RESTRICTED
WORLD TRADE S/FIN/W/12/Add.19
18September 1997
ORGANIZATION(97-4092)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM SINGAPORE
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofSingapore toMembers ofthe
Committee onTrade inFinancial Services.
_______________
Thisofferisconditional uponsatisfactory MFN based offers fromSingapore 'strading partners.
Singapore reserves itsrighttomodify orwithdraw allorpartoftheofferanditsexisting MFN
exemption listatanytimeprior totheconclusion ofthenegotiations.
Singapore alsoreserves therighttomake anytechnical changes totheoffer, correct anyerrors,
omissions orinaccuracies initatanytimeprior totheconclusion ofthenegotiations.
AllconcessionsinthisofferaresubjecttohorizontalcommitmentsinSingapore'sGATSschedule
ofspecific commitments.S/FIN/W/12/Add.19
Page2SINGAPORE
SPECIFIC COMMITMENTS -INITIAL OFFER ONFINANCIAL SERVICES
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A. Insurance andinsurance-related services
Thecommitments offers onfinancial services aremade inaccordance withtheGeneral Agreement onTrade inServices (GATS) andthe
Annex onFinancial Services. Allthecommitments offers inthisSchedule aresubject toentry requirements, domestic laws, guidelines, rules
andregulations, terms andconditions oftheMonetary Authority ofSingapore (MAS) oranyother relevant authority orbody inSingapore, as
thecasemaybe,which areconsistent withArticle VIoftheGATS andparagraph 2oftheAnnex onFinancial Services.
(a) Lifeinsurance
services including
annuity, disability
income, accident and
health insurance
services(1) Unbound
(2) None
(3) Unbound forforeign acquisition of
equity stakes Foreign parties can
onlyacquire equity stakes ofup
to49%inaggregate inlocally-
owned insurance companies
provided theacquisition doesnot
result inanyforeign party being
thelargest shareholder .Unbound
forissuance ofnewinsurance
licences andestablishment ofnew
representative offices.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page3Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b) Non-life insurance
services including
disability income,
accident andhealth
insurance andcontracts
offidelity bonds,
performance bonds or
similar contracts of
guarantee(1) Unbound
(2) None except forcompulsory
insurance ofMotor Third Party
Liability andWorkmen 's
Compensation which canbe
purchased onlyfrom licensed
insurance companies inSingapore.
(3) Unbound forforeign acquisition of
equity stakes Foreign parties can
onlyacquire equity stakes ofup
to49%inaggregate inlocally-
owned insurance companies
provided theacquisition doesnot
result inanyforeign party being
thelargest shareholder .Unbound
forissuance ofnewinsurance
licences andestablishment ofnew
representative offices.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page4Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(c) Reinsurance and
retrocession(1) None
(2) None
(3) Reinsurance companies can
establish asbranches or
subsidiaries. Existing
representative offices must upgrade
tobranches orsubsidiaries, subject
toMAS'criteria forupgrading, by
1January 1997.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.
(d) Insurance
intermediation
comprising broking
andagency services(1) Unbound
(2) Agents arenotallowed toactfor
unregistered insurers. With the
exception ofreinsurance risksand
risksinsured byprotection and
indemnity clubs, brokers canonly
place domestic risksoutside
Singapore withtheapproval of
MAS.
(3) Unbound except foradmission of
reinsurance brokers aslocally
incorporated subsidiaries
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page5Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(e) Services auxiliary to
insurance comprising
actuarial, loss
adjustors, average
adjustors and
consultancy services(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page6Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Banking andother financial services
Thecommitments offers onfinancial services aremade inaccordance withtheGATS andtheAnnex onFinancial Services. Allthe
commitments offers inthisSchedule aresubject toentry requirements, domestic laws, guidelines, rules andregulations, terms andconditions
ofMAS oranyother relevant authority orbody inSingapore, asthecasemaybe,which areconsistent withArticle VIoftheGATS and
paragraph 2oftheAnnex onFinancial Services.
