2007/611/EC: Council Decision of 23 July 2007 on the… ANNEX IV

(Annex VIII of the Agreement referred to in Article 120 of the Agreement)

ANNEX IVSupplementary provisions

ANNEX IV (Annex VIII of the Agreement referred to in Article 120 of the Agreement) SCHEDULE OF SPECIFIC COMMITMENTS ON FINANCIAL SERVICES PART A COMMUNITY'S SCHEDULE Introductory note 1. The specific commitments in this schedule apply only to the territories in which the Treaties establishing the Community are applied and under the conditions laid down in these Treaties. These commitments apply only to the relations between the Communities and their Member States on the one hand, and non-Community countries on the other. They do not affect the rights and obligations of Member States arising from Community law. 2. The following abbreviations are used to indicate the Member States: AT Austria BE Belgium BG Bulgaria CY Cyprus CZ Czech Republic DE Germany DK Denmark ES Spain EE Estonia FR France FI Finland EL Greece HU Hungary IT Italy IE Ireland LU Luxembourg LT Lithuania LV Latvia MT Malta NL The Netherlands PT Portugal PL Poland RO Romania SE Sweden SI Slovenia SK Slovak Republic UK United Kingdom ‘Subsidiary’ of a legal person means a legal person which is effectively controlled by another legal person. ‘Branch’ of a legal person means a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension. I. HORIZONTAL COMMITMENTS ALL SECTORS INCLUDED IN THIS SCHEDULE         (3) In all Member States  ( 1 ) services considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators  ( 2 ) . (3) (a) Treatment accorded to subsidiaries (of Chilean companies) formed in accordance with the law of a Member State and having their registered office, central administration or principal place of business within the Community is not extended to branches or agencies established in a Member State by a Chilean company. However, this does not prevent a Member State from extending this treatment to branches or agencies established in another Member State by a Chilean company or firm, as regards their operation in the first Member State's territory, unless such extension is explicitly prohibited by Community law.       b) Treatment less favourable may be accorded to subsidiaries (of Chilean companies) formed in accordance with the law of a Member State which have only their registered office or central administration in the territory of the Community, unless it can be shown that they possess an effective and continuous link with the economy of one of the Member States.       Formation of legal entity (3) RO: the sole administrator or the Chairman of the Board of Administration as well as half of the total number of administrators of the commercial companies shall be Romanian citizens unless otherwise stipulated in the company contract or in its statutes. The majority of the commercial companies’ auditors and their deputies shall be Romanian citizens. SE: a limited liability company (joint-stock company) may be established by one or several founders. A founding Party shall either reside within the EEA (European Economic Area) or be an EEA legal entity. A partnership can only be a founding Party if each partner resides within the EEA  ( 3 ) . Corresponding conditions prevail for establishment of all other types of legal entities.     Law on foreign companies’ branches (3) SE: a foreign company (which has not established a legal entity in Sweden) shall conduct its commercial operations through a branch, established in Sweden with independent management and separate accounts. SE: building projects with a duration of less than a year are exempted from the requirements of establishing a branch or appointing a resident representative. Law on foreign companies’ branches (3) SE: the managing director and at least 50 per cent of the members of the board shall reside within the EEA (European Economic Area). SE: the managing director of a branch shall reside within the EEA (European Economic Area)  ( 4 ) . SE: foreign or Swedish citizens not residing in Sweden, who wish to conduct commercial operations in Sweden, shall appoint and register with the local authority a resident representative responsible for such activities. SI: the establishment of branches by foreign companies is conditioned with the registration of the parent company in a court register in the country of origin for at least one year.     Legal entities: (3) BG: the establishment of foreign service suppliers, joint ventures included, may only take the form of limited liability company or joint-stock company with at least two shareholders. Establishment of branches is subject to authorisation. Unbound for representative offices. Representative offices may not engage in economic activity. In enterprises where the public (State or municipal) share in the equity capital exceeds 30 per cent, the transfer of these shares to third parties needs authorisation. FI: acquisition of shares by foreign owners giving more than one third of the voting rights of a major Finnish company or a major business undertaking (with more than 1 000 employees or with a turnover exceeding 1 000  million Finnish markka or with a balance sheet total exceeding EUR 167 million) is subject to confirmation by the Finnish authorities; the confirmation may be denied only if an important national interest would be jeopardised. FI: a foreigner living outside the European Economic Area and carrying on a trade as a private entrepreneur or as a partner in a Finnish limited or general partnership needs a trade permit. If a foreign organisation or foundation which is resident outside the European Economic Area intends to carry on a business or trade by establishing a branch in Finland, a trade permit is required. FI: if at least half of the members of the Board or the Managing Director are resident outside the European Economic Area, permission is required. Company exemptions may, however, be granted. SK: a foreign natural person whose name is to be registered in the Commercial Register as a person authorised to act on behalf of the entrepreneur is required to submit residence permit for the Slovak Republic.     FI: at least half of the founders of a limited company need to be resident either in Finland or in one of the other EEA (European Economic Area) countries. Company exemptions may, however, be granted. HU: commercial presence should take the form of limited liability company, joint-stock company, or representative office. Initial entry as branch is not permitted. PL: the establishment by foreign service suppliers may only take the form of limited partnership, limited liability company or joint-stock company.       Real estate purchases: DK: limitations on real estate purchase by non-resident physical and legal entities. Limitations on agricultural estate purchased by foreign physical and legal entities. EL: according to Law No. 1892/89 permission from the Minister of Defence is needed for a citizen to acquire land in areas near borders. According to administrative practices permission is easily granted for direct investment. CY: unbound HU: unbound for the acquisition of State-owned property. LT: unbound for the acquisition of land by juridical and natural persons. Real estate purchases: AT: the acquisition, purchase as well as rent or lease of real estate by foreign natural persons and legal persons requires an authorisation by the competent regional authorities (Länder) which will consider whether important economic, social or cultural interests are affected or not. BG: foreign natural and juridical persons (including through a branch) cannot acquire ownership of land. Bulgarian juridical persons with foreign participation cannot acquire ownership of agricultural land.     MT: unbound for the acquisition of real property. LV: unbound in relation to acquisition of land by juridical persons. Land lease not exceeding 99 years permitted. PL: unbound in relation to acquisition of State-owned property, i.e. the regulations governing the privatisation process (for mode 3). RO: natural persons not having Romanian citizenship and residence in Romania, as well as legal persons not having Romanian nationality and their headquarters in Romania, cannot acquire ownership over any kind of land plots through inter vivos acts (for modes 3 and 4). SI: juridical persons, established in the Republic of Slovenia with foreign capital participation, may acquire real estate on the territory of the Republic of Slovenia. Branches  ( 5 ) established in the Republic of Slovenia by foreign persons may only acquire real estate, except land, necessary for the conduct of the economic activities for which they are established. Ownership of real estate in the border areas of 10 km by companies in which majority of capital or voting rights belongs directly or indirectly to juridical persons or nationals of another Member is subject to special permission. SK: none, except for land (for modes 3 and 4). Foreign juridical persons and foreign citizens with permanent residence abroad can acquire ownership of buildings and limited property rights of real estate subject to the permission of the Ministry of Finance. The permission requirement does not apply to persons who have made investments in Bulgaria. Foreign citizens with permanent residence abroad, foreign juridical persons and companies in which foreign participation ensures a majority in adopting decisions or blocks the adoption of decisions, can acquire real estate property rights in specific geographic regions designated by the Council of Ministers subject to permission. IE: prior written consent of the Land Commission is necessary for the acquisition of any interest in Irish land by domestic or foreign companies or foreign nationals. Where such land is for industrial use (other than agricultural industry), this requirement is waived subject to a certificate to this effect from the Minister for Enterprise and Employment. This law does not apply to land within the boundaries of cities and towns.       CZ: limitations on real estate acquisition by foreign natural and legal entities. Foreign entities may acquire real property through establishment of the Czech legal entities or participation in joint ventures. Acquisition of the land by foreign entities is subject to authorisation. HU: unbound for the acquisition of real estate by foreign natural persons. LV: unbound in relation to acquisition of land by juridical persons. Land lease not exceeding 99 years permitted. PL: acquisition of real estate, direct and indirect, by foreigners and foreign legal persons requires permission. SK: limitations on real estate acquisition by foreign physical and legal entities. Foreign entities may acquire real property through establishment of Slovak legal entities or participation in joint ventures. Acquisition of the land by foreign entities is subject to authorisation (for modes 3 and 4).       IT: unbound for purchase of real estate. FI (Åland Islands): restrictions on the right for natural persons who do not enjoy regional citizenship in Åland, and for legal persons, to acquire and hold real property on the Åland Islands without permission by the competent authorities of the islands. FI (Åland Islands): restrictions on the right of establishment and the right to provide services by natural persons who do not enjoy regional citizenship in Åland, or by any legal person, without permission by the competent authorities of the Åland Islands.     Investments: FR: foreign purchases exceeding 33,33 per cent of the shares of capital or voting rights in existing French enterprise, or 20 per cent in publicly quoted French companies, are subject to the following regulation: — after a period of one month following prior notification, authorisation is tacitly granted unless the Minister of Economic Affairs has, in exceptional circumstances, exercised its right to postpone the investment. FR: foreign participation in newly privatised companies may be limited to a variable amount, determined by the Government of France on a case by case basis, of the equity offered to the public. ES: investment in Spain by foreign government and foreign public entities (which tends to imply, besides economic, also non economic interests to entity's part), directly or through companies or other entities controlled directly or indirectly by foreign governments, need prior authorisation by the government. Investments: BG: foreign investments are registered with the Ministry of Finance for statistical and taxation purposes only. A foreign person or a company in which foreign participation ensures a majority in adopting decisions or blocks the adoption of decisions, directly or through other companies with foreign participation, is to obtain a permission for: (i) distribution of weapons, munitions or military equipment; (ii) banking or insurance activities, or participation in banking or insurance companies; (iii) prospecting, development or extraction of natural resources from the territorial sea, continental shelf or the exclusive economic zone; (iv) acquisition of participation which ensures a majority in adopting decisions or blocks the adoption of decisions in a company engaged in any of the activities specified in (i), (ii) and (iii) above.     