WORLD TRADE GATS/SC/76/Suppl.3
26February 1998
ORGANIZATION(98-0698)
Trade inServices
SINGAPORE
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
____________________
This text replaces the Financial Services section contained indocument
GATS/SC/76/Suppl.1/Rev.1.GATS/SC/76/Suppl.3
Page2SINGAPORE
SCHEDULE OFSPECIFIC COMMITMENTS
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 onfinancial services aremade inaccordance with theGeneral Agreement onTrade inServices (GATS) andtheAnnex onFinancial
Services. Allthecommitments inthisSchedule aresubject tohorizontal commitments inSingapore 'sGATS Schedule ofSpecific Commitments. Allthe
commitments inthisSchedule arealsosubject toentry requirements, domestic laws, guidelines, rules andregulations, terms andconditions oftheMonetary
Authority ofSingapore (MAS) oranyother relevant authority orbody inSingapore, asthecasemaybe,which areconsistent withArticle VIoftheGATS
andparagraph 2oftheAnnex onFinancial Services.
(a) Lifeinsurance services
including annuity,
disability income,
accident andhealth
insurance services(1) Unbound
(2) None
(3) Foreign parties canonlyacquire equity
stakes ofupto49% inaggregate in
locally-owned insurance companies
provided theacquisition does notresult
inanyforeign party being thelargest
shareholder. Unbound forissuance of
newinsurance licences and
establishment ofnewrepresentative
offices.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.GATS/SC/76/Suppl.3
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 and
Workmen 'sCompensation which can
bepurchased onlyfrom licensed
insurance companies inSingapore.
(3) Foreign parties canonlyacquire equity
stakes ofupto49% inaggregate in
locally-owned insurance companies
provided theacquisition does notresult
inanyforeign party being thelargest
shareholder. Unbound forissuance of
newinsurance licences and
establishment ofnewrepresentative
offices.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.
(c) Reinsurance and
retrocession(1) None
(2) None
(3) Reinsurance companies canestablish
asbranches orsubsidiaries.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.GATS/SC/76/Suppl.3
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
(d) Insurance intermediation
comprising broking and
agency services(1) Unbound
(2) Agents arenotallowed toactfor
unregistered insurers. With the
exception ofreinsurance risks and
risks insured byprotection and
indemnity clubs, brokers canonly
place domestic risks outside Singapore
withtheapproval ofMAS.
(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 inthe
horizontal section.
(e) Services auxiliary to
insurance comprising
actuarial, lossadjustors,
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 inthe
horizontal section.GATS/SC/76/Suppl.3
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
Thecommitments onfinancial services aremade inaccordance withtheGATS andtheAnnex onFinancial Services. Allthecommitments inthisSchedule
aresubject tohorizontal commitments inSingapore 'sGATS Schedule ofSpecific Commitments. Allthecommitments inthisSchedule arealsosubject to
entry requirements, domestic laws, guidelines, rules andregulations, terms andconditions ofMAS oranyother relevant authority orbody inSingapore, as
thecasemaybe,which areconsistent withArticle VIoftheGATS andparagraph 2oftheAnnex onFinancial Services.
(a) Acceptance ofdeposits
andother repayable
funds from thepublic(1) Unbound
(2) None
(3) Only institutions approved asbanks,
merchant banks andfinance companies
canaccept deposits.
Where aforeign financial institution is
subject tolegislation initshome
country which requires thatinstitution
toconfer lower priority todepositors
ofitsforeign offices vis-à-vis the
home country depositors in
receivership orwinding-up
proceedings, theMAS mayexercise
appropriate differentiated measures
against thatforeign financial institution
inSingapore tosafeguard theinterest
oftheSingapore office 'sdepositors.(1) Unbound
(2) None
(3) Commercial banks
Foreign banks canoperate from
onlyoneoffice (excluding
back-office operations). They
cannot establish off-premise ATMs
andATM networking andnewsub-
branches. Unbound forprovision
ofallelectronic banking services.
Location ofbanks andrelocation of
banks andsub-branches require
prior approval from MAS.GATS/SC/76/Suppl.3
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
Establishment andoperation offoreign
banks, merchant banks andfinance
companies arealsosubject tothe
limitations listed under activities B(a)
toB(l)andthefollowing limitations:
Commercial banks
Nonewfullandrestricted banks.
New foreign banks mayonlyestablish
asoffshore bank branches or
representative offices. Representative
offices cannot conduct business oract
asagents.
Banks, withMAS 'approval, can
operate foreign currency savings
accounts onlyfornon-residents.
Asingle/related group offoreign
shareholders canonlyholdupto5per
centofalocal bank'sshares. The
limit onaggregate foreign ownership
ofeach domestic bank'sshares has
been increased from 20percentto40
percent.Restricted banks canonlyaccept
foreign currency fixed deposits
from andoperate current accounts
forresidents andnon-residents.
