(ii) at the recommendation of the Sec-
retary, extend any such suspension for an
additional period of 180 days.
(B) TERMINATION OF SUSPENSION.—The
appropriate Federal banking agency shall, at
any time, terminate a suspension under sub-
paragraph (A) at the recommendation of the
Secretary.
(5) EXCEPTIONS.—
(A) IN GENERAL.—The appropriate Fed-
eral banking agency shall act in accordance
with any recommendation of the Secretary
made under paragraph (1) unless the agency
determines, in writing, and transmits such de-
termination to the Secretary and the Congress,
that action in accordance with such rec-
ommendation—
(i) would have a serious adverse effect
on—
(I) the stability of the United
States financial system; or
(II) the safe and sound operation
of the payments system; or
(ii) would adversely affect the ability
of the appropriate Federal banking agen-
cies to act on a request for authorization
made in connection with the resolution of
an insured depository institution described
in section 13(c)(2)(B) of the Federal De-
posit Insurance Act because the foreign
bank represents the only bona fide reason-
able offer available with respect to such
resolution.
(B) DETERMINATION
OF
REASONABLE-
NESS OF OFFER.—In determining whether the
offer of a foreign bank represents the only bona
fide reasonable offer available for purposes of
subparagraph (A)(ii), the appropriate Federal
banking agency shall consider, among such
other factors as the agency may consider to be
appropriate, whether the offer represents the
least cost to the respective deposit insurance
fund relative to all other possible means for
meeting the requirements of section 13(c)(4) of
the Federal Deposit Insurance Act.
(f) RECIPROCAL GRANDFATHER EXEMPTION FROM
SANCTIONS.—The authority of subsection (e) may not be
used to suspend or deny a request for authorization by
any United States depository institution (other than a
branch of a foreign bank (as defined in section 1(b) of
the International Banking Act of 1978)) or any company
established pursuant to section 4(c)(8) of the Bank Hold-
ing Company Act of 1956 if—
(1) such institution or company was controlled
as of December 31, 1994, by a person of a foreign
country and such control has been maintained con-
tinuously since that date; and
(2) such person’s foreign country, by law or
regulation (which took effect on or before December
31, 1994, and remains in effect) and in practice, ex-
plicitly provides national treatment to—
(A) banks which were established or ac-
quired in such country by United States bank-
ing organizations before the effective date of
such law or regulation of the foreign country;
and
(B) subsidiaries (of such banks) which
were established or acquired in such country by
United States banking organizations before
such effective date.
(g) REPORT.—
(1) CONTENTS
OF
REPORT.—Not later than
December 1, 1996, and annually after such date, the
Secretary shall submit to the Speaker of the House
of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report
that—
(A) specifies the foreign countries identi-
fied under subsection (a);
(B) if a determination has been published
under subsection (d)(1) with respect to a for-
eign country, provides the reasons for such de-
termination;
(C) if the Secretary has not made or has
rescinded such a determination with respect to
a foreign country, provides the reasons for the
failure to make the determination or for the re-
scission;
(D) describes the results of any negotia-
tions conducted under subsection (c)(1) with a
foreign country; and
(E) discusses the effectiveness of the ad-
ministration of this section in achieving the
purposes of the section.
(2) SUBMISSION OF REPORT.—The report re-
quired by paragraph (1) may be submitted as part
of a report or update submitted under section 3602
of the Omnibus Trade and Competitiveness Act of
1988.
(h) DEFINITIONS.—The following definitions shall
apply for purposes of this section:
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’—
(A) has the same meaning as in section
3(q) of the Federal Deposit Insurance Act; and
(B) includes the Board of Governors of the
Federal Reserve System (in addition to any
other agency which may be an appropriate Fed-
eral banking agency under such section 3(q)) in
the case of any request for authorization to—
(i) establish a United States rep-
resentative office, agency, or branch of a
foreign bank (as such terms are defined in
section 1(b) of the International Banking
Act of 1978);
(ii) establish or acquire an interest in
a commercial lending company (as defined
in section 1(b) of the International Bank-
ing Act of 1978) or a corporation orga-
nized or operating under section 25 or 25A
of the Federal Reserve Act; or
(iii) acquire an interest in a bank or
bank holding company, or any company
that is not a bank, under the Bank Hold-
ing Company Act of 1956 or this Act.