PT: foreign participation in newly privatised companies may be limited to a variable amount, determined by the Government of Portugal on a case by case basis, of the equity offered to the public. IT: exclusive rights may be granted or maintained to newly privatised companies. Voting rights in newly privatised companies may be restricted in some cases. For a period of five years, the acquisition of large equity stakes of companies operating in the fields of defence, transport services, telecommunications and energy may be subject to the approval of the Ministry of Treasury. FR: for establishing in certain  ( 6 ) commercial, industrial or artisanal activities, a specific authorisation is needed if the managing director is not holder of a permanent residence permit. With respect to banking and insurance referred to in (ii) and (iv) the criteria for authorisation or permission are prudential and are consistent with the obligation of Articles XVI and XVII of the GATS. CY: entities with foreign participation must have paid-up capital commensurate with their finance requirements and non residents must finance their contribution through the importation of foreign exchange. In case the non-resident participation exceeds 24 per cent, any additional financing for working capital requirements or otherwise should be raised from local and foreign sources in proportion to the participation of residents and non residents in the entity's equity. In the case of branches of foreign companies, all capital for the initial investment must be provided from foreign sources. Borrowing from local sources is only permitted after the initial implementation of the project, for financing working capital requirements.       HU: unbound for the acquisition of state-owned properties. LT: investments in organising the lotteries are forbidden under the Law on Foreign Capital Investment. MT: companies with the participation of non-resident legal or natural persons are subject to the same capital requirement applicable to companies that are fully owned by residents as follows: private companies — Lm 500 (with a minimum of 20 % as paid-up capital); public companies — Lm 20 000 (with a minimum of 25 % paid-up capital). The non-resident percentage of share of the equity is to be paid for with funds emanating from abroad.     CY: the permission of the Central Bank is required for the participation of any non-resident in a corporate body or partnership in Cyprus. Foreign participation in all sectors/subsectors included in the Schedule of Commitments is normally limited up to 49 per cent. The decision of the authorities to grant permission for foreign participation is based on an economic needs test, for which the following criteria are used in general: (a) provision of services which are new to Cyprus; b) promotion of the export orientation of the economy with development of existing and new markets; (c) transfer of modern technology, know how and new management techniques; (d) improvement either of the productive structure of the economy or of the quality of existing products and services; (e) complementary impact on existing units or activities; (f) viability of proposed project; (g) creation of new job opportunities for scientists, qualitative improvement and training of local staff.       In exceptional cases, in which a proposed investment satisfies most of the economic needs test criteria to a large extent, permission for foreign participation exceeding 49 per cent may be granted. In the case of public companies, foreign equity participation is normally allowed to the extent of up to 30 per cent. In Mutual Funds the extent of allowable foreign ownership is 40 per cent. Corporate bodies have to be registered under the Companies Law. Same Law requires that a foreign company wishing to establish a place of business or an office in Cyprus must register it as a foreign branch. For the registration the prior approval of the Central Bank is required under the Exchange Control Law. Such approval is subject to the foreign investment policy applicable at the time with regard to the Corporate Body's proposed activities in Cyprus and the general investment criteria stipulated above. HU: unbound for the acquisition of state-owned properties. MT: the Companies Act (Cap. 386) regulating the supply of services by non-residents through the registration of a local company and the External Transactions Act (Cap. 233) which regulates the issue, acquisition, sale and redemption of securities not listed on the Malta Stock Exchange shall continue to apply.       PL: authorisation of the establishment of a company with foreign equity is required in the case of: — establishment of company, purchase or acquiring of shares or stocks in an existing company; extending of the activity of the company when the scope of activity embraces at least one of the following areas: — management of seaports and airports, — dealing in real estate or acting as intermediary in real estate transactions, — supply to defence industry that is not covered by other licensing requirements, — wholesale trade in imported consumer goods, — provision of legal advisory services. — establishment of a joint-venture company with a foreign equity in which the Polish Party is a State legal person and is contributing non pecuniary assets as initial capital, — arranging a contract, that includes right to use of State property for more than six months or decides on acquiring of such property. SI: for financial services, authorisation is issued by the authorities indicated in sector specific commitments and according to conditions indicated in sector specific commitments. There are no limitations on establishment of a new business establishment (‘greenfield’ investments).         Subsidies       Eligibility for subsidies from the Community or Member States may be limited to legal persons established within the territory of a Member State or a particular geographical sub-division thereof. Unbound for subsidies for research and development. Unbound for branches established in a Member State by a non-Community company. The supply of a service, or its subsidisation, within the public sector is not in breach of this commitment. Commitments taken in this schedule do not require the Community or Member States to offer a subsidy to a service supplied from outside its territory. To the extent that any subsidies are made available to natural persons, their availability may be limited to nationals of a Member State.     Exchange regime  ( 7 ) ,  ( 8 ) ,  ( 9 ) ,  ( 10 ) : Exchange regime  ( 11 )     (1), (2), (3), (4) BG: payments and transfers abroad require the authorisation of the Bulgarian National Bank when related to investments and State or State-guaranteed loans  ( 12 ) . (1), (2) SK: in relation to current payments, limitation on acquisition of foreign exchange by resident nationals for personal purposes. In relation to capital payments, foreign exchange authorisation required for acceptance of financial credits from foreign subjects, direct capital investments abroad, acquisition of real estate abroad and purchase of foreign securities. (4) CY: under the Exchange Control Law, non-residents are not normally permitted to borrow from local sources.     Services relating to the use of nuclear energy for peaceful purposes (1), (2), (3), (4) BG: unbound for services relating to the exploration, extraction, and processing of fissionable and fusionable materials or the materials from which they are derived, as well as to the trade therewith, to the maintenance and repair of equipment and systems in nuclear energy production facilities, to the transportation of such materials and the refuse and waste matter of their processing, to the use of ionising radiation, and on all other services relating to the use of nuclear energy for peaceful purposes (incl. engineering and consulting services and services relating to software, etc.).       Privatisation  ( 13 ) (3) BG: unbound for participation in privatisation through State external debt bonds and for services sectors and/or service suppliers not subject to privatisation under the annual privatisation programme. RO: unbound Privatisation (3) BG: unbound for participation in the privatisation through investment vouchers or other preferential privatisation methods, where Bulgarian citizenship and permanent residence are required. RO: unbound     (4) Unbound, except for measures concerning the entry into and temporary stay  ( 14 ) within a Member State, without requiring compliance with an economic needs test  ( 15 ) , of the following categories of natural persons providing services: (4) Unbound, except for measures concerning the categories of natural persons referred to in the Market Access column.     i) the temporary presence, as intra-corporate transferee  ( 16 ) , of natural persons in the following categories, provided that the service supplier is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement: Community directives on mutual recognition of diplomas do not apply to nationals of third countries. Recognition of the diplomas which are required in order to practise regulated professional services by non-Community nationals remains within the competence of each Member State, unless Community law provides otherwise. The right to practise a regulated professional service in one Member State does not grant the right to practise in another Member State.     BG: the number of such transferees is not to exceed 10 per cent of the average annual number of the Bulgarian citizens employed by the respective Bulgarian juridical person (where less than 100 persons are employed, the number of intracorporate transferees may, subject to authorisation, exceed 10 per cent).       (a) Persons working in a senior position within a legal person, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent, including: — directing the establishment or a department or sub division of the establishment, — supervising and controlling the work of other supervisory, professional or managerial employees, — having the authority personally to hire and fire or recommend hiring, firing or other personnel actions, — BG: and who do not directly perform tasks concerning the actual supply of the services of the establishment. Residency requirements AT: managing directors of branches and legal persons have to be resident in Austria; natural persons responsible within a legal person or a branch for the observance of the Austrian Trade Act must be resident in Austria. MT: immigration regulations under the Immigration Act (Cap 217) will regulate the issue of residency permits/documents.     RO: natural persons serving in management jobs are those persons with relevant higher education who, within an organisation, have the task to manage this organisation or one of its departments or divisions.       (b) persons working within a legal person who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. In assessing such knowledge, account will be taken not only of knowledge specific to the establishment, but also of whether the person has a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession.       RO: natural persons serving in expert jobs are those persons who have university degrees in the speciality of the position they occupy.       (ii) the temporary presence of natural persons in the following categories:       (a) persons not residing in the territory of a Member State to which the EC treaties apply, who are representatives of a service supplier and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service provider, where those representatives will not be engaged in making direct sales to the general public or in supplying services themselves (in addition, for EE, HU, LV, SI: or on their own behalf receive remuneration from a source located within the Member State concerned).       (b) persons working in a senior position, as defined in (i)(a) above, within a legal person, who are responsible for setting up in a Member State a commercial presence of a service provider of Chile when:       — the representatives are not engaged in making direct sale or supplying services (in addition, for EE, HU, LV, SI: or on their own behalf receive remuneration from a source located within the Member State concerned), and       — the service provider has its principal place of business in the territory of Chile and has no other representative, office, branch or subsidiary in that Member State.       FR: the managing director of an industrial, commercial or artisanal activity  ( 17 ) , if not holder of a residence permit, needs a specific authorisation.       IT: access to industrial, commercial and artisanal activities is subject to a residence permit and specific authorisation to pursue the activity.     II. FINANCIAL SERVICES — SPECIFIC COMMITMENTS (first part)  ( 18 ) 1. Part of the EC (AT, BE, BG, CZ, DK, DE, ES, FI, FR, EL, HU, IE, IT, LU, NL, PT, SK, SE, UK) undertakes commitments on Financial Services in accordance with the provisions of the ‘Understanding on Commitments in Financial Services’ attached (the Understanding). These commitments are in the following section. Commitments on Financial Services of the other part of the EC (CY, EE, LV, LT, MT, PL, RO, SI) are not based on the Understanding and are in a second section. 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 subsectors 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, except for Hungary, for which they apply only to the transactions indicated in paragraphs B.3 (a) and (b) and B.4 (a) and (b) 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 Bulgaria, the Czech Republic, Hungary, the Slovak Republic and Sweden, in which case commitments are made in accordance with the Understanding. BG: the specific commitments in respect of mode (4) on financial services are as well subject to the general limitations contained in the ‘all sectors’ section. 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 121. 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. 7. BG: insurance or banking activities, as well as securities trading and activities related thereto, are to be carried out separately by companies that are licensed for the supply of such services. 8. HU: insurance, banking, securities and collective investment management services should be performed by legally separate and independently capitalised suppliers of financial services, although banks may be authorised to provide services in the securities field as well. 9. HU: it is intended to bind direct branching once it is bound in the GATS, and under the conditions set therein. 