ForSingapore dollar deposits, they
canonlyaccept fixed deposits of
S$250,000 ormore perdeposit.
Offshore banks canaccept foreign
currency fixed deposits from
residents andnon-residents. For
Singapore dollar deposits, theycan
onlyaccept fixed deposits of
S$250,000 ormore perdeposit
from non-residents.
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 and
relocation ofmerchant banks
require MAS 'prior approval.GATS/SC/76/Suppl.3
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
Merchant banks can,withMAS '
authorization, raise foreign currency
funds from residents andnon-
residents, operate foreign currency
savings accounts fornon-residents
andraise Singapore dollar funds
from their shareholders and
companies controlled bytheir
shareholders, banks, other merchant
banks andfinance companies.
Finance companies
Nonewfinance companies. Unbound
forforeign acquisition ofshares in
finance companies andtransfer orsale
offoreign shareholdings inexisting
finance companies toforeign parties.
Allfinance companies, local and
foreign-owned, canonlyconduct
Singapore dollar business. With
MAS 'prior approval, eligible finance
companies canalsodealinforeign
currencies, goldorother precious
metals, andacquire foreign currency
stocks, shares ordebt/convertible
securities.Finance companies
Location offinance companies and
relocation 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 inthe
horizontal section.GATS/SC/76/Suppl.3
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
(b) Lending ofalltypes
including consumer
credit, mortgage credit,
factoring andfinancing
ofcommercial
transaction(1) Unbound
(2) None
(3) (i) Credit andcharge cards maybe
issued bycardissuers approved
byMAS subject toMAS'
guidelines.(1) None
(2) None
(3) Each offshore bank'slending in
Singapore dollars toresidents shall
notexceed S$200m inaggregate.
(ii) Singapore dollar loans bylocal
andforeign-owned financial
institutions, tonon-residents,
non-resident controlled
companies andtoresidents for
useoutside Singapore require
MAS 'prior approval.
(iii) Establishment ofcredit
companies which donotconduct
activities requiring MAS '
approval isallowed.Offshore banks should notusetheir
related merchant banks to
circumvent theS$200m lending
limit.
Unbound forestablishment ofoff-
premise cashdispensing machines
forcredit andcharge cards.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal 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 inthe
horizontal section.GATS/SC/76/Suppl.3
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
(d) Payment andmoney
transmission services,
including credit, charge
anddebit cards,
travellers cheques and
bankers 'drafts(1) Unbound
(2) None
(3) Remittance shops, except where the
remittance business isconducted by
banks andmerchant banks, are
required tobemajority owned by
Singapore citizens.
Bankers 'drafts canonlybeissued by
banks.(1) Unbound
(2) None
(3) None
Only thefollowing canissue stored
value cards:
-abank inSingapore licensed by
MAS; and
-ajuridical person forthepayment
onlyofgoods orservices orboth
goods andservices provided by
thatperson.
Thelimitations indicated inB(b)(3)
above alsoapply totheactivities listed
inB(d).
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.GATS/SC/76/Suppl.3
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
(e) Guarantees and
commitments(1) None except forthelimitations
indicated inactivity A(b) forinsurance
companies providing contracts of
fidelity bonds, performance bonds or
similar contracts ofguarantee.
(2) None
(3) None except forthelimitations
indicated inactivity A(b) forinsurance
companies providing contracts of
fidelity bonds, performance bonds or
similar 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 inthe
horizontal section.
(f) Trading forownaccount
orforaccount of
customers, whether on
anexchange, inanover-
the-counter market or
otherwise, thefollowing:(1) Unbound except fortrading in
products listed inB(f)forown
account. Trading inmoney market
instruments, foreign exchange, aswell
asexchange rateandinterest rate
instruments canbeconducted with
financial institutions only.(1) None
-money market
instruments
(including cheques,
bills, certificates of
deposit)(2) None
(3) Banks andmerchant banks are
required tosetupseparate subsidiaries
totrade financial futures for
customers.(2) None
(3) None except asindicated foractivity
B(b)above.GATS/SC/76/Suppl.3
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
-foreign exchange
-derivative products,
including financial
futures andoptions
-exchange rateand
interest rate
instruments,
including swaps and
forward rate
agreements
-transferable securities
-other negotiable
instruments and
financial assets,
including bullionFinancial futures brokers canestablish
asbranches orsubsidiaries.
