RESTRICTED
WORLD TRADE S/FIN/W/12/Add.8
16July1997
ORGANIZATION(97-3155)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM NORWAY
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofNorway toMembers ofthe
Committee onTrade inFinancial Services.
_______________S/FIN/W/12/Add.8
Page2NORWAY
DRAFT SCHEDULE OFSPECIFIC COMMITMENTS -INITIAL OFFER ONFINANCIAL 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
I. SECTOR-SPECIFIC COMMITMENTS
7. Financial Services
i. Norway undertakes commitments onfinancial services inaccordance withthe“Understanding onCommitments inFinancial Services ”(theUnderstanding).
ii. Themarket access commitments inrespect ofmodes (1)and(2)apply only tothetransactions indicated inparagraphs B.3andB.4ofthemarket access
section oftheUnderstanding respectively.
iii. Therestrictions andlimitations listed intheschedule under mode (1)apply toregulatory measures directed towards non-resident financial service suppliers
established outside theEuropean Economic Area. Thelimitations listed intheschedule under mode (2)apply toregulatory measures directed towards financial
service consumers residing inNorway.
iv. Norway ’scommitments aresubject toanyright ofaMember towithdraw ormodify itscommitments during agrace period which maybedecided upon in
connection withthisround ofnegotiations.
v. Inaddition, thefollowing restrictions andlimitations apply:S/FIN/W/12/Add.8
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. Insurance andinsurance
related services(1) Non-resident insurance companies must
supply theservices listed in
paragraph B.3(a)oftheUnderstanding
through aninsurance broker authorized in
Norway.
Intermediation through anauthorized
broker ofnon-life insurance toaninsurer
established inastate which isnota
contracting party totheAgreement onthe
European Economic Area andnot
authorized tooperate inNorway asa
company orabranch, islimited tomarine
andtransport insurance, insurance related
tooffshore exploration activities or
insurance contracts regarding domestic
companies withanactivity ofatleast 10
manyears orannual sales ofatleast
Norwegian kroner 50million.
Active supply inNorway ofother
insurance services requires acommercial
presence inastate which isacontracting
party totheAgreement ontheEuropean
Economic Area.(1) None.
(2) None. (2) None.S/FIN/W/12/Add.8
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) Nosingle orcoordinated group of
investors mayacquire orholdmore than
10percentoftheshare capital ina
Norwegian insurance company. The
Ministry ofFinance andCustoms mayin
special circumstances make exemptions
from these limitations onsingle investor
ownership inaninsurance company.
Notwithstanding theforegoing, foreign
insurance companies mayestablish partly
orwholly owned subsidiaries inNorway.
Theother owners ofsuch partly owned
subsidiaries must beforeign insurance
companies orNorwegian financial
institutions.
Forsubsidiaries orbranches offinancial
institutions notestablished inastate
which isacontracting party tothe
Agreement onincorporated within the
European Economic Area, aseparation
requirements applies between life
insurance, non-life insurance andcredit
riskinsurance.
Insurance companies incorporated in
Norway must beorganized asjoint stock
companies ormutual insurance
companies. Insurance brokerage firms
incorporated inNorway must be
organized asjoint stock companies.(3) InNorwegian insurance companies,
including subsidiaries offoreign insurance
companies, themanager, atleast halfthe
members oftheboard ofdirectors and
halfthemembers ofthecorporate
assembly andhalfthemembers ofthe
committee ofrepresentatives must be
permanent residents ofNorway andhave
resided there forthelasttwoyears. This
requirement does notapply tocitizens of
astate within which isacontracting party
totheAgreement ontheEuropean
Economic Area when residing insuch
state. TheMinistry ofIndustry andTrade
maygrant exemptions from these rules.
Until changes inNorwegian corporate
legislation come intoforce (approved by
Parliament 27May 1997), thefollowing
limitations continue toapply: The
residence requirement apply alsotothe
committee ofrepresentatives. The
members concerned must have resided in
Norway forthelasttwoyears.
Inorder toestablish aNorwegian
subsidiary partly owned byaforeign
insurance company, theother owners
must beforeign insurance companies or
Norwegian financial institutions.
