RESTRICTED
WORLD TRADE S/FIN/W/12/Add.5
14July1997
ORGANIZATION(97-2976)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE UNITED STATES OFAMERICA
Conditional Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest oftheUnited States tomembers of
theCommittee onTrade inFinancial Services.
_______________
TheUnited States ofAmerica hereby submits aconditional offertoundertake improvements
toits28July1995 schedule ofcommitments infinancial services under theGeneral Agreement on
Trade inServices.
Thisofferunderscores thefullcommitment oftheUnited States toreach asuccessful conclusion
totheWTO financial services negotiations. Itisnowuptoourtrading partners todemonstrate their
commitment byputting forward significantly improved offers intheweeks ahead.
TheUSoffer, accordingly, isconditioned upon other negotiating parties 'undertaking
comprehensive commitments topreserve foreign firms'existing ownership andactivities, andtoprovide
substantiallyfullmarketaccessandnationaltreatmentonanMFN-basisintheirfinancialservicessectors.
Incertain circumstances, acommitment tophase in,within areasonable andspecified time, national
treatment andmarket access could constitute suchcomprehensive commitments.
TheUnitedStatesincorporatesinitsofferthefullextentoffinancialsectorliberalizationavailable
initsmarket. Thisconditional offer removes headnote 2from our1995 schedule, which limited
commitments withrespect tonewentrants, expansion ofexisting activities, andtheconduct ofnew
activities. Theofferalsodrops anumber ofstaterestrictions withrespect toissuance oflicenses to
non-residents andresidency/citizenship requirements andprovides national treatment withrespect to
thecosts ofFederal Reserve examinations. Because noexceptions havebeenlisted, theoffer also
provides foreign firms onanational treatment basis thebenefits ofrecent liberalization withrespect
tointerstate banking andinterstate branching.
Aspartofourconditional offer, wewould alsodelete thefirstitemofourArticle II(MFN)
Exemptions listforfinancial services, dealing withdifferential treatment ofcountries duetoapplication
ofreciprocity measures orthrough certain international agreements.
TheUnited States hasmade other technical corrections toitsoffer toreflect accurately the
existing measures ofitsstates. TheUnited States reserves therighttomodify itsofferwithrespect
tothescheduling ofcertain statemeasures inlightofanynewinformation submitted intheon-going
process ofverifying measures ofall50states andtheDistrict ofColumbia.
TheUnited States maywithdraw ormodify thisoffer, inwhole orinpart,atanytimethrough
12December 1997, ifsignificantly improved commitments from other negotiating partners arenot
undertaken.S/FIN/W/12/Add.5
Page2UNITED STATES OFAMERICA
SCHEDULE OFSPECIFIC COMMITMENTS -CONDITIONAL OFFER
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
7. FINANCIAL SERVICES
A. INSURANCE: (Limited toInsurance):
1. Commitments inthissubsector areundertaken pursuant tothealternative approach toscheduling commitments setforth intheUnderstanding onCommitments
inFinancial Services.
2. National treatment commitments aresubject tothefollowing limitation: national treatment with respect toservices andservice suppliers willbeprovided
according toanon-U.S. service supplier ’sstate ofdomicile intheUnited States, where applicable. State ofdomicile isdefined asthestate inwhich aninsurer
isincorporated, isorganized ormaintains itsprincipal office intheUnited States.
Direct Insurance
a) Life, Accident, andHealth
Insurance Services (except
workers compensation
insurance)
b) Non-Life Insurance
Services1) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, California,
Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Kansas,
Kentucky, Maine, Maryland, Montana,
Nevada, New Jersey (only withrespect to
surplus lines), New York (non-life
companies areauthorized; lifeandhealth
companies arenot), North Carolina,
North Dakota, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South
Dakota, Tennessee, Washington, West
Virginia, Wyoming.1) Aonepercentfederal excise taxis
imposed onalllifeinsurance premiums
andafourpercentfederal excise taxis
imposed onallnon-life insurance
premiums covering USrisks thatarepaid
tocompanies notincorporated under US
law,except forpremiums thatareearned
bysuch companies through anoffice or
dependent agent intheUnited States.
When more than50percentofthevalue
ofamaritime vessel whose hullwasbuilt
under federally guaranteed mortgage
funds isinsured byanon-US insurer, the
insured must demonstrate thattherisk
wassubstantially firstoffered intheUS
market.
