RESTRICTED
WORLD TRADE S/FIN/W/12/Add.39
5December 1997
ORGANIZATION(97-5346)
Committee onTrade inFinancial Services Original: Spanish
COMMUNICATION FROM MEXICO
Initial Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestofMexicotomembersoftheCommittee
onTrade inFinancial Services.
_______________
Theattached offer conveys Mexico 'scommitment toreaching asatisfactory outcome ofthe
negotiations onfinancial services intheWorld Trade Organization (WTO). Thisofferisconditional
upon thelevelofcommitments obtained inthese negotiations.
Mexico reserves therighttomodify orwithdraw allorpartofthespecific commitments on
financial services andtoinclude MFN exemptions, aswellastherighttomake technical modifications
andcorrect possible errors oromissions.S/FIN/W/12/Add.39
Page2MEXICO
LIST OFSPECIFIC COMMITMENTS -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
7. FINANCIAL SERVICES
A. Allinsurance and
insurance-related services
(a) Life, accident andhealth
insurance services
(CPC 8121) (1) Unbound
(2) Unbound
(3) Foreign investors mayholdupto40per
centofthepaid-up capital andupto
30percentofnon-voting paid-up capital.
Foreign investment bygovernments and
official agencies isnotallowed. Thelimit
onindividual holdings byforeign
investors is10percentofpaid-up capital
orupto20percentofpaid-up capital
withauthorization from theMinistry of
Finance andPublic Credit (SHCP).
Effective control oftheenterprise bythe
Mexican shareholders isrequired.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(CPC 8129)(1) Unbound
(2) Unbound
(3) Foreign investors mayholdupto40per
centofthepaid-up capital andupto
30percentofnon-voting paid-up capital.
Foreign investment bygovernments and
official agencies isnotallowed. Thelimit
onindividual holdings byforeign
investors is10percentofpaid-up capital
orupto20percentofpaid-up capital
withauthorization from theMinistry of
Finance andPublic Credit (SHCP).
Effective control oftheenterprise bythe
Mexican shareholders isrequired.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) Unbound
(c) Reinsurance and
retrocession services
(CPC 81299*)(1) Foreign reinsurance companies may
participate inreinsurance operations.
According totheapplicable regulations,
such companies arerequired toregister
withtheSHCP, which mayauthorize or
refuse registration.(1) NoneS/FIN/W/12/Add.39
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
(2) Unbound
(3) Thisactivity maybecarried outby
insurance institutions. Foreign investors
mayholdupto40percentofthepaid-up
capital andupto30percentof
non-voting paid-up capital. Foreign
investment bygovernments andofficial
agencies isnotallowed. Thelimit on
individual holdings byforeign investors is
10percentofpaid-up capital orupto
20percentofpaid-up capital with
authorization from theMinistry of
Finance andPublic Credit (SHCP).
Effective control oftheenterprise bythe
Mexican shareholders isrequired.(2) Unbound
(3) None
Foreign reinsurance companies which are
enrolled intheregister keptbytheSHCP
mayestablish representative offices inthe
country withtheprior authorization ofthe
SHCP. Representative offices offoreign
reinsurance companies, according tothe
applicable regulations, maynotact
directly orthrough anintermediary in
direct insurance operations.
(4) Unbound (4) UnboundS/FIN/W/12/Add.39
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
(d) Services auxiliary to
insurance such as:
-insurance broking and
agency services
(CPC 8140)(1) Unbound
(2) Unbound
(3) Foreign investors mayholdupto40per
centofthepaid-up capital andupto
30percentofnon-voting paid-up capital.
Foreign investment bygovernments and
official agencies isnotallowed. Thelimit
onindividual holdings byforeign
investors is10percentofpaid-up capital
orupto20percentofpaid-up capital
withauthorization from theMinistry of
Finance andPublic Credit (SHCP).
Effective control oftheenterprise bythe
Mexican shareholders isrequired.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) Unbound
B. Banking andother financial services (excluding insurance).
Mexican financial intermediaries inwhich foreign investment isallowed include: multiple banking institutions (commercial banks), securities firms, securities
specialists, limited-purpose financial institutions, financial factoring companies, financial leasing companies, general deposit warehouses, foreign exchange
firms, investment companies, managing companies ofinvestment companies, guarantee institutions (bonding companies) andpension fund management
companies.
Foreign financial institutions such asbanks andsecurities firms mayestablish representative offices inthecountry withtheprior authorization oftheSHCP.
