RESTRICTED
WORLD TRADE S/FIN/W/12/Add.48
10December 1997
ORGANIZATION(97-5562)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THAILAND
Conditional Offer onFinancial Services
Addendum
The following communication iscirculated attherequest ofThailand toMembers ofthe
Committee onTrade inFinancial Services.
_______________
Thailand hereby submits itsconditional offer onfinancial services. This offer is
conditional upon satisfactory MFN -based offers from Thailand ’strading partners. Thailand
reserves itsright tomodify orwithdraw allorpart oftheoffer and itsexisting MFN
exemption listatanytime prior totheconclusion ofthenegotiations. Thailand also reserves
theright tomake any technical changes totheoffer, correct any errors, omissions or
inaccuracies initatany time prior totheconclusion ofthenegotiations.
Allconcessions inthisoffer aresubject tohorizontal commitments inThailand ’sGATS
schedule ofspecific commitments.S/FIN/W/12/Add.48
Page 2THAILAND -CONDITIONAL OFFER ONFINANCIAL SERVICES
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
FINANCIAL SERVICES
With regard tothescope ofoperation andtypes offinancial services thatcanbeprovided, each type offinancial institution willbepermitted tooperate thesector or
subsector ofbanking andother financial services only totheextent thattheir respective governing legislation permit them todoso.
A. Insurance including
reinsurance and
retrocession
(a) Life insurance services
(CPC 81211)(1) None (1) None
(2) None (2) Life insurance premium istax
deductible uptoacertain
amount forholders ofpolicies
issued bylocal companies.
(3) (a) Foreign equity participation
limited to25percent of
registered share capital.
(b) New establishment issubject to
licence approved bytheMinister
with theconsent oftheCabinet.(3) None
(4) Only senior managerial personnel
specialists andtechnical assistants
with theapproval oftheInsurance
Commissioner.(4) NoneS/FIN/W/12/Add.48
Page 3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(b) Non-life insurance
services (CPC 8129)
(d) Services auxiliary to
insurance (excluding
pension funding
services)
Insurance broking and
agency services
(CPC 81401)
(Brokers shall not
induce, advise ordo
anyactssoastocause
anyperson toenter into
insurance contracts
with insurers abroad,
except forreinsurance
contracts)(1) Unbound except forinternational
marine, aviation andtransit andall
classes ofreinsurance.
(2) None
(3) (a) Foreign equity participation
limited to25percent of
registered share capital.
(b) New establishment issubject to
license approved bytheMinister
with theconsent oftheCabinet.
(4) Only senior managerial personnel,
specialists andtechnical assistants
with theapproval oftheInsurance
Commissioner.
(1) Unbound
(2) Unbound
(3) Foreign equity participation notto
exceed 25percent.
(4) (a) Only senior managerial
personnel, specialists and
technical assistants with the
approval oftheInsurance
Commissioner.
(b) Unbound forindividual broker
andagent.(1) Unbound
(2) None
(3) None
(4) None
(1) Unbound
(2) Unbound
(3) Nolimitations aslong asforeign
equity participation does notexceed
25percent.
(4) NoneS/FIN/W/12/Add.48
Page 4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Insurance consultancy
services excluding
pension consulting
services
(CPC 81402)(1) None
(2) None
(3) None other than thatindicated inthe
horizontal section(1) None
(2) None
(3) Nolimitations aslong as
foreign equity participation
does notexceed 49percent.
(4) Only senior managerial personnel,
specialists andtechnical assistants
with theapproval oftheInsurance
Commissioner.(4) None
Average andloss
adjustment services
(CPC 81403)(1) None
(2) None
(3) None other than thatindicated inthe
horizontal section
(4) Only senior managerial personnel,
specialists andtechnical assistants
with theapproval oftheInsurance
Commissioner.(1) None
(2) None
(3) Nolimitations aslong as
foreign equity participation
does notexceed 49percent.
(4) NoneS/FIN/W/12/Add.48
Page 5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Actuarial services
(CPC 81404)(1) None
(2) None(1) None
(2) None
(3) None other than thatindicated inthe
horizontal section
(4) Only senior managerial personnel,
specialists andtechnical assistants
with theapproval oftheInsurance
Commissioner.(3) Nolimitations aslong as
foreign equity participation
does notexceed 49percent.
