RESTRICTED
WORLD TRADE S/FIN/W/12/Add.26/Rev.1
10December 1997
ORGANIZATION(97-5634)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM ISRAEL
Revised Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest ofIsrael toMembers oftheCommittee
onTrade inFinancial Services.
_______________
TheStateofIsrael hereby submits itsrevised offertoundertake improvements toitsApril 1994
schedule ofcommitments infinancial services under theGeneral Agreement onTrade inServices.
Thesubmission ofthisrevised offerexpresses thefirmcommitment oftheStateofIsrael towork with
allWTO Members towards successfully concluding thenegotiations forapermanent andMFN-based
agreement infinancial services under theGATS bynolaterthan12December 1997.
Thenewofferreflects theexisting measures undertaken byIsrael toprovide non-discriminatory
market access opportunities based ontheprinciples ofnational treatment andMFN. Only technical
revisions havebeenmade totheinitial offer.
Thisinitial offerisconditional. Inaccordance withtheSecond Decision onFinancial Services
of21July1995(WTO Document S/L/9 of24July1995), theStateofIsrael retains therighttomodify
orwithdraw allorpartofthespecific commitments onfinancial services andtolistMFN exemptions,
atanytimethrough 12December 1997.S/FIN/W/12/Add.26/Rev.1
Page2ISRAEL
SPECIFIC COMMITMENTS -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
General Notes:
1.Thecommitments infinancial services aremade inaccordance withtheGeneral Agreement onTrade inServices andtheAnnex onFinancial Services.
2.Israel applies certain restrictions ontheconvertibility ofitscurrency. Therefore, certain rules concerning thepurchase offoreign currency from New
Israeli Sheqel (N.I.S) byeither Israeli residents orforeign residents arenotintended todiscriminate against foreign suppliers ofFinancial Services as
such. Inthiscontext Israel is"Unbound" tocross-border supply (mode 1)andconsumption abroad (mode 2)incertain Financial Services dueto
limitations andlicencing requirements applied byTheCURRENCY CONTROL LAW, 5738-1978 ontransaction inforeign currency orinforeign
security, towhich anIsraeli resident isaparty of,whether thetransaction ismade inIsrael oroutside ofIsrael.
3.Forprudential reasons within thecontext ofparagraph 2(a)oftheAnnex onFinancial Services, Israel applies, inter alia,measures requiring juridical
form ofestablishment orresidence ofnatural persons inIsrael forthesupply ofFinancial Services.
4.Modes ofsupply 1and2infinancial services schedules: Theabsence ofanylimitation ontheability ofaresident consumer topurchase theservice in
theterritory ofanother Member does notsignify acommitment toallow anon-resident service supplier tosolicit business ortoconduct active marketing
intheterritory oftheMember.S/FIN/W/12/Add.26/Rev.1
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
AllInsurance andInsurance-
Related Services
I. Direct insurance
(A)Lifeinsurance
including Pension fund(1) Unbound
(2) Unbound
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound except asindicated inthe
horizontal section.
(B)Non-Life insurance
services(1) Unbound
(2) Unbound
(3) None
(4) Unbound except asindicated inthe
horizontal section.(1) Unbound
(2) Compulsory carinsurance must be
purchased inIsrael from aninsurance
company established inIsrael andlicenced
bytheIsraeli commissioner ofinsurance.
(3) None
(4) Unbound except asindicated inthe
horizontal section.
(C)M.A.T (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.S/FIN/W/12/Add.26/Rev.1
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
II. Reinsurance and
retrocession(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.1,2&3)None: Israel intends toenact
regulations requiring registration of
Certified Foreign Reinsurers inan
Israeli Reinsurance Registrar.
(4) Unbound, except asindicated inthe
horizontal section.
III. Insurance intermediation,
such asbrokerage and
agency(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
IV. Services auxiliary to
insurance
(a)Consultancy (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.26/Rev.1
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)Actuarial (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
(c)Risk assessment (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
(d)Claim settlement
services(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.26/Rev.1
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
Banking andother Financial
Services (Excluding insurance)
V. Acceptance ofdeposits and
other repayable funds from
thepublic.(1) Unbound
(2) Unbound
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.
VI. Lending ofalltypes,
including consumer credit,
mortgage credit, factoring
andfinancing of
commercial transaction.(1),(2) Such activities mayonlybecarried
outthrough Banking institutions
licenced bythecontroller offoreign
exchange toactasanauthorized
dealer.
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.(1),(2) Such activities mayonlybecarried
outthrough Banking institutions
licenced bythecontroller offoreign
exchange toactasanauthorized
dealer.
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.
VII. Financial leasing (1) Unbound
(2) Unbound
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None forbanking activities. Unbound for
non-banking activities.
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.26/Rev.1
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
VIII. Allpayment and
money transmission
services, including
credit, charge and
debit cards, travellers
cheques andbankers
drafts.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
IX. Guarantees and
commitments(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.
X. Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the-counter market
orotherwise, thefollowing:
(A)money market
instruments (including
cheques, bills,
certificates ofdeposits,
etc.)(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.26/Rev.1
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
(B)Foreign exchange (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
(E)Transferable securities (1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
XI. Participation inissues ofall
kinds ofsecurities,
including underwriting and
placement asagent
(whether publicly or
privately) andprovision of
services related tosuch
issues(1) Unbound
(2) Unbound
(3) None
Banks arerequired tocarry outsuch
activities onlythrough subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
Banks arerequired tocarry outsuch
activities onlythrough subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.26/Rev.1
Page9Modes 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
XIII. Asset management,
such ascashor
portfolio management,
allforms ofcollective
investment
management,
custodial, depository
andtrustservices.(1) Unbound
(2) Unbound
(3) None
Banks arerequired tocarry outasset
management activities onlythrough
subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
Banks arerequired tocarry outasset
management activities onlythrough
subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.
XIV. Settlement andclearing
services forfinancial
assets, including
securities, derivative
products andother
negotiable instruments.(1) Unbound
(2) Unbound
(3) Securities settlement andclearing services
intheT.A. Stock Exchange are
exclusively provided fortheStock
Exchange members.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) Securities settlement andclearing services
intheT.A. Stock Exchange are
exclusively provided fortheStock
Exchange members.
(4) Unbound, except asindicated inthe
horizontal section.
XV. Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
suppliers ofother financial
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.S/FIN/W/12/Add.26/Rev.1
Page10Modes 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
XVI. Advisory,
intermediation and
other auxiliary
financial services on
alltheactivities listed
insubparagraphs (V)
through (XV),
including credit
reference andanalysis,
investment and
portfolio research and
advice, advice on
acquisitions andon
corporate restructuring
andstrategy.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.