RESTRICTED
WORLD TRADE S/FIN/W/12/Add.9
16July1997
ORGANIZATION(97-3019)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE REPUBLIC OFHUNGARY
Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestoftheRepublicofHungarytoMembers
oftheCommittee onTrade inFinancial Services.
_______________
Thisoffer isconditional upon asatisfactory, MFN based finaloutcome ofthenegotiations.
Hungary reserves itsrights tomodify orwithdraw allorpartoftheofferanditsexisting MFN
exemption listatanytimeprior totheconclusion ofthenegotiations.
Furthermore, Hungary reserves therighttomake anytechnical changes totheoffer, correct
anyerrors, omissions orinaccuracies initatanytimeprior totheconclusion ofthenegotiations.
Possibilities ofliberalisation oftheexisting MFN exemption listisunder consideration.S/FIN/W/12/Add.9
Page2THE REPUBLIC OFHUNGARY
OFFER OFFINANCIAL 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 with theprovisions ofthe"Understanding onCommitments inFinancial
Services" (theUnderstanding).
2.These commitments aresubject tothelimitations onmarket access andnational treatment inthe"allsectors" section ofthisschedule andtothose
relating tothesubsectors listed below.
3.Themarket access commitments inrespect ofmodes (1)and(2)apply only tothetransactions indicated inparagraphs B.3(a)and(b)andB.4(a)and
(b)ofthemarket access section oftheUnderstanding respectively .
4.Theadmission tothemarket ofnewfinancial services orproducts may besubject totheexistence of,andconsistency with, aregulatory framework
aimed atachieving 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
tobind theeffects 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 than credit institution, insurance company or
investment firm cannot exceed 15%.S/FIN/W/12/Add.9
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 topurchase services. Only
insurance events occurring abroad can
beinsured.
(2)Only entrepreneurs pursuing
international business activity specified
inthelegal rules onforeign exchange
areallowed topurchase services. Only
insurance events occurring abroad can
beinsured.
(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
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 inPart I(1)None
(2)None
(3)None
(4)Unbound except asindicated inPart I
1Except Országos Takarékpénztár ésKereskedelmi Bank Rt.,where longterm state ownership willbekeptatleast 25%+1 vote.