RESTRICTED
WORLD TRADE S/FIN/W/12/Add.9/Rev.1
5December 1997
ORGANIZATION(97-5364)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE REPUBLIC OFHUNGARY
Revised Offer onFinancial Services
Revision
ThefollowingcommunicationiscirculatedattherequestoftheRepublicofHungarytoMembers
oftheCommittee onTrade inFinancial Services.
_______________
TheHungarianoffer(theDraftScheduleandtheArticleIIExemptionListonFinancialServices)
isconditional upon asatisfactory, MFN based finaloutcome ofthenegotiations.
Hungary reserves itsrights tomodify orwithdraw allorpartoftheoffer atanytimeprior
totheconclusion ofthenegotiations.
Furthermore, Hungary reserves therighttomake anytechnical changes totheoffer, correct
anyerrors, omissions orinaccuracies initatanytimeprior totheconclusion ofthenegotiations.S/FIN/W/12/Add.9/Rev.1
Page2THE REPUBLIC OFHUNGARY
REVISED 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
II. HORIZONTAL COMMITMENTS
7. FINANCIAL SERVICES
1.Hungary undertakes commitments onFinancial Services inaccordance withtheprovisions ofthe"Understanding onCommitments inFinancial Services" (the
Understanding).
2.These commitments aresubject tothelimitations onmarket access andnational treatment inthe"allsectors" section ofthisschedule andtothose relating tothe
subsectors listed below.
3.Themarket access commitments inrespect ofmodes (1)and(2)apply onlytothetransactions indicated inparagraphs B.3(a)and(b)andB.4(a)and(b)ofthe
market access section oftheUnderstanding respectively.
4.Theadmission tothemarket ofnewfinancial services orproducts maybesubject totheexistence of,andconsistency with, aregulatory framework aimed at
achieving theobjectives indicated inArticle 2(a)oftheFinancial Services Annex.
5.Thetransfer ofinformation containing personal data, bank secret, securities secret andorbusiness secret isnotallowed.
6.Asageneral ruleandinanon-discriminatory manner, financial institutions incorporated inHungary must adopt aspecific legal form.
7.Insurance, banking, securities andcollective investment management services should beperformed bylegally separate andindependently capitalised suppliers
offinancial services.
8.Legislation permitting market access ofbranches iscurrently being prepared. Details andconditions toapply arestillbeing determined. Itisintended tobindthe
effects ofthislegislation assoon asithasbeen adopted.
9.Theboard ofafinancial institution should include atleast twomembers, whoareHungarian citizens, residents inthemeaning oftherelevant foreign exchange
regulations andhave permanent residency inHungary foratleast oneyear.
10.Direct orindirect ownership orvoting rights inacredit institution ofasingle shareholder other thancredit institution, insurance company orinvestment firm
cannot exceed 15%.S/FIN/W/12/Add.9/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)Insurance and
insurance-related services
(a)Direct insurance
(including
co-insurance):
(i) life
(ii) non-life(1)Only entrepreneurs pursuing international
business activity specified inthelegal
rules onforeign exchange areallowed to
purchase services. Only insurance events
occurring abroad canbeinsured.
(2)Only entrepreneurs pursuing international
business activity specified inthelegal
rules onforeign exchange areallowed to
purchase services. Only insurance events
occurring abroad canbeinsured.
(3)None
(4)Unbound except asindicated inPartI(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI
(b)Reinsurance and
retrocession(1)None
(2) None
(3) None
(4)Unbound except asindicated inPartI(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartIS/FIN/W/12/Add.9/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
(c)Insurance intermediation,
such asbrokerage and
agency(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI
(d)Services auxiliary to
insurance, such as
consultancy, actuarial, risk
assessment andclaim
settlement services(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI
(B)Banking andother financial
services (excluding
insurance)(1)None
(2)None
(3)None1
(4)Unbound except asindicated inPartI(1)None
(2)None
(3)None
(4)Unbound except asindicated inPartI
1Except Országos Takarékpénztár ésKereskedelmi Bank Rt.,where longterm state ownership willbekeptatleast 25%+1 vote.S/FIN/W/12/Add.9/Rev.1
Page5HUNGARY -ARTICLE II(MFN) EXEMPTIONS FOR FINANCIAL SERVICES
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Financial services AGovernment licence maybe
granted totheestablishment of
such foreign service supplier,
thecountry oforigin ofwhich
grants Hungarian service
suppliers access toitsmarket in
theform ofcommercial presence
similar tothatprovided forby
ActNo.LXIX of1991 on
Financial Institutions and
Financial Institutional Activities
Commitments undertaken
under mode (3)may besubject
toreciprocity requirement.Allcountries Indefinite Toobtain equal market access
possibilities forHungarian
service providers