CELEX: 21999A0127(01)
Language: ro
Date: 1998-02-27 00:00:00
Title: Fifth protocol to the general agreement on trade in services

11/vol. 18           RO                                Jurnalul Oficial al Uniunii Europene                                                       177

21999A0127(01)

L 20/40                                    JURNALUL OFICIAL AL COMUNITĂȚILOR EUROPENE                                                        27.1.1999

                                                                      ANNEX

                          FIFTH PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN SERVICES

             MEMBERS OF THE WORLD TRADE ORGANISATION (hereinafter referred to as „the WTO”) whose Schedules of specific
             commitments and lists of exemptions from Article II of the General Agreement on Trade in Services concerning financial
             services are annexed to this Protocol (hereinafter referred to as „Members concerned”),

             Having carried out negotiations under the terms of the second Decision on financial services adopted by the Council for Trade
             in Services on 21 July 1995 (S/L/9),

             AGREE AS FOLLOWS:

             1. A schedule of specific commitments and a list of exemptions from Article II concerning financial services
                annexed to this Protocol relating to a Member shall, upon the entry into force of this Protocol for that Member,
                replace the financial services sections of the schedule of specific commitments and the list of Article II
                exemptions of that Member.
             2. This Protocol shall be open for acceptance, by signature or otherwise, by the Member concerned until 29
                January 1999.
             3. This Protocol shall enter into force on the 30th day following the date of its acceptance by all Members
                concerned. If by 30 January 1999 it has not been accepted by all Members concerned, those Members which
                have accepted it before that date may, within a period of 30 days thereafter, decide on its entry into force.
             4. This Protocol shall be deposited with the Director-General of the WTO. The Director- General of the WTO shall
                promptly furnish to each Member of the WTO a certified copy of this Protocol and notifications of acceptances
                thereof pursuant to paragraph 3.
             5. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the United
                Nations.

             Done at Geneva this twenty-seventh day of February one thousand nine hundred and ninetyeight, in a single copy
             in English, French and Spanish languages, each text being authentic, except as otherwise provided for in respect
             of the schedules annexed hereto.
 ---pagebreak--- 178                      RO                                       Jurnalul Oficial al Uniunii Europene                                                               11/vol. 18

                                                                                     ANNEX

                                                  EUROPEAN COMMUNITIES AND THEIR MEMBER STATES

                                                                SCHEDULE OF SPECIFIC COMMITMENTS

                                                                                  Supplement 4

                                                 (THIS IS AUTHENTIC IN ENGLISH, FRENCH AND SPANISH)

This text replaces the financial services section contained in document GATS/SC/31/Suppl. 1/Rev. 1.

Modes of supply:        (1) Cross-border supply         (2) Consumption abroad           (3) Commercial presence          (4) Presence of natural persons

      Sector or sub-sector                         Limitations on market access                           Limitations on national treatment             Additional commitments

FINANCIAL SERVICES SECTOR (1)
1. The Communities and their Member States undertake commitments on financial services in accordance with the provisions of the „Understanding on
   commitments in financial services” („the Understanding”).
2. These commitments are subject to the limitations on market access and national treatment in the „all sectors” section of this schedule and to those
   relating to the sub-sectors listed below.
3. The market access commitments in respect of modes (1) and (2) apply only to the transactions indicated in paragraphs B.3 and B.4 of the market access
   section of the Understanding respectively.
4. Notwithstanding note 1 above, the market access and national treatment commitments in respect of mode (4) on financial services are those in the „all
   sectors” section of this schedule, except for Sweden in which case commitments are made in accordance with the Understanding.
5. The admission to the market of new financial services or products may be subject to the existence of, and consistency with, a regulatory framework
   aimed at achieving the objectives indicated in Article 2(a) of the financial services Annex.
6. As a general rule and in a non-discriminatory manner, financial institutions incorporated in a Member State of the Community must adopt a specific
   legal form.

A.    Insurance        and          (1)    A: Promotional activity and intermediation              (1)    A: Higher premium tax is due for             The European Commu-
      insurance-related                    on behalf of a subsidiary not established in                   insurance contracts (except for              nities and their Member
      services                             the Community or of a branch not established                   contracts on reinsurance and                 States undertake addi-
                                           in Austria (except for reinsurance and                         retrocession) which are written by a         tional commitments as
                                           retrocession) are prohibited.                                  subsidiary not established in the            contained      in   the
                                                                                                          Community or by a branch not                 attachment.
                                           A: Compulsory air insurance can be                             established in Austria. Exception
                                           underwritten only by a subsidiary established                  from the higher tax can be granted.
                                           in the Community or by a branch established
                                           in Austria.

