions of the Agreement, a Member shall not be prevented
from taking measures for prudential reasons, including for the protection of investors,
depositors, policy holders or persons to whom a fiduciary duty is owed by a financial
service supplier, or to ensure the integrity and stability of the financial system. Where
such measures do not conform with the provisions of the Agreement, they shall not be used
as a means of avoiding the Member's commitments or obligations under the Agreement.
in the Agreement shall be construed to require a Member to disclose information relating
to the affairs and accounts of individual customers or any confidential or proprietary
information in the possession of public entities.
Recognition Back to top
(a) A Member
may recognize prudential measures of any other country in determining how the Member's
measures relating to financial services shall be applied. Such recognition, which may be
achieved through harmonization or otherwise, may be based upon an agreement or arrangement
with the country concerned or may be accorded autonomously.
(b) A Member
that is a party to such an agreement or arrangement referred to in subparagraph (a) ,
whether future or existing, shall afford adequate opportunity for other interested Members
to negotiate their accession to such agreements or arrangements, or to negotiate
comparable ones with it, under circumstances in which there would be equivalent
regulation, oversight, implementation of such regulation, and, if appropriate, procedures
concerning the sharing of information between the parties to the agreement or arrangement.
Where a Member accords recognition autonomously, it shall afford adequate opportunity for
any other Member to demonstrate that such circumstances exist.
(c) Where a
Member is contemplating according recognition to prudential measures of any other country,
paragraph 4(b) of Article VII shall not apply.
Dispute Settlement Back
disputes on prudential issues and other financial matters shall have the necessary
expertise relevant to the specific financial service under dispute.
Definitions Back to top
purposes of this Annex:
financial service is any service of a financial nature offered by a financial service
supplier of a Member. Financial services include all insurance and insurance-related
services, and all banking and other financial services (excluding insurance) . Financial
services include the following activities:
and insurance-related services
insurance (including co-insurance) :
Reinsurance and retrocession;
Insurance intermediation, such as brokerage and agency;
auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim
and other financial services (excluding insurance)
Acceptance of deposits and other repayable funds from the public;
of all types, including consumer credit, mortgage credit, factoring and financing of
payment and money transmission services, including credit, charge and debit cards,
travellers cheques and bankers drafts;
Guarantees and commitments;
for own account or for account of customers, whether on an exchange, in an
over-the-counter market or otherwise, the following:
market instruments (including cheques, bills, certificates of deposits) ;
derivative products including, but not limited to, futures and options;
rate and interest rate instruments, including products such as swaps, forward rate
negotiable instruments and financial assets, including bullion.
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;
management, such as cash or portfolio management, all forms of collective investment
management, pension fund management, custodial, depository and trust services;
Settlement and clearing services for financial assets, including securities, derivative
products, and other negotiable instruments;
Provision and transfer of financial information, and financial data processing and related
software by suppliers of other financial services;
Advisory, intermediation and other auxiliary financial services on all the activities
listed in subparagraphs (v) through (xv) , including credit reference and analysis,
investment and portfolio research and advice, advice on acquisitions and on corporate
restructuring and strategy.
financial service supplier means any natural or juridical person of a Member wishing to
supply or supplying financial services but the term "financial service supplier"
does not include a public entity.
Public entity means:
government, a central bank or a monetary authority, of a Member, or an entity owned or
controlled by a Member, that is principally engaged in carrying out governmental functions
or activities for governmental purposes, not including an entity principally engaged in
supplying financial services on commercial terms; or
private entity, performing functions normally performed by a central bank or monetary
authority, when exercising those functions.
annex on Financial Services Back
Notwithstanding Article II of the Agreement and paragraphs 1 and 2 of the Annex on Article
II Exemptions, a Member may, during a period of 60 days beginning four months after the
date of entry into force of the WTO Agreement, list in that Annex measures relating to
financial services which are inconsistent with paragraph 1 of Article II of the Agreement.
Notwithstanding Article XXI of the Agreement, a Member may, during a period of 60 days
beginning four months after the date of entry into force of the WTO Agreement, improve,
modify or withdraw all or part of the specific commitments on financial services inscribed
in its Schedule.
Council for Trade in Services shall establish any procedures necessary for the application
of paragraphs 1 and 2.