10. HU: the board of a financial institution should include at least two members, who are Hungarian citizens, residents in the meaning of the relevant foreign exchange regulations and have permanent residency in Hungary for at least one year. A. Insurance and insurance-related services 1. CZ: compulsory motor third-party liability insurance is provided by an exclusive supplier  ( 19 ) . Compulsory health insurance is provided by licensed Czech-owned suppliers only. 2. SK: the following insurance services are provided by exclusive suppliers: compulsory motor third-party liability insurance, compulsory air transport insurance and the liability insurance of employer against injury or occupational disease have to be effected through the Slovak Insurance Company. The basic health insurance is confined to the Slovak health insurance companies having a licence for provision of health insurance granted by the Ministry of Healthcare of the Slovak Republic according to the Act 273/1994 Coll. of Law. Fund pension insurance schemes and sickness insurance are confined to the Social Insurance Company.   (1) AT: promotional activity and intermediation on behalf of a subsidiary not established in the Community or of a branch not established in Austria (except for reinsurance and retrocession) are prohibited. AT: compulsory air insurance can be underwritten only by a subsidiary established in the Community or by a branch established in Austria. BG: for life insurance services and pension fund services and non-life insurance services (except deposit insurance and similar compensation schemes, as well as mandatory insurance schemes  ( 20 ) ): unbound, except for services supplied by foreign suppliers to foreign persons in the territory of the Republic of Bulgaria. Transport insurance, covering goods, insurance of vehicles as such and liability insurance regarding risks located in the Republic of Bulgaria may not be underwritten by foreign insurance companies directly. A foreign insurance company may conclude insurance contracts only through a branch. (1) AT: higher premium tax is due for insurance contracts (except for contracts on reinsurance and retrocession) which are written by a subsidiary not established in the Community or by a branch not established in Austria. Exception from the higher tax can be granted. BG: unbound for Life insurance services and pension fund services, Non-life insurance services, Insurance intermediation and Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) undertakes additional commitments as contained in the ‘Additional commitments by part of the EC’ attached.   Unbound for deposit insurance and similar compensation schemes, as well as mandatory insurance schemes. Unbound for reinsurance and retrocession services other than life and non-life reinsurance services. BG: unbound for insurance intermediation and services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. CZ: none other than: foreign financial services suppliers may establish an insurance company with the seat in the Czech Republic in the form of a joint-stock company or may exercise insurance activity through their branches with registered office in the Czech Republic under the conditions established in the Insurance Industry Act. Commercial presence and authorisation is required for the provider of insurance services: — to provide such services including reinsurance, and — to conclude intermediation contract with an intermediary aimed at the conclusion of insurance contract between the provider of insurance services and a third party. Authorisation is required for the intermediary in case of its intermediation activity to be exercised for a branch with registered office in the Czech Republic. Unbound for reinsurance and retrocession services other than life and non-life reinsurance services.     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.       DE: compulsory air insurance policies can be underwritten only by a subsidiary established in the Community or by a branch established in Germany.       DE: 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. IT: unbound for the actuarial profession. FI: 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.       FI: the supply of insurance broker services is subject to a permanent place of business in the European Economic Area. FR: insurance of risks relating to ground transport may be carried out only by insurance firms established in the Community.       IT: 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. SK: commercial presence is required for supply of: — the life insurance of persons with permanent residence in the Slovak Republic, — the insurance of property on the territory of the Slovak Republic, — the insurance of liability for loss or damage caused by the activity of natural persons and juridical persons on the territory of the Slovak Republic, — air and maritime insurance, covering goods, aircraft, hull and liability. SE: 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) AT: promotional activity and intermediation on behalf of a subsidiary not established in the Community or of a branch not established in Austria (except for reinsurance and retrocession) are prohibited. AT: compulsory air insurance can be underwritten only by a subsidiary established in the Community or by a branch established in Austria. BG: for life insurance services and pension fund services and non-life insurance services (except deposit insurance and similar compensation schemes, as well as mandatory insurance schemes  ( 20 ) ): Bulgarian natural and juridical persons, as well as foreign persons who conduct business activity in the territory of the Republic of Bulgaria, can conclude insurance contracts only with suppliers with respect to their activity in Bulgaria which are licensed to conduct insurance activity in Bulgaria. Insurance compensation resulting from these contracts shall be paid in Bulgaria. BG: unbound for deposit insurance and similar compensation schemes, as well as mandatory insurance schemes. BG: unbound for reinsurance and retrocession services, insurance intermediation and services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. (2) AT: higher premium tax is due for insurance contracts (except for contracts on reinsurance and retrocession) which are written by a subsidiary not established in the Community or by a branch not established in Austria. Exception from the higher tax can be granted. BG: unbound for Reinsurance and retrocession services, Insurance intermediation and Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.     CZ: none other than: insurance services as defined below may not be purchased abroad: — the life insurance of persons with permanent residence in the Czech Republic, — the insurance of property on the territory of the Czech Republic, — the insurance of liability for loss or damage caused by the activity of natural and legal persons on the territory of the Czech Republic. 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. DE: compulsory air insurance policies can be underwritten only by a subsidiary established in the Community or by a branch established in Germany.       DE: 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. FR: insurance of risks relating to ground transport may be carried out only by insurance firms established in the Community. IT: 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. SK: insurance services covered by mode (1), except insurance of air and maritime transport, covering goods, aircraft, hull and liability above may not be purchased abroad.       (3) AT: the licence for branch offices of foreign insurers has to be denied if the insurer, in the home country, does not have a legal form corresponding or comparable to a joint-stock company or a mutual insurance association. BG: for life insurance services and pension fund services and non-life insurance services (except deposit insurance and similar compensation schemes, as well as mandatory insurance schemes  ( 20 ) ): the insurance service suppliers cannot be set up for the supply of both life insurance and non-life insurance services. Foreign persons can supply insurance services only through participation in Bulgarian insurance companies with no limitation on equity participation, as well as directly, through a branch, with registered office in the Republic of Bulgaria. The establishment of branches of foreign insurance companies is subject to licensing by the Financial Supervision Commission (FSC). For establishing a branch in Bulgaria to provide certain classes of insurance, a foreign insurer must have been authorised to operate in the same classes of insurance in its country of origin for at least five years. The branches of foreign insurance companies should satisfy the following requirements: specific guarantee and deposit requirements, a separate capitalisation, and localisation in the Republic of Bulgaria of the assets representing the technical reserves. (3) BG: for life insurance services and pension fund services and non-life insurance services (except deposit insurance and similar compensation schemes, as well as mandatory insurance schemes  ( 20 ) ): Insurance funds raised by virtue of insurance contracts, as well as own capital, must be invested in the Republic of Bulgaria and may be transferred abroad only subject to a permission of the Financial Supervision Commission (FSC). Foreign suppliers cannot conclude insurance contracts with local natural and juridical persons through brokers. BG: unbound for deposit insurance and similar compensation schemes, as well as mandatory insurance schemes. BG: unbound for services other than life and non-life reinsurance services. For life and non-life reinsurance services: Reinsurance funds raised by virtue of reinsurance contracts, as well as own capital, must be invested in the Republic of Bulgaria and may be transferred abroad only subject to permission of the Financial Supervision Commission (FSC).     Transport insurance, covering goods, insurance of vehicles as such and liability insurance regarding risks located in the Republic of Bulgaria may not be underwritten by foreign insurance companies directly. A foreign insurance company may conclude insurance contracts only through a branch. BG: unbound for deposit insurance and similar compensation schemes, as well as mandatory insurance schemes. BG: unbound for reinsurance and retrocession services other than life and non-life reinsurance services. Reinsurance service suppliers cannot be set up for the supply of both life and non-life reinsurance services. Foreign persons can supply insurance services only through participation in Bulgarian insurance companies with no limitation on equity participation. Foreign reinsurance companies may supply directly reinsurance services through a branch, with registered office in the Republic of Bulgaria. The establishment of branches of foreign insurance companies is subject to licensing by the Financial Supervision Commission (FSC). Foreign suppliers cannot conclude reinsurance contracts with local natural and juridical persons through brokers. SK: the majority of the management board of an insurance company has to be domiciled in the Slovak Republic. SE: non-life insurance undertakings not incorporated in Sweden conducting business in Sweden are — instead of being taxed according to the net result — subject to taxation based on the premium income from direct insurance operations. SE: a founder of an insurance company shall be a natural person resident in the European Economic Area or a legal entity incorporated in the European Economic Area.     BG: for Insurance intermediation and Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services: only trade companies, registered in the Republic of Bulgaria under the Trade Law, and licensed by the Financial Supervision Commission (FSC) may conduct intermediation activity. Services auxiliary to insurance have to relate to insurance. Unbound for the actuarial services. CZ: none other than: foreign financial services suppliers may establish an insurance company with the seat in the Czech Republic in the form of a joint-stock company or may exercise insurance activity through their branches with registered office in the Czech Republic under the conditions established in the Insurance Industry Act. Commercial presence and authorisation is required for the provider of insurance services: — to provide such services including reinsurance, and — to conclude intermediation contract with an intermediary aimed at the conclusion of insurance contract between the provider of insurance services and third party. Authorisation is required for the intermediary in case of its intermediation activity to be exercised for a branch with registered office in the Czech Republic.       FI: 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. FI: foreign insurers cannot get a licence in Finland as a branch to carry on statutory social insurances (statutory pension insurance, statutory accident insurance).       FR: the establishment of branches is subject to a special authorisation for the representative of the branch. EL: 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. IT: access to actuarial profession through natural persons only. Professional associations (no incorporation) among natural persons permitted. IT: the authorisation of the establishment of branches is ultimately subject to the evaluation of supervisory authorities. IE: the right of establishment does not cover the creation of representative offices.       SK: license is required for provision of insurance services. Foreign national may establish an insurance company with the seat in the Slovak Republic in the form of a joint-stock company or may conduct insurance business through their subsidiaries with registered office in the Slovak Republic under the general conditions established in the Law on Insurance. Insurance business means insurance activity including brokerage and reinsurance activity.       