RESTRICTED
WORLD TRADE S/FIN/W/12/Add.20
3October 1997
ORGANIZATION(97-4193)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM ICELAND
Initial Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestofIcelandtoMembersoftheCommittee
onTrade inFinancial Services.
_______________
Iceland 'sofferisconditional uponasatisfactory, MFN-based outcome ofongoing negotiations
onfinancial services.
Iceland reserves therighttomodify orwithdraw allorpartofitsofferonfinancial services
andtocorrect possible errors, omissions orinaccuracies atanytimeprior totheconclusion ofthe
negotiations.S/FIN/W/12/Add.20
Page2ICELAND
DRAFT SCHEDULE OFSPECIFIC COMMITMENTS -INITIAL OFFER OFFINANCIAL 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
7. FINANCIAL SERVICES
(i) Iceland undertakes commitments onfinancial services inaccordance withthe“Understanding onCommitments inFinancial Services ”(theUnderstanding).
(ii) Market access commitments withrespect tomodes 1and2arebound inthisSchedule totheextent oftheobligations inparagraphs 3and4ofthe
Understanding.
A. Insurance and
insurance-related services1) Thesupply ofdirect insurance isreserved
forIcelandic insurance undertakings or
authorized insurance undertakings from
another EEA Member State.
Thesupply ofinsurance broker services is
reserved forinsurance brokers authorized
bytheMinistry ofCommerce or
insurance brokers authorized by
competent authorities ofanother EEA
Member State.
2) None1) None
2) NoneS/FIN/W/12/Add.20
Page3Modes 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
3) Insurance undertakings notestablished in
anEEA Member State require
authorization, subject toreciprocity and
consultations among EEA Member States,
tobeabletoestablish branch offices in
Iceland.
Anyinvestor, whether resident or
non-resident, whoacquires orintends to
acquire aqualifying holding inan
insurance undertaking must giveadvance
notice totheInsurance Supervisory
Authority. TheAuthority mayrefuse the
acquisition ortheexercise ofownership if
itbelieves thattheacquisition willaffect
thesound functioning oftheenterprise.3) Founders ofaninsurance undertaking
must beIcelandic residents orlegal
entities registered inIceland, citizens of
another EEA Member State residing inan
EEA Member State orlegal entities
registered inanEEA Member State.
Branch offices ofnon-EEA insurance
undertakings must bemanaged bya
resident agent.
Insurance brokers must beresident in
Iceland orcitizens ofanother EEA
Member State residing inanEEA
Member State.
4) Unbound except asindicated inthe
horizontal section.4) None
B. Banking andother financial
services
(excluding insurance)1) Intermediacy inforeign exchange
transactions must becarried outby
authorized entities.
2) None1) Domestic financial institutions shall
inform theCentral Bank ofIceland ofthe
balances ofservice providers ’accounts
heldbynon-residents.
Service providers shall inform the
Ministry ofCommerce ofinvestments
made bynon-residents inbusiness
enterprises inIceland andtheCentral
Bank ofIceland ofinvestments made by
non-residents insecurities inIceland.
2) NoneS/FIN/W/12/Add.20
Page4Modes 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
3) Credit institutions andundertakings
engaged insecurities services established
inanon-EEA State canestablish abranch
orarepresentative office, subject to
authorization bytheMinistry of
Commerce.
Credit institutions andundertakings
engaged insecurities services canonlybe
established ascompanies withlimited
liability.
Shareholders ofanundertaking engaged
insecurities services whopossess or
propose toacquire aqualifying holding in
theundertaking concerned must inform
theBank Inspectorate inadvance ofthe
acquisition. TheMinister ofCommerce
may, upon receipt ofarecommendation
bytheBank Inspectorate, prohibit a
shareholder from acquiring aholding or
voting rights ifthesuitability ofthe
person concerned isindoubt withregard
tothesound andprudent management of
theundertaking.3) Afounder ofacredit institution shall bea
natural orlegal person resident inIceland.
TheMinister ofCommerce cangrant
exemptions from thisrequirement.
Citizens andlegal persons ofother EEA
Member States areexempted from the
residency requirement.
Managers andboard members ofcredit
institutions andundertakings engaged in
securities services andUCITS shall be
resident inIceland. Citizens ofother
EEA Member States areexempted from
theresidency requirement. TheMinister
ofCommerce maygrant citizens of
non-EEA Member States thesame
exemptions.S/FIN/W/12/Add.20
Page5Modes 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
Commercial banks andsavings banks
have exclusive rights toaccept deposits
andother repayable funds from the
public.
Public issue ofsecurities shall be
conducted bysecurities undertakings or
other parties authorized toprovide such
services.
4) Unbound except asindicated inthe
horizontal section.4)None