(2) BANKING ORGANIZATION.—
(A) IN GENERAL.—The term ‘‘banking or-
ganization’’ means any bank, any bank holding
company (including any company required to
file reports pursuant to section 4(f)(6) of the
Bank Holding Company Act of 1956), any sav-
ings and loan holding company (as such term is
defined in section 10(a)(1)(D) of the Home
Owners’’ Loan Act), any nonbank financial en-
tity the primary purpose of which is to provide
credit or financing (regardless of whether such
entity accepts deposits), and any subsidiary of
any such bank, company, or entity.
(B) BANKING
TERMS.—For purposes of
this paragraph and paragraph (1)(B)(iii), the
terms ‘‘bank’’, ‘‘bank holding company’’, ‘‘com-
pany’’, and ‘‘subsidiary’’ have the same mean-
ing as in section 2 of the Bank Holding Com-
pany Act of 1956.
(4) DEFINITIONS
RELATING
TO
DEPOSITORY
INSTITUTIONS.—The terms ‘‘depository institution’’
and ‘‘depository institution holding company’’ have
the same meaning as in section 3 of the Federal De-
posit Insurance Act.
(5) REQUEST FOR AUTHORIZATION.—The term
‘‘request for authorization’’ means any application,
notice, registration, or other request for authoriza-
tion that is required under Federal banking law or
regulation—
(A) to establish facilities or engage in ac-
tivities at a new geographic location;
(B) to engage in additional activities or ex-
pand existing activities; or
(C) involving a change in control of any
depository institution or depository institution
holding company.
(i) CONSULTATION.—In the case of any consultation
pursuant to this section which is required to be made in
accordance with this subsection, the Secretary of the
Treasury shall consult with the Secretary of State, the
Trade Representative, the Secretary of Commerce, and
any appropriate Federal banking agency.
SEC. 4. EFFECTUATING THE PRINCIPLE OF NATIONAL
TREATMENT 
FOR 
SECURITIES 
ORGANIZA-
TIONS.
(a) IDENTIFYING COUNTRIES THAT MAY BE DENY-
ING NATIONAL TREATMENT TO UNITED STATES SECURI-
TIES ORGANIZATIONS.—The Secretary shall identify, after
consultation in accordance with subsection (i), the extent
to which foreign countries may be denying national treat-
ment to United States securities organizations—
(1) according to the most recent report under
section 3602 of the Omnibus Trade and Competi-
tiveness Act of 1988 (or the most recent update of
such report); or
(2) based on more recent information that the
Secretary considers appropriate.
(b) DETERMINING WHETHER POSSIBLE DENIAL OF
NATIONAL TREATMENT MAY BE HAVING A SIGNIFICANT
ADVERSE EFFECT.—
(1) IN GENERAL.—The Secretary shall deter-
mine, after consultation in accordance with sub-
section (i), whether the possible denial of national
treatment to United States securities organizations
by a foreign country identified under subsection (a)
may be having a significant adverse effect on such
organizations.
(2) FACTORS TO BE CONSIDERED.—In making
any determination under paragraph (1), the Sec-
retary shall consider appropriate factors, including
the following:
(A) The extent of United States trade with
and investment in the foreign country, the size
of the foreign country’s markets for the finan-
cial services involved, and the extent to which
United States securities organizations operate
or seek to operate in those markets.
(B) The importance of operations by Unit-
ed States securities organizations in the foreign
country to the export of goods and services by
United States firms to such country.
(C) The extent to which the foreign coun-
try provides in advance to United States securi-
ties organizations a written draft of any meas-
ure of general application that the country pro-
poses to adopt, such as regulations, guidelines,
or other policies regarding new products and
services, in order to allow an opportunity for
such organizations to comment on the measure
and for such comments to be taken into account
by the foreign country.
(D) The extent to which the foreign coun-
try—
(i) makes available, in writing, to
United States securities organizations the
foreign country’s requirements for complet-
ing any application relating to the provi-
sion of financial services by any such orga-
nization;
(ii) applies published, objective stand-
ards and criteria in evaluating any such
application from any United States securi-
ties organization; and
(iii) renders administrative decisions
relating to any such application within a
reasonable period of time.