(a) Acceptance ofdeposits
andother repayable
funds from thepublic(1) Unbound
(2) None
(3) Only institutions approved as
banks, merchant banks andfinance
companies canaccept deposits.
Where aforeign financial
institution issubject tolegislation
initshome country which requires
thatinstitution toconfer lower
priority todepositors ofitsforeign
offices vis-à-vis thehome country
depositors inreceivership or
winding-up proceedings, theMAS
mayexercise appropriate
differentiated measures against that
foreign financial institution in
Singapore tosafeguard theinterest
oftheSingapore office 's
depositors.(1) Unbound
(2) None
(3) Commercial banks
Foreign banks canoperate from
onlyoneoffice (excluding
back-office operations). They
cannot establish off-premise
ATMs andATM networking and
newsub-branches. Unbound for
provision ofallelectronic
banking services.
Location ofbanks andrelocation
ofbanks andsub-branches
require prior approval from
MAS.
Banks, withMAS'approval, can
operate foreign currency savings
accounts onlyfornon-residents.S/FIN/W/12/Add.19
Page7Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Establishment andoperation of
foreign banks, merchant banks and
finance companies arealsosubject
tothelimitations listed under
activities B(a)toB(l)andthe
following limitations:
Commercial banks
Nonewfullandrestricted banks.
Newforeign banks mayonly
establish asoffshore bankbranches
orrepresentative offices.
Representative offices cannot
conduct business oractasagents.
Banks, withMAS'approval, can
operate foreign currency savings
accounts onlyfornon-residents.
Asingle/related group offoreign
shareholders canonlyholdupto
5percentofalocalbank'sshares.
Aggregate foreign ownership of
eachdomestic bank'sshares has
beenincreased from 20percentto
40percent.Restricted banks canonlyaccept
foreign currency fixed deposits
from andoperate current
accounts forresidents and
non-residents. ForSingapore
dollar deposits, theycanonly
accept fixed deposits of
S$250,000 ormore perdeposit.
Offshore banks canaccept
foreign currency fixed deposits
from residents and
non-residents. ForSingapore
dollar deposits, theycanonly
accept fixed deposits of
S$250,000 ormore perdeposit
from non-residents.S/FIN/W/12/Add.19
Page8Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Merchant banks
Foreign banks andmerchant banks
mayestablish asmerchant bank
subsidiaries ormerchant bank
branches.Merchant banks
Merchant banks canoperate
from onlyoneoffice (excluding
back-office operations).
Location andrelocation of
merchant banks require MAS'
prior approval.
Merchant banks can,withMAS'
authorization, raiseforeign
currency funds from residents
andnon-residents, operate
foreign currency savings
accounts fornon-residents and
raiseSingapore dollar funds
from theirshareholders and
companies controlled bytheir
shareholders, banks, other
merchant banks andfinance
companies.S/FIN/W/12/Add.19
Page9Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Finance companies
Nonewfinance companies.
Unbound forforeign acquisition of
shares infinance companies and
transfer orsaleofforeign
shareholdings inexisting finance
companies toforeign parties. All
finance companies, localand
foreign-owned, canonlyconduct
Singapore dollar business. With
MAS'prior approval, eligible
finance companies canalsodeal
inforeign currencies, goldor
other precious metals, and
acquire foreign currency stocks,
shares ordebt/convertible
securitiesFinance companies
Location offinance companies
andrelocation ofsub-branches
require MAS'prior approval.
Foreign-owned finance
companies cannot establish
off-premise ATMs, ATM
networking andnewsub-
branches.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated in
thehorizontal section.
(b) Lending ofalltypes
including consumer
credit, mortgage
credit, factoring and
financing of
commercial transaction(1) Unbound
(2) None
(3) (i) Credit andcharge cards may
beissued bycardissuers
approved byMAS subject to
MAS'guidelines.(1) None
(2) None
(3) Each offshore bank'slending in
Singapore dollars toresidents
shallnotexceed S$100m
S$200m inaggregate.S/FIN/W/12/Add.19
Page10Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(ii) Singapore dollar loans by
localandforeign-owned
financial institutions, to
non-residents, non-resident
controlled companies andto
residents foruseoutside
Singapore require MAS'
prior approval.