Theoffer ofderivative products by
bothlocal andforeign-owned financial
institutions isallowed provided:
-theproduct hasbeen offered by
thefinancial institution inother
internationally-reputable financial
centres andthesupervisory
authorities ofthose centres agree
totheoffer ofsuch products in
their markets;GATS/SC/76/Suppl.3
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
-thefinancial institution 'sparent
supervisor anditshead office must
beaware andhave noobjection to
theoffer ofsuch products inthe
Singapore branch/subsidiary; and
-MAS issatisfied thatthefinancial
institution hasandcontinues to
have thefinancial strength and
adequate internal controls andrisk
management systems totrade in
these products.
Theoffer ofderivative products
involving theSingapore dollar is
subject totherequirement indicated in
B(b)(3)(ii).
Moneychangers, except where the
moneychanging business isconducted
bybanks andmerchant banks, are
required tobemajority owned by
Singapore citizens.
(4) Unbound except asindicated inthe
horizonal section.(4) Unbound except asindicated inthe
horizontal section.GATS/SC/76/Suppl.3
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
(g) Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagent
andprovision ofservice
related tosuch issues(1) Unbound except forparticipation in
issues ofsecurities forownaccount,
andunderwriting andplacement of
securities through stockbroking
companies, banks ormerchant banks
inSingapore.
(2) None
(3) Foreign stockbroking companies can
establish onlyasnon-members ofthe
Stock Exchange ofSingapore (SES).
Non-members ofSEScanapply to
become Approved Foreign Brokers
(AFBs) ofSEStotrade directly in
non-Singapore dollar denominated
securities quoted onSESthrough
terminals provided bySEStosuch
AFBs.
Representative offices cannot conduct
business oractasagents. Unbound
fornewmembership onSESandfor
foreign acquisition ofnewandexisting
equity interests inSESmember
companies.(1) None
(2) None
(3) None except asindicated foractivity
B(b)above.GATS/SC/76/Suppl.3
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
Unbound fornewinternational
memberships. International members
candealinforeign securities andSES-
quoted securities withnon-residents
andresident companies which are
substantially orbeneficially owned by
non-residents. They canalsodealwith
residents inforeign currency
denominated securities quoted onSES.
ForSingapore dollar denominated
securities quoted onSES, theycan
dealwithresidents onlyfor
transactions 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 inthe
horizontal section.
(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 inthe
horizontal section.GATS/SC/76/Suppl.3
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
(i) Asset management, such
ascashorportfolio
management, allforms
ofcollective investment
management, pension
fund management,
custodial, depository and
trust services(1) Unbound
(2) None
(3) Asset management companies,
custodial depositories, andtrust
services companies canestablish as
branches orsubsidiaries. Only the
Central Depositary PteLtdis
authorised toprovide securities
custodial depository services under the
scripless trading system.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.
(j) Settlement andclearing
services forfinancial
assets, including
securities, derivative
products andother
negotiable instruments(1) Unbound, except fortheprovision of
settlement andclearing services for
financial assets which arelisted on
overseas exchanges only.
(2) None
(3) Settlement andclearing services for
exchange traded securities and
financial futures, andSingapore dollar
cheques andinterbank funds transfer
canonlybeprovided bySES, SIMEX
andBanking Computer Services Pte
Ltd,respectively.
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated inthe
horizontal section.GATS/SC/76/Suppl.3
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
(k) Advisory andother
auxiliary financial
services, including credit
reference andanalysis,
investment andportfolio
research andadvice,
advice onacquisitions
andoncorporate
restructuring andstrategy(1) Commercial presence isrequired for
provision ofinvestment andportfolio
research andadvice tothepublic.
(2) None
(3) Investment advisers canestablish as
branches, subsidiaries orrepresentative
offices. Representative offices cannot
conduct business oractasagents.
(4) Unbound except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated inthe
horizontal section.
(l) Provision andtransfer of
financial information,
andfinancial data
processing andrelated
software byproviders of
other financial services(1) Unbound except fortheprovision of
financial information byproviders such
asReuters andBloomberg.
TheSingapore branches offoreign
banks cantransmit datatotheir head
offices andsister branches for
processing provided proper controls
exist, theintegrity andconfidentiality
ofthedata/information are
safeguarded, andMAS isallowed on-
siteaccess tothedata/information at
theplace where thedata/information is
processed.
(2) Only theprovision offinancial
information byproviders such as
Reuter andBloomberg isallowed.(1) None fortheprovision offinancial
information byproviders such as
Reuters andBloomberg.
(2) NoneGATS/SC/76/Suppl.3
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
(3) Theprovision offinancial information
byproviders, such asReuters and
Bloomberg, isallowed. Theprovision
offinancial dataprocessing services to
banks andmerchant banks issubject to
domestic laws onprotection of
confidentiality ofinformation of
customers ofbanks andmerchant
banks.
(4) Unbound except asindicated inthe
horizontal section.(3) None
(4) Unbound except asindicated inthe
horizontal section.