RESTRICTED
WORLD TRADE S/FIN/W/12/Add.30/Rev.1
12December 1997
ORGANIZATION(97-5468)
Original: Spanish Committee onTrade inFinancial Services
COMMUNICATION FROM PERU
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofPerutoMembers oftheCommittee
onTrade inFinancial Services.
_______________
Perureserves therighttomodify orwithdraw allorpartofthecommitments undertaken in
thisSchedule depending on,interalia,thenumber ofoffers submitted byother parties, theextent to
which those offers areequivalent andmutually acceptable, andthescope andimportance ofthemost-
favoured-nation(MFN)exemptionssubmittedbyotherpartiesinaccordancewiththeAnnexonArticleII
Exemptions totheGeneral Agreement onTrade inServices (GATS), aswellasonasatisfactory outcome
tothecurrent negotiations.S/FIN/W/12/Add.30/Rev.1
Page2PERU -INITIAL OFFER OFFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
II. SECTOR SPECIFIC COMMITMENTS
Thecommitments undertaken withrespect tomode ofsupply (1)refer solely andexclusively totheability ofanon-resident supplier offinancial services to
provide theservice intheterritory ofPeru.
Thecommitments undertaken withrespect tomode ofsupply (2)refer solely andexclusively totheability ofaresident consumer tobuytheservice inthe
territory ofanother Member.
Thecommitments undertaken withrespect tomodes (1)and(2)ofthisSchedule donotimply thecommitment toallow anon-resident services supplier to
acquire clients orengage inactive marketing intheterritory ofPeru.
7. FINANCIAL SERVICES
Thesubsectors listed below
aredefined inaccordance
withtherelevant Peruvian
legislation. Inaccordance
withtheAnnex on
Financial Services, the
financial system is
understood ascomprising
enterprises providing
insurance andinsurance-
related services, and
banking andother financial
services (excluding
insurance)Inaddition tothelimitations established with
respect tohorizontal commitments, which
cover allservices, anauthorization from the
Banking andInsurance Supervision Department
(SBS) isrequired inorder toprovide financial
services.
Financial institutions must besetupintheform
ofapublic limited company (Sociedad
anónima).
Anenterprise ofthefinancial system cannot be
ashareholder ofanother enterprise ofthesame
nature. Theterm "enterprise ofthesame
nature" does notinclude other kinds of
enterprises belonging tothefinancial system
thataredifferent innature from theenterprise
concerned. Thisdoes notapply inthecaseof
thepurchase ofshares withaview totaking
overandmerging withtheenterprise that
issued theshares concerned.Foreign capital istreated inthesame wayas
domestic capital, andissubject where
appropriate tointernational agreements inthis
field. Exceptionally, forreasons ofnational or
public interest, ifaMember adopts
protectionist ordiscriminatory measures, Peru
reserves theright todolikewise.
They maynotmake claims through diplomatic
channels, inrespect ofbusiness oroperations
which theycarry outinPeru, onthebasis of
rights derived from their nationality.
Peruvian creditors andforeigners domiciled in
Peru have priority rights over theassets ofa
branch ofaforeign bank.S/FIN/W/12/Add.30/Rev.1
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Persons whoaredirectly orindirectly majority
shareholders ofanenterprise belonging tothe
financial system maynothold, directly or
indirectly, more than5percentoftheshares
ofanother enterprise ofthesame nature.
Thetransfer ofshares ofanenterprise ofthe
financial system representing more than10per
centoftheenterprise 'scapital toasingle
person, either directly orthrough third parties,
requires prior authorization bytheSBS.
Foreign financial institutions maycarry out
promotional activities inPeru through a
representative inthecountry without having to
setupapublic limited company, provided they
have been soauthorized bytheSBS.
Representatives maynotengage intheactual
business operations oftheenterprise they
represent.
Theopening ofbranches oragencies requires
prior authorization bytheSBS.S/FIN/W/12/Add.30/Rev.1
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A. Allinsurance and
insurance-related services
(a) Lifeinsurance services,
exclusively(1) Unbound
(2) Unbound
(3) Insurance companies operating inthelife-
insurance branch mayestablish
subsidiaries operating ingeneral insurance
branches. Total investment in
subsidiaries maynotexceed 45percent
ofthenetworth oftheinvesting
enterprise, except inthecaseof
subsidiaries ofgeneral insurance
companies thatarededicated tolife
insurance.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.30/Rev.1
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b) Non-life insurance services:
-Accident andhealth
insurance services
-motor-vehicle
insurance services
-freight insurance
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.
