WORLD TRADE GATS/SC/12/Suppl.2
26February 1998
ORGANIZATION(98-0630)
Original: Spanish Trade inServices
BOLIVIA
Schedule ofSpecific Commitments
Supplement 2
(This isauthentic inSpanish only)
________________
Thefollowing textistobeincluded indocument GATS/SC/12 asthesection onfinancial
services.GATS/SC/12/Suppl.2
Page2BOLIVIA
SPECIFIC COMMITMENTS -CONDITIONAL OFFER
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
servicesTheactivities andoperation ofinsurance
companies, intermediaries andauxiliary services
aresubject ineach casetoexpress prior
authorization bytheOffice oftheSupervisor of
Insurance.Foreign companies must present
their books ofaccount tothe
relevant national bodies
independently oftheparent
company.
Insurance companies must putupcapital inan
amount setbytheOffice oftheSupervisor of
Insurance andReinsurance, andmust invest their
capital andreserves intheareas andunder
conditions laiddown bytherelevant laws and
regulations.
(a) Direct insurance (including
co-insurance):
(1)Lifeinsurance andinsurance
ofpersons.(1) Unbound
(2) Unbound(1) Unbound
(2) Unbound
(2)Insurance other thanlife
insurance andinsurance of
persons.(3) None, except thatforeign suppliers must
setupasbranch offices orcompanies
legally constituted inthecountry.(3) Unbound
Thedecision ontheright ofestablishment
willtakeaccount oftheeconomic
advantages forthecountry andthespecific
needs ofthedomestic insurance market.
Suppliers must adopt oneofthefollowing
legal forms exclusively:
(a) Public limited company established
inthecountry orabroad;
(b) cooperative ormutual fund.GATS/SC/12/Suppl.2
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
Agencies andrepresentative offices are
prohibited. Theconcepts ofbranch office,
agency andrepresentative office aretobe
understood asdefined innational law.
(4) Unbound (4) Unbound
(b) Reinsurance andretrocession. (1) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(1) None
(2) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(2) None
(3) Thesame asfordirect insurance
companies.(3) None, except thatbranch
offices must maintain a
minimum amount ofcapital
andreserves inthecountry
fortheir operations.
(4) Unbound (4) Unbound
(c) Insurance intermediation
(1)Insurance brokers and
agents.(1) Unbound
(2) Unbound(1) Unbound
(2) Unbound
(3) None (3) Unbound
(4) Unbound (4) Unbound
(2)Reinsurance brokers. (1) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(1) Unbound
(2) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(2) UnboundGATS/SC/12/Suppl.2
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
(3) None (3) Unbound
(4) Unbound (4) Unbound
(d) Services auxiliary toinsurance
(1)Loss investigation,
adjustment andsettlement,
damage investigation, etc.(1) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(1) None
(2) None, except registration withtheOffice of
theSupervisor ofInsurance and
Reinsurance.(2) None
(3) None (3) Unbound
(4) None (4) None
(2)Consultancy, actuarial,
auditing, valuation, risk
classification andother
services.(1) Unbound
(2) Unbound
(3) None
(4) Unbound(1) Unbound
(2) Unbound
(3) Unbound
(4) UnboundGATS/SC/12/Suppl.2
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
B. Banking andother financial services (excluding insurance andsecurities)
InBolivia, financial intermediation andauxiliary financial services areconducted through legally constituted entities authorized tooperate inthenational
territory, whether domestic orforeign. TheState body withthelegal power toapprove theestablishment ofsuch entities andtoauthorize their operation is
theOffice oftheSupervisor ofBanks andFinancial Entities.
Theconcepts offinancial intermediation, auxiliary financial services, branch office ofaforeign bank, agency ofaforeign bank andrepresentative office are
tobeunderstood asdefined bythelaw.
Allsubsectors indicated inthissection (3) According tonational law,commercial
presence offoreign financial entities
depends onthefourfollowing criteria:
(a)constitution ofapublic limited company
which isatleast partly foreign owned,
identified simply asabanking financial
entity, anon-banking financial entity oran
auxiliary financial services entity; (b)the
setting upofabranch office ofaforeign
financial entity; (c)thesetting upofan
agency ofaforeign financial entity; (d)the
setting upofrepresentative offices.
Branch offices offinancial entities must
maintain aminimum amount ofcapital and
reserves inthecountry fortheir operations
inaccordance withtherelevant regulations.