2) None 2) NoneS/FIN/W/12/Add.5
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
3) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, California,
Colorado, Connecticut, Delaware,
Georgia, Hawaii, Idaho, Kansas,
Kentucky, Maine, Maryland, Montana,
Nevada, New Jersey (only withrespect to
surplus lines), New York (non-life
companies areauthorized; lifeandhealth
companies arenotauthorized), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.3) None
Branches arenotpermitted toprovide
surety bonds forUSfederal government
contracts.
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asasubsidiary, unless
thatcompany isalready licensed insome
other USstate: Minnesota, Mississippi,
andTennessee.S/FIN/W/12/Add.5
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
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asabranch, unless
thatcompany isalready licensed insome
other USstate: Arkansas, Arizona,
Connecticut, Georgia, Hawaii, Kansas,
Maryland, Minnesota, Nebraska, New
Jersey, North Carolina, Pennsylvania,
Tennessee, Utah, Vermont, Wyoming,
West Virginia.
UScitizenship isrequired formembers of
theboard ofdirectors oflocally
established andlicensed companies inthe
following states andinthefollowing
shares ornumbers: 100percentrequired
inLouisiana; three-quarters in
Washington (mutual lifecompanies with
themajority oftheboard being resident in
thestate); two-thirds required in
Oklahoma (forstock andmutual
companies) andPennsylvania; amajority
required inCalifornia (formutual insurers
operating asauthorized insurers onlyin
thestate ofCalifornia), Florida (forstock
andmutual insurers), Georgia (forstock
andmutual insurers withonefourth
resident inthestate), Idaho (forstock and
mutual insurers), Indiana, Kentucky,
Mississippi, Ohio (forlegal reserve life
insurers), Oregon, New York, South
Dakota (except ifmore than1000 persons
areentitled tovotefortheboard of
directors andamajority ofthevotersS/FIN/W/12/Add.5
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
reside outside thestate, orlessthanone
percentoftheshares areowned bystate
residents), Wyoming (foraninsurer
operating asanauthorized insurer onlyin
Wyoming); seven inTennessee (for
mutual lifeinsurance companies; three
resident inIllinois (forstock, mutual, or
legal reserve insurers) andMissouri (life
andaccident).
UScitizenship forincorporators of
insurance companies isrequired inthe
following states andinthefollowing
percentages ornumbers: 100percentin
Hawaii, Idaho (forstock ormutual
insurer), Indiana, South Dakota and
Washington; two-thirds inArizona (for
stock andmutual insurers), two-thirds
resident inGeorgia (forstock andmutual
insurers); amajority inAlaska, Florida
(forstock andmutual insurers), Arkansas
(majority formutuals orstock), Kansas
(alllifeinsurance companies andmutual
insurers other thanlife), Kentucky (for
mutual orstock insurers); Maine (life,
health, andaccident andmutual aidassoc
withstate residency formutuals),
Missouri (minimum 13withoverall
majority resident inthestate), Montana
(stock ormutual insurers), Texas (life,
health, accident andmutual aidassoc with
state residency formutuals), Wyoming
(forreserve stock andmutual insurers).S/FIN/W/12/Add.5
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
State residency isrequired inthe
following states fortheorganizing
members ofthefollowing types ofmutual
insurance companies: Arkansas (mutuals
andfarm mutual insurers), California
(county mutual fireinsurer); Idaho (all
mutuals); Kansas (allmutuals); North
Dakota (allmutuals), Minnesota
(township mutuals, farmers mutual fire
insurance companies); Mississippi (all
mutuals); Montana (farm mutual insurer);
Vermont (firecooperatives); Wyoming
(farm mutual insurer).