(iii) Establishment ofcredit
companies which donot
conduct activities requiring
MAS'approval isallowed.Offshore banks should notuse
theirrelated merchant banks to
circumvent theS$100m S$200m
lending limit.
Unbound forestablishment of
off-premise cashdispensing
machines forcredit andcharge
cards.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated in
thehorizontal section.
(c) Financial leasing (1) None
(2) None
(3) None except asindicated for
activity B(b)above.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None except asindicated for
activity B(b)above.
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page11Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(d) Payment andmoney
transmission services,
including credit,
charge anddebit cards,
travellers cheques and
bankers drafts(1) Unbound
(2) None
(3) Remittance shops, except where
theremittance business is
conducted bybanks andmerchant
banks, arerequired tobemajority
owned bySingapore citizens.
Bankers 'drafts canonlybeissued
bybanks.(1) Unbound
(2) None
(3) None
Only thefollowing canissue stored
value cards:
-abankinSingapore licensed by
MAS; and
-ajuridical person forthe
payment onlyofgoods or
services orbothgoods and
services provided bythat
person.
Thelimitations indicated inB(b)(3)
above alsoapply totheactivities
listed inB(d).
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page12Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(e) Guarantees and
commitments(1) None except forthelimitations
indicated inactivity A(b)for
insurance companies providing
contracts offidelity bonds,
performances bonds orsimilar
contracts ofguarantee.
(2) None
(3) None except forthelimitations
indicated inactivity A(b)for
insurance companies providing
contracts offidelity bonds,
performance bonds orsimilar
contracts ofguarantee, and
B(b)(3)(ii) above.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.
(f) Trading forown
account orforaccount
ofcustomers, whether
onanexchange, inan
over-the-counter
market orotherwise,
thefollowing:(1) Unbound except fortrading in
products listed inB(f)forown
account. Trading inmoney market
instruments, foreign exchange, as
wellasexchange rateandinterest
rateinstruments canbeconducted
withfinancial institutions only.(1) NoneS/FIN/W/12/Add.19
Page13Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-money market
instruments
(including cheques,
bills, certificates of
deposits)(2) None
(3) Banks andmerchant banks are
required tosetupseparate
subsidiaries totrade financial
futures forcustomers.(2) None
(3) None except asindicated for
activity B(b)above.
-foreign exchange
-derivative
products, including
financial futures
andoptions
-exchange rateand
interest rate
instruments,
including swaps
andforward rate
agreements
-transferable
securities
-other negotiable
instruments and
financial assets,
including bullionFinancial futures brokers can
establish asbranches or
subsidiaries. They canonlytrade
infinancial futures products listed
onSIMEX.
Theoffer ofderivative products by
bothlocalandforeign-owned
financial institutions under MAS'
supervision aresubject toMAS'
prior approval andconditions
which included thefollowing is
allowed provided :
-theproduct hasbeenoffered by
thefinancial institution inother
internationally-reputable
financial centres andthe
supervisory authorities ofthose
centres agree totheoffer of
suchproducts intheirmarkets;S/FIN/W/12/Add.19
Page14Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-thefinancial institution 'sparent
supervisor anditsheadoffice
must beaware andhaveno
objection totheoffer ofsuch
products intheSingapore
branch/subsidiary; and
-MAS issatisfied thatthe
financial institution hasand
continues tohavethefinancial
strength andadequate internal
controls andriskmanagement
systems totrade inthese
products.
Theoffer ofderivative products
involving theSingapore dollar is
subject totherequirement
indicated inB(b)(3)(ii).
Moneychangers, except where the
money changing business is
conducted bybanks andmerchant
banks, arerequired tobemajority
owned bySingapore citizens.
(4) Unbound except asindicated inthe
horizonal section.(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page15Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(g) Participation inissues
ofallkinds of
securities, including
underwriting and
placement asagent and
provision ofservice
related tosuchissues(1) Unbound except forparticipation in
issues ofsecurities forown
account, andunderwriting and
placement ofsecurities through
stockbroking companies, banks or
merchant banks inSingapore.