-fireandother property
damage insurance
services
-pecuniary loss
insurance services
-general liability
insurance servicesS/FIN/W/12/Add.30/Rev.1
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Marine, aviation and
other transport
insurance services(1) Unbound
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.
(c) Reinsurance and
retrocession services,
exclusively:
-reinsurance services (1) Unbound
(2) Insurance companies maycontract for
reinsurance abroad, provided the
reinsurance companies areclassified
under international standards, subject to
therules established bytheSBS. If
insurance companies contract for
reinsurance directly, theymust dosowith
enterprises included intheSBS
reinsurance register.
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.30/Rev.1
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(d) Insurance-related services:
-insurance broking and
agency services
-insurance consultancy
services
-average andloss
adjustment services
-inspection 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.
B. Banking andother financial
services
(Excluding insurance)
(a) Acceptance ofdeposits and
other repayable funds from
thepublic(1) Unbound
(2) Unbound
(3) None, except thatenterprises ofthe
financial system maynotaccept deposits
onbehalf offinancial institutions not
authorized tooperate inthenational
territory.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.30/Rev.1
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b) Lending ofalltypes,
including consumer credit,
mortgage credit, factoring
andfinancing of
commercial transactions
(c) Financial leasing withcall
option(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) Allpayment andmoney
transfer services, including
credit, payment andsimilar
cards, travellers 'cheques
andbank giroservices
(e) Guarantees and
commitments
(f) Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the-counter market
orotherwise, thefollowing:
-Money market
instruments
(cheques, bills,
certificates ofdeposit,
etc.)S/FIN/W/12/Add.30/Rev.1
Page9Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-foreign exchange
-derivative products
including, butnot
limited to,futures and
options
-exchange rateand
interest rate
instruments, including
products such as
swaps, forward rate
agreements, etc.
-transferable securities
-other negotiable
instruments and
financial assets,
including bullion
(g) Participation inissues ofall
kinds ofsecurities,
including under-writing and
placement asagent
(whether publicly or
privately) andprovision of
service related tosuch
issuesS/FIN/W/12/Add.30/Rev.1
Page10Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(h) Money broking
(i) Asset management, such as
cashorportfolio
management, allforms of
collective investment
management, pension fund
management, custodial
depository andtrust
services
(j) Settlement andclearing
services forfinancial assets,
including securities,
derivative products and
other negotiable instruments
(k) Advisory andother
auxiliary financial services
onalltheactivities listed in
thisSchedule, including
credit reference and
analysis, investment and
portfolio research and
advice, advice on
acquisitions andon
corporate restructuring and
strategyS/FIN/W/12/Add.30/Rev.1
Page11Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(l) Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
providers ofother financial
services(1) Unbound, except withrespect to
information needed byfinancial
institutions fortheir dulyauthorized
activities, without violating banking
secrecy.
(2) Unbound
(3) None
(4) Unbound(1) Unbound, except withrespect to
information needed byfinancial
institutions fortheir dulyauthorized
activities, without violating banking
secrecy.
(2) Unbound
(3) None
(4) UnboundS/FIN/W/12/Add.30/Rev.1
Page12PERU -LIST OFARTICLE II(MFN) EXEMPTIONS INFINANCIAL SERVICES
Sector orsubsector Description ofmeasure indicating its
inconsistency with Article IICountries towhich the
measure appliesIntended duration Conditions creating the
need fortheexemption
Financial services Peru reserves theright nottoapply themost-
favoured-nation clause tocountries which do
notapply itautomatically andunconditionally
toPeru, asprovided forinArticle IIofthe
GATS.Allcountries Indefinite Reciprocity
Financial services With respect tonational treatment forforeign
investment, exceptionally, forreasons of
national orpublic interest, ifaMember adopts
protectionist ordiscriminatory measures, Peru
reserves theright todolikewise.Allcountries Indefinite National orpublic interest