                                           DK: Compulsory air transport insurance can
                                           be underwritten only by firms established in
                                           the Community.

                                           DK: No persons or companies (including
                                           insurance companies) may for business
                                           purposes in Denmark assist in effecting direct
                                           insurance for persons resident in Denmark,
                                           for Danish ships or for property in Denmark,
                                           other than insurance companies licensed by
                                           Danish law or by Danish competent
                                           authorities.

(1) Unlike foreign subsidiaries, branches established directly in a Member State by a non-Community financial institution are not, with certain limited exceptions, subject to pru-
    dential regulations harmonised at Community level which enable such subsidiaries to benefit from enhanced facilities to set up new establishments and to provide cross-
    border services throughout the Community. Therefore, such branches receive an authorisation to operate in the territory of a Member State under conditions equivalent to
    those applied to domestic financial institutions of that Member State, and may be required to satisfy a number of specific prudential requirements such as, in the case of
    banking and securities, separate capitalisation and other solvency requirements and reporting and publication of accounts requirements or, in the case of insurance, specific
    guarantee and deposit requirements, a separate capitalisation, and the localisation in the Member State concerned of the assets representing the technical reserves and at least
    one third of the solvency margin. Member States may apply the restrictions indicated in this schedule only with regard to the direct establishment from a third country of a
    commercial presence or to the provision of cross-border services from a third country; consequently, a Member State may not apply these restrictions, including those
    concerning establishment, to third-country subsidiaries established in other Member States of the Community, unless these restrictions can also be applied to companies or
    nationals of other Member States in conformity with Community law.
 ---pagebreak--- 11/vol. 18            RO                                 Jurnalul Oficial al Uniunii Europene                                                           179

Modes of supply:     (1) Cross-border supply    (2) Consumption abroad       (3) Commercial presence        (4) Presence of natural persons

    Sector or sub-sector                    Limitations on market access                      Limitations on national treatment       Additional commitments

                                     D: Compulsory air insurance policies can be
                                     underwritten only by a subsidiary established
                                     in the Community or by a branch established
                                     in Germany.

                                     D: If a foreign insurance company has
                                     established a branch in Germany, it may
                                     conclude insurance contracts in Germany
                                     relating to international transport only
                                     through the branch established in Germany.

                                     E, I: Unbound for the actuarial profession.

                                     FIN: Only insurers having their head office in
                                     the European Economic Area or having their
                                     branch in Finland may offer insurance
                                     services as referred to in subparagraph 3(a) of
                                     the Understanding.

                                     FIN: The supply of insurance broker services
                                     is subject to a permanent place of business in
                                     the European Economic Area.

                                     F: Insurance of risks relating to ground
                                     transport may be carried out only by
                                     insurance firms established in the
                                     Community.

                                     I: Insurance of risks relating to cif exports by
                                     residents in Italy may be underwritten only by
                                     insurance firms established in the
                                     Community.

                                     I: Transport insurance of goods, insurance of
                                     vehicles as such and liability insurance
                                     regarding risks located in Italy may be
                                     underwritten only by insurance companies
                                     established in the Community. This
                                     reservation does not apply for international
                                     transport involving imports into Italy.

                                     P: Air and maritime transport insurance,
                                     covering goods, aircraft, hull and liability can
                                     be underwritten only by firms established in
                                     the EC; only persons or companies established
                                     in the EC may act as intermediaries for such
                                     insurance business in Portugal.

                                     S: The supply of direct insurance is allowed
                                     only through an insurance service supplier
                                     authorised in Sweden, provided that the
                                     foreign service supplier and the Swedish
                                     insurance company belong to the same group
                                     of companies or have an agreement of
                                     cooperation between them.

                               (2)   A: Promotional activity and intermediation         (2)   A: Higher premium tax is due for
                                     on behalf of a subsidiary not established in             insurance contracts (except for
                                     the Community or of a branch not established             contracts on reinsurance and
                                     in Austria (except for reinsurance and                   retrocession) which are written by a
                                     retrocession) are prohibited.                            subsidiary not established in the
                                                                                              Community or by a branch not
                                     A: Compulsory air insurance can be                       established in Austria. Exception
                                     underwritten only by a subsidiary established            from the higher tax can be granted.
                                     in the Community or by a branch established
                                     in Austria.
 ---pagebreak--- 180                     RO                                 Jurnalul Oficial al Uniunii Europene                                                    11/vol. 18

Modes of supply:       (1) Cross-border supply    (2) Consumption abroad       (3) Commercial presence        (4) Presence of natural persons

      Sector or sub-sector                    Limitations on market access                      Limitations on national treatment       Additional commitments

                                       DK: Compulsory air transport insurance can
                                       be underwritten only by firms established in
                                       the Community.