(4) None
Services auxiliary to
financial intermediation
other than toinsurance
andpension funding
services
Credit card services
(CPC 81133)
(Mobilizing funds from
thepublic isprohibited,
unless licensed under a
financial law)(1) None
(2) None
(3) (a) Asindicated inB(3)(j) below.
(b) Financial institutions must obtain
prior approval from theBank of
Thailand.(1) None
(2) None
(3) Nolimitations aslong as
foreign equity participation
does notexceed 49percent.
(4) Asindicated inthehorizontal
section.(4) NoneS/FIN/W/12/Add.48
Page 6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Financial consultancy
services
(CPC 81332)(1) Unbound
(2) None
(3) None other than thatindicated inthe
horizontal section
(4) Asindicated inthehorizontal
section.(1) None
(2) None
(3) Nolimitations aslong as
foreign equity participation
does notexceed 49percent.
(4) None
B. Banking andother
financial services
(excluding insurance)
Acceptance ofdeposits and
other payable funds from the
public
Lending ofalltypes, including
consumer credit, mortgage
credit, factoring andfinancing
ofcommercial transactions(1) None forfinancial advisory and
financial data processing. Unbound
forallother services.
(2) None forfinancial advisory and
financial data processing. Unbound
forallother services.(1) None.
(2) None.S/FIN/W/12/Add.48
Page 7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Financial leasing
Payment andmoney
transmission services including
credit, charge anddebit cards,
travellers cheques andbankers
drafts
Guarantees andcommitments(3) (a) Representative office ofbanks
None.
(b) Foreign bank branches
I. None forexisting foreign bank
branches under present shareholding
structure. New establishment is
subject tolicence approved bythe
Minister ofFinance with the
consent oftheCabinet.(3) (a) Representative office ofbanks
None.
(b) Foreign bank branches
None, except asindicated
inthemarket access
column.
Trading forown account,
orforaccount ofcustomers
inthefollowing:
(a) money market
instruments
(b) foreign exchange
(c) exchange rateand
interest rate
instrumentsII. ATM operations permitted
under thefollowing conditions
only:
(i) joining ATM pools operated
byThai banks; or
(ii) operation within own
premises orsharing the
facilities with other
commercial banks in
Thailand.
(d) transferable securities
Participation inissues ofall
kinds ofsecurities, including
underwriting andplacement as
agents (whether publicly or
privately) andprovision of
services related tosuch issues.III. Existing foreign banks which
already hadthefirst branch
office inThailand prior to
July 1995 willeach be
permitted toopen nomore
than twoadditional branches.S/FIN/W/12/Add.48
Page 8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Asset management asfollows:
- cash orportfolio
management
- collective investment
management
- custodian anddepository
services
Advisory, intermediation and
other auxiliary financial
services
Provision andtransfer of
financial information, and
financial data processing and
related softwareIV. None forparticipation in
cheque clearing and
settlement system.
(c) Locally incorporated banks
I. Market access limited tothe
acquisition ofshares ofexisting
banks.
II. (i) Maximum foreign equity
participation limited to25per
cent ofpaid-up registered
capital. Combined shareholding
ofanindividual andhis/her
related persons nottoexceed 5
percent ofbank'spaid-up
registered capital.
(ii) TheMinister ofFinance upon
recommendation oftheBank of
Thailand may relax theabove -
mentioned limits onmaximum
foreign equity participation and
combined shareholding ofan
individual andhis/her related
persons, subject totheterms and
conditions announced bythe
Minister ofFinance, including
thefollowings:
-therelaxation isdeemed
necessary toimprove the
condition orbusiness ofthe
commercial bank;(c) Locally incorporated banks
None, except asindicated
inthemarket access
column.S/FIN/W/12/Add.48
Page 9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
-such equity participation
willbeauthorized fora
period ofupto10years,
with foreign shareholders
who enter inthisperiod
being grandfathered
thereafter with respect to
theabsolute amount of
their equity holding.
III. Atleast three-fourths ofthe
directors must beofThai
nationality. TheMinister of
Finance upon recommendation
oftheBank ofThailand may
allow more foreign nationals
than specified above subject to
thesame terms andconditions as
stated inII(ii)above.
