RESTRICTED
WORLD TRADE S/FIN/W/12/Add.11/Rev.2
12December 1997
ORGANIZATION(97-5483)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE SLOVAK REPUBLIC
Final Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest oftheSlovak Republic toMembers
oftheCommittee onTrade inFinancial Services.
_______________
TheSlovak Republic ishereby submitting itsfinalofferofspecific commitments infinancial
services. Final offerreflects recent legislative changes thathaveoccurred todateandfurther improve
legislative regulatory regime inthissector. Technical improvements andclarification ofcommitments
havebeenalsomade.
This final offer isconditional upon other negotiating partners approach inproviding
comprehensive commitments onMFN andNational Treatment basis.
Slovakia reserves therighttowithdraw, modify orreduce itatanytime, inaccordancee with
theSecond Decision onFinancial Services of21July1995asmaneded bytheDecision of29May1997.
Slovakia further reserves therighttomake technical amendments tothefinaloffer.S/FIN/W/12/Add.11/Rev.2
Page2SLOVAK REPUBLIC
SPECIFIC COMMITMENTS ONFINANCIAL SERVICES -FINAL OFFER
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
Measures applicable toallsectors infinancial services:
1)Commitments inthisChapter arebased ontheAgreement onTrade inServices, theAnnex onFinancial Services andtheUnderstanding onCommitments
inFinancial Services.
2)Market access commitments withrespect tothe"cross border supply" and"consumption abroad" arebound totheextent oftheobligations inparagraphs
3and4ofMarket Access oftheUnderstanding onlytoindividual sectors listed andsubject tolimitations indicated below.
3)Thepurchase oracquisition offinancial services bypublic entities oftheSlovak Republic isgoverned inthisSchedule byArticle XIIIoftheAgreement.
4)Theadmission tothemarket ofnewfinancial services andinstruments maybesubject totheexistence of,andconsistency withthedomestic regulatory
framework aimed atachieving toobjectives indicated inArticle 2a/oftheAnnex onFinancial Services.
5)Thecommitments onpresence ofnatural persons arebound according tothegeneral limitations applicable toallsectors inthisschedule (Part I).
6)Otherwise, thecommitments inthisChapter aresubject tothegeneral conditions orlimitations applicable toallsectors inthisschedule.
A. Allinsurance andinsurance-related services (CPC 812)
Thefollowing insurance services areprovided byexclusive suppliers:
Compulsory motor third party liability insurance, compulsory airtransport insurance, theliability insurance ofemployer against injury oroccupational disease
have tobeeffected through theSlovak Insurance Company. Thebasic health insurance isconfined totheSlovak health insurance companies having aLicence
forprovision ofhealth insurance granting bytheMinistry ofHealthcare ofSRaccording totheAct273/1994 Coll. ofLow. Fund pension insurance schemes
andsikness insurance areconfined tothesocial insurance company.. These exclusive service suppliers actinamanner consistent withobligations under
Article IIoftheGATT andspecific commitments.S/FIN/W/12/Add.11/Rev.2
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
a) Lifeinsurance
(CPC 8121)
b) Non-life insurance
(CPC 8129)
c) Reinsurance and
retrocession
(CPC 81299)
d) Insurance intermediation
(CPC 8140)(1) None other than:
Commercial presence isrequired for
supply of:
-thelifeinsurance ofpersons with
permanent residence intheSlovak
Republic,
-theinsurance ofproperty onthe
territory oftheSlovak Republic,
-theinsurance ofliability forlossor
damage caused bytheactivity of
natural persons andjuridical persons
ontheterritory oftheSlovak
Republic;
-airandmaritime insurance, covering
goods, aircraft, hullandliability.
(2) Insurance services covered bymode (1)
except insurance ofairandmaritime
transport, covering goods, aircraft, hull
andliability above maynotbepurchased
abroad.(1) None
(2) None
(3) License isrequired forprovision of
insurance services. Foreign national may
establish aninsurance company withthe
seatintheSlovak Republic intheform of
ajoint stock company ormayconduct
insurance business through their
subsidiaries withregistered office inthe
Slovak Republic under thegeneral
conditions established intheLawon
Insurance. Insurance business means
insurance activity including brokerage and
reinsurance activity.(3) Themajority ofthemanagement board of
aninsurance company hastobedomiciled
intheSlovak RepublicS/FIN/W/12/Add.11/Rev.2
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
Intermediation activity aimed atthe
conclusion ofaninsurance contract
between third party andtheinsurance
company maybeprovided bynatural or
juridical person swhoaredomiciled in
theSlovak Republic forthebenefit ofthe
insurance company having thelicense of
theInsurance Supervisory Authority.
Intermediation contract aimed at
conclusion ofaninsurance contract by
third party withtheinsurance company
maybeconcluded bydomestic orforeign
insurance company onlyafter alicense
hadbeen granted bytheInsurance
Supervisory Authority.
Thefinancial resources ofspecific
insurance funds oflicensed insurance
operators derived from insuring or
reinsuring policy holders withresidence
orregistered office intheSlovak Republic
must bedeposited inaresident bank in
theSlovak Republic andmaynotbe
transferred abroad.