Seven ormore UScitizens, amajority of
whom areresidents ofthestate, may
organize afraternal benefit society inthe
following states: Alaska, Arizona
(requires 10ormore UScitizens, a
majority ofwhom arecitizens ofthe
state), Arkansas, California, Delaware,
Florida, Hawaii, Idaho, Illinois, Indiana,
Iowa, Kansas, Kentucky, Maine,
Maryland, Michigan, Minnesota,
Mississippi, Missouri, Montana,
Nebraska, New Jersey, North Dakota,
Oklahoma (requires 10ormore US
citizens, amajority ofwhom areresidents
ofthestate), Oregon, Pennsylvania, South
Dakota, Virginia, Vermont, Washington,
West Virginia andWyoming.S/FIN/W/12/Add.5
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
Twenty-five ormore persons domiciled in
thestate mayorganize adomestic
reciprocal insurer in:Arizona, Arkansas,
California, Delaware, Georgia, Idaho,
Indiana, Kentucky, Maine, Maryland,
Mississippi, Montana, Pennsylvania,
South Dakota, Tennessee, Vermont,
Virginia, Washington andWyoming.
4) Unbound, except asindicated inthe
horizontal section4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5
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
c) Reinsurance &Retrocession 1) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, Colorado,
Connecticut, Delaware, Georgia, Hawaii,
Idaho, Kansas, Kentucky, Maine,
Maryland, Montana, Nevada, New York
(non-life companies areauthorized; life
andhealth companies arenot), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.
Insurance companies incorporated in
Nevada maypurchase reinsurance only
from aninsurer admitted toNevada. All
insurers writing workers ’compensation
insurance inMinnesota must purchase
reinsurance from theMinnesota Workers ’
Compensation Reinsurance Authority.
Unbound forMaine fortheprovision of
reinsurance forworkers 'compensation.1) Aonepercentfederal excise taxis
imposed onallpremiums covering US
risks thatarepaidtocompanies not
incorporated under USlaw,except for
premiums thatareearned bysuch
companies through anoffice ordependent
agent intheUnited States.
InTexas, total direct reinsurance of
mutual lifeinsurance companies maynot
beentered intowithnon-US companies.
2) Insurance companies incorporated in
Nevada maypurchase reinsurance only
from aninsurer admitted toNevada. All
insurers writing workers ’compensation
insurance inMinnesota must purchase
reinsurance from theMinnesota Workers ’
Compensation Reinsurance Authority.
Unbound forMaine fortheprovision of
reinsurance forworkers 'compensation.2) NoneS/FIN/W/12/Add.5
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
3) Government-owned or
government-controlled insurance
companies, whether USorforeign, are
notauthorized toconduct business in:
Alabama, Alaska, Arkansas, Colorado,
Connecticut, Delaware, Georgia, Hawaii,
Idaho, Kansas, Kentucky, Maine,
Maryland, Montana, Nevada, New York
(non-life companies areauthorized; life
andhealth companies arenot), North
Carolina, North Dakota, Oklahoma,
Oregon, Pennsylvania, Rhode Island,
South Dakota, Tennessee, Washington,
West Virginia, Wyoming.
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asasubsidiary, unless
thatcompany isalready licensed insome
other USstate: Maryland, Minnesota,
Mississippi, andTennessee. After a
licence isobtained insome other US
state, licensing andentry intothestates
listed above ispermitted.3) NoneS/FIN/W/12/Add.5
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
Thefollowing states have nomechanism
forlicensing initial entry ofanon-US
insurance company asabranch, unless
thatcompany isalready licensed insome
other USstate: Arkansas, Arizona,
Connecticut, Georgia, Kansas, Maryland,
Minnesota, Nebraska, New Jersey, North
Carolina, Pennsylvania, Tennessee, Utah,
Vermont, Wyoming, West Virginia.
After alicence isobtained insome other
USstate, licensing andentry intothe
states listed above ispermitted.