Representative offices maynotactasfinancial intermediaries, norpromote acceptance offunds bythefirms theyrepresent, butsolely engage inplacement.
Inaccordance withtheapplicable legislation, foreign investment isnotpermitted incredit unions, savings andloancompanies, ordevelopment banks.S/FIN/W/12/Add.39
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 and
other repayable funds from
thepublic
(CPC 81115-81119)(1) Unbound
(2) Unbound
(3) Thisactivity isrestricted tomultiple
banking institutions. Foreign investors
mayholdupto40percentofcommon
stock capital andupto100percentofthe
additional capital representing 40percent
ofnon-voting common stock capital.
Foreign investment byartificial persons
exercising governmental functions isnot
allowed. Thelimit onindividual holdings
is5percentofcapital stock orupto
20percentofcapital stock with
authorization from theSHCP. Effective
control oftheenterprise bytheMexican
shareholders isrequired.
Inaccordance withtheapplicable
financial legislation, representative offices
ofbanking institutions areexcluded from
thisactivity.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(b) Lending ofalltypes,
including consumer credit,
mortgage credit, factoring
andfinancing offinancial
transactions (CPC 8113)(1) Unbound
(2) Unbound
(3) Multiple banking institutions maycarry
outlending activities ofalltypes,
including consumer credit, mortgage
credit, credit discounting andfinancing of
commercial transactions. Foreign
investors mayholdupto40percentof
common stock capital andupto100per
centoftheadditional capital stock
representing 40percentofnon-voting
common stock capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is5per
centofcapital stock orupto20percent
ofcapital stock withauthorization from
theSHCP. Effective control ofthe
enterprise bytheMexican shareholders is
required.(1) Unbound
(2) Unbound
(3) NoneS/FIN/W/12/Add.39
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
Limited purpose financial institutions may
carry outonlyoneofthefinancing
activities such aspersonal credit,
consumer credit, mortgage credit or
commercial credit. Foreign investors
mayholdupto49percentofcapital
stock. Foreign investment byartificial
persons exercising governmental functions
isnotallowed. Effective control ofthe
enterprise bytheMexican shareholders is
required
Financial factoring companies maycarry
outfactoring activities. Foreign investors
mayholdupto49percentofthepaid-up
capital andupto30percentof
non-voting paid-up capital.
Foreign investment byartificial persons
exercising governmental functions isnot
allowed. Thelimit onindividual holdings
is10percentofpaid-up capital.
Effective control oftheenterprise bythe
Mexican shareholders isrequired
(4) Unbound (4) UnboundS/FIN/W/12/Add.39
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
(c) Financial leasing services
(CPC 8112)(1) Unbound
(2) Unbound(1) Unbound
(2) Unbound
(3) Financial leasing companies maycarry
outfinancial leasing activities. Foreign
investors mayholdupto49percentof
paid-up capital andupto30percentof
non-voting paid-up capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is10per
centofpaid-up capital. Effective control
oftheenterprise bytheMexican
shareholders isrequired.(3) None
Multiple banking institutions mayalso
carry outfinancial leasing activities.
Foreign investors mayholdupto40per
centofthecommon stock capital andup
to100percentoftheadditional capital
representing 40percentofthenon-voting
common stock capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is5per
centofthecapital stock orupto20per
centofthecapital stock withauthorization
from theSHCP. Effective control ofthe
enterprise bytheMexican shareholders is
required.
(4) Unbound (4) UnboundS/FIN/W/12/Add.39
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
(f) Trading onownor
customers 'account ona
stock exchange, over-the-
counter orotherwise, in:
-Money market
instruments (cheques,
bills, certificates of
deposit, etc.)
(CPC 81339**)(1) Unbound
(2) Unbound
(3) Securities firms andsecurities specialists
maycarry outthisactivity. Foreign
investors mayholdupto40percentof
thecommon stock capital andupto
100percentoftheadditional capital
representing 40percentofthenon-voting
common stock capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is10per
centofthecapital stock orupto20per
centofthecapital stock withauthorization
from theSHCP. Effective control ofthe
enterprise bytheMexican shareholders is
required.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(CPC 81333)(1) Unbound
(2) Unbound
(3) Multiple banking institutions maycarry
outthisactivity. Foreign investors may
holdupto40percentofthecommon
stock capital andupto100percentofthe
additional capital representing 40percent
ofthenon-voting common stock capital.