                                       DK: No persons or companies (including
                                       insurance companies) may for business
                                       purposes in Denmark assist in effecting direct
                                       insurance for persons resident in Denmark,
                                       for Danish ships or for property in Denmark,
                                       other than insurance companies licensed by
                                       Danish law or by Danish competent
                                       authorities.

                                       D: Compulsory air insurance policies can be
                                       underwritten only by a subsidiary established
                                       in the Community or by a branch established
                                       in Germany.

                                       D: If a foreign insurance company has
                                       established a branch in Germany, it may
                                       conclude insurance contracts in Germany
                                       relating to international transport only
                                       through the branch established in Germany.

                                       F: Insurance of risks relating to ground
                                       transport may be carried out only by
                                       insurance firms established in the
                                       Community.

                                       I: Insurance of risks relating to cif exports by
                                       residents in Italy may be underwritten only by
                                       insurance firms established in the
                                       Community.

                                       I: Transport insurance of goods, insurance of
                                       vehicles as such and liability insurance
                                       regarding risks located in Italy may be
                                       underwritten only by insurance companies
                                       established in the Community. This
                                       reservation does not apply for international
                                       transport involving imports into Italy.

                                       P: Air and maritime transport insurance,
                                       covering goods, aircraft, hull and liability can
                                       be underwritten only by firms established in
                                       the EC; only persons or companies established
                                       in the EC may act as intermediaries for such
                                       insurance business in Portugal.

                                 (3)   A: The licence for branch offices of foreign       (3)   FIN: The general agent of the
                                       insurers has to be denied if the insurer, in the         foreign insurance company shall
                                       home country, does not have a legal form                 have his place of residence in
                                       corresponding or comparable to a joint stock             Finland, unless the company has its
                                       company or a mutual insurance association.               head office in the European Econo-
                                                                                                mic Area.

                                       B: Any public bid to acquire Belgian securities          S: Non-life insurance undertakings
                                       made by or on behalf of a person, company                not incorporated in Sweden
                                       or institution outside the jurisdiction of one           conducting business in Sweden are
                                       of the Member States of the European                     – instead of being taxed according
                                       Community shall be submitted to the                        to the net result
                                       authorisation of the Minister of Finance.                – subject to taxation based on the
                                                                                                  premium income from direct
                                                                                                  insurance operations
 ---pagebreak--- 11/vol. 18            RO                                 Jurnalul Oficial al Uniunii Europene                                                        181

Modes of supply:     (1) Cross-border supply   (2) Consumption abroad        (3) Commercial presence     (4) Presence of natural persons

    Sector or sub-sector                    Limitations on market access                   Limitations on national treatment       Additional commitments

                                     E: Before establishing a branch or agency in          S: A founder of an insurance
                                     Spain to provide certain classes of insurance,        company shall be a natural person
                                     a foreign insurer must have been authorised           resident in the European Economic
                                     to operate in the same classes of insurance in        Area or a legal entity incorporated
                                     its country of origin for at least five years.        in the European Economic Area.

                                     E, GR: The right of establishment does not
                                     cover the creation of representative offices or
                                     other permanent presence of insurance
                                     companies, except where such offices are
                                     established as agencies, branches or head
                                     offices.

                                     FIN: The managing director, at least one
                                     auditor and at least one half of the promoters
                                     and members of the board of directors and
                                     the supervisory board of an insurance
                                     company shall have their place of residence in
                                     the European Economic Area, unless the
                                     Ministry of Social Affairs and Health has
                                     granted an exemption.

                                     FIN: Foreign insurers cannot get a licence in
                                     Finland as a branch to carry on statutory
                                     social insurances (statutory pension
                                     insurance, statutory accident insurance).

                                     F: The establishment of branches is subject to
                                     a special authorisation for the representative
                                     of the branch.

                                     I: Access to actuarial profession through natu-
                                     ral persons only. Professional associations (no
                                     incorporation) among natural persons
                                     permitted.

                                     I: The authorisation of the establishment of
                                     branches is ultimately subject to the
                                     evaluation of supervisory authorities.

                                     IRL: The right of establishment does not
                                     cover the creation of representative offices.

                                     P: Foreign companies may carry out insurance
                                     intermediation in Portugal only through a
                                     company formed in accordance with the law
                                     of a Community Member State.

                                     P: In order to establish a branch in Portugal,
                                     foreign companies need to demonstrate prior
                                     operational experience of at least five years.

                                     S: Foreign companies may only establish as a
                                     subsidiary or through a resident agent.

                                     S: Insurance broking undertakings not
                                     incorporated in Sweden may establish a
                                     commercial presence only through a branch.
 ---pagebreak--- 182                      RO                                      Jurnalul Oficial al Uniunii Europene                                                                11/vol. 18

Modes of supply:       (1) Cross-border supply         (2) Consumption abroad           (3) Commercial presence          (4) Presence of natural persons

      Sector or sub-sector                         Limitations on market access                           Limitations on national treatment             Additional commitments

                                    (4)    Unbound except as indicated in the horizontal           (4)    Unbound except as indicated in the
                                           section and subject to the specific conditions:                horizontal section and subject to
                                                                                                          the following specific limitations:

                                           GR: A majority of the members of the board                     A: The management of a branch
                                           of directors of a company established in                       office must consist of two natural
                                           Greece shall be nationals of one of the                        persons resident in Austria.
                                           Member States of the Community.

                                                                                                          DK: The general agent of an
                                                                                                          insurance branch will need to have
                                                                                                          resided in Denmark for the last two
                                                                                                          years unless being a national of one
                                                                                                          of the Member States of the
                                                                                                          Community. The Minister of
                                                                                                          Business and Industry may grant
                                                                                                          exemption.

                                                                                                          DK: Residency requirement for
                                                                                                          managers and the members of the
                                                                                                          board of directors of a company.
                                                                                                          However, the Minister of Business
                                                                                                          and Industry may grant exemption
                                                                                                          from this requirement. Exemption
                                                                                                          is granted on a non-discriminatory
                                                                                                          basis.

                                                                                                          E, I: Residence requirement for
                                                                                                          actuarial profession.

B     Banking and other             (1) (1) B: Establishment in Belgium is required for            (1)    None                                        The European Commu-
      financial     services                the provision of investment advisory services.                                                            nities and their Member
      (excluding insurance)                                                                                                                           States undertake addi-
                                           I: Unbound for „promotori di servizi                                                                       tional commitments as
                                           finanziari” (financial salesmen).                                                                          contained      in   the
                                                                                                                                                      attachment.
                                           IRL: The provision of investment services or
                                           investment advice requires either: (i)
                                           authorisation in Ireland, which normally
                                           requires that the entity be incorporated or be
                                           a partnership or a sole trader, in each case
                                           with a head/registered office in Ireland
                                           (authorisation may not be required in certain
                                           cases, e.g. where a third country service
                                           provider has no commercial presence in
                                           Ireland and the service is not provided to pri-
                                           vate individuals); or (ii) authorisation in
                                           another Member State in accordance with the
                                           EC Investment Services Directive.

(1) I: Provision and transfer of financial information and financial data processing entailing trading of financial instruments may be prohibited where the protection of investors
    is likely to be seriously prejudiced. Only authorised banks and investment firms must comply with conduct of business rules in providing investment advice concerning
    financial instruments and advice to undertakings on capital structure, industrial strategy and related matters, and advice and service relating to mergers and acquisition of
    undertakings. Advisory activity should not include asset management.
 ---pagebreak--- 11/vol. 18              RO                                     Jurnalul Oficial al Uniunii Europene                                                                    183

Modes of supply:       (1) Cross-border supply       (2) Consumption abroad          (3) Commercial presence         (4) Presence of natural persons

      Sector or sub-sector                       Limitations on market access                         Limitations on national treatment           Additional commitments

                                   (2) (1) D: Issues of securities denominated in Ger-         (2)    None
                                           man marks can be lead managed only by a
                                           credit institution, subsidiary or branch,
                                           established in Germany.

                                         FIN: Payments from governmental entities
                                         (expenses) shall be transmitted through the
                                         Finnish postal giro system, which is
                                         maintained by Postipankki Ltd. Exemption
                                         from this requirement may be granted on spe-
                                         cial reason by the Ministry of Finance.

                                         GR: Establishment is required for the
                                         provision of custodial and depository services
                                         involving the administration of interest and
                                         principal payments due on securities issued in
                                         Greece.

                                         UK: Sterling issues, including privately led
                                         issues, can be lead managed only by a firm
                                         established in the European Economic Area

                                   (3)   All Member States:                                    (3)    F: In addition to French credit
                                                                                                      institutions, issues denominated in
                                         — the establishment of a specialised mana-                   French francs may be lead managed
                                           gement company is required to perform                      only by French subsidiaries (under
                                           the activities of management of unit trusts                French law) of non- French banks
                                           and investment companies (Articles 6 and                   which are authorised, based on
                                           13 of UCITS Directive, 85/611/EEC),                        sufficient means and commitments
                                         — only firms having their registered office in               in Paris of the candidate French
                                           the Community can act as depositories of                   subsidiary of a non-French bank.
                                           the assets of investment funds                             These conditions apply to lead
                                           (Articles 8.1 and 15.1 of the UCITS Direc-                 banks running the books. A non-
                                           tive 85/611/EEC).                                          French bank may be, without
                                                                                                      restrictions or requirement to
                                                                                                      establish, jointlylead or co-lead
                                                                                                      manager of Eurofranc bond issue.

                                         A: Only members of the Austrian stock                        I: Representative offices of foreign
                                         exchange may engage in securities trading at                 intermediaries cannot carry out
                                         the stock exchange                                           activities aimed at providing
                                                                                                      investment services.

                                         A: For trading in foreign exchange and foreign               S: A founder of a banking company
                                         currency authorisation of the Austrian                       shall be a natural person resident in
                                         national bank is required.                                   the European Economic Area or a
                                                                                                      foreign bank. A founder of a savings
                                         A: Mortgage bonds and municipal bonds may                    bank shall be a natural person
                                         be issued by banks specialised and authorised                resident in the European Economic
                                         for this activity.                                           Area

                                         A: For carrying out services of pension fund
                                         management a specialised company only for
                                         this activity and incorporated as a stock
                                         company in Austria is required.

(1) I: Authorised persons enabled to conduct collective asset management are deemed responsible for any investment activity conducted by their delegated advisers (collective
    asset management, excluding UCITS).
 ---pagebreak--- 184                     RO                                 Jurnalul Oficial al Uniunii Europene                                                 11/vol. 18

Modes of supply:       (1) Cross-border supply    (2) Consumption abroad       (3) Commercial presence     (4) Presence of natural persons

      Sector or sub-sector                    Limitations on market access                   Limitations on national treatment       Additional commitments

                                       B: Any public bid to acquire Belgian securities
                                       made by or on behalf of a person, company
                                       or institution outside the jurisdiction of one
                                       of the Member States of the European
                                       Community shall be submitted to the
                                       authorisation of the Minister of Finance.

                                       DK: Financial institutions may engage in
                                       securities trading on the Copenhagen stock
                                       exchange only through subsidiaries
                                       incorporated in Denmark.

                                       E: Financial institutions may engage in
                                       securities trading in securities listed on an
                                       official stock exchange or in the Government
                                       securities market only through securities
                                       firms incorporated in Spain.

                                       FIN: At least one half of the founders, the
                                       members of the board of directors, the
                                       supervisory board and the delegates, the
                                       managing director, the holder of the
                                       procuration and the person entitled to sign in
                                       the name of the credit institution shall have
                                       their place of residence in the European Eco-
                                       nomic Area, unless the Ministry of Finance
                                       grants an exemption. At least one auditor
                                       shall have his place of residence in the Euro-
                                       pean Economic Area.

                                       FIN: The broker (individual person) on
                                       derivative exchange shall have his place of
                                       residence in the European Economic Area.
                                       Exemption from this requirement may be
                                       granted under the conditions set by the
                                       Ministry of Finance.

                                       FIN: Payments from governmental entities
                                       (expenses) shall be transmitted through the
                                       Finnish postal giro system, which is
                                       maintained by Postipankki Ltd. Exemption
                                       from this requirement may be granted on spe-
                                       cial reason by the Ministry of Finance.

                                       GR: Financial institutions may engage in the
                                       trading of securities listed on the Athens stock
                                       exchange only through stock exchange firms
                                       incorporated in Greece.

                                       GR: For the establishment and operations of
                                       branches a minimum amount of foreign
                                       exchange must be imported, converted into
                                       drachmas and kept in Greece as long as a
                                       foreign bank continues to operate in Greece:
                                       — up to four (4) branches, this minimum is
                                         currently equal to half of the minimum
                                         amount of share capital required for a cre-
                                         dit institution to be incorporated in
                                         Greece,
                                       — for the operation of additional branches
                                         the minimum amount of capital must be
                                         equal to the minimum share capital
                                         required for a credit institution to be
                                         incorporated in Greece.
 ---pagebreak--- 11/vol. 18            RO                                 Jurnalul Oficial al Uniunii Europene                                                        185

Modes of supply:     (1) Cross-border supply   (2) Consumption abroad        (3) Commercial presence     (4) Presence of natural persons

    Sector or sub-sector                    Limitations on market access                   Limitations on national treatment       Additional commitments

                                     I: In providing the activity of door-to-door
                                     selling, intermediaries must utilise authorised
                                     financial salesmen resident within the
                                     territory of a Member State of the European
                                     Communities.

                                     I: Clearing and settlement of securities may be
                                     conducted only by the official clearing system.
                                     A company authorised by the Bank of Italy in
                                     agreement with Consob could be entrusted
                                     with the activity of clearing, up to the final
                                     settlement of securities.

                                     I: The public offer of securities (as provided
                                     for under Article 18 of Law 216/74) other
                                     than shares, debt securities (including
                                     convertible debt securities) can only be made
                                     by Italian limited companies, foreign
                                     companies duly authorised, public bodies or
                                     companies belonging to local authorities
                                     whose assigned capital is not below ITL 2
                                     billion.

                                     I: Centralised deposit, custody and
                                     administration services can be provided only
                                     by the Bank of Italy for Government
                                     securities, or by Monte Titoli SpA for shares,
                                     securities of a participating nature and other
                                     bonds traded in a regulated market.

                                     I: In the case of collective investment schemes
                                     other than harmonised UCITS under Direc-
                                     tive 85/611/EEC, the trustee/depositary is
                                     required to be incorporated in Italy or in
                                     another Member State of the European
                                     Community, being established through a
                                     branch in Italy. Only banks, insurance
                                     companies, securities investment companies
                                     having their legal head office in the European
                                     Community may carry out activity of pension
                                     fund resources management. Management
                                     companies (closed-end funds and real estate
                                     funds) are also required to be incorporated in
                                     Italy.

                                     IRL: In the case of collective investment
                                     schemes constituted as unit trusts and variable
                                     capital companies (other than undertakings
                                     for collective investment in transferable
                                     securities, UCITS), the trustee/depositary and
                                     management company is required to be
                                     incorporated in Ireland or in another Member
                                     State of the Community. In the case of an
                                     investment limited partnership, at least one
                                     general partner must be incorporated in
                                     Ireland.
 ---pagebreak--- 186                     RO                                 Jurnalul Oficial al Uniunii Europene                                                 11/vol. 18

Modes of supply:       (1) Cross-border supply   (2) Consumption abroad        (3) Commercial presence     (4) Presence of natural persons

      Sector or sub-sector                    Limitations on market access                   Limitations on national treatment       Additional commitments

                                       IRL: To become a member of a stock
                                       exchange in Ireland, an entity must either: (i)
                                       be authorised in Ireland, which requires that
                                       it be incorporated or be a partnership, with a
                                       head/ registered office in Ireland; or (ii) be
                                       authorised in another Member State in
                                       accordance with the EC Investment Services
                                       Directive.

                                       IRL: The provision of investment services or
                                       investment advice requires either: (i)
                                       authorisation in Ireland, which normally
                                       requires that the entity be incorporated or be
                                       a partnership or a sole trader, in each case
                                       with a head/registered office in Ireland (the
                                       supervisory authority may also authorise
                                       branches of third country entities); or (ii)
                                       authorisation in another Member State in
                                       accordance with the EC Investment Services
                                       Directive.

                                       P: The establishment of non-EC banks is
                                       subject to an authorisation issued, on a case-
                                       by-case basis, by the Minister of Finance. The
                                       establishment has to contribute to increase
                                       the national banking system’s efficiency or
                                       has to produce significant effects on the
                                       internationalisation of the Portuguese
                                       economy.

                                       P: The services of venture capital may not be
                                       provided by branches of venture capital
                                       companies having their head office in a
                                       non-EC country. Broker-dealer services on the
                                       Lisbon stock exchange may be provided by
                                       broker and dealer companies incorporated in
                                       Portugal or by branches of investment firms
                                       authorised in another EC country and
                                       authorised in their home country to provide
                                       those services. Broker and dealer services in
                                       the Oporto derivatives exchange and in the
                                       OTC market may not be provided by branches
                                       of non-EC broker/dealer companies.

                                       Pension fund management may be provided
                                       only by companies incorporated in Portugal
                                       and by insurance companies established in
                                       Portugal and authorised to take up the life
                                       insurance business.