Foreign financial institutions other than
insurance companies, cannot ownshares
inaNorwegian insurance company which
isapartly owned subsidiary ofaforeign
insurance company.S/FIN/W/12/Add.8
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
Insurance broker activity must be
organized asajoint stock company.
(remark: thisrequirement isunder
revision.)
Foreigners other thanforeign financial
institutions maynotsupply insurance
services inNorway through asubsidiary
orabranch.
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
B. Banking andother financial
services (excluding
insurance)(1) None.
Active supply inNorway ofservices
related tobanking, financing, securities
brokerage (buying andselling ofsecurities
onbehalf ofcustomers, marketing or
underwriting ofsecurities) andunits of
collective investment funds requires a
commercial presence inastate which isa
contracting party totheAgreement onthe
European Economic Area.
Financial service suppliers notestablished
inastate which isacontracting party to
theAgreement ontheEuropean Economic
Area maynotleadmanage public
offerings denominated inNorwegian
kroner ontheNorwegian capital market.
Theaccess todepository andcustodial
services related toregistration of
securities intheNorwegian Registry of
Securities, isonlyavailable toauthorized
institutions established inNorway.(1) None.S/FIN/W/12/Add.8
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
(2) None.
Registration ofsecurities, asstated inthe
actrelating totheRegistry ofSecurities
regulating thebook-entry registration
system forpaperless securities, issubject
toamonopoly.
(3) Nosingle orcoordinated group of
investors mayacquire orholdmore than
10percentoftheshare capital of
commercial banks orfinancing
undertakings, ormore than10percentof
theequity certificates ofsavings banks.
TheMinistry ofFinance andCustoms
mayinspecial circumstances make
exemptions from these limitations on
single investor ownership insuch
institutions.
Notwithstanding theforegoing, foreign
banks andfinancing undertakings may
establish partly orwholly owned
subsidiaries inNorway. Theother owners
ofsuch partly owned subsidiaries must be
banks orfinancial institutions
respectively.
Inorder foroneormore foreign banks to
bepermitted toestablish anew
Norwegian commercial bank, onesingle
foreign bank must ownmore than50per
centoftheshare capital inthenewbank.(2) None.
(3) InNorwegian commercial banks,
financing undertakings, securities firms
andmanagement companies forcollective
investment funds, including subsidiaries
ofsuch foreign institutions, themanager,
atleast halfthemembers oftheboard of
directors andhalfthemembers ofthe
corporate assembly andhalfthemembers
ofthecommittee ofrepresentatives must
bepermanent residents ofNorway and
have resided there forthelasttwoyears.
Thisrequirement does notapply to
citizens ofastate within which isa
contracting party totheAgreement onthe
European Economic Area when residing
insuch state. TheMinistry ofIndustry
andTrade maygrant exemptions from
these rules. Until changes inNorwegian
corporate legislation come intoforce
(approved byParliament 27May 1997),
thefollowing limitations continue to
apply: Theresidence requirement apply
alsotothecommittee ofrepresentatives.
Themembers concerned must have
resided inNorway forthelasttwoyears.S/FIN/W/12/Add.8
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
Registration ofsecurities, asstated inthe
actrelating totheNorwegian Securities
Registry regulating thebook-entry
registration system forpaperless
securities, issubject toamonopoly.
Commercial banks, securities firms and
management companies forcollective
investment funds incorporated inNorway
must beorganized asjoint stock
companies.
Establishment inNorway ofbranches of
banks, financing undertakings, securities
brokerage firms andmanagement
companies forcollective investment funds
established inastate which isnota
contracting party totheAgreement onthe
European Economic Area, isnot
permitted. (remark: thisprovision is
proposed tobeabolished, subject to
parliamentary approval.Insavings banks andfinancing
undertakings which arenotorganized as
joint stock companies, themembers of
decision-making bodies must becitizens
ofstates which arecontracting parties to
theAgreement onwithin theEuropean
Economic Area andpermanently residing
insuch states. TheMinistry ofFinance
andCustoms maygrant exemptions from
these rules
Branches inNorway ofbanks, securities
firms andmanagement companies for
collective investment funds not
incorporated within theEuropean
Economic Area cannot be
account-operators intheNorwegian
Securities Registry.
(4) Unbound except asindicated inthe
horizontal section(4) Unbound except asindicated inthe
horizontal section