Intermediation activity aimed at the conclusion of an insurance contract between third party and the insurance company may be provided by natural or juridical persons who are domiciled in the Slovak Republic for the benefit of the insurance company having the license of the Insurance Supervisory Authority.       Intermediation contract aimed at conclusion of an insurance contract by third party with the insurance company may be concluded by domestic or foreign insurance company only after a license had been granted by the Insurance Supervisory Authority.       The financial resources of specific insurance funds of licensed insurance operators derived from insuring or reinsuring policy holders with residence or registered office in the Slovak Republic must be deposited in a resident bank in the Slovak Republic and may not be transferred abroad.       SE: insurance broking undertakings not incorporated in Sweden may establish a commercial presence only through a branch.       (4) Unbound, except as indicated in the horizontal section under (i) and (ii) and subject to the following specific limitations: BG: unbound for services other than Life and non-life reinsurance services. Unbound for Insurance intermediation and Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. EL: a majority of the members of the board of directors of a company established in Greece shall be nationals of one of the Member States of the Community. (4) Unbound, except as indicated in the horizontal section under (i) and (ii) and subject to the following specific limitations: AT: the management of a branch office must consist of two natural persons resident in Austria. BG: unbound for services other than Life and non-life reinsurance services. Unbound for Insurance intermediation and Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services. 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. IT: residence requirement for actuarial profession.   B. Banking and other financial services (excluding insurance) 1. CZ: non-central bank currency issue services, trading of bullion, money broking, settlement and clearing services for derivative products, and advisory, intermediation and other auxiliary financial services relating to these activities are not committed. 2. SK: trading of bullion, money broking and intermediation are not committed.   (1)  ( 21 ) BE: establishment in Belgium is required for the provision of investment advisory services. BG: unbound, except for provision and transfer of financial information and financial data processing and related software by suppliers of other financial services and financial consultancy services: none, except for the limitations and conditions relating to the use of telecommunications network listed in the respective sector of the Schedule of Specific Commitments on Services. IT: unbound for ‘promotori di servizi finanziari’ (financial salesmen). (1) BG: unbound, except for provision and transfer of financial information and financial data processing and related software by suppliers of other financial services and financial consultancy services: none Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) undertakes additional commitments as contained in the ‘Additional commitments by part of the EC’ attached.   CZ: unbound for trading of transferable securities and of other negotiable instruments and financial assets, participation in issues of all kinds of securities, asset management, and settlement and clearing services for financial assets. None other than: only Czech established banks and branches of foreign banks having a corresponding licence may: — provide deposit services, — trade in foreign exchange assets, — effect non-cash cross-border payments.       Foreign exchange permit issued by the Czech National Bank or Ministry of Finance is required in case of Czech non-bank residents for: (a) opening and funding of an account abroad by Czech residents; (b) capital payments abroad (except FDI);       (c) granting financial credits and guarantees; (d) operations in financial derivates;       (e) purchase of foreign securities, except for the cases as described by the Foreign Exchange Act;       (f) issue of foreign securities for public and non-public trade in the Czech Republic or their introduction on the domestic market.       IE: 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 private individuals), or (ii) authorisation in another Member State in accordance with the EC Investment Services Directive.       SK: unbound for trading of transferable securities and of other negotiable instruments and financial assets, participation in issues of all kinds of securities, asset management, and settlement and clearing services for financial assets.       None other than: (i) deposit services are confined to the domestic banks and branches of foreign banks in the Slovak Republic;       (ii) only authorised domestic banks, branches of foreign banks in the Slovak Republic and persons possessing a foreign exchange license may trade in foreign exchange assets. Only stock exchange members can trade on the Bratislava Stock Exchange. Residents can trade on the RM-System Slovakia without any limitation and non-residents only through security dealers;       (iii) non-cash cross-border payments may be effected only by authorised domestic banks and branches of foreign banks in the Slovak Republic;       (iv) foreign exchange licence issued by the National Bank of Slovakia is required for: (a) opening an account abroad by a Slovak non-bank resident, except for the natural persons during their stay abroad;       (b) capital payments abroad; (c) obtaining financial credit from a foreign exchange non-resident; except credits from abroad accepted by residents with a repayment period of more than three years and loans granted between natural persons for non-business activities.       (v) export and import of the Slovak currency and foreign exchange in cash exceeding value of 150 000 SKK and bullion, is subject to reporting requirement;       (vi) foreign exchange permission or licence granted by foreign exchange authorities is required for a deposit of financial assets by resident abroad;       (vii) only foreign exchange entities established in the Slovak Republic can grant and obtain guarantees and liabilities according to determined limit and provisions of the National Bank of Slovakia.       (2)  ( 22 ) BG: unbound, except for provision and transfer of financial information and financial data processing and related software by suppliers of other financial services and financial consultancy services: none, except as specified in (1) above. CZ: Unbound for asset management. None other than: Only Czech established banks and branches of foreign banks having a corresponding licence may: (2) BG: unbound, except for provision and transfer of financial information and financial data processing and related software by suppliers of other financial services and financial consultancy services: none     — provide deposit services, — trade in foreign exchange assets, — effect non-cash cross-border payments.       Foreign exchange permit issued by the Czech National Bank or Ministry of Finance is required in case of Czech non-bank residents for:       (a) opening and funding of an account abroad by Czech residents; (b) capital payments abroad (except FDI); (c) granting financial credits and guarantees;       (d) operations in financial derivates; (e) purchase of foreign securities, except for the cases as described by the Foreign Exchange Act;       (f) issue of foreign securities for public and non-public trade in the Czech Republic or their introduction on the domestic market.       FI: payments from governmental entities (expenses) shall be transmitted through the Sampo Bank Ltd. Exemption from this requirement may be granted on special reason by the Ministry of Finance. SK: unbound for asset management.       None other than: (i) deposit services are confined to the domestic banks and branches of foreign banks in the Slovak Republic;       (ii) only authorised domestic banks, branches of foreign banks in the Slovak Republic and persons possessing a foreign exchange license may trade in foreign exchange assets. Only stock exchange members can trade on the Bratislava Stock Exchange. Residents can trade on the RM-System Slovakia without any limitation and non-residents only through security dealers;       (iii) non-cash cross-border payments may be effected only by authorised domestic banks and branches of foreign banks in the Slovak Republic;       (iv) foreign exchange licence issued by the National Bank of Slovakia is required for: (a) opening an account abroad by a Slovak non-bank resident, except for the natural persons during their stay abroad;       (b) capital payments abroad; (c) obtaining financial credit from a foreign exchange non-resident; except credits from abroad accepted by residents with a repayment period of more than three years and loans granted between natural persons for non-business activities.       (v) export and import of the Slovak currency and foreign exchange in cash exceeding value of 150 000 SKK and bullion, is subject to reporting requirement;       (vi) foreign exchange permission or licence granted by foreign exchange authorities is required for a deposit of financial assets by resident abroad;       (vii) only foreign exchange entities established in the Slovak Republic can grant and obtain guarantees and liabilities according to determined limit and provisions of the National Bank of Slovakia.       (3) All Member States: — the establishment of a specialised management company is required to perform the activities of management of unit trusts and investment companies, — only firms having their registered office in the Community can act as depositories of the assets of investment funds. BG: for banking services as listed below: — acceptance of deposits and other repayable funds from the public, — lending, such as consumer credit, mortgage credit, factoring and financing of commercial transactions, — payment and money transmission services, — guarantees, excluding guarantees of the State Treasury, — financial leasing: foreign banks wishing to establish themselves in the Republic of Bulgaria must be duly authorised under their national law and must not be prohibited from performing banking activities in their country of origin and in the countries where they operate. Unbound for caisses populaires. (3) BG: for banking services as listed below: — acceptance of deposits and other repayable funds from the public, — lending, such as consumer credit, mortgage credit, factoring and financing of commercial transactions, — payment and money transmission services, — guarantees, excluding guarantees of the State Treasury, — financial leasing: none, except for those in the Market Access column. BG: for Other financial services as listed below: — participation in issuance of securities, including underwriting of securities, excluding treasury bonds, — trading for own and customers account of transferable securities, — asset management (excluding pension fund management): none, except for those in the Market Access column.     Acquisition, directly or indirectly, of shares representing five per cent or more of the voting rights of an established bank is subject to an authorisation by the Bulgarian National Bank. Criteria for authorisation are prudential and are consistent with the obligations of Articles XVI and XVII of the GATS. The direct or indirect acquisition of participation in non-financial enterprise by a bank of more than 10 per cent of the capital of this enterprise is subject to the approval of the Bulgarian National Bank. Exclusive service suppliers' status may be granted as to deposit and money transmission services provided to budgetarily-financed public institutions. SE: a founder of a banking company shall be a natural person resident in the European Economic Area or a foreign bank. A founder of a savings bank shall be a natural person resident in the European Economic Area.     Condition of permanent residence with respect to executive directors of the managing body who act on behalf and for the account of a bank. BG: for other financial services as listed below: — participation in issuance of securities, including underwriting of securities, excluding treasury bonds, — trading for own and customers account of transferable securities, — asset management (excluding pension fund management): bound for investment intermediaries, investment companies and stock exchanges established as joint stock companies licensed by the Financial Supervision Commission (FSC). The grant of the relevant licence is related to the management and technical requirements as well as requirements related to the protection of investors. Stock exchange JSC: Conditions of minimum capital (BGN 100 000 ); not less than 2/3 of the capital distributed among financial institutions (insurance companies, financial houses, investment intermediaries); a ceiling of five per cent of the capital of the Stock Exchange for direct or indirect participation by a shareholder.       Investment intermediaries: none for investment intermediary activities effected on the territory of the Republic of Bulgaria, unless otherwise permitted by the Financial Supervision Commission (FSC). Condition for membership at the stock exchange for trading with securities at a stock exchange. The membership of an investment intermediary is limited to one stock exchange only in Bulgaria. Investment companies: the activities of a bank, insurance company or investment intermediary are not to be conducted by an investment company. BG: for provision and transfer of financial information and financial data processing and related software by suppliers of other financial services and financial consultancy services: none, except as specified in (1) above.       