Foreign investment byartificial persons
exercising governmental functions isnot
allowed. Thelimit onindividual holdings
is5percentofthecapital stock orupto
20percentofthecapital stock with
authorization from theSHCP. Effective
control oftheenterprise bytheMexican
shareholders isrequired.(1) Unbound
(2) Unbound
(3) None
Foreign exchange firms mayalsocarry
outthisactivity. Foreign investors may
holdupto49percentofthepaid-up
capital andupto30percentofthe
non-voting paid-up capital. Foreign
investment byartificial persons exercising
functions ofauthority isnotallowed. The
limit onindividual holdings is10percent
ofthepaid-up capital. Effective control
oftheenterprise bytheMexican
shareholders isrequired.
(4) Unbound (4) UnboundS/FIN/W/12/Add.39
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
-Transferable securities
(CPC 81321*)(1) Unbound
(2) Unbound
(3) Securities firms andsecurities specialists
maycarry outthisactivity. Foreign
investors mayholdupto40percentof
thecommon stock capital andupto
100percentoftheadditional capital
representing 40percentofthenon-voting
common stock capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is10per
centofthecapital stock orupto20per
centofthecapital stock withauthorization
from theSHCP. Effective control ofthe
enterprise bytheMexican shareholders is
required.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
-Other negotiable
instruments and
financial assets,
including bullion
(CPC 81339**)(1) Unbound
(2) Unbound
(3) Multiple banking institutions maycarry
outthisactivity. Foreign investors may
holdupto40percentofthecommon
stock capital andupto100percentofthe
additional capital representing 40percent
ofthenon-voting common stock capital.
Foreign investment byartificial persons
exercising governmental functions isnot
allowed. Thelimit onindividual holdings
is5percentofthecapital stock orupto
20percentofthecapital stock with
authorization from theSHCP. Effective
control oftheenterprise bytheMexican
shareholders isrequired.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(g) Participation inissues ofall
kinds ofsecurities,
including underwriting and
placement asagent
(whether publicly or
privately andprovision of
services related tosuch
issues (CPC 8132)(1) Unbound
(2) Unbound
(3) Securities firms andsecurities specialists
mayparticipate inissues ofsecurities,
underwriting andplacement asagents.
Foreign investors mayholdupto40per
centofthecommon stock capital andup
to100percentoftheadditional capital
representing 40percentofthenon-voting
common stock capital. Foreign
investment byartificial persons exercising
governmental functions isnotallowed.
Thelimit onindividual holdings is10per
centofthecapital stock orupto20per
centofthecapital stock withauthorization
from theSHCP. Effective control ofthe
enterprise bytheMexican shareholders is
required.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(h) Money broking
(CPC 81339**)(1) Unbound
(2) Unbound
(3) Multiple banking institutions maycarry
outthisactivity. Foreign investors may
holdupto40percentofthecommon
stock capital andupto100percentofthe
additional capital representing 40percent
ofthenon-voting common stock capital.
Foreign investment byartificial persons
exercising governmental functions isnot
allowed. Thelimit onindividual holdings
is5percentofthecapital stock orupto
20percentofthecapital stock with
authorization from theSHCP. Effective
control oftheenterprise bytheMexican
shareholders isrequired.
(4) Unbound(1) Unbound
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.39
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
(i)Asset management, such ascash
orportfolio management, all
forms ofcollective investment
management, pension fund
management, andtrustservices
(CPC 81323*)(1)Unbound
(2)Unbound
(3)Investment companies maycarry out
activities such asasset management,
cashorportfolio management andall
forms ofcollective investment
management. Foreign investors may
holdupto49percentofoverhead
capital. Foreign investment by
artificial persons exercising
governmental functions isnot
allowed. Thelimit onindividual
holdings is10percentofthepaid-up
capital. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.(1)Unbound
(2)Unbound
(3)None
Managing companies ofinvestment
companies carry outthe
administration ofinvestment trusts.
Foreign investors mayholdupto
49percentofthecapital stock.
Foreign investment byartificial
persons exercising governmental
functions isnotallowed. Thelimit on
individual holdings is10percentof
thepaid-up capital. Effective control
oftheenterprise bytheMexican
shareholders isrequired.S/FIN/W/12/Add.39
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
Pension fund management companies
maycarry outpension fund
management activities. Foreign
investors mayholdupto49percent
ofthecapital stock. Foreign
investment byartificial persons
exercising governmental functions is
notallowed. Thelimit onindividual
holdings is10percentofthecapital
stock. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.