4) Unbound, except asindicated inthe
horizontal section4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5
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
d) Services Auxiliary to
Insurance:
(applicable tosub-sectors
i),ii)andiii)below)1),3)Nonresident licenses arenotissued to
individuals notlicensed inanother US
state inArkansas (agents, brokers,
adjusters, consultants), Connecticut
(producers/
adjusters/appraisers/consultants/brokers
/reinsurance intermediary), Colorado
(producer, adjuster andreinsurance
intermediary), California (agents/brokers),
Delaware (broker/agent/reinsurance
intermediary), Georgia
(counsellor/adjuster), Florida
(agent/broker), Hawaii, Illinois
(producers/ adjusters/reinsurance
intermediaries), Indiana (agent/broker),
Kansas (agent/broker), Kentucky
(agent/broker), Louisiana (agent/broker),
Maine (agent/broker), Maryland
(agent/broker/ reinsurance
agent/reinsurance broker), Mississippi
(agent/broker), Missouri (brokers),
Montana (producer 's
license/agent/broker), Nevada
(solicitor/adjuster/property bondsman/bail
solicitor), New Jersey (producer ’s
agent/broker), New Mexico
(bailbondsmen/solicitors/broker agent),
North Dakota (agents/brokers)S/FIN/W/12/Add.5
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
Nebraska (producer 's
license/agent/broker), New York
(reinsurance intermediary), North
Carolina (reinsurance intermediary),
Oregon
(agent/adjuster/consultant/reinsurance
intermediary), Pennsylvania
(adjuster/solicitor), South Dakota (agent),
Virginia (agents/brokers/consultants),
West Virginia (broker/reinsurance
intermediary) andTexas (agent/broker),
Washington (agent/broker).S/FIN/W/12/Add.5
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
i) Brokerage Services11),3)Brokerage licences arenotissued to
non-residents in:South Dakota,
Wyoming.
Brokerage licences areissued to
non-residents foronlycertain lines of
insurance in:Alabama (allexcept life,
accident &health), Arkansas (property,
casualty, surety &marine), California,
Louisiana (property &casualty), New
Mexico (property &casualty).
Allstates require in-state residency for
surplus lines brokers.
2) None
4) Unbound, except asindicated inthe
horizontal section.1),3)Higher licence feesfornon-residents
maybecharged in:Alaska, Arizona,
Arkansas, California, Colorado, Georgia,
Indiana, Louisiana, Maine,
Massachusetts, Montana, Nebraska,
Nevada, New Hampshire, New Mexico,
North Carolina, North Dakota, Ohio,
Oklahoma, Pennsylvania, Rhode Island,
South Carolina, Utah, Vermont.
2) None
4) Unbound, except asindicated inthe
horizontal section.
1Fortransparency purposes, itshould benoted thatbrokerage firms cangenerally offer services inmost states byobtaining licences as"brokers" andinother
states byobtaining licences tooperate as"agents". Brokerage licences arenotissued inFlorida, Iowa, Kentucky, Michigan, Minnesota, Mississippi, Oregon,
Tennessee, Texas, Virginia, West Virginia, Wisconsin.S/FIN/W/12/Add.5
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
ii) Agency Services 1),3)Agency licences areissued to
non-residents foralloronlycertain lines
ofinsurance in:California, Florida
(general lines, life&health),Kansas,
Kentucky (general lines, life&health),
Louisiana (life&health), New Mexico
(life&health), Ohio (life&casualty),
Oregon, Rhode Island (allexcept general
lines), Texas.
Allstates require in-state residency for
surplus lines agents.
2) None
4) Unbound, except asindicated inthe
horizontal section1),3)Higher licence feesfornon- residents
maybecharged in:Alaska, Arkansas,
California, Colorado, Florida, Indiana,
Iowa, Kansas, Kentucky, Louisiana,
Maine, Massachusetts, Mississippi,
Montana, Nebraska, Nevada, New
Hampshire, New Jersey, New Mexico,
North Dakota, Oklahoma, Pennsylvania,
Rhode Island, South Carolina, South
Dakota, Tennessee, Utah, Vermont,
Wisconsin, Wyoming.
2) None
4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5
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
iii) Consultancy, Actuarial,
Risk Assessment, andClaim
Settlement Services1),3)Licenses arenotissued tononresidents
in:Alabama (adjuster, solicitor, service
representative), California (adjuster,
insurance analyst, motor clubagents, bail
bondsman), Florida (customer
representative), Georgia (counsellor,
adjuster), Hawaii (adjuster, solicitor),
Idaho (solicitor), Indiana (bail bondsmen),
Kentucky (adjuster), Maryland (adjuster),
Michigan (adjuster), Montana (adjuster),
Nevada (solicitor, adjuster, property
bondsman), New Mexico (solicitor),
North Carolina (limited representatives,
adjusters, motor vehicle damage
appraisers, professional bondsmen,
runners), Oklahoma (bail license),
Oregon, Pennsylvania (motor vehicle
damage appraiser), Washington (solicitor,
adjuster), West Virginia (adjuster,
solicitor), andWyoming (adjuster,
solicitor).1),3)In-state residency isrequired for
licensure in:California (foradjusters;
andforlifeanddisability insurance
analysts), Georgia (forinspection when
notaccompanied byalicensed resident
adjuster), Illinois (fornon-resident public
adjusters whoarelicensed inastate
which does notpermit equal treatment to
Illinois residents),Maryland, Mississippi
(forindependent adjusters), andNevada
(forappraisers andadjusters).S/FIN/W/12/Add.5
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
UScitizenship isrequired forlicensure
in:Alabama (foragents, brokers,
solicitors, managing general agents and
service representatives), Idaho (for
agents, brokers, solicitors andsurplus
lines brokers), Missouri (forbrokers),
Nebraska (forbrokers), New Mexico (for
solicitors andbailbondsmen), Ohio (for
surplus lines brokers) andOklahoma (for
baillicense).