(3) 
SOLICITATION
OF
COMMENTS.—Before
making any determination under paragraph (1), the
Secretary shall solicit comments concerning the ef-
fect of the possible denial of national treatment on
United States securities organizations from inter-
ested parties.
(c) NEGOTIATIONS.—
(1) MANDATORY INITIATION OF NEGOTIATIONS
IN
CERTAIN
CASES.—If the Secretary determines
under subsection (b) that the possible denial of na-
tional treatment to United States securities organi-
zations by a foreign country identified under sub-
section (a) may be having a significant adverse ef-
fect on such organizations, the Secretary shall initi-
ate negotiations with such foreign country to ensure
that such country accords national treatment to
United States securities organizations.
(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to any foreign country if the Sec-
retary—
(A) determines that negotiations with such
country in accordance with paragraph (1)—
(i) would be unlikely to result in
progress toward according national treat-
ment to United States securities organiza-
tions; or
(ii) would impair the economic inter-
ests of the United States; and
(B) gives written notice of that determina-
tion to the Congress.
(d) PUBLICATION
OF POSTNEGOTIATION DETER-
MINATION; DISPUTE RESOLUTION PROCEEDING.—
(1) PUBLICATION.—If, after making a deter-
mination under subsection (b) that the possible de-
nial of national treatment to United States securities
organizations by a foreign country may be having a
significant adverse effect on such organizations, the
Secretary determines, after consultation in accord-
ance with subsection (i), that—
tered into by the President and approved by the
Senate and House of Representatives; and
(B) the agreement provides for a formal
process for resolving disputes regarding obliga-
tions under the agreement;
the United States shall initiate a proceeding under
the agreement to enforce the rights of the United
States under the agreement.
(3) ANNUAL REVIEW OF DETERMINATIONS.—
The Secretary shall, not less frequently than annu-
ally and after consultation in accordance with sub-
section (i), review each determination published pur-
suant to paragraph (1) to determine whether the de-
termination should be rescinded.
(4) NOTIFICATION OF APPROPRIATE STATE OF-
FICIALS OF PUBLICATION OF DETERMINATION.—The
Secretary shall inform appropriate State securities
regulatory agencies of the publication of any deter-
mination under paragraph (1).
(e) DISCRETIONARY SANCTIONS.—
(1) ACTION BY THE SECRETARY.—
(A) IN
GENERAL.—Subject to subpara-
graph (B) and paragraph (2), the Secretary
may, after consultation in accordance with sub-
section (i), recommend to the Commission that
the Commission suspend consideration of or
deny a request for authorization that is filed—
(i) by a person of a foreign country
listed in a determination published under
subsection (d)(1); and
(ii) after the date of the publication of
such determination.
(B) CONDITIONS
FOR
EXERCISE
OF
AU-
THORITY.—The Secretary may make a rec-
ommendation under subparagraph (A), if the
Secretary determines that—
(i) such action would assist the Unit-
ed States in negotiations to eliminate deni-
als of national treatment against United
States securities organizations; or
(ii) the country has not adhered ade-
quately to an agreement reached as a re-
sult of negotiations undertaken pursuant
to subsection (c).
(2) CONSISTENCY WITH BILATERAL AND MUL-
TILATERAL
AGREEMENTS.—The authority of the
Secretary under paragraph (1) may not be used to
take actions with respect to a foreign country which
are inconsistent with any bilateral or multilateral
agreement that governs financial services in which
such country is obligated to provide national treat-
ment for United States securities organizations.
(3) DIRECTION OF PRESIDENT.—The exercise
of any authority of the Secretary under paragraph
(1) shall be subject to the specific direction (if any)
of the President.
(4) ADDITIONAL
PROVISIONS
APPLICABLE
TO
REQUESTS FOR AUTHORIZATION.—
(A) AUTHORITY
UPON
DENIAL
OF
AU-
THORIZATION.—
(i) IN GENERAL.—In connection with
a recommendation under paragraph (1)(A)
to deny a request for authorization de-
scribed in subsection (h)(2), the Commis-
sion may order—
(I) the disposition of any control-
ling interest referred to in clause
(ii)(I) of such subsection;
(II) the closure of any office re-
ferred to in subsection clause (ii)(II)
of such subsection; or
(III) the termination of any advi-
sory relationship referred to in clause
(iii) or (iv) of such subsection.
(ii) ENFORCEMENT.—The Commis-
sion may enforce an order under clause (i)
through appropriate action under the secu-
rities laws, including, if necessary, revoca-
tion of the underlying registration of any
person who fails to comply with such an
order.
(B) NOTICE REQUIRED TO FILE REQUESTS
FOR AUTHORIZATION.—
(i) IN GENERAL.—If a determination
is published under subsection (d)(1) with
respect to a foreign country on the basis of
the adverse effect the denial of national
treatment by such country is having on se-
curities organizations, no person of that
foreign country may file a request for au-
thorization described in subsection (h)(2)
unless such person files notice of such re-
quest simultaneously with the Commission
and the Secretary, not less than 90 days in
advance of the action that is the subject of
the request, in such form and containing
such information as the Commission may
prescribe by rule.
(ii) EXTENDING 90-DAY PERIOD.—The
Commission may, by order, extend for an
additional 180 days the period during
which the Commission may consider a re-
quest for authorization described in sub-
section (h)(2) that is the subject of a no-
tice received under clause (i).
(5) SUSPENSIONS OF REQUESTS.—
(A) IN
GENERAL.—Notwithstanding any
other provision of law, but subject to paragraph
(6), if, pursuant to paragraph (1), the Sec-
retary recommends to the Commission that the
Commission suspend the Commission’s consid-
eration of a request for authorization by a per-
son of a foreign country, the Commission
shall—
(i) suspend the Commission’s consid-
eration of the request for a period of 180
days; and
(ii) at the recommendation of the Sec-
retary, extend any such suspension for an
additional period of 180 days.
(B) TERMINATION OF SUSPENSION.—The
Commission, as the case may be, shall, at any
time, terminate a suspension under subpara-
graph (A) at the recommendation of the Sec-
retary.
(6) EXCEPTIONS.—The Commission shall act in
accordance with any recommendation of the Sec-
retary made under paragraph (1) unless the Com-
mission determines, in writing, and transmits such
determination to the Secretary and the Congress,
that action in accordance with such recommendation
would have a serious adverse effect on—
(A) the maintenance of fair and orderly se-
curities markets; or
(B) the protection of investors.
(f) RECIPROCAL GRANDFATHER EXEMPTION FROM
SANCTIONS.—
(1) IN GENERAL.—The authority of subsection
(e) may not be used to suspend or deny a request
for authorization by any securities organization
which is organized under the laws of the United
States, any State, or the District of Columbia, if—
(A) organization was controlled as of De-
cember 31, 1994, by a person of a foreign coun-
try and such control has been maintained con-
tinuously since that date; and
(B) such person’s foreign country, by law
or regulation (which took effect on or before
December 31, 1994, and remains in effect) and
in practice, explicitly provides national treat-
ment to—
(i) securities companies which were
established or acquired in such country by
United States securities organizations be-
fore the effective date of such law or regu-
lation of the foreign country; and
(ii) subsidiaries (of such securities
companies) which were established or ac-
quired in such country by United States
securities organizations before such effec-
tive date.
(2) SECURITIES COMPANY DEFINED.—For pur-
poses of paragraph (1)(B), the term ‘‘securities com-
pany’’ means any company engaged, under the laws
or regulations of a foreign country, in the business
of—
(A) buying, selling, or underwriting securi-
ties, including municipal and government secu-
rities and instruments which are similar to se-
curities; or
(B) acting as an investment adviser, fidu-
ciary, transfer agent, or any similar function in-
volving the provision of investment services.
(3) TREATMENT OF EUROPEAN COMMUNITY DI-
RECTIVE DURING PERIOD OF IMPLEMENTATION BY
MEMBER STATES.—During the period beginning on
the date of the enactment of the Fair Trade in Fi-
nancial Services Act of 1995 and ending on Decem-
ber 31, 1995, any directive of the European Com-
munity which—
(A) was adopted before December 31,
1994; and
(B) requires the implementation in na-
tional law by the Member States of the Euro-
pean Community of national treatment for se-
curities companies and subsidiaries described in
paragraph (1)(B);
may be treated as a law in effect in each such Mem-
ber State for purposes of paragraph (1).