                                       UK: Inter-dealer brokers, which are a category
                                       of financial institutions dealing in
                                       Government debt, are required to be
                                       established in the European Economic Area
                                       and separately capitalised.
 ---pagebreak--- 11/vol. 18            RO                                 Jurnalul Oficial al Uniunii Europene                                                          187

Modes of supply:     (1) Cross-border supply   (2) Consumption abroad        (3) Commercial presence       (4) Presence of natural persons

    Sector or sub-sector                    Limitations on market access                     Limitations on national treatment       Additional commitments

                                     S: Undertakings not incorporated in Sweden
                                     may establish a commercial presence only
                                     through a branch, and in case of banks, also
                                     through a representative office.

                               (4)   Unbound except as indicated in the horizontal     (4)   Unbound except as indicated in the
                                     section and subject to the specific conditions:         horizontal section and subject to
                                                                                             the following specific limitations:

                                     F: „Sociétés d’investissement à capital fixe:”          I: Condition of residence within the
                                     condition of nationality for the president of           territory of a Member State of the
                                     the board of directors, the directors-general           European        Communities      for
                                     and no less than two thirds of the                      „promotori di servizi finanziari”
                                     administrators, and also, when the securities           (financial salesmen).
                                     firm has a supervisory board or council, for
                                     the members of such board or its director-
                                     general, and no less than two thirds of the
                                     members of the supervisory council.

                                     GR: Credit institutions should name at least
                                     two persons who are responsible for the
                                     operations of the institution. Condition of
                                     residency applies to these persons.
 ---pagebreak--- 188      RO                                  Jurnalul Oficial al Uniunii Europene                                                 11/vol. 18

       ADDITIONAL COMMITMENTS BY THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES

      INSURANCE

      (a) The European Communities and their Member States note the close cooperation among the insurance regulatory
          and supervisory authorities of the Member States and encourage their efforts to promote improved supervisory
          standards.

      (b) Member States will make their best endeavours to consider within six months complete applications for licences
          to conduct direct insurance underwriting business, through the establishment in a Member State of a subsidiary
          in accordance with the legislation of that Member State, by an undertaking governed by the laws of a third country.
          In cases where such applications are refused, the Member State authority will make its best endeavours to notify
          the undertaking in question and give the reasons for the refusal of the application.

      (c) The supervisory authorities of the Member States will make their best endeavours to respond without undue delay
          to requests for information by applicants on the status of complete applications for licences to conduct direct
          insurance underwriting business, through the establishment in a Member State of a subsidiary in accordance with
          the legislation of that Member State by an undertaking governed by the laws of a third country.

      (d) The European Communities and their Member States will make their best endeavours to examine any questions
          pertaining to the smooth operation of the internal market in insurance, and consider any issues that might have
          an impact on the internal market in insurance.

      (e) The European Communities and their Member States note that, as regards motor insurance, under EC law as in
          force on 31 December 1997, and without prejudice to future legislation, premiums may be calculated taking
          several risk factors into account.

      (f) The European Communities and their Member States note that under EC law, as in force on 31 December 1997,
          and without prejudice to future legislation, the prior approval by national supervisory authorities of policy
          conditions and scales of premiums that an insurance undertaking intends to use is generally not required.

      (g) The European Communities and their Member States not that under EC law, as in force on 31 December 1997,
          and without prejudice to future legislation, the prior approval by national supervisory authorities of increases in
          premium rates is generally not required.

      OTHER FINANCIAL SERVICES

      (a) In application of the relevant EC directives, Member States will make their best endeavours to consider within 12
          months complete applications for licences to conduct banking activities, through the establishment in a Member
          State of a subsidiary in accordance with the legislation of that member State, by an undertaking governed by the
          laws of a third country. In cases where such applications are refused, the Member State will make its best
          endeavours to notify the undertaking in question and give the reasons for the refusal of the application.

      (b) Member States will make their best endeavours to respond without undue delay to requests for information by
          applicants on the status of complete applications for licences to conduct banking activities, through the
          establishment in a Member State of a subsidiary in accordance with the legislation of that Member State, by an
          undertaking governed by the laws of a third country.

      (c) In application of the relevant EC directives, Member States will make their best endeavours to consider within six
          months complete applications for licences to conduct investment services in the securities field, as defined in the
          Investment Services Directive, through the establishment in a Member State of a subsidiary in accordance with
          the legislation of that Member State, by an undertaking governed by the laws of a third country. In cases where
          such applications are refused, the Member State will make its best endeavours to notify the undertaking in question
          and give the reasons for the refusal of the application.