2) None
4) Unbound, except asindicated inthe
horizontal section.2) None
4) Unbound, except asindicated inthe
horizontal sectionS/FIN/W/12/Add.5
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
THE UNITED STATES OFAMERICA -SCHEDULE OFSPECIFIC COMMITMENTS
B. FINANCIAL SERVICES (LIMITED TOBANKING AND OTHER FINANCIAL SERVICES AND EXCLUDING INSURANCE):
1. Commitments inthese subsectors areundertaken inaccordance withtheUnderstanding onCommitments inFinancial Services (theUnderstanding).
Specifically, market access commitments under modes (a)-(d) assetforth inparagraph 2ofArticle IoftheAgreement areundertaken onlywithrespect tothe
Understanding andparagraph 1ofArticle XVIoftheAgreement.
2. National treatment commitments aresubject tothefollowing limitation: National treatment willbeprovided according totheforeign bank's"home State" in
theUnited States, where applicable, asthatterm isdefined under theInternational Banking Act.1
3. Service suppliers choosing tosupply aservice through ajuridical person constituted under thelaws oftheUnited States aresubject tonon-discriminatory
limitations onjuridical form.2
4. Itisunderstood thatparagraph 4oftheUnderstanding does notrequire thatnon-resident financial service suppliers bepermitted tosolicit business, andno
commitment tosuch solicitation isundertaken.
5. Theoffer ofnewfinancial services orproducts issubject, onanon-discriminatory basis, torelevant institutional andjuridical form requirements.
AllSubsectors, except as
specifically provided below
1),2),3) Michigan limits, according tothe
country oftheir home charters, thebanks
inwhich corporate credit unions may
place deposits.1) None
2) None
1Foreign banking organizations aregenerally subject togeographic limitations intheUnited States onanational treatment basis. Where geographic limits donot
conform tonational treatment, theyhave been reserved asmarket access restrictions. Forpurposes ofillustration, under thisapproach thefollowing situations donot
accord national treatment andaretherefore scheduled aslimitations: 1)where aforeign bank from aparticular home State isaccorded lessfavourable treatment than
thataccorded toadomestic bank from thatState withrespect toexpansion bybranching, and2)where aforeign bank istreated lessfavourably thanadomestic bank
holding company from theforeign bank'shome State withrespect toexpansion through acquisition orestablishment ofabank subsidiary.
2Forexample, partnerships andsoleproprietorships aregenerally notacceptable juridical forms fordepository financial institutions intheUnited States.S/FIN/W/12/Add.5
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
3) Alldirectors ofanational bank must be
citizens unless anational bank isan
affiliate orsubsidiary ofaforeign bank,
inwhich caseonlyamajority ofthe
board need becitizens.
Foreign ownership ofEdge corporations
islimited toforeign banks andUS
subsidiaries offoreign banks, while
domestic non-bank firms mayownsuch
corporations.
Federal andstate lawdonotpermit a
credit union, savings bank, home loanor
thrift business intheUnited States tobe
provided through branches ofcorporations
organized under aforeign country 'slaw.
Inorder toaccept ormaintain domestic
retail deposits oflessthan$100,000, a
foreign bank must establish aninsured
banking subsidiary. Thisrequirement
does notapply toaforeign bank branch
thatwasengaged ininsured deposit-taking
activities onDecember 19,1991.3) Foreign banks arerequired toregister
under theInvestment Advisers Actof
1940 toengage insecurities advisory and
investment management services inthe
United States, while domