RESTRICTED
WORLD TRADE S/FIN/W/12/Add.11/Rev.1
14November 1997
ORGANIZATION(97-5362)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE SLOVAK REPUBLIC
Revised Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest oftheSlovak Republic toMembers
oftheCommittee onTrade inFinancial Services.
_______________
TheSlovak Republic ishereby submitting itsrevised offerofspecific commitments infinancial
services. Revised offerreflects legislative changes thathaveoccurred during recent months andfurther
improves legislative regulatory regime inthissector. Technical improvements andclarification of
commitments arising from thebilateral negotiations havebeenalsoreflected tolarge extent.
This revised offer isconditional upon other negotiating partners approach inproviding
comprehensive commitments based onMFN andNational Treatment basis.
Slovakia reserves therighttowithdraw, modify orreduce itatanytime, inaccordance with
theSecond Decision onFinancial Services of21July1995asamended bythedecision of29May1997.
Slovakia further reserves therighttomake technical amendments totherevised offer.S/FIN/W/12/Add.11/Rev.1
Page2SLOVAK REPUBLIC
SPECIFIC COMMITMENTS ONFINANCIAL SERVICES -REVISED 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 in
paragraphs 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 2(a)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 tohealth insurance companies having aLicence for
provision ofhealth insurance granting bytheMinistry ofHealthcare ofSRaccording totheAct273/1994 Coll. ofLow. Fund pension insurance schemes and
sickness insurance areconfined tothesocial insurance company. These exclusive service suppliers actinamanner consistent withobligations under Article II
oftheGATT andspecific commitments.S/FIN/W/12/Add.11/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
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) NoneS/FIN/W/12/Add.11/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
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.
Intermediation activity aimed atthe
conclusion ofinsurance contract between
third party andinsurance company may
beprovided bynatural orjuridical person
onlydomiciled intheSlovak Republic for
thebenefit oftheinsurance company
having thelicense oftheInsurance
Supervisory Authority.3) Themajority ofthemanagement board of
aninsurance company hastobedomiciled
intheSlovak Republic.S/FIN/W/12/Add.11/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
Intermediation contract aimed at
conclusion ofinsurance contract bythird
party withinsurance company maybe
concluded bydomestic orforeign
insurance company onlyonthebasis of
license 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
section4) Unbound except asindicated inhorizontal
sectionS/FIN/W/12/Add.11/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
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 offoreign
banks intheSlovak Republic.
ii) Only authorized domestic banks, branches
offoreign banks intheSlovak Republic
andpersons possessing aforeign
exchange license maytrade inforeign
exchange assets. Only stock exchange
members cantrade ontheBratislava
Stock Exchange. Residents cantrade on
theRM-System Slovakia without any
limitation andnon-residents onlythrough
security dealers.
iii) Non-cash cross-border payments maybe
effected onlybyauthorized domestic
banks andbranches offoreign banks in
theSlovak Republic.1),2) NoneS/FIN/W/12/Add.11/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
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.
v) Export andimport ofSlovak currency and
foreign exchange incashandbullion
exceeding value of150thsSKK issubject
toreporting requirement.S/FIN/W/12/Add.11/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
- 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)
- transferable securities
(CPC 81321)
- other negotiable
instruments andfinancial
assets (excl. bullion)
(CPC 81339)vi) Foreign exchange assets arerequired to
bedeposited withanauthorized domestic
bank orbranch ofaforeign bank inthe
Slovak Republic.
vii) Only foreign exchange entities established
inSRcangrant andobtain guarantees and
liabilities according todetermined limit
andprovisions ofNBSS/FIN/W/12/Add.11/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
g) Participation inissue ofall
kinds ofsecurities
(CPC 8132)3) None other than:
Banking services maybeprovided only
bydomestic banks orbranches offoreign
banks authorized bytheNational Bank of
Slovakia intheagreement withthe
Ministry ofFinance. Thegranting of
authorization isbased ontheconsideration
ofcriteria relating, inparticular, to
capital endowment (financial strength)
professional qualifications, integrity and
competence ofthemanagement and
economic usefulness1oftheprojected
bank activities. Banks arelegal entities
incorporated inSR,established as
joint-stock companies orpublic
(state-owned) financial institutions. The
purchase ofshares ofexisting bank is
subject toprior approval oftheNational
Bank ofSlovakia. Investment services
canprovide intheSlovak Republic by
banks, investment companies, investment
funds andsecurity dealers which have
legal form ofjoint-stock company with
equity capital according tothelaw.3) Aminimum ofone-third oftheBoard of
Directors must becitizens oftheSlovak
Republic.
1Theeconomic usefulness criterion willbedeleted subject toratification oftherespective legislation.S/FIN/W/12/Add.11/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
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)Foreign investment company or
investment fund must obtain an
authorization from MFSRforselling its
securities orinvestment certificates unit
ontheterritory oftheSlovak Republic
according totheLaw. Forissue ofdebt
securities thepermission oftheMinistry
ofFinance SRisrequired either forthe
issue inland orabroad.
Securities maybeissued andtraded only
after apermission bytheMFSRhasbeen
granted forpublic trading according tothe
Securities Act. Thebusiness ofsecurity
dealer, stockbroker ororganizer ofan
over-the-counter market issubject to
authorization oftheMinistry ofFinance.
Settlement andclearing services forall
kinds ofpayments areregulated byNBS.
Settlement andclearing services relating
tochange ofphysical property of
securities arerecorded inCentre of
Securities -SCP(Clearing andSettlement
House forSecurities). SCPmayprovide
onlytransfers ontheproperty accounts of
security owners. Cash partclearing and
settlement goes through Banking Clearing
andSettlement House -BZCS (where the
National Bank ofSlovakia ismajor
shareholder) forBratislava Exchange
Stock, joint-stock company orthrough
Jumbo account forRM-System Slovakia.
4) Unbound except asindicated inhorizontal
section4) Unbound except asindicated inhorizontal
section