(4) Unbound except asindicated inhorizontal
section(4) Unbound except asindicated inhorizontal
sectionS/FIN/W/12/Add.11/Rev.2
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
B. Banking andOther
Financial Services
(a) Acceptance ofdeposits and
other repayable funds from
thepublic
(CPC 81115 -CPC 81119)
(b) Lending ofalltypes
(CPC 8113)
(c) Financial leasing
(CPC 8112)
(d) Allpayments andmoney
transmission services
(CPC 81339)
(e) Guarantees and
commitments
(CPC 81199)
(f) Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the counter market
orotherwise asfollows:(1) Unbound forservices described in
subsectors g),i)andj)andfor:
-transferable securities
-other negotiable instruments and
financial assets (excl. bullion)
(2) Unbound forservices described in
subsector i)
1),2) None other than:
(i)Deposit services areconfined tothe
domestic banks andbranches of
foreign banks intheSlovak Republic
(ii)Only authorised domestic banks,
branches offoreign banks inthe
Slovak Republic andpersons
possessing aforeign exchange license
maytrade inforeign exchange assets.
Only stock exchange members can
trade ontheBratislava Stock
exchange. Residents cantrade onthe
RM-System Slovakia without any
limitation andnon-residents only
through security dealers.
(iii)Non-cash cross-border payments may
beeffected onlybyauthorised
domestic banks andbranches of
foreign banks intheSlovak Republic1),2) NoneS/FIN/W/12/Add.11/Rev.2
Page6Modes 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
- money market instruments
(cheques, bills, certificates,
deposits, etc.) (CPC 81339)
- foreign exchange
(CPC 81333)
- exchange rateandinterest
rateinstruments, including
products such asswaps,
forward rateagreements,
etc.(CPC 81339)(iv) Foreign exchange licences issued bythe
National Bank ofSlovakia isrequired
for:
(a)opening anaccount abroad bya
Slovak non-bank resident;
(b)capital payments abroad;
(c)obtaining financial credit from a
foreign exchange non-resident;
except credits from abroad accepted
byresidents witharepayment period
ofmore than3years andloans
granted between natural persons for
non-business activities.
- transferable securities
(CPC 81321)
- other negotiable
instruments andfinancial
assets (excl. bullion)
(CPC 81339)(v) export andimport ofSlovak currency and
foreign exchange incashandbullion
exceeding value of150thsSKK issubject
toreporting requirement.
(vi) Foreign exchange assets arerequired to
bedeposited withanauthorised domestic
bank orbranch ofaforeign bank inthe
Slovak Republic.
(vii)Only foreign exchange entities
established inSRcangrant andobtain
guarantees andliabilities according to
determined limit andprovisions ofthe
National Bank ofSlovakia .S/FIN/W/12/Add.11/Rev.2
Page7Modes 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
(g) Participation inissue ofall
kinds ofsecurities
(CPC 8132)(3) None other than:
Banking services maybeprovided only
bydomestic banks orbranches offoreign
banks authorised bytheNational Bank of
Slovakia based ontheagreement withthe
Ministry ofFinance. Thegranting of
authorisation isbased ontheconsideration
ofcriteria relating, inparticular, to
capital endowment (financial strength)
professional qualifications, integrity and
competence ofthemanagement ofthe
projected bank activities. Banks arelegal
entities incorporated inSR,established as
joint-stock companies orpublic
(state-owned) financial institutions.(3) None
Thepurchase ofshares ofexisting bank is
subject toprior approval oftheNational
Bank ofSlovakia. Investment services can
beprovided byintheSlovak Republic by
banks, investment companies, investment
funds andsecurity dealers which have
legal form ofjoint-stock company with
equity capital according tothelaw.
Foreign investment company or
investment fund must obtain an
authorisation from MFSRforselling its
securities orinvestment certificates unit
ontheterritory oftheSlovak Republic
according totheLaw. Forissue ofdebt
securities thepermission oftheMinistry
ofFinance SRisrequired either forthe
issue inland orabroad.S/FIN/W/12/Add.11/Rev.2
Page8Modes 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
(i) Asset management
(CPC 8119, CPC 81323)
(j) Settlement andclearing
services forfinancial assets
(CPC 81319, CPC 81339)
(k) Advisory andother
auxiliary financial services,
incl. credit reference and
analysis, investment and
portfolio research and
advice, advice on
acquisitions andon
corporate restructuring and
strategy (CPC 8131)
(l) Provision andtransfer of
financial information ,and
financial dataprocessing
andrelated software by
providers ofother financial
services (CPC 8131)Securities maybeissued adtraded onlyafter a
permission bytheMFSRhasbeen granted for
public trading according totheSecurities Act..
Thebusiness ofsecurity dealer, stockbroker or
organiser ofanover-the counter market is
subject toauthorisation oftheMinistry of
Finance. Settlement andclearing services for
allkinds ofpayments areregulated byNBS.
Settlement andclearing services relating to
change ofphysical property ofsecurities are
recorded inCentre ofSecurities -SCP
(Clearing andSettlement House forSecurities).
SCPmayprovide onlytransfers onthe
property accounts ofsecurity owners. Cash part
clearing andsettlement goes through Banking
Clearing andSettlement House -BZCS (where
theNational Bank ofSlovakia ismajor
shareholder) forBratislava Exchange Stock,
joint-stock company orthrough Jumbo account
forRM-System Slovakia.
(4) Unbound except asindicated inhorizontal
section(4) Unbound except asindicated inhorizontal
section