(g) REPORT.—
(1) CONTENTS
OF
REPORT.—Not later than
December 1, 1996, and annually after such date, the
Secretary shall submit to the Speaker of the House
of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report
that—
(A) specifies the foreign countries identi-
fied under subsection (a);
(B) if a determination has been published
under subsection (d)(1) with respect to a for-
eign country, provides the reasons for such de-
termination;
(C) if the Secretary has not made or has
rescinded such a determination with respect to
a foreign country, provides the reasons for the
failure to make the determination or for the re-
scission;
(D) describes the results of any negotia-
tions conducted under subsection (c)(1) with a
foreign country; and
(E) discusses the effectiveness of the ad-
ministration of this section in achieving the
purposes of the section.
(2) SUBMISSION OF REPORT.—The report re-
quired by paragraph (1) may be submitted as part
of a report or update submitted under section 3602
of the Omnibus Trade and Competitiveness Act of
1988.
(h) DEFINITIONS.—The following definitions shall
apply for purposes of this section:
(1) COMMISSION.—The term ‘‘Commission’’
means the Securities and Exchange Commission.
(2) REQUEST FOR AUTHORIZATION.—The term
‘‘request for authorization’’ means—
(A) an application to register under section
15(b), 15B, or 15C of the Securities Exchange
Act of 1934, or section 203(c) of the Invest-
ment Advisers Act of 1940, including an appli-
cation to succeed to the business of a registered
entity;
(B) an amendment to a registration re-
ferred to in clause (i) that reflects—
(i) the acquisition of control of the
registered entity; or
(ii) the addition of a United States of-
fice by the registered entity;
(C) a registration statement filed by an in-
vestment company under section 8 of the In-
vestment Company Act of 1940, if a person of
a foreign country will serve as an investment
adviser to the investment company; and
(D) an amendment to an investment com-
pany registration statement filed under section
8 of the Investment Company Act of 1940 that
reflects the retention of a person of a foreign
country as an investment adviser.
(3) SECURITIES
ORGANIZATION.—The term
‘‘securities organization’’ means—
(A) any broker or dealer (as such terms
are defined in paragraphs (4) and (5), respec-
tively, of section 3(a) of the Securities Ex-
change Act of 1934);
(B) any investment adviser (as defined in
section 202(a)(11) of the Investment Advisers
Act of 1940); and
(C) any investment company (as defined in
section 3 of the Investment Company Act of
1940).
(i) CONSULTATION.—In the case of any consultation
pursuant to this section which is required to be made in
accordance with this subsection, the Secretary of the
Treasury shall consult with the Secretary of State, the
Secretary of Commerce, the Trade Representative, and the
Commission.
SEC. 5. EFFECTUATING THE PRINCIPLE OF NATIONAL
TREATMENT 
FOR 
INSURANCE 
ORGANIZA-
TIONS.
(a) IDENTIFYING COUNTRIES THAT MAY BE DENY-
ING NATIONAL TREATMENT TO UNITED STATES INSUR-
ANCE ORGANIZATIONS.—The President shall identify the
extent to which foreign countries may be denying national
treatment to United States insurance organizations—
(1) according to the most recent report under
section 3602 of the Omnibus Trade and Competi-
tiveness Act of 1988 (or the most recent update of
such report); or
(2) based on other or more recent information
that the President considers appropriate.
(b) DETERMINING WHETHER POSSIBLE DENIAL OF
NATIONAL TREATMENT MAY BE HAVING A SIGNIFICANT
ADVERSE EFFECT.—
(1) IN GENERAL.—The President shall deter-
mine whether the possible denial of national treat-
ment to United States insurance organizations by a
foreign country identified under subsection (a) may
be having a significant adverse effect on such orga-
nizations.
(2) FACTORS TO BE CONSIDERED.—In making
any determination under paragraph (1), the Presi-
dent shall consider appropriate factors, including the
following:
(A) The extent of United States trade with
and investment in the foreign country, the size
of the foreign country’s markets for the finan-
cial services involved, and the extent to which
United States insurance organizations operate
or seek to operate in those markets.
