WORLD TRADE GATS/SC/44/Suppl.2
26February 1998
ORGANIZATION(98-0646)
Trade inServices
ISRAEL
Schedule ofSpecific Commitments
Supplement 2
(This isauthentic inEnglish only)
_______________
Thistextreplaces theFinancial Services section contained inpages 10to13ofdocument
GATS/SC/44.GATS/SC/44/Suppl.2
Page2ISRAEL
SCHEDULE OFSPECIFIC COMMITMENTS
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) bypermanent residents inIsrael arenotintended todiscriminate against foreign suppliers ofFinancial Services assuch. Inthis
context Israel is"Unbound" tocross-border supply (mode 1)andconsumption abroad (mode 2)incertain Financial Services duetolimitations and
licensing requirements applied byTheCURRENCY CONTROL LAW, 5738-1978 ontransaction inforeign currency orinforeign security, towhich a
permanent resident inIsrael 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 inthe
territory ofanother Member does notsignify acommitment toallow anon-resident service supplier tosolicit business ortoconduct active marketing in
theterritory oftheMember.GATS/SC/44/Suppl.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
AllInsurance and
Insurance-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.GATS/SC/44/Suppl.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
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.GATS/SC/44/Suppl.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)Actuarial 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.
(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.GATS/SC/44/Suppl.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
Banking andother Financial
Services (Excluding insurance)
V. Acceptance ofdeposits and
other repayable funds from
thepublic(1) Unbound
(2) Unbound
(3) None forbanks. Unbound for
nonbanking institutions.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None forbanks. Unbound for
nonbanking institutions.
(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 forbanks. Unbound for
nonbanking institutions.
(4) Unbound, except asindicated inthe
horizontal section.(1),(2) Such activities mayonlybecarried
outthrough Banking institutions
licenced bythecontroller offoreign
exchange toactasanauthorized
dealer.
(3) None forbanks. Unbound for
nonbanking institutions.
(4) Unbound, except asindicated inthe
horizontal section.
VII. Financial leasing (1) Unbound
(2) Unbound
(3) None forbanks. Unbound for
nonbanking institutions.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None forbanks. Unbound for
nonbanking institutions.
(4) Unbound, except asindicated inthe
horizontal section.GATS/SC/44/Suppl.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
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.GATS/SC/44/Suppl.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
(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, except that:
Banks arerequired tocarry outsuch
activities onlythrough subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None, except that:
Banks arerequired tocarry outsuch
activities onlythrough subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.GATS/SC/44/Suppl.2
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, except that:
Banks arerequired tocarry outasset
management activities onlythrough
subsidiaries.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None, except that:
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.GATS/SC/44/Suppl.2
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.