(2) None
(3) Foreign stockbroking companies
canestablish onlyasnon-members
oftheStock Exchange of
Singapore (SES). Non-members
ofSEScanapply tobecome
Approved Foreign Brokers
(AFBs) ofSEStotrade directly
innon-Singapore dollar
denominated securities quoted on
SESthrough terminals provided
bySEStosuchAFBs.
Representative offices cannot
conduct business oractasagents.
Unbound fornewmembership on
SESandforforeign acquisition of
newandexisting equity interests in
SESmember companies.(1) None
(2) None
(3) None except asindicated for
activity B(b)above.S/FIN/W/12/Add.19
Page16Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Unbound fornewinternational
memberships. International
members candealinforeign
securities andSES-quoted securities
withnon-residents andresident
companies which aresubstantially
orbeneficially owned by
non-residents. They canalsodeal
withresidents inforeign currency
denominated securities quoted on
SES. ForSingapore dollar
denominated securities quoted on
SES, theycandealwithresidents
onlyfortransactions above S$5m
each.
Banks 'andmerchant banks '
membership onSESmust beheld
through subsidiaries.
Unbound fornewprimary and
registered dealers ofSingapore
Government Securities.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page17Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(h) Money broking (1) Unbound
(2) None
(3) Unbound fornewmoney brokers.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.
(i) Asset management,
suchascashor
portfolio management,
allforms ofcollective
investment
management, pension
fundmanagement,
custodial depository
andtrustservices(1) Unbound
(2) None
(3) Asset management companies,
custodial depositories, andtrust
services companies canestablish as
branches orsubsidiaries. Only the
Central Depositary PteLtdis
authorized toprovide securities
custodial depository services under
thescripless trading system.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page18Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(j) Settlement andclearing
services forfinancial
assets, including
securities, derivative
products andother
negotiable instruments(1) Unbound, except fortheprovision
ofsettlement andclearing services
forfinancial assets which arelisted
onoverseas exchanges only.
(2) None
(3) Unbound. TheSettlement and
clearing services forexchange
traded securities andfinancial
futures andSingapore dollar
cheques andinterbank funds
transfer arecanonlybeprovided
bytheStock Exchange of
Singapore, theSingapore
International Monetary Exchange
andBanking Computer Services
PteLtd,respectively.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated in
thehorizontal section.S/FIN/W/12/Add.19
Page19Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(k) Advisory andother
auxiliary financial
services, including
credit reference and
analysis, investment
andportfolio research
andadvice, advice on
acquisitions andon
corporate restructuring
andstrategy(1) Commercial presence isrequired
forprovision ofinvestment and
portfolio research andadvice tothe
public.
(2) None
(3) Investment advisers canestablish as
branches, subsidiaries or
representative offices.
Representative offices cannot
conduct business oractasagents.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
thehorizontal section.
(l) Provision andtransfer
offinancial
information, and
financial data
processing andrelated
software byproviders
ofother financial
services(1) Unbound, except fortheprovision
offinancial information tofinancial
institutions byproviders, suchas
Reuters andBloomberg.
(2) Unbound(1) Unbound
(2) UnboundS/FIN/W/12/Add.19
Page20Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3) Only provision offinancial
information tofinancial institutions
byproviders, suchasReuters and
Bloomberg, isallowed. Provision
offinancial dataprocessing
services tobanks andmerchant
banks issubject todomestic laws
onprotection ofconfidentiality of
information ofcustomers ofbanks
andmerchant banks. The
Singapore branches offoreign
banks cantransmit datatotheir
HOs/sister branches for
processing provided proper
controls exist, theintegrity and
confidentiality ofthe
data/information would be
safeguarded, andMAS isallowed
on-site access tothe
data/information attheplace
where thedata/information is
processed.(3) None
(4) Unbound except asindicated in
thehorizontal section.
(4) Unbound except asindicated inthe
horizontal section.