(B) The importance of operations by Unit-
ed States insurance organizations in the foreign
country to the export of goods and services by
United States firms to such country.
(C) The extent to which the foreign coun-
try provides in advance to United States insur-
ance organizations a written draft of any meas-
ure of general application that the country pro-
poses to adopt, such as regulations, guidelines,
or other policies regarding new products and
services, in order to allow an opportunity for
such organizations to comment on the measure
and for such comments to be taken into account
by the foreign country.
(D) The extent to which the foreign coun-
try—
(i) makes available, in writing, to
United States insurance organizations the
foreign country’s requirements for complet-
ing any application relating to the provi-
sion of financial services by any such orga-
nization;
(ii) applies published, objective stand-
ards and criteria in evaluating any such
application from any United States insur-
ance organization; and
(iii) renders administrative decisions
relating to any such application within a
reasonable period of time.
(3) 
SOLICITATION
OF
COMMENTS.—Before
making any determination under paragraph (1), the
President shall solicit comments concerning the ef-
fect of the possible denial of national treatment on
United States insurance organizations from inter-
ested parties.
(c) NEGOTIATIONS.—
(1) MANDATORY INITIATION OF NEGOTIATIONS
IN
CERTAIN
CASES.—If the President determines
under subsection (b) that the possible denial of na-
tional treatment to United States insurance organi-
zations by a foreign country identified under sub-
section (a) may be having a significant adverse ef-
fect on such organizations, the Trade Representative
shall initiate negotiations with such foreign country
to ensure that such country accords national treat-
ment to United States insurance organizations.
(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to any foreign country if the
President—
(A) determines that negotiations with such
country in accordance with paragraph (1)—
(i) would be unlikely to result in
progress toward according national treat-
ment to United States insurance organiza-
tions; or
(ii) would impair the economic inter-
ests of the United States; and
(B) gives written notice of that determina-
tion to the Congress.
(d) PUBLICATION
OF POSTNEGOTIATION DETER-
MINATION; DISPUTE RESOLUTION PROCEEDING.—
(1) PUBLICATION.—If, after making a deter-
mination under subsection (b) that the possible de-
nial of national treatment to United States insur-
ance organizations by a foreign country may be hav-
ing a significant adverse effect on such organiza-
tions, the President determines that—
(A) any negotiations under subsection (c)
have not resulted in, or are not likely to result
in, progress toward according national treat-
ment to United States insurance organizations;
and
(B) effective relief is not available under
any bilateral or multilateral agreement de-
scribed in paragraph (2)(A);
the President may publish, in the Federal Register,
a final determination in accordance with subsections
(a) and (b) that such country is denying national
treatment to United States insurance organizations
and the denial is having a significant adverse effect
on any such organizations.
(2) DISPUTE RESOLUTION UNDER APPLICABLE
AGREEMENTS.—If, after making a determination
under subsection (b) that the possible denial of na-
tional treatment to United States insurance organi-
zations by a foreign country may be having a signifi-
cant adverse effect on such organizations—
(A) the President determines that the acts,
policies, or practices of the foreign country
which give rise to such determination are sub-
ject to any bilateral or multilateral agreement
that governs financial services that has been en-
tered into by the President and approved by the
Senate and House of Representatives; and
(B) the agreement provides for a formal
process for resolving disputes regarding obliga-
tions under the agreement;
the United States shall initiate a proceeding under
the agreement to enforce the rights of the United
States under the agreement.
(3) ANNUAL REVIEW OF DETERMINATIONS.—
The President shall, not less frequently than annu-
ally, review each determination published pursuant
to paragraph (1) to determine whether the deter-
mination should be rescinded.
(4) NOTIFICATION OF APPROPRIATE STATE OF-
FICIALS OF PUBLICATION OF DETERMINATION.—The
President shall inform appropriate State insurance
regulatory agencies of the publication of any deter-
mination under paragraph (1).