Subject toauthorization bytheOffice ofthe
Supervisor ofBanks andFinancial Entities,
theactivities ofrepresentative offices shall
belimited tobusiness andservices
promotion.GATS/SC/12/Suppl.2
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
(a) Acceptance ofdeposits andother
repayable funds from thepublic.(1) Unbound
(2) Unbound
(3) Agencies offoreign banks mayonly
provide thisservice tonon-residents.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated
inthehorizontal section.
(b) Lending ofalltypes, including
consumer credit, mortgage credit
andfinancing ofcommercial
transactions.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated
inthehorizontal section.
(c) Financial leasing, factoring,
general deposit warehouses and
money exchanges.(1) Unbound
(2) Unbound
(3) Supplementary and/or auxiliary financial
service activities offinancial entities in
Bolivia areconducted through entities
legally established inthenational territory.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated
inthehorizontal section.GATS/SC/12/Suppl.2
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
(d) Allpayment andmoney
transmission services.(1) Unbound
(2) Unbound
(3) Supplementary and/or auxiliary financial
service activities offinancial entities in
Bolivia areconducted through entities
legally established inthenational territory.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated
inthehorizontal section.
(e) Guarantees andbusiness
agreements.(1) Unbound
(2) Unbound
(3) Entities offering guarantee andbusiness
agreement services inBolivia must comply
withthelegal provisions inforce.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated
inthehorizontal section.
C. Securities services
TheSecurities Market Lawprovides forasecurities exchange andanover-the-counter securities market, andregulates public issue ofsecurities,
intermediation ofsecurities, thesecurities exchange, stockbrokers, fund managers, investment funds, securitization companies, securitization, riskassessors,
issuers, securities depository enterprises andother activities andnatural orjuridical persons operating onthesecurities market oftheRepublic ofBolivia.GATS/SC/12/Suppl.2
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
SECURITIES
(f) Trading forownaccount (under
special regulations) orfor
account ofcustomers, inan
over-the-counter market or
otherwise:
-Securities market financial
instruments forthe
following types of
transactions:
purchase andsale;
auction;
contango;
operations involving
securities trusts;
other financial instruments.(1) Unbound
(2) Unbound
(3) Inaccordance withtheCommercial Code,
companies constituted abroad wishing toset
upinBolivia andtoengage instock
exchange operations must belegally
constituted inthecountry aspublic limited
companies, must have anopening capital,
must meet therequirements laiddown by
thelawandmust beregistered and
approved bytheOffice oftheSupervisor of
Securities asstockbrokers.
(4) Security market transactions must be
conducted through astockbroker (financial
intermediary).(1) Unbound
(2) Unbound
(3) None
(4) Unbound
(g) Participation inissues ofall
kinds ofsecurities, including
underwriting andplacement as
agent (whether publicly or
privately) andprovision of
services related tosuch issues.(1) Unbound
(2) Unbound
(3) Issues aresubject totheregulations laid
down bytheOffice oftheSupervisor of
Securities beginning withthenegotiation of
theregistration ofnewsecurities. For
public offerings ofsecurities, theissuer
must beregistered.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundGATS/SC/12/Suppl.2
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
(i) Advisory andinformation
services withrespect tothe
intermediation ofsecurities.
- Financial advisory services.
- Securities portfolio management.
- Intermediation ofsecurities.
- Representation offoreign
stockbrokers andpersons
established abroad andinvolved
inthesecurities market.
- Public offerings foraccount of
issuers.(1) Unbound
(2) Unbound
(3) Inorder tooffer financial advisory,
portfolio management andother services,
stockbrokers (intermediaries) must be
constituted aspublic limited companies in
Bolivia, must obtain anauthorization from
theOffice oftheSupervisor ofSecurities
andmust bemembers ofthestock
exchange concerned. They must alsohave
apaid-up capital equal toorexceeding the
minimum amount established bythe
regulations inaccordance withthetypeof
operations conducted.
Requirements forsecuritization:
constitution asapublic limited company
andapproval bytheOffice ofthe
Supervisor ofSecurities.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) Unbound
(j) Settlement andclearing services
forfinancial assets, including
securities.(1) Unbound
(2) Unbound
(3) Thepurpose ofdeposit entities isto
provide custodial services forsecurities and
settlement andclearing services for
securities transactions. They must be
public limited companies.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundGATS/SC/12/Suppl.2
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
(k) Risks andcredit analysis.
Portfolio andinvestment analysis
(opinions regarding publicly
offered securities).(1) Unbound
(2) Unbound
(3) Thepurpose ofriskassessment companies
istoassess securities interms ofriskon
thesecurities market. They must obtain an
authorization from theOffice ofthe
Supervisor ofSecurities inaccordance with
Title VI,Article 62oftheSecurities
Market Law.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) Unbound