CZ: none other than: banking services may be provided only by Czech established banks or branches of foreign banks having a licence granted by the Czech National Bank in agreement with the Ministry of Finance.       Mortgage loan services may be provided only by Czech established banks.       Banks may be established as joint stock companies only. The purchase of shares of existing banks is subject to prior approval of the Czech National Bank.       Securities may be traded publicly only if relevant authorisation has been granted and prospectus covering the security has been approved.       The establishment and activities of securities dealers, stockbrokers, of the Stock Exchange or organisers of an over-the-counter market, investment companies and investment funds are subject to authorisation granting of which is related to qualifications, personal integrity, management and material requirements.       Settlement and clearing services for all kinds of payments are monitored and reviewed by the Czech National Bank to ensure their smooth and economical operation.       DK: financial institutions may engage in securities trading on the Copenhagen Stock Exchange only through subsidiaries incorporated in Denmark. FI: 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 Economic Area, unless the Ministry of Finance grants an exemption. At least one auditor shall have his place of residence in the European Economic Area.       FI: 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. FI: payments from governmental entities (expenses) shall be transmitted through the Sampo Bank Ltd. Exemption from this requirement may be granted on special reason by the Ministry of Finance.       EL: for the establishment and operations of branches a minimum amount of foreign exchange must be imported, converted into euros 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 credit 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. IT: 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. IT: representative offices of foreign intermediaries cannot carry out activities aimed at providing investment services.       IT: clearing services including the phase of final settlement may be conducted only by entities duly authorised and supervised by the Bank of Italy in agreement with Consob. IT: the public offer of securities can only be made by entities duly authorised. IT: centralised deposit, custody and administration services can be provided only by entities duly authorised and supervised by the Consob in agreement with the Bank of Italy.       IT: in the case of collective investment schemes other than harmonised UCITS under the Directive 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. IE: 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.       IE: 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. IE: 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. PT: 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.       PT: the services of venture capital may not be provided by branches of venture capital companies having their head office in a non-EC country. 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.       SK: banking services may be provided only by domestic banks or branches of foreign banks authorised by the National Bank of Slovakia upon the agreement with the Ministry of Finance. The granting of authorisation is based on the consideration of criteria relating, in particular, to capital endowment (financial strength) professional qualifications, integrity and competence of the management of the projected bank activities. Banks are legal entities incorporated in the Slovak Republic, established as joint-stock companies or public (State-owned) financial institutions. The purchase of shares expressing interest in the equity capital of existing commercial bank from the determined limit is subject to prior approval of the National Bank of Slovakia.       Investment services in the Slovak Republic can be provided by banks, investment companies, investment funds and security dealers which have legal form of joint-stock company with equity capital according to the law. Foreign investment company or investment fund must obtain an authorisation from Ministry of Finance for selling its securities or investment certificate units on the territory of the Slovak Republic according to the Law. For issue of debt securities the permission of the Ministry of Finance is required either for the issue inland or abroad.       Securities may be issued and traded only after permission by the Ministry of Finance has been granted for public trading according to the Securities Act. The business of security dealer, stockbroker or organiser of an over-the-counter market is subject to authorisation of the Ministry of Finance. Settlement and clearing services for all kinds of payments are regulated by National Bank of Slovakia.       Settlement and clearing services relating to change of physical property of securities are recorded in Centre of Securities (Clearing and Settlement House for Securities). Centre of Securities may provide only transfers on the property accounts of security owners. Cash part clearing and settlement goes through Banking Clearing and Settlement House — (where the National Bank of Slovakia is major shareholder) for Bratislava Stock Exchange, joint-stock company or through Jumbo account for RM-System Slovakia.       SE: 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 section under (i) and (ii) and subject to the following specific limitations: BG: For Banking services as listed below: — acceptance of deposits and other repayable funds from the public, — lending, such as consumer credit, mortgage credit, factoring and financing of commercial transactions — payment and money transmission services, — guarantees, excluding guarantees of the State Treasury, — financial leasing: unbound, except as in (3) above. FR: Sociétés d'investissement à capital fixe: condition of nationality for the president of the Board of Directors, the Directors-General and no less than two thirds of the administrators, and also, when the securities 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. EL: credit institutions should name at least two persons who are responsible for the operations of the institution. Condition of residency applies to these persons. (4) Unbound, except as indicated in the horizontal section under (i) and (ii) and subject to the following specific limitations: IT: condition of residence for ‘promotori di servizi finanziari’ (financial salesmen).   II.2. FINANCIAL SERVICES — SPECIFIC COMMITMENTS (second part) 1. The commitments on Financial Services of the other part of the EC (CY, EE, LV, LT, MT, PL, RO and SI) are in the following section. 2. CY: unregulated financial services and products and the admission to the market of new financial services or products, may be subject to the existence or the introduction of a regulatory framework aimed at achieving the objectives indicated in Article 125. 3. CY: due to exchange controls operative in Cyprus: — residents are not permitted to purchase banking services which may involve transfer of funds abroad, while they are physically abroad, — loans to non-residents/foreigners or non-resident controlled companies require approval from the Central Bank, — acquisition of securities by non-residents also requires permission from the Central Bank, — dealings in foreign currency may be carried out only through banks which have been accorded ‘Authorised Dealer’ status from the Central Bank. 4. MT: for mode (3) commitments, under exchange control legislation non-residents wishing to supply any services through the registration of a local company may do so with the prior permission of the Central Bank of Malta. Companies with the participation of non-resident legal or natural persons require a minimum share capital of 10 000 Maltese Liri of which 50 % has to be paid up. The non-resident percentage share of the equity is to be paid for with funds emanating from abroad. Companies with non-resident participation must apply for a permit from the Ministry of Finance to acquire premises under the appropriate legislation. 5. MT: for mode (4) commitments, the requirements of Maltese legislation and regulations regarding entry, stay, acquisition of real property, work and social security measures shall continue to apply, including regulations concerning period of stay, minimum wages as well as collective wage agreements. Entry, work and residence permits are granted at the discretion of the Government of Malta. 6. RO: the establishment and the activity of insurance and reinsurance companies are subject to authorisation from the Romanian Insurance Supervisory Commission. 7. RO: the establishment and the activity of the banking companies are subject to authorisation from the National Bank of Romania. There are no restrictions for the establishment of a foreign bank in Romania, other than the observance of prudential measures set up by the National Bank of Romania. 8. RO: the establishment and the activity of securities market related entities (natural or legal persons, as the case may be) are subject to authorisation from the National Securities Commission of Romania (NSC). 9. RO: after the establishment of a commercial presence, the financial institutions have to carry out their transactions with residents only in the national currency of Romania. 10. SI: 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 125. 11. SI: as a general rule and in a non-discriminatory manner, financial institutions incorporated in the Republic of Slovenia must adopt a specific legal form. 12. SI: insurance and banking activities should be performed by legally separate suppliers of financial services. 13. SI: investment services can be provided only through banks and investment firms. A. Insurance and insurance-related services 1. EE: compulsory social security services are not committed. 2. LV: (i), (ii) (3): as a general rule and in non-discriminatory manner, insurance institutions incorporated in Latvia must adopt a specific legal form. 3. LV: (iii) (3): intermediary can be only natural person (no nationality requirement) and can provide service on behalf of insurance company having the authorisation from Insurance Supervisory Authority in Latvia. 4. LT: all subsectors: Insurance companies are not allowed to provide both life and non-life insurance. Separate incorporation is required for those two types (a) and (b). (i) direct insurance (including co-insurance): (a) life (b) non-life (ii) reinsurance and retrocession (iii) insurance intermediation, such as brokerage and agency RO: not committed. (iv) services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services (1) CY: life insurance (including intermediation): no insurer can offer life insurance services in the Republic of Cyprus unless licensed as an insurer by the Superintendent of Insurance, in accordance with the Insurance Companies Laws. Non-life insurance (including intermediation): no insurer can offer non-life insurance services (except Marine, Aviation and Transit) in the Republic of Cyprus unless licensed as an insurer by the Superintendent of Insurance, in accordance with the Insurance Companies Laws. Reinsurance and retrocession (including intermediation): any foreign reinsurer approved by the Superintendent of Insurance (on prudential criteria) may offer reinsurance or retrocession services to insurance companies incorporated and licensed in Cyprus. Services auxiliary to insurance: none EE: none (1) CY, EE, LV, LT: none MT: life insurance, non-life insurance and reinsurance and retrocession: none Insurance intermediation and services auxiliary to insurance: unbound PL: unbound, except for the reinsurance, the retrocession and insurance of goods in international trade. RO: unbound, except for reinsurance and retrocession. SI: marine, aviation and transport insurance, insurance intermediation, and services auxiliary to insurance: none Life insurance, non-life insurance (except marine, aviation and transport insurance), and reinsurance and retrocession: unbound     LV: life insurance, non-life insurance and insurance intermediation: unbound Reinsurance and retrocession, and services auxiliary to insurance: none       LT: life insurance, non-life insurance (except for maritime and aviation insurance), and insurance intermediation: unbound Maritime and aviation insurance, reinsurance and retrocession and services auxiliary to insurance: none MT: marine, aviation and transport insurance, reinsurance and retrocession, and insurance intermediation: none Life insurance, non-life insurance (except for marine, aviation and transport insurance), reinsurance and retrocession (except for marine, aviation and transport reinsurance), and services auxiliary to insurance: unbound       PL: unbound, except for the reinsurance, the retrocession and insurance of goods in international trade. RO: life insurance, non-life insurance and services auxiliary to insurance: unbound Reinsurance and retrocession: reinsurance on the international market is allowed only if the reinsured risk cannot be placed on the domestic market.       SI: marine, aviation and transport insurance: insurance activities provided by mutual insurance institutions are limited to incorporated companies established in the Republic of Slovenia. Life insurance, non-life insurance (except marine, aviation and transport insurance), reinsurance and retrocession, insurance intermediation, and services auxiliary to insurance: unbound       (2) CY, EE, LV, LT: none MT: Life insurance, non-life insurance, and reinsurance and retrocession: none Insurance intermediation and services auxiliary to insurance: unbound PL: unbound, except for the reinsurance, the retrocession and insurance of goods in international trade. RO: life insurance, non-life insurance and services auxiliary to insurance: unbound reinsurance and retrocession: Ceding in reinsurance on the international market can be made only if the reinsured risk cannot be placed on the domestic market. SI: marine, aviation and transport insurance: Insurance activities provided by mutual insurance institutions are limited to incorporated companies established in the Republic of Slovenia. (2) CY, EE, LV, LT: none MT: life insurance, non-life insurance, and reinsurance and retrocession: none Insurance intermediation and services auxiliary to insurance: unbound PL: unbound, except for the reinsurance, the retrocession and insurance of goods in international trade. RO: unbound, except for reinsurance and retrocession. SI: marine, aviation and transport insurance, reinsurance and retrocession, insurance intermediation, and services auxiliary to insurance: none     Life insurance and non-life insurance (except marine, aviation and transport insurance): unbound Reinsurance and retrocession: reinsurance companies in the Republic of Slovenia have priority in the collection of insurance premiums. In case that these companies are not able to equalise all risks, these can be reinsured and retroceded abroad. (None upon the adoption of the new law on Insurance Companies). Life insurance and non-life insurance (except marine, aviation and transport insurance): unbound     Insurance intermediation and services auxiliary to insurance: none       (3) CY: life and non-life insurance (including intermediation): No insurer can operate in or from within the Republic of Cyprus unless so authorised by the Superintendent of Insurance, in accordance with the Insurance Companies Laws. Foreign insurance companies can operate in the Republic of Cyprus through the establishment of a branch or an agency. The foreign insurer must have been authorised to operate in his country of origin before authorised to establish a branch or agency. Participation of non-residents in insurance companies, incorporated in the Republic of Cyprus, requires the prior approval of the Central Bank. (3) CY, LV, LT, MT, PL, RO: none EE: life and non-life insurance: None, except the management body of an insurance joint-stock company with foreign capital participation may include citizens of foreign countries in proportion to the foreign participation, but not more than half of the members of the management group; the head of the management of a subsidiary or an independent company must permanently reside in Estonia. Reinsurance and retrocession, insurance intermediation and services auxiliary to insurance: none     Reinsurance and retrocession (including intermediation): No company can operate as a reinsurer within the Republic of Cyprus unless so authorised by the Superintendent of Insurance. Investment by non-residents in reinsurance companies requires the prior approval of the Central Bank. The share of foreign participation in the capital of local reinsurance companies is determined on a case-by-case basis. Currently there is no local reinsurance company. Services auxiliary to insurance: none SI: Life insurance, non-life insurance, and reinsurance and retrocession: none Insurance intermediation and services auxiliary to insurance: for sole proprietors a residence in the Republic of Slovenia is required.     EE, LV, LT: none       PL: Establishment in a form of joint-stock company or a branch after obtaining a licence.       No more than 5 % of insurance funds can be invested abroad. A person executing activities of the insurance intermediation must possess a licence. Local incorporation required for insurance intermediaries. RO: Life insurance: the establishment of companies with foreign participation is allowed only in partnership with Romanian legal or natural persons. The representatives of foreign companies and of the associations of foreign insurers have the right to conclude insurance contracts only with foreign legal and natural persons.       Non-life insurance: the establishment of companies and intermediation agencies with foreign participation is allowed only in partnership with Romanian legal or natural persons. The representatives of foreign insurance companies and of the associations of foreign insurers have the right to conclude insurance contracts only with foreign legal and natural persons and for their goods. Reinsurance and retrocession: the establishment of companies with foreign participation is allowed only in partnership with Romanian legal or natural persons. Services auxiliary to insurance: the establishment of companies and intermediation agencies with foreign participation is allowed only in partnership with Romanian legal or natural persons.       Intermediation agencies are not allowed to conclude insurance contracts for foreign insurance companies with Romanian legal or natural persons or for their goods. The representatives of foreign insurance companies and of the associations of foreign insurers have the right to conclude only the following types of insurance contracts: (a) insurance and reinsurance contracts with legal and natural foreign persons or for their goods; (b) reinsurance contracts with Romanian insurance companies, insurance-reinsurance companies and reinsurance companies.       SI: life and non-life insurance: establishment is subject to a licence issued by the Ministry of Finance. Foreign persons can establish an insurance company only as a joint venture with domestic person, where participation of foreign persons is limited up to 99 %.       The limitation on the maximum foreign ownership shall be abolished with the adoption of the new Law on Insurance Companies.       A foreign person may acquire or increase shares in a domestic insurance company subject to a prior approval of the Ministry of Finance.       Ministry of Finance, when issuing a licence or approval of acquiring shares in a domestic insurance company, takes into account the following criteria: — the dispersion of ownership of shares and the existence of shareholders from different countries; — the supply of new insurance products and the transfer of related know how, if the foreign investor is an insurance company.       Unbound for foreign participation in insurance company under privatisation.       Membership of the mutual insurance institution is limited to companies established in the Republic of Slovenia and domestic natural persons.       Reinsurance and retrocession: Foreign participation in reinsurance company is limited up to a controlling share of the capital. (None, except for branches, upon the adoption of the new law on Insurance companies). Insurance intermediation and services auxiliary to insurance: For providing consultancy and claim settlement services, incorporation is required as a legal entity by consent of the Bureau of insurance. For actuaries and risk assessment activities provision of services through professional establishment only. Operation is limited to activities referred under A(i) and (ii) of this Schedule.       (4) CY: life, non-life insurance, insurance intermediation and services auxiliary to insurance: unbound Reinsurance and retrocession: unbound natural persons are not authorised to provide reinsurance services. EE, LV, LT, MT: unbound, except as indicated in the horizontal section under (i) and (ii). (4) CY: life, non-life insurance, insurance intermediation and services auxiliary to insurance: none Reinsurance and retrocession: unbound natural persons are not authorised to provide reinsurance services. EE, LT, MT, SI: unbound, except as indicated in the horizontal section under (i) and (ii).     PL: unbound, except as indicated in the horizontal section under (i) and (ii) and subject to the following specific limitation: residency requirement for insurance intermediaries. RO: unbound, except as indicated in the horizontal section under (i). Unbound for (ii). SI: life insurance, non-life insurance, and reinsurance and retrocession: unbound, except as indicated in the horizontal section under (i) and (ii). Insurance intermediation and services auxiliary to insurance: unbound, except as indicated in the horizontal section under (i) and (ii) and for actuarial and risk assessment residence is required in addition to a qualifying examination, membership in the Actuarial Association of the Republic of Slovenia and proficiency in Slovenian. LV, PL: none RO: unbound, except as indicated in the horizontal section under (i). Unbound for (ii).   B. Banking and other financial services (excluding insurance) 1. CY: direct or indirect ownership or voting rights in a bank by a person and his/her associates may not exceed 10 per cent unless with the prior written approval of the Central Bank. 2. CY: further to the above, in the three existing local banks listed in the stock exchange, direct or indirect shareholding or acquisition of stake in their capital by foreign persons is restricted to 0,5 per cent per individual or organisation and six per cent collectively. 3. LV: mode 4: manager of a branch and a subsidiary of a foreign bank shall be a Latvian tax payer (resident). The commitments on presence of natural persons are bound according to general provisions applicable to all sectors in this list. 4. LT: all subsectors: at least one manager must be Lithuanian citizen. (v) acceptance of deposits and other repayable funds from the public (vi) lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction (vii) financial leasing MT: not committed. PL: not committed. RO: not committed. (viii) all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts MT: not committed. (1) CY: subsectors (v) to (ix) and (x) (b): unbound/only legal entities licensed by the Central Bank may offer banking services in the Republic of Cyprus. Subsectors (x) (e), (xv) and (xvi): none, except as indicated in the horizontal section. All other subsectors: unbound EE: acceptance of deposits and other repayable funds from the public. Requirement of authorisation by Eesti Pank and registration under Estonian Law as a joint-stock company, a subsidiary or a branch. EE, LT: the establishment of a specialised management company is required to perform the activities of management of unit trusts and investment companies, and only firms having their registered office in the Community can act as depositories of the assets of investment funds. (1) CY: unbound, except for: subsectors (x) (e), (xv) and (xvi): none, except as indicated in the horizontal section. EE, LV, LT, SI: none MT: subsectors (v) and (vi): none subsector (xv): unbound, except for the provision of financial information by international providers. PL: unbound, except for: subsector (xv): none RO: unbound, except for: subsectors (v), (vi), (viii), (ix), (xii), (xv) and (xvi): none   (ix) guarantees and commitments MT: not committed. PL: excluding guarantees and commitments of the State Treasury. (x) trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following: (a) money market instruments (including cheques, bills, certificates of deposits) (b) foreign exchange LV: unbound, except for: subsectors (xi), (xv) and (xvi): none LT: pension fund management: commercial presence required. MT: subsectors (v) and (vi): none Subsector (xv): unbound, except for the provision of financial information by international providers. PL: unbound, except for: subsector (xv): Requirement to use the public telecommunication network, or the network of other authorised operator, in the case of cross-border provision of these services. RO: unbound, except for: subsectors (v), (vi), (ix), (xii), (xv) and (xvi): none Subsector (viii): allowed only through a resident bank. SI: none for subsectors (xv) and (xvi).     (c) derivative products including, but not limited to, futures and options (d) exchange rate and interest rate instruments, including products such as swaps, forward rate agreements (e) transferable securities (f) other negotiable instruments and financial assets, including bullion MT: not committed. PL: only (x) (e) is committed. RO: only (x) (e) is committed. Unbound, except accepting credits (borrowing of all types), and accepting guarantees and commitments from foreign credit institutions by domestic legal entities and sole proprietors. (Remark: consumer credits shall be free upon the adoption of the new Foreign Exchange Law). All abovementioned credit arrangements must be registered with the Bank of Slovenia. (Remark: this provision shall be abolished upon the adoption of the new Law on Banking.) Foreign persons can only offer foreign securities through domestic banks and stock broking company. Members of the Slovenian Stock Exchange must be incorporated in the Republic of Slovenia.     (xi) participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues MT: not committed. PL: excluding participation in issues of Treasury papers. SI: excluding participation in issues of Treasury bonds. (xii) money broking MT: not committed. PL: not committed. (2) CY: subsectors (v) to (xiv), except subsector (x) (e) Unbound. Residents of Cyprus require permission from the Central Bank in conformity with the Exchange Control Law for borrowing in foreign currency or abroad, for placing funds abroad or for obtaining banking services that require export of funds. Subsector (x) (e), (xv) and (xvi): none, except as indicated in the horizontal section. EE, LV, LT: none MT: subsectors (v) and (vi): none Subsector (xv): unbound, except for the provision of financial information by international providers. PL: unbound, except for: subsector (xv): requirement to use the public telecommunication network, or the network of other authorised operator, in the case of consumption abroad of these services. Subsector (xvi): none RO: unbound, except for: subsectors (vi), (ix), (xii), (xv) and (xvi): none Subsector (v), (viii) and (x) (e): the opening of accounts and utilisation of foreign currency resources abroad by natural and legal Romanian persons is allowed only with prior permission from the National Bank of Romania. (2) CY: unbound, except for: subsectors (x) (e), (xv) and (xvi): none, except as indicated in the horizontal section. EE, LV, LT, SI: none MT: subsectors (v) and (vi): none Subsector (xv): unbound, except for the provision of financial information by international providers. PL: unbound, except for: subsector (xv) and (xvi): none RO: unbound, except for: subsectors (v), (vi), (viii), (ix), (x) (e), (xii), (xv) and (xvi): none   (xiii) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services MT: not committed. PL: only portfolio management services. RO: only portfolio management, closed-end investment trust services, open-ended investment funds services and securities custody services SI: excluding pension fund management. SI: none for subsectors (xv) and (xvi). Unbound, except accepting credits (borrowing of all types), and accepting guarantees and commitments from foreign credit institutions by domestic legal entities and sole proprietors. (Remark: consumer credits shall be free upon the adoption of the new Foreign Exchange Law). All abovementioned credit arrangements must be registered with the Bank of Slovenia. (Remark: this provision shall be abolished upon the adoption of the new Law on Banking.) Legal entities established in the Republic of Slovenia can be depositories of the assets of Investments Funds.     (xiv) settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments MT: not committed. PL: not committed. RO: only settlement and clearing services for securities. (xv) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services RO: only securities related services. (3) All Member States: — the establishment of a specialised management company is required to perform the activities of management of unit trusts and investment companies, — only firms having their registered office in the Community can act as depositories of the assets of investment funds. CY: all subsectors, except subsector (x) (e) For new banks the following requirements apply: (a) a licence is required from the Maltese financial authorities. An economic needs test may be applied. (3) CY: all subsectors, except subsector (x) (e): none once established and licensed. Subsector (x) (e): A brokerage firm may only be registered as a member of the Cyprus Stock Exchange if it has been established and registered in accordance with the Companies Law of Cyprus. EE, LV, LT, MT, PL, SI: none RO: none, except for: Subsector (x) (e): securities transactions on the organised securities markets by a natural or legal person which is a non-resident of Romania are taxed at up to 1,5  % of total value of each buying contract. The repatriation of the invested capital and of the profits shall be made in the same currency in which the initial investment was made. Subsectors (xi) and (xiii): The repatriation of the invested capital and of profits shall be made in the same currency in which the initial investment was made.   (xvi) advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy MT: not committed. PL: advisory and other auxiliary financial services only in relation to the activities committed for Poland. SI: excluding advisory, intermediation and other auxiliary financial services related to participation in issues of Treasury bonds and to pension fund management. (b) branches of foreign financial institutions must be registered in Cyprus under the Companies Law and licensed. Subsector (x) (e): only members (brokers) of the Cyprus Stock Exchange can undertake business pertaining to securities brokerage in Cyprus. Firms acting as brokers must only employ individuals who can act as brokers provided that they are appropriately licensed. Banks and Insurance companies may not undertake brokerage business. However their subsidiary brokerage firms may do so. LV: subsector (xi): The Bank of Latvia (Central Bank) is a financial agent of the government in the T-bills market. Subsector (xiii): pension fund management is provided by State monopoly. LT: none, except as indicated in horizontal part of section ‘Banking and other financial services’, and for: subsector (xiii): establishment only as Public Stock Corporations (AB) and Close Corporations (UAB) which should be founded in closed manner (when all initially issued stock are acquired by incorporators). For the purpose of asset management, the establishment of a specialised management company is required. Only firms having their registered office in Lithuania can act as the depositories of the assets. As indicated in horizontal part of section ‘Banking and other financial services’.       MT: unbound, except for: subsectors (v) and (vi): foreign-owned credit and other financial institutions may operate either in the form of a branch or a local subsidiary.       PL: subsectors (v), (vi), (viii) and (ix) (excluding guarantees and commitments of the State Treasury): establishment of a bank only in a form of joint-stock company or a licensed branch. Nationality requirement for some — at least one — of the bank executives.       Subsectors (x) (e), (xi) (excluding participation in issues of Treasury papers), (xiii) (only portfolio management services) and (xvi) (advisory and other auxiliary financial services only in relation to the activities committed for Poland): establishment, after obtaining a licence, only in a form of joint-stock company or a branch of foreign legal entity providing securities services.       Subsector (xv): requirement to use the public telecommunication network, or the network of other authorised operator, in the case of cross-border provision and/or consumption abroad of these services.       RO: subsector (x) (e): the securities (brokerage) company must be a Romanian legal entity set up as a joint-stock company under Romanian law and have as its exclusive business objective the intermediation of securities Subsector (xi): the securities company must be a Romanian legal entity set up as a joint-stock company under Romanian law and have as its exclusive business objective the intermediation of securities. Any public offer of securities shall require, prior to the publication of its prospectus, the authorisation of the National Securities Commission of Romania. Subsector (xiii): companies performing asset management (except open-ended investment funds) must be established as joint-stock companies under Romanian law. The open-ended investment funds must be established under civil Romanian law.       SI: none for subsectors (xv) and (xvi).       Establishment of all types of banks are subject to a licence of the Bank of Slovenia.       Foreign persons may become shareholders of banks or acquire additional shares of banks only subject to prior approval of the Bank of Slovenia (Remark: this provision shall be abolished upon the adoption of the new Law on Banking).       Under license of the Bank of Slovenia, banks, subsidiaries and branches of foreign banks can be permitted to provide all or limited banking services, depending on the amount of the capital.       Unbound in relation to foreign participation in banks under privatisation.       Branches of foreign banks must be incorporated in the Republic of Slovenia and have legal personality. (Remark: this provision shall be abolished upon the adoption of the new Law on Banking).       Unbound with respect to all types of mortgage banks, savings and loans institutions.       Unbound with respect to establishment of private pension funds (non-compulsory pension funds).       Management Companies are commercial companies established solely for the purpose of managing investment funds.       Foreign persons may directly or indirectly acquire a maximum up to 20 per cent of shares or voting rights of management companies; for a larger percentage an approval of the Securities Market Agency is required.       An Authorised (privatisation) Investment Company is an investment company established solely for the purpose of gathering the ownership certificates (vouchers) and the purchase of shares issued in accordance with regulations on ownership transformation. An Authorised Management Company is established solely for the purpose of managing the authorised investment companies.       Foreign persons may directly or indirectly acquire a maximum up to 10 per cent of shares or voting rights of Authorised (privatisation) Management Companies; for a larger percentage an approval of the Securities Market Agency is required with the consent of the Ministry of Economic Relations and Development.       Investments of the investments funds into securities of foreign issuers are limited to 10 per cent of the investments of the investments funds. Such securities shall be listed on those stock exchanges previously determined by the Securities Market Agency.       Foreign persons may become shareholders or partners in a Stock Broking Company up to 24 % of the capital of the Stock Broking Company by prior approval of the Securities Market Agency. (Remark: this provision shall be abolished upon the adoption of the new Law on Securities Market).       Securities of a foreign issuer which have not yet been offered in the territory of the Republic of Slovenia may only be offered by a Stock Broking Company or a bank licensed to carry out such transactions. Prior to launching the offer the Stock Broking Company or a bank shall obtain the permission of Securities Market Agency.       The request for this permission to offer securities of a foreign issuer in the Republic of Slovenia shall be accompanied by draft prospectus, documentation that the guarantor of the issue of securities of the foreign issuer is a bank or a stock broking company, except in the case of the issue of shares of a foreign issuer.       (4) CY: all subsectors, except subsector (x) (e): unbound Subsector (x) (e): individuals, whether acting alone as brokers or employed by broker firms as brokers, are required to meet the licensing criteria for this purpose. EE, LT, MT, SI: unbound, except as indicated in the horizontal section under (i) and (ii). LV: unbound, except as indicated in the horizontal section under (i) and (ii) and in the horizontal section of the sector ‘Banking and other financial services’. PL: subsectors (v), (vi), (viii) and (ix) (excluding guarantee and commitments of the State Treasury): unbound, except as indicated in the horizontal section under (i) and (ii). Nationality requirement for some — at least one — of the bank executives. Subsectors (x) (e), (xi) (excluding participation in issues of Treasury papers), (xiii) (only portfolio management services), (xv) and (xvi) (advisory and other auxiliary financial services only in relation to the activities committed for Poland): unbound, except as indicated in the horizontal section under (i) and (ii). RO: unbound, except as indicated in the horizontal section under (i). Unbound for (ii). (4) CY: all subsectors, except subsector (x) (e): Unbound For financial institutions foreign employees’ residence and work permit required. Subsector (x) (e): none, except as indicated in the horizontal section. EE, LT, MT, SI: unbound, except as indicated in the horizontal section under (i) and (ii). LV: none, except as indicated in the horizontal section under (i) and (ii) and in the horizontal section of the sector ‘Banking and other financial services’. PL: none RO: unbound, except as indicated in the horizontal section under (i). Unbound for (ii).   ADDITIONAL COMMITMENTS BY PART OF THE EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) Insurance (a) Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) notes the close cooperation among the insurance regulatory and supervisory authorities of these Member States and encourages their efforts to promote improved supervisory standards. (b) These Member States will make their best endeavours to consider within six months from their submissions complete applications for licenses 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 Chile. 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 these 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 Chile. (d) Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) will make its 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) Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) notes that, as regards motor insurance, under Community law as in force on 1 September 2001, and without prejudice to future legislation, premiums may be calculated taking several risk factors into account. (f) Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) notes that under Community law, as in force on 1 September 2001, 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) Part of the EC (AT, BE, DK, DE, ES, FI, FR, EL, IE, IT, LU, NL, PT, SE, UK) notes that under Community law, as in force on 1 September 2001, 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, these Member States will make their best endeavours to consider within 12 months complete applications for licenses 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 Chile. 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) These 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 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 Chile. (c) In application of the relevant EC Directives, these Member States will make their best endeavours to consider within six months complete applications for licenses 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 Chile. 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) These 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 Chile. UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES The Community has been enabled to take on specific commitments with respect to financial services under this Agreement on the basis of an alternative approach to that covered by the general provisions of Part IV, Chapter II (Financial services). It was agreed that this approach could be applied subject to the following understanding: (i) it does not conflict with the provisions of this Agreement; (ii) no presumption has been created as to the degree of liberalisation to which a Party is committing itself under this Agreement. The Community, on the basis of negotiations, and subject to conditions and qualifications where specified, has inscribed in its schedule specific commitments conforming to the approach set out below. A.   Market access Cross-border trade 1. The Community shall permit non-resident suppliers of financial services to supply, as a principal, through an intermediary or as an intermediary, and under terms and conditions that accord national treatment, the following services: (a) insurance of risks relating to: (i) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods and any liability arising therefrom; and (ii) goods in international transit. (b) reinsurance and retrocession and the services auxiliary to insurance as referred to in subparagraph (iv) of Article 117(9); (c) provision and transfer of financial information and financial data processing as referred to in subparagraph (xv) of Article 117(9) and advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services as referred to in subparagraph (xvi) of Article 117(9). 2. The Community shall permit its residents to purchase in the territory of Chile the financial services indicated in: (a) subparagraph 1(a); (b) subparagraph 1(b); and (c) subparagraphs (v) to (xvi) of Article 117(9). Commercial presence 3. The Community shall grant financial service suppliers of Chile the right to establish or expand within its territory, including through the acquisition of existing enterprises, a commercial presence. 4. The Community may impose terms, conditions and procedures for authorisation of the establishment and expansion of a commercial presence insofar as they do not circumvent its obligation under Paragraph 3 and they are consistent with the other obligations of this Agreement. Temporary entry of personnel 5. (a) The Community shall permit temporary entry into its territory of the following personnel of a financial service supplier of Chile that is establishing or has established a commercial presence in the territory of the Community: (i) senior managerial personnel possessing proprietary information essential to the establishment, control and operation of the services of the financial service supplier; and (ii) specialists in the operation of the financial service supplier. (b) The Community shall permit, subject to the availability of qualified personnel in its territory, temporary entry into its territory of the following personnel associated with a commercial presence of a financial service supplier of Chile: (i) specialists in computer services, telecommunication services and accounts of the financial service supplier; and (ii) actuarial and legal specialists. Non-discriminatory measures 6. The Community shall endeavour to remove or to limit any significant adverse effects on financial service suppliers of Chile of: (a) non-discriminatory measures that prevent financial service suppliers from offering in the Community's territory, in the form determined by the Community, all the financial services permitted by the Community; (b) non-discriminatory measures that limit the expansion of the activities of financial service suppliers into the entire territory of the Community; (c) measures of the Community, when it applies the same measures to the supply of both banking and securities services, and a financial service supplier of Chile concentrates its activities in the provision of securities services; and (d) other measures that, although respecting the provisions of this Agreement, affect adversely the ability of financial service suppliers of Chile to operate, compete or enter the Community's market. provided that any action taken under this paragraph would not unfairly discriminate against financial service suppliers of the Party taking such action. 7. With respect to the non-discriminatory measures referred to in subparagraphs 6(a) and (b), the Community shall endeavour not to limit or restrict the present degree of market opportunities nor the benefits already enjoyed by financial service suppliers of Chile as a class in the territory of the Community, provided that this commitment does not result in unfair discrimination against financial service suppliers of the Community. B.   National treatment 1. Under terms and conditions that accord national treatment, the Community shall grant to financial service suppliers of Chile established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This paragraph is not intended to confer access to the Community's lender of last resort facilities. 2. When membership or participation in, or access to, any self-regulatory body, securities or futures exchange or market, clearing agency, or any other organisation or association, is required by the Community in order for financial service suppliers of Chile to supply financial services on an equal basis with financial service suppliers of the Community, or when the Community provides directly or indirectly such entities, privileges or advantages in supplying financial services, the Community shall ensure that such entities accord national treatment to Chilean financial service suppliers resident in its territory. C.   Definitions For the purposes of this approach: 1. A non-resident supplier of financial services is a financial service supplier of Chile which supplies a financial service into the territory of the Community from an establishment located in the territory of Chile, regardless of whether such a financial service supplier has or has not a commercial presence in the territory of the Community. 2. ‘Commercial presence’ means an enterprise within the Community's territory for the supply of financial services and includes wholly- or partly-owned subsidiaries, joint ventures, partnerships, sole proprietorships, franchising operations, branches, agencies, representative offices or other organisations. ( 1 )   In the case of Austria, Finland and Sweden no horizontal reservation has been taken for services considered as public utilities. ( 2 )   Explanatory note: public utilities exist in sectors such as related scientific and technical consulting services, R&D services on social sciences and humanities, technical testing and analysis services, environmental services, health services, transport services and services auxiliary to all modes of transport. Exclusive rights on such services are often granted to private operators, for instance operators with concessions from public authorities, subject to specific service obligations. Given that public utilities often also exist at the sub-central level, detailed and exhaustive sector-specific scheduling is not practical. ( 3 )   Exceptions from these requirements may be granted, if it can be proved that residency is not necessary. ( 4 )   Exceptions from these requirements may be granted, if it can be proved that residency is not necessary. ( 5 )   SI: according to the Law on Commercial Companies, a branch established in the Republic of Slovenia is not considered a juridical person, but as regards their operation, their treatment is equal to a subsidiary. ( 6 )   Commercial, industrial or artisanal activities relate to sectors such as: other business services, construction, distribution and tourism services. It does not relate to telecommunications and financial services. ( 7 )   CZ: a non-discriminatory system of foreign exchange control is applied consisting of: (a) limitation on acquisition of foreign exchange by resident nationals for personal purposes, (b) foreign exchange authorisation in case of Czech residents for acceptance of financial credits from foreign subjects, direct capital investment abroad, acquisition of real estate abroad and purchases of foreign securities. ( 8 )   PL: there is a non-discriminatory system of foreign exchange controls relating to limitations in foreign exchange turnover and to the system of foreign exchange permits (general and individual) among others limitations of capital flows and currency payments. The following foreign exchange transactions require authorisation: — transfer of foreign exchange out of the country, — transfer of Polish currency into the country, — ownership transfer of the right to monetary assets between domestic and foreign persons, — granting and drawing of loans and credits by domestic persons in foreign exchange transactions, — fixing or executing payments in foreign currencies within Poland for acquired goods, real estate, property rights, services or labour, — opening and possessing of a banking account in a bank situated abroad, — acquiring and holding foreign securities and acquiring real estate abroad, — undertaking other obligations abroad of similar effect. ( 9 )   SK: entries being listed for transparency reasons. ( 10 )   BG: there is a non-discriminatory system of foreign exchange controls over transfers and payments related to current transactions: (i) limitations on exports and imports of national or foreign currency in cash; (ii) limitations on acquisition of foreign exchange by resident nationals for personal purposes; (iii) foreign employees may purchase foreign currency up to 70 per cent of their labour remuneration; (iv) payments and transfers abroad in foreign currency are to be effected by banks; (v) unilateral transfers require the permission of BNB; (vi) payments on the territory of the Republic of Bulgaria are to be effected in BGL. ( 11 )   PL: the footnote under market access is also applicable for national treatment. ( 12 )   Foreign persons have the right to transfer abroad the following revenues and compensations that accrue from investments in the Republic of Bulgaria: returns received, compensation for expropriation of the investment for state purposes, proceeds from the liquidation or sale of all or part of the investment, the amount received in execution of a claim secured in currency by a pledge or a mortgage. ( 13 )   RO: thirty per cent of the capital of the State-owned commercial companies has been distributed free of charge to Romanian citizens through ‘Ownership Certificates’ which cannot be sold to foreign legal and natural persons. RO: the remaining 70 per cent of the capital of these companies is to be put on sale. RO: within the privatisation process, foreign investors can buy assets and shares of commercial companies. Romanian legal and natural persons have a priority right in this respect. Under privatisation through the MEBO method (Management/Employee Buy-Out) the right to purchase a commercial company is reserved for its employees. ( 14 )   The duration of ‘temporary stay’ is defined by the Member States and, where they exist, Community laws and regulations regarding entry, stay and work. The precise duration can vary according to the different categories of natural persons mentioned in this schedule. For category (i), the length of stay is limited in the following Member States as follows: BG — one year, which may be extended for up to one additional year for a total term not to exceed three years; EE — three years, which may be extended for up to two additional years for a total term not to exceed five years; LV — Five years; LT — three years, extendable in the case of senior personnel only for up to two additional years; PL and SI — one year, which may be extended. For category (ii), the length of stay is limited in the following Member States as follows: BG — three months within one calendar year; EE — 90 days per six-month period; PL — three months; LT — three months a year; HU, LV, SI — 90 days. ( 15 )   All other requirements of Community and Member States’ laws and regulations regarding entry, stay, work and social security measures shall continue to apply, including regulations concerning period of stay, minimum wages as well as collective wage agreements. ( 16 )   An ‘intra-corporate transferee’ is defined as a natural person working within a legal person, other than a non-profit making organisation, established in the territory of Chile, and being temporarily transferred in the context of the provision of a service through commercial presence in the territory of a Member State; the legal persons concerned must have their principal place of business in the territory of Chile and the transfer must be to an establishment (office, branch or subsidiary) of that legal person, effectively providing like services in the territory of a Member State to which the EC Treaty applies. ( 17 )   Commercial, industrial or artisanal activities relate to sectors such as: other business services, construction, distribution and tourism services. It does not relate to telecommunications and financial services. ( 18 )   Unlike foreign subsidiaries, branches established directly in a Member State by a Chilean financial institution are not, with certain limited exceptions, subject to prudential 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 Chilean of a commercial presence or to the provision of cross-border services from Chile; consequently, a Member State may not apply these restrictions, including those concerning establishment, to Chilean 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. ( 19 )   CZ: when monopoly rights concerning compulsory motor third-party liability insurance are removed, providing this service will be open on a non-discriminatory basis to Czech established service providers. ( 20 )   Exclusive service suppliers may be established or authorised with respect to mandatory insurance schemes. ( 21 )   IT: 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. ( 22 )   IT: 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).