(e) DISCRETIONARY SANCTIONS.—
(1) ACTION BY THE PRESIDENT.—Subject to
paragraph (2), the President may recommend to the
Secretary of the Treasury that the Secretary sus-
pend the acceptance of, or not accept, a registration
statement that is filed pursuant to subsection (j)
after the date of publication of a determination
under subsection (d)(1) by a person of a foreign
country listed in such publication if the President
determines that—
(i) such action would assist the Unit-
ed States in negotiations to eliminate deni-
als of national treatment against United
States insurance organizations;
(ii) the country has not adequately
adhered to an agreement reached as a re-
sult of negotiations undertaken pursuant
to subsection (c).
(2) CONSISTENCY WITH BILATERAL AND MUL-
TILATERAL
AGREEMENTS.—The authority of the
President under paragraph (1) may not be used to
take actions with respect to a foreign country which
are inconsistent with any bilateral or multilateral
agreement that governs financial services in which
such country is obligated to provide national treat-
ment for United States insurance organizations.
(3) SUSPENSIONS
OF
FILINGS
OF
REGISTRA-
TIONS.—
(A) IN
GENERAL.—Notwithstanding any
other provision of law, if the President rec-
ommends, pursuant to paragraph (1), that the
Secretary suspend the acceptance of any reg-
istration of an alien insurance company under
subsection (j), the Secretary shall—
(i) suspend the Secretary’s acceptance
of such registration for a period of 180
days; and
(ii) at the recommendation of the
President, extend such suspension for an
additional period of 180 days.
(B) TERMINATION OF SUSPENSION.—The
Secretary shall, on the recommendation of the
President, terminate any suspension in effect
under clause (i).
(C) ALTERNATIVE ACTION.—If the Presi-
dent determines that the procedure outlined in
subparagraph (A) is either inappropriate or im-
practical to achieve the purpose of this section,
the President may take such action under other
provisions of law as the President considers
necessary and appropriate to encourage foreign
countries to accord national treatment to Unit-
ed States insurance organizations that operate
or seek to operate in those countries.
(f) EXISTING ALIEN INSURANCE ORGANIZATION AC-
TIVITY.—The authority of subsection (e) may not be exer-
cised with the respect to any registration filed by an alien
insurance organization which is engaged in insurance ac-
tivities within the United States as of January 4, 1995.
(g) REPORT.—
(1) CONTENTS
OF
REPORT.—Not later than
December 1, 1996, and annually after such date, the
President shall transmit to the Speaker of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate
a report that—
(A) specifies the foreign countries identi-
fied under subsection (a);
(B) if a determination has been published
under subsection (d)(1) with respect to a for-
eign country, provides the reasons for such de-
termination;
(C) if the President has not made or has
rescinded such a determination with respect to
a foreign country, provides the reasons for the
failure to make the determination or for the re-
scission;
(D) describes the results of any negotia-
tions conducted under subsection (c)(1) with a
foreign country; and
(E) discusses the effectiveness of the ad-
ministration of this section in achieving the
purposes of the section.
(2) SUBMISSION OF REPORT.—The report re-
quired by paragraph (1) may be submitted as part
of a report or update submitted under section 3602
of the Omnibus Trade and Competitiveness Act of
1988.
(h) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) ALIEN
INSURANCE
ORGANIZATION.—The
term ‘‘alien insurance organization’’ means an insur-
ance organization which is a person of a foreign
country.
(2) INSURANCE ORGANIZATION.—The term ‘‘in-
surance organization’’ means any insurer and any
reinsurer.
(3) INSURER.—The term ‘‘insurer’’ means a
party to a contract of insurance who assumes the
risk and undertakes to indemnify the insured, or to
pay a certain sum on the occurrence of a specified
contingency.
(4) REINSURER.—The term ‘‘reinsurer’’ means
an insurer which contracts to indemnify a ceding in-
surer for all or part of a risk originally undertaken
by the ceding insurer.
(i) CONSULTATION.—In carrying out the duties
under this section, the President may consult with the ap-
propriate State insurance commissioners or regulatory
agencies and other entities the President may consider ap-
propriate.
(j) REGISTRATION OF ALIEN INSURANCE ORGANIZA-
TIONS WITH THE SECRETARY.—
(1) IN GENERAL.—No alien insurance organiza-
tion may engage in insurance activities within the
United States after the date of the enactment of this
Act unless—
(A) a registration statement has been filed
by the organization with the Secretary indicat-
ing the organization’s intention to engage in in-
surance activities within the United States; and
(B) applicable State insurance require-
ments have been satisfied.