(d) International Banking Facility1
New establishment issubject to
licence approved bytheMinister of
Finance.(d) International Banking Facility
None, except asindicated in
themarket access column
1IBFunits permitted tooperate only thebanking andinvestment banking business asspecified intheMinisterial Order issued on
16September 1992, andNotification oftheBank ofThailand dated 14December 1993.S/FIN/W/12/Add.48
Page 10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(e) Finance companies andcredit
foncier companies
I. None forrepresentative offices.
II. Market access limited tothe
acquisition ofshares ofexisting
companies.
III. (i) Maximum foreign equity
participation limited to25per
cent ofpaid-up registered
capital. Combined shareholding
ofanindividual andhis/her
related persons nottoexceed 10
percent.(e) Finance companies and
credit foncier companies
None, except asindicated
inthemarket access
column.
(ii) TheMinister ofFinance upon
recommendation oftheBank of
Thailand may relax theabove -
mentioned limits onmaximum
foreign equity participation and
combined shareholding ofan
individual andhis/her related
persons, subject totheterms and
conditions announced bythe
Minister ofFinance, including
thefollowings:
- therelaxation isdeemed
necessary toimprove the
condition orbusiness ofthe
finance company andcredit
foncier company.S/FIN/W/12/Add.48
Page 11Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
-such equity participation
willbeauthorized fora
period ofupto10years,
with foreign shareholders
who enter inthisperiod
being grandfathered
thereafter with respect to
theabsolute amount of
their equity holding.
IV. Atleast three-fourths ofthedirectors
must beofThai nationality. The
Minister ofFinance upon
recommendation oftheBank of
Thailand may allow more foreign
nationals than specified above subject
tothesame terms andconditions as
stated inIII(ii)above.
(f) Securities companies
Securities brokerage, securities
dealing, investment advisory
service andsecurities
underwriting:
I. None forrepresentative
offices.
II. Market access limited to
share acquisition ofexisting
companies only. Unbound
fornew licences.(f) Securities companies
None, except asindicated in
themarket access column.
III. Maximum foreign equity
participation limited to49per
cent ofpaid-up registered capital.S/FIN/W/12/Add.48
Page 12Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
IV. Atleast one-half ofthe
directors ofalocally
incorporated securities firm
must beThai national.
(g) Asset management companies :
I. None forrepresentative
offices
II. Market access limited to
share acquisition ofexisting
companies.
III. During thefirst fiveyears
after thelicence hasbeen
granted, maximum foreign
equity participation islimited
to25percent ofpaid-up
registered capital andatleast
three-fourths ofthedirectors
must beThai national.
IV. After fiveyears, maximum
foreign equity participation is
limited to49percent ofpaid-
upregistered capital andat
least one-half ofthedirectors
must beThai national.(g) Asset management companies :
None ,except asindicated inthe
market access column.S/FIN/W/12/Add.48
Page 13Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(h) Financial leasing services
Can only beprovided byleasing
companies which aresubject to
maximum foreign equity
participation of49percent of
paid-up registered capital, orby
finance companies which are
subject tomaximum foreign
equity participation of25percent
ofpaid-up registered capital,
except in(e)III.
(i) Factoring services
Can only beprovided by
factoring companies which are
subject tomaximum foreign
equity participation of49per
cent ofpaid-up registered
capital, orbyfinance companies
which aresubject tomaximum
foreign equity participation of25
percent ofpaid-up registered
capital, except in(e)III.(h) Financial leasing services
None.
(i) Factoring services
None.S/FIN/W/12/Add.48
Page 14Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(j) Credit, charge anddebit cards
Credit, charge anddebit cards can
only beprovided bycompanies which
aresubject tomaximum foreign
equity participation of49percent of
paid-up registered capital orlocally
incorporated banks andforeign bank
branches.
Theconduct ofbusinesses under h),
i)andj)willbesubject tolicensing
andregulations tobeannounced.
(4) Limitations onthenumber offoreign
personnel perforeign bank office:
(a) twopersons forbanks operating
asrepresentative office;
(b) sixpersons foreach full-licensed
branch;
(c) four persons foreach BIBF
branch;
(d) twopersons foreach PIBF
branch;
(e) eight persons forbanks operating
asfull-licensed andBIBF branch;(4) None.S/FIN/W/12/Add.48
Page 15Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Forfinance companies:
(a) twopersons forarepresentative
office;
(b) Maximum offour directors
permitted forfinance companies;
Forsecurities companies andasset
andmanagement companies:
twopersons forarepresentative
office.