(4)Unbound (4)Unbound
Multiple banking institutions may
provide trust services. Foreign
investors mayholdupto40percent
ofthecommon stock capital andupto
100percentoftheadditional stock
representing 40percentofthenon-
voting common stock capital.
Foreign investment byartificial
persons exercising governmental
functions isnotallowed. Thelimit on
individual holdings is5percentof
thecapital stock orupto20percent
ofthecapital stock withauthorization
from theSHCP. Effective control of
theenterprise bytheMexican
shareholders isrequired.S/FIN/W/12/Add.39
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
Securities firms mayprovide trust
services inbusiness directly connected
withtheir ownspecific activities.
Foreign investors mayholdupto
40percentofthecommon stock
capital andupto100percentofthe
additional stock representing 40per
centofthenon-voting common stock
capital. Foreign investment by
artificial persons exercising
governmental functions isnot
allowed. Thelimit onindividual
holdings is10percentofthecapital
stock orupto20percentofthe
capital stock withauthorization from
theSHCP. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.
(4)Unbound (4)Unbound
(k)Advisory andother auxiliary
financial services, including
credit reporting andanalysis,
investment andportfolio
research andadvice, advice on
acquisitions andoncorporate
restructuring andstrategy
(CPC 8133)(1)Unbound
(2)Unbound
(3)Credit information companies (Credit
Bureaus) maycarry outcredit
reporting activities. Foreign investors
mayholdupto49percentofthe
paid-up capital stock. Foreign
investment byartificial persons
exercising governmental functions is
notallowed. Thelimit onindividual
holdings is30percentofthepaid-up
capital. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.(1)Unbound
(2)Unbound
(3)NoneS/FIN/W/12/Add.39
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
Investment consultants maycarry out
activities such asinvestment and
portfolio analysis, research and
advice, advice onacquisitions andon
corporate restructuring andstrategy.
Foreign investors mayholdupto
49percentofthecapital stock.
Foreign investment byartificial
persons exercising governmental
functions isnotallowed. Effective
control oftheenterprise byMexican
shareholders isrequired.
(4)Unbound (4)Unbound
C.Others
Holding companies (1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Foreign investors mayholdupto
40percentofthecommon stock
capital andupto100percentofthe
additional stock representing 40per
centofnon-voting common stock
capital. Foreign investment by
artificial persons exercising
governmental functions isnot
allowed. Thelimit onindividual
holdings is5percentofthecapital
stock andupto20percentofthe
capital stock withtheauthorization of
theSHCP. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.
(4)Unbound(3)None
(4)UnboundS/FIN/W/12/Add.39
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
Guarantee institutions (1)Unbound
(2)Unbound
(3)Foreign investors mayholdupto
49percentofthepaid-up capital and
upto30percentofthenon-voting
paid-up capital. Foreign investment
bygovernments andofficial agencies
isnotallowed. Thelimit on
individual holdings is10percentof
thepaid-up capital orupto20per
centofthepaid-up capital with
authorization from theSHCP.
Effective control oftheenterprise by
theMexican shareholders isrequired.
(4)Unbound(1)Unbound
(2)Unbound
(3)None
(4)Unbound
Re-guarantee institutions (1)Foreign re-guarantee companies
mayparticipate inre-guarantee
operations. According tothe
applicable regulations, these
institutions must register withthe
SHCP, which mayauthorize orrefuse
registration.
(2)Unbound(1)None
(2)UnboundS/FIN/W/12/Add.39
Page21Modes 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)Thisactivity maybecarried out
through guarantee companies.
Foreign investors mayholdupto
49percentofthepaid-up capital and
upto30percentofthenon-voting
paid-up capital. Foreign investment
bygovernments andofficial agencies
isnotpermitted. Thelimit on
individual holdings is10percentof
thepaid-up capital orupto20per
centofthepaid-up capital with
authorization from theSHCP.
Effective control oftheenterprise by
theMexican shareholders isrequired.
(4)Unbound(3)None
(4)Unbound
General deposit warehouses (1)Unbound
(2)Unbound
(3)Foreign investors mayholdupto
49percentofthepaid-up capital and
upto30percentofthenon-voting
paid-up capital. Foreign investment
byartificial persons exercising
governmental functions isnot
allowed. Thelimit onindividual
holdings is10percentofthepaid-up
capital. Effective control ofthe
enterprise bytheMexican
shareholders isrequired.
(4)Unbound(1)Unbound
(2)Unbound
(3)None
(4)Unbound