RESTRICTED
WORLD TRADE S/FIN/W/12/Add.21
14October 1997
ORGANIZATION(97-4475)
Committee onTrade inFinancial Services Original: English
COMMUNICATION FROM SLOVENIA
Initial Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestoftheRepublicofSloveniatoMembers
oftheCommittee onTrade inFinancial Services.
______________
TheRepublic ofSlovenia hereby submits itsinitial offerofSpecific Commitments onFinancial
Services under theGeneral Agreement onTrade inServices.
Thisinitial offer reflects proposed legislation changes inthefinancial services sector which
willbeadopted untilendoftheyear1998. Iteliminates anumber ofrestrictions which haveexisted
sofar,andinthisway, further improves present commitments.
Sloveniawillstarttoimplementthemodificationofitscommitmentsrelatingtofinancialservices
introduced intoitsschedule aftertheadoption oftheabove mentioned proposed legislation changes
inthefinancial services sector bytheParliament, atthelatest, bytheendof1998.
Thisinitial offerisconditional. Inaccordance withtheSecond Decision onFinancial Services
of21July1995, theRepublic ofSlovenia reserves therighttomodify orwithdraw allorpartofthe
specific commitments onfinancial services, atanytimethrough 12December 1997.S/FIN/W/12/Add.21
Page2REPUBLIC OFSLOVENIA
SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
INTHIS SCHEDULE
Investments:
3)a) Foreign participation incompanies inthe
privatization process under theLawon
Ownership Transformation, when
exceeding 10percentofthetotal value of
thecompany, issubject toauthorization
andislimited toanamount, determined by
theGovernment.3) Theestablishment ofbranches byforeign
companies isconditioned withthe
registration oftheparent company ina
court register inthecountry oforigin forat
least oneyear.S/FIN/W/12/Add.21
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
b)Prior authorization, bytheGovernment is
required foranyforeign purchases
exceeding 10percentofthecapital or
voting rights inanexisting Slovenian
company already privatized under theLaw
onOwnership Transformation withavalue
exceeding 5million ECU, andforany
purchases ofequity ofanexisting
Slovenian company, when itexceeds
1.25 million ECU, ifthisequity isused
withrespect toanindependent part,
division orplant ofanenterprise.
Anassessment ofinvestments under a)and
b)ismade inlight oftheeffect onthe
economy ofthecountry.Subsidies
None, other thanforbranches established
intheRepublic ofSlovenia byaforeign
company. Eligibility forsubsidies from the
Republic ofSlovenia maybelimited to
juridical persons established within the
territory oftheRepublic ofSlovenia ora
particular geographical sub-division
thereof. Unbound forsubsidies for
research anddevelopment. Thesupply of
aservice, oritssubsidization, withthe
public sector isnotinbreach ofthis
commitment.S/FIN/W/12/Add.21
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Anassessment ofsuch investments ismade on
thebasis ofthefollowing criteria:
-thesituation ofthecompany onthedomestic
andforeign markets from theaspect of
monopoly position andtheinfluence ofthe
foreign investor onthemonopoly position ofan
existing company, inaccordance withtheLaw
onProtection ofCompetition;
-theprice oftheacquired stake orshares in
relation withthecompetitive capability ofthe
company onthedomestic andforeign markets;
-thepotential threat tofaircompetition of
incorporating foreign investors;
-theprevention ofacquisition ortake-over that
mayresult intheclosing down ofotherwise
profitable andcompetitive production andinthe
elimination ofcompetition from andwithin
Republic ofSlovenia forgiven products or
markets;
-thecurrent ownership structure ofthe
company;
-theeffect ofthepurchase onthedevelopment
ofthecompany withrespect tothemanner and
period ofpurchase.Atleast halfoftheordinary members ofthe
Board ofDirectors have tobenationals ofthe
Republic ofSlovenia. Themanaging director of
alimited liability company oratleast the
procurator hastobeaSlovenian national.
Non-Slovenian national, director ofabranch,
established intheRepublic ofSlovenia bya
foreign juridical person, hastobearesident in
theRepublic ofSlovenia.S/FIN/W/12/Add.21
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Inthecaseofinvestment under a)thefollowing
additional criteria shall beconsidered:
-theimportance ofatrademark;
-theeffect oftheforeign investment inthe
company ontheacquisition ofnewtechnologies
ormodern equipment;
-theeffect oftheforeign investment inthe
company ontheacquisition ofadditional
financial means asworking orfixed capital;
-theeffect oftheforeign investment inthe
company onmaintaining thecurrent employment
level ortheemployment ofnewpersonnel.
Forfinancial services, authorization isissued by
theauthorities indicated insector specific
commitments andaccording toconditions
indicated insector specific commitments.