(2) ANNUAL
REPORT.—The Secretary shall
submit an annual report to the Congress on the ex-
tent of alien insurance organization activity within
the United States.
(k) DELEGATION.—
(1) IN GENERAL.—The President may delegate
any authority of the President under this section.
(2) EXERCISE OF AUTHORITY.—If the Presi-
dent delegates any authority of the President under
this section, the designee’s authority shall be exer-
cised according to the specific direction (if any) of
the President.
SEC. 6. CONFORMING AMENDMENTS.
(a) REPORTS ON FOREIGN TREATMENT OF UNITED
STATES FINANCIAL INSTITUTIONS.—Section 3602 of the
Omnibus Trade and Competitiveness Act of 1988 (22
U.S.C. 5352) is amended—
(1) in the 1st sentence, by inserting ‘‘with up-
dates on significant developments every 2 years fol-
lowing the study conducted in 1994,’’ before ‘‘the
Secretary of the Treasury’’; and
(2) by adding at the end the following: ‘‘For
purposes of this section, a foreign country denies na-
tional treatment to United States entities unless the
foreign country offers such entities the same com-
petitive opportunities (including effective market ac-
cess) as are available to the domestic entities of the
foreign country in like circumstances.’’.
(b) NEGOTIATIONS TO PROMOTE FAIR TRADE IN FI-
NANCIAL SERVICES.—Section 3603(a)(1) of the Omnibus
Trade and Competitiveness Act of 1988 (22 U.S.C.
5353(a)(1)) is amended by inserting ‘‘effective’’ before
‘‘access’’.
(c) PRIMARY DEALERS IN GOVERNMENT DEBT IN-
STRUMENTS.—Section 3502(b)(1) of the Omnibus Trade
and Competitiveness Act of 1988 (22 U.S.C. 5342(b)(1))
is amended—
(1) by striking ‘‘does not accord to’’ and insert-
ing ‘‘does not offer’’; and
(2) by striking ‘‘as such country accords to do-
mestic companies of such country.’’ and inserting
‘‘as are available to domestic companies of such
country in like circumstances.’’.
(d) CONFORMING AMENDMENTS TO THE SECURITIES
EXCHANGE ACT OF 1934.—
(1) SECTION 15.—Section 15(b)(1) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78o(b)(1))
is amended by adding at the end the following: ‘‘The
Commission may suspend consideration or deny reg-
istration, as provided in section 4(e) of the Fair
Trade in Financial Services Act of 1995.’’.
(2) SECTION
15B.—Section 15B(a)(2) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–
4(a)(2)) is amended by adding at the end the follow-
ing: ‘‘The Commission may suspend consideration
and deny registration, as provided in section 4(e) of
the Fair Trade in Financial Services Act of 1995’’.
(3) SECTION 15C.—Section 15C(a)(2) of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78o–
5(a)(2)) is amended by adding at the end the follow-
ing: ‘‘The Commission may suspend consideration
and deny registration, as provided in section 4(e) of
the Fair Trade in Financial Services Act of 1995.’’.
(e) CONFORMING AMENDMENT TO THE INVESTMENT
COMPANY ACT OF 1940.—Section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a–8) is amended by
adding at the end the following new subsection:
‘‘(g) The Commission may suspend consideration and
deny registration, as provided in section 4(e) of the Fair
Trade in Financial Services Act of 1995.’’.
(f) CONFORMING AMENDMENT TO THE INVESTMENT
ADVISERS ACT OF 1940.—Section 203(c)(2) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. (c)(2)) is amended
by adding at the end the following: ‘‘The Commission may
suspend consideration or deny registration, as provided in
section 4(e) of the Fair Trade in Financial Services Act
of 1995.’’.
(g) REPORT ON DENIAL OF NATIONAL TREATMENT
FOR INSURANCE ORGANIZATIONS.—Section 3602(3) of
the Omnibus Trade and Competitiveness Act of 1988 (22
U.S.C. 5352(3)) is amended by inserting ‘‘, insurance or-
ganizations,’’ after ‘‘banking organizations’’.
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