RESTRICTED
WORLD TRADE S/FIN/W/12/Add.2/Rev.1
1December 1997
ORGANIZATION(97-5299)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM SWITZERLAND
Draft Schedule ofSpecific Commitments andListofArticle II(MFN) Exemptions
Revision
Thefollowing communication iscirculated attherequest ofSwitzerland tomembers ofthe
Committee onTrade inFinancial Services.
_______________
Further totheinitial offer contained inS/FIN/W/12/Add.2, Switzerland hereby submits its
Draft Schedule ofSpecific Commitments andArticle II(MFN) Exemptions infinancial services.
Thisdraftschedule isconditional anditsmaintenance willdepend onthelevelofcommitments
undertaken byother WTO Members.
Switzerland retains itsrighttomodify orwithdraw allorparts ofitsspecific commitments
onfinancial services andtolistMFN exemptions, inaccordance withtheSecond Decision onFinancial
Services of21July1995 asamended bytheDecision of29May1997.S/FIN/W/12/Add.2/Rev.1
Page2SWITZERLAND
DRAFT SCHEDULE OFSPECIFIC COMMITMENTS 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
7. FINANCIAL SERVICES
Commitments onbanking, securities andinsurance services inaccordance withthe"Understanding onCommitments inFinancial Services" (hereafter
"Understanding") andsubject tolimitations andconditions ascontained inPartI(horizontal commitments) andaslisted below. Itisunderstood that
paragraph B.4ofthe"Understanding" does notimpose anyobligation toallow non-resident financial services suppliers tosolicit business.
Insurance and
Insurance-Related ServicesMonopoly rights asindicated inparagraph
B.1ofthe"Understanding": apublic
monopoly onfireandnatural damage
insurance onbuildings exists inthe
following cantons: Zurich, Berne,
Lucerne, Nidwalden, Glaris, Zoug,
Fribourg, Soleure, Bâle-Ville,
Bâle-Campagne, Shaffhouse, Argovie,
St-Gall, Grisons, Appenzell Rhodes
Extérieures, Thurgovie, Vaud, Neuchâtel,
Jura. Inthecantons ofNidwalden and
Vaud, thepublic monopoly onfireand
natural damage insurance covers also
movable property located inthebuildings.S/FIN/W/12/Add.2/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
(1)Transactions asindicated inparagraph B.3
ofthe"Understanding": theunderwriting
ofaircraft liability insurance requires a
commercial presence inSwitzerland.(1)Acquisition ofrealestate byforeigners is
limited asindicated inPartI;however,
foreign orforeign-controlled insurance
companies aregranted authorization to
invest inrealestate, provided thetotal
value ofthebuyer 'sproperty does not
exceed thetechnical reserves required for
thecompany 'sactivities inSwitzerland, as
wellastoacquire property thatserves asa
security formortgage loans incaseof
bankruptcy orliquidation.
(2)Transactions asindicated inparagraph B.4
ofthe"Understanding": theunderwriting
ofaircraft liability insurance requires a
commercial presence inSwitzerland.(2)NoneS/FIN/W/12/Add.2/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)Representative offices cannot conduct
business oractasanagent; forinsurance
companies incorporated inSwitzerland,
thelegal form ofajoint-stock company
(Aktiengesellschaft, société anonyme) ora
mutual association (Genossenschaft,
société cooperative) isrequired; for
branches offoreign insurance companies,
thelegal form oftheinsurance company
inthehead office country must be
comparable toaSwiss joint-stock
company ortoaSwiss mutual association;
participation inthebasic health insurance
scheme requires health insurance suppliers
tobeorganized inoneofthefollowing
legal entities: association (Verein,
association), mutual association,
foundation (Stiftung, fondation) or
joint-stock company;(3)Aminimum ofthree years ofexperience
inthedirect insurance business inthehead
office country isrequired; acquisition of
realestate byforeigners islimited as
indicated inPartI;however, foreign or
foreign-controlled insurance companies are
granted authorized toinvest inrealestate,
provided thetotalvalue ofthebuyer 's
property does notexceed thetechnical
reserves required forthecompany 's
activities inSwitzerland, aswellasto
acquire property thatserves asasecurity
formortgage loans incaseofbankruptcy
orliquidation.
participation inthestatutory pension funds
scheme (Berufsvorsorge/ prévoyance
professionnelle) requires pension funds to
beorganized intheform ofamutual
association orafoundation.
(4)Unbound except asindicated inPartI (4)Unbound except asindicated inPartIS/FIN/W/12/Add.2/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
Banking andOther Financial
Services
(excluding insurance)Monopoly rights asindicated inparagraph
B.1ofthe"Understanding": twomortgage
bonds issuance institutes have been
granted anexclusive right fortheissuance
ofspecific mortgage bonds (Pfandbrief,
lettre degage); withregard tothefirst
institute onlySwiss cantonal banks are
accepted asmembers andinthecaseof
thesecond institute banks withhead office
inSwitzerland whose national mortgage
loanbusiness amounts toatleast 60per
centofthebalance sheet canbemembers;
theissue ofother mortgage-backed bonds
isnotaffected bythisregulation.
(1*)Foreign investment funds canonlybe
marketed ordistributed through alicensed
representative agent resident in
Switzerland; Swiss franc denominated
issues canbelead-managed onlybya
bank orasecurities dealer having a
commercial presence (except
representative office) inSwitzerland.(1)Acquisition ofrealestate byforeigners is
limited asindicated inPartI;however,
foreign orforeign-controlled banks are
granted authorization toacquire property
thatserves asasecurity formortgage
loans incaseofbankruptcy orliquidation;
theissue offoreign collective investment
funds issubject tostamp duty.
(2)Swiss franc denominated issues canbe
lead-managed onlybyabank ora
securities dealer having acommercial
presence (except representative office) in
Switzerland.(2)None
*Notonlytransactions indicated inparagraph B.3ofthe"Understanding" butthewhole range ofbanking andother financial services transactions arecovered
(excluding insurance).S/FIN/W/12/Add.2/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
(3)Commercial presence offoreign financial
service suppliers issubject tospecific
requirements relating tothename ofthe
firmandtheregulations onfinancial
institutions inthecountry oforigin;
commercial presence maybedenied to
financial service suppliers whose ultimate
shareholders and/or beneficial owners are
persons ofanon-GATS Member;
representative offices canneither conclude
ordealbusiness noractasanagent.(3)Acquisition ofrealestate byforeigners is
limited asindicated inPartI;however,
foreign orforeign-controlled banks are
granted authorization toacquire property
thatserves asasecurity formortgage
loans incaseofbankruptcy orliquidation.
(4)Unbound except asindicated inPartI (4)Unbound except asindicated inPartIS/FIN/W/12/Add.2/Rev.1
Page7SWITZERLAND -LIST OFARTICLE II(MFN) EXEMPTIONS
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Banking andOther
Financial Services
(excluding
insurance)Toallow persons established in
thePrincipality ofLiechtenstein,
without requiring acommercial
presence inSwitzerland, to
lead-manage Swiss franc
denominated issues.Principality ofLiechtenstein Indefinite Measures ensuing from the
monetary union between
Switzerland andthePrincipality
ofLiechtenstein.