      (d) Member States will make their best endeavours to respond without undue delay to requests for information by
          applicants on the status of complete applications for licenses to conduct investment services in the securities area,
          through the establishment in a Member State of a subsidiary in accordance with the legislation of that Member
          State, by an undertaking governed by the laws of a third country.
 ---pagebreak--- 11/vol. 18                RO                                   Jurnalul Oficial al Uniunii Europene                                                          189

                                                EUROPEAN COMMUNITIES AND THEIR MEMBER STATES

                                                           FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS

                                                                  (This is authentic in english only)

                               Description of measure indicating its      Countries to which the                             Conditions creating the need for the
   Sector or sub-sector                                                                                 Intended duration
                                   inconsistency with Article II             measure applies                                             exemption

Direct          non-life       Measures based on a bilateral           Switzerland                  Indefinite              Need to remove obstacles to the
insurance                      agreement between the European                                                               taking up and pursuit of non-life
                               Communities and Switzerland on                                                               insurance     business    in    the
                               direct insurance other than life                                                             framework of an agreement
                               insurance.     This     agreement                                                            between        the       European
                               provides on a reciprocal basis for                                                           Communities and Switzerland on
                               freedom of establishment and the                                                             non-life insurance consistent with
                               right to take up or pursue non-life                                                          the provisions of paragraph 3 of
                               insurance business for agencies                                                              the Annex of financial services
                               and branches of undertakings
                               whose head office is situated in
                               the territory of the other
                               contracting party.

Financial services             Measure granting favourable tax         States in central, eastern   10 years                The need to aid the countries
                               treatment (off-shore regime) in         and south-eastern Europe,                            concerned in their transition to a
                               Italy to service suppliers trading      and all Members of the                               market economy.
                               with the countries to which the         Commonwealth            of
                               measure applies.                        Independent States
 ---pagebreak--- 190     RO                               Jurnalul Oficial al Uniunii Europene                                          11/vol. 18

      DECISION ADOPTING THE FIFTH PROTOCOL TO THE GENERAL AGREEMENT ON TRADE
                                     IN SERVICES

             adopted by the Committee on Trade in Financial Services on 14 November 1997

      THE COMMITTEE ON TRADE IN FINANCIAL SERVICES,
      Having regard to the results of the negotiations conducted under the terms of the Second Decision on Financial
      Services adopted by the Council for Trade in Services on 21 July 1995 (S/L/9),

      DECIDES AS FOLLOWS:

      1. To adopt the text of the „Fifth Protocol to the General Agreement on Trade in Services”.
      2. Commencing immediately and continuing until the date of entry into force of the Fifth Protocol to
         the General Agreement on Trade in Services, Members concerned shall, to the fullest extent consistent
         with their existing legislation, not take measures which would be inconsistent with their undertakings
         resulting from these negotiations.
      3. The Committee shall monitor the acceptance of the Protocol by Members concerned and shall, at the
         request of a Member, examine any concerns raised regarding the application of paragraph 2 above.
 ---pagebreak--- 11/vol. 18     RO                                 Jurnalul Oficial al Uniunii Europene                                            191

                    DECISION OF DECEMBER 1997 ON COMMITMENTS IN FINANCIAL SERVICES

                            adopted by the Council for Trade in Services on 12 December 1997

             THE COUNCIL FOR TRADE IN SERVICES,

             Having regard to the Second Decision on Financial Services adopted by the Council for Trade in Services on 21 July
             1995 (S/L/9),

             Noting the results of the negotiations carried out under the terms of that Decision,

             Having rgard to the Decision adopting the Fifth Protocol to the General Agreement on Trade in Services adopted by
             the Committee on Trade in Financial Services on 14 November 1997 (S/L/44),

             DECIDES AS FOLLOWS:

             1. If the Fifth Protocol to the General Agreement on Trade in Services (GATS) does not enter into force
                in accordance with paragraph 3 therein:
                (a) notwithstanding Article XXI of the GATS, a Member may, during a period of 60 days beginning
                    on 1 March 1999, modify or withdraw all or part of the commitments on financial sevices
                    inscribed in its schedule;
                (b) notwithstanding Article II of the GATS and paragraphs 1 and 2 of the Annex on Article II
                    exemptions, a Member may, during the same period referred to in paragraph 1(a), list in that
                    Annex measures relating to financial services which are inconsistent with paragraph 1 of Article II
                    of the GATS.
             2. The Committee on Trade in Financial Services shall establish any procedures necessary for the
                implementation of paragraph 1.