There arenolimitations onestablishment ofa
newbusiness establishment ("greenfield"
investments).
Services considered intheRepublic ofSlovenia
aspublic utilities atanational orlocal level may
besubject topublic monopolies ortogranting of
concessions toprivate operators, asindicated in
sector specific commitments.S/FIN/W/12/Add.21
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Real estate:
Juridical persons established intheRepublic of
Slovenia withforeign capital participation may
onlyacquire realestate necessary fortheconduct
oftheeconomic activities forwhich theyare
established.
Juridical persons, established intheRepublic
ofSlovenia with foreign capital participation,
may acquire realestate ontheterritory ofthe
Republic ofSlovenia.
Branches* established intheRepublic of
Slovenia byforeign persons mayonlyacquire
realestate, except land, necessary forthe
conduct oftheeconomic activities forwhich they
areestablished.
Ownership ofrealestate intheborder areas of
10kmbycompanies inwhich majority of
capital orvoting rights belongs directly or
indirectly tojuridical persons ornationals of
another Member issubject tospecial permission.
*According totheLawonCommercial Companies, abranch established intheRepublic ofSlovenia isnotconsidered ajuridical person, butasregards their operation,
their treatment isequal toasubsidiary, which isinlinewithArticle XXVIII para.(g) oftheGATS.S/FIN/W/12/Add.21
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Unbound, except formeasures concerning
theentry intoandtemporary stay, without
requiring compliance withaneconomic
need test*, ofanatural person which falls
inoneofthefollowing categories:
Business visitors
Anatural person, whostays inthe
Republic ofSlovenia without acquiring
remuneration from orwithin theRepublic
ofSlovenia andwithout engaging in
making direct sales tothegeneral public or
supplying services, forthepurpose of
participating inbusiness meetings, business
contacts, including negotiations forthesale
ofservices, orother similar activities,
including those toprepare theestablishment
ofcommercial presence intheRepublic of
Slovenia.
Theduration oftemporary stayislimited
witha90dayvisa.4) Unbound except formeasures concerning
thecategories ofnatural persons referred to
intheMarket Access Column.
Totheextent thatanysubsidy ismade
available tonatural persons, their
availability maybelimited tonationals of
theRepublic ofSlovenia.
*Allother requirements oflaws andregulations regarding entry, stay, work andsocial security measures shall continue toapply, including regulations concerning
period ofstay, minimum wages aswellascollective wage agreements.S/FIN/W/12/Add.21
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Intra-Corporate Transferee*
Natural persons ofanother Member whohave
been employed byjuridical persons ofanother
Member foraperiod ofnotlessthanthree years
immediately preceding theentry orhave been
partners init(other thanmajority shareholders):
a) Natural persons occupying asenior
position, whoprimarily direct the
management oftheestablishment, receiving
general supervision, direction, principally
from theboard ofdirectors orstockholders
ofthebusiness ortheir equivalent,
including:
-directing theestablishment ora
department orsub-division ofthe
establishment;
-supervising andcontrolling thework of
other supervisory, professional or
managerial employees;
-having theauthority personally tohire
andfireorother personnel actions.
*An"intra-corporate transferee" isdefined asanatural person working within ajuridical person, other thananon-profit making organisation, established inthe
territory ofaWTO Member, andbeing temporarily transferred inthecontext oftheprovision ofaservice through commercial presence intheterritory ofthe
Republic ofSlovenia; thejuridical persons concerned must have their principal place ofbusiness intheterritory ofaWTO Member andthetransfer must betoan
establishment ofthatjuridical person, effectively providing likeservices intheterritory oftheRepublic ofSlovenia.S/FIN/W/12/Add.21
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
b) Natural persons working within ajuridical
person whoposses special knowledge and
uncommon qualifications essential tothe
establishment 'sservice, research
equipment, techniques ormanagement. In
assessing such special knowledge, account
willnotbetaken onlyofknowledge
specific totheestablishment, butalsoof
whether theperson hasahighlevel of
qualifications referring toatypeofwork or
trade requiring specific technical
knowledge, including membership ofan
accredited profession.
Theduration oftemporary stayfor
"intra-corporate transferees" islimited witha
"business visa" andaresidence permit, which
maybegranted uptooneyearwithextensions.S/FIN/W/12/Add.21
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
7. FINANCIAL SERVICES
1. Theadmission tothemarket ofnewfinancial services orproducts maybesubject totheexistence of,andconsistency with, aregulatory framework aimed at
achieving theobjectives indicated inArticle 2.(a) oftheAnnex onFinancial Services.
2. Asageneral ruleandinanon-discriminatory manner, financial institutions incorporated intheRepublic ofSlovenia must adopt aspecific legal form.
3. Insurance andbanking activities should beperformed bylegally separate suppliers offinancial services.
4. Investment services canbeprovided onlythrough banks andinvestment firms.
A. Insurance andInsurance-
Related Services
asdefined inthe"Annex
onFinancial Services"
(Para.5.(a)(i)-5.(a)(iv))
(i) Direct insurance
(including co-insurance)
(A)life
(B)non-life1),2) Unbound except formaritime shipping
andcommercial aviation andfreight,
withsuch insurance tocover anyorall
ofthefollowing: thegoods being
transported, thevehicle transporting
thegoods andanyliability arising
therefrom; andgoods ininternational
transit.1),2) Unbound except formaritime shipping
andcommercial aviation andfreight,
withsuch insurance tocover anyorall
ofthefollowing: thegoods being
transported, thevehicle transporting
thegoods andanyliability arising
therefrom; andgoods ininternational
transit.S/FIN/W/12/Add.21
Page11Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
3) Establishment issubject toalicence issued
bytheMinistry ofFinance. Foreign
persons canestablish aninsurance company
onlyasajoint venture withdomestic
person, where participation offoreign
persons islimited upto99percent. A
foreign person mayacquire orincrease
shares inadomestic insurance company
subject toaprior approval oftheMinistry
ofFinance.
Ministry ofFinance, when issuing alicence
orapproval ofacquiring shares ina
domestic insurance company, takes into
account thefollowing criteria:
-thedispersion ofownership ofshares
andtheexistence ofshareholders from
different countries;
-thesupply ofnewinsurance products and
thetransfer ofrelated know how, ifthe
foreign investor isaninsurance company.
Unbound forforeign participation in
insurance company under privatization.
Unbound withrespect tobranches,
representative offices andagencies of
insurers.3) NoneS/FIN/W/12/Add.21
Page12Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Insurance activities provided bymutual
insurance institutions arelimited to
incorporated companies established inthe
Republic ofSlovenia.
4) Unbound except asindicated inPartI 4) Unbound except asindicated inPartI
(ii) Reinsurance and
retrocession1) Unbound
2) Reinsurance companies intheRepublic of
Slovenia have priority inthecollection of
insurance premiums.
Incasethatthese companies arenotableto
equalize allrisks, these canbereinsured
andretroceded abroad.
3) Foreign participation inreinsurance
company islimited uptoacontrolling
share ofthecapital.
4) Unbound except asindicated inPartI1) Unbound
2) None
3) None other thaninsurance company witha
controlling share offoreign capital maynot
beengaged inreinsurance orestablish
reinsurance company.
4) Unbound except asindicated inPartIS/FIN/W/12/Add.21
Page13Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(iii) Insurance intermediation,
such asbrokerage and
agency
(iv) Services auxiliary to
insurance, such as:
-consultancy;
-actuarial;
-riskassessment;
-claim settlement
services.1) Unbound
2) None
3) Forproviding consultancy andclaim
settlement services, incorporation is
required asalegal entity byconsent ofthe
Bureau ofinsurance.
Foractuaries andriskassessment activities
provision ofservices through professional
establishment only.
Operation islimited toactivities referred
under 7A(i) and(ii)ofthisSchedule.
4) Unbound except asindicated inPartIand
foractuarial andriskassessment residence
isrequired inaddition toaqualifying
examination, membership intheActuarial
Association oftheRepublic ofSlovenia and
proficiency intheSlovene language.1) None
2) None
3) Forsoleproprietors aresidence inthe
Republic ofSlovenia isrequired.
4) Unbound except asindicated inPartIS/FIN/W/12/Add.21
Page14Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Banking andOther
Financial Services
asdefined inthe"Annex
onFinancial Services"
(v) Acceptance ofdeposits
andother repayable
funds from thepublic
(vi) Lending ofalltypes,
including consumer
credit, mortgage credit,
factoring andfinancing
ofcommercial
transactions
(vii) Financial leasing
(viii) Allpayment and
money transmission
services, including
credit, charge and
debit cards,
travellers cheques
andbankers draft1),2) Unbound except accepting credits
(borrowing ofalltypes, excluding
consumer credit), andaccepting
guarantees andcommitments from
foreign credit institutions bydomestic
legal entities andsoleproprietors.
Allabove mentioned credit
arrangements must beregistered with
theBank ofSlovenia.1) None other thanforeign persons canonly
offer foreign securities through domestic
banks andstock broking company.
Members oftheSlovenian Stock Exchange
must beincorporated intheRepublic of
Slovenia.
2) None other thanlegal entities established in
theRepublic ofSlovenia canbe
depositories oftheassets ofInvestments
Funds.S/FIN/W/12/Add.21
Page15Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(ix) Guarantees and
commitments (excluding
guarantees and
commitments oftheState
Treasury)
(x) Trading forownaccount
orforaccount of
customers, whether on
anexchange, inanover-
the-counter market
orotherwise, the
following:
(A) money market
instruments (including
cheques, bills, certificate
ofdeposits)3) Establishment ofalltypes ofbanks are
subject toalicence oftheBank ofSlovenia
onprudential grounds .Foreign persons
maybecome shareholders ofbanks or
acquire additional shares ofbanks only
subject toprior approval oftheBank of
Slovenia.3) None
(B) foreign exchangeS/FIN/W/12/Add.21
Page16Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(C) derivative products
including, butnot
limited to,futures and
optionsWhen considering issuing alicence toa
bank tosetupasawholly-owned orwitha
majority offoreign investors orapproval of
acquiring additional shares ofbanks, the
Bank ofSlovenia shall takeintoaccount the
following guidelines*:
-theexistence ofinvestors from different
countries;
-theopinion oftheforeign institution in
charge ofbanking supervision.
(D) exchange rateand
interest rateinstruments
including products such
asswaps, forward
rateagreements
(E) transferable securitiesUnbound inrelation toforeign participation in
banks under privatization.
Under licence oftheBank ofSlovenia, banks,
subsidiaries andbranches offoreign banks can
bepermitted toprovide allorlimited banking
services, depending ontheamount ofthecapital.
(F) other negotiable
instruments and
financial assets,
including bullion
*Besides theamount ofthecapital theBank ofSlovenia shall, when considering issuing anunlimited oralimited banking licence alsotakeintoaccount thefollowing
guidelines (forbothdomestic andforeign applicants):
-thenational-economic preferences forcertain banking activities;
-theexisting regional coverage oftheRepublic ofSlovenia bybanks;
-theactual bank'sperformance ofactivities compared tothose stipulated bytheexisting licence.S/FIN/W/12/Add.21
Page17Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(xi) Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagent
andprovision ofservices
related tosuch issues
(excluding treasury
bonds)Branches offoreign banks must beincorporated
intheRepublic ofSlovenia andhave legal
personality.
Foreign banks areallowed toprovide services
through licensed branches.
Unbound withrespect toalltypes ofmortgage
banks, savings andloans institutions.
(xii) Money broking Unbound withrespect toestablishment ofprivate
pension funds (non-compulsory pension funds).
(xiii) Asset management,
such ascashor
portfolio
management, all
forms ofcollective
investment
management,
custodial, depository
andtrustservices
(excluding pension
fund management)Management Companies arecommercial
companies established solely forthepurpose of
managing investment funds.
Foreign persons maydirectly orindirectly
acquire amaximum upto20percentofshares
orvoting rights ofmanagement companies; fora
larger percentage anapproval oftheSecurities
Market Agency isrequired.
(xiv) Settlement and
clearing services for
financial assets,
including securities,
derivative products,
andother negotiable
instrumentsAnAuthorized (privatization) Investment
Company isaninvestment company established
solely forthepurpose ofgathering theownership
certificates (vouchers) andthepurchase of
shares issued inaccordance withregulations on
ownership transformation. AnAuthorized
Management Company isestablished solely for
thepurpose ofmanaging theauthorized
investment companies.S/FIN/W/12/Add.21
Page18Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Foreign persons maydirectly orindirectly
acquire amaximum upto10percentofshares
orvoting rights ofAuthorized (privatization)
Management Companies; foralarger
percentage anapproval oftheSecurities Market
Agency isrequired withtheconsent ofthe
Ministry ofEconomic Relations and
Development.
Investments oftheInvestments Funds into
securities offoreign issuers arelimited to10per
centoftheinvestments oftheInvestments
Funds. Such securities shall belisted onthose
stock exchanges previously determined bythe
Securities Market Agency.
Foreign persons maybecome shareholders or
partners inaStock Broking Company upto24
percentofthecapital oftheStock Broking
Company byprior approval oftheSecurities
Market Agency.
Securities ofaforeign issuer which have notyet
been offered intheterritory oftheRepublic of
Slovenia mayonlybeoffered byaStock
Broking Company orabank licensed tocarry
outsuch transactions. Prior tolaunching the
offer theStock Broking Company orabank
shall obtain thepermission ofSecurities Market
Agency.S/FIN/W/12/Add.21
Page19Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Therequest forthispermission foroffer
securities ofaforeign issuer intheRepublic of
Slovenia shall beaccompanied bydraft
prospectus, documentation thattheguarantor of
theissue ofsecurities oftheforeign issuer isa
bank orastock broking company, except inthe
caseoftheissue ofshares ofaforeign issuer.
4) Unbound except asindicated inPartI 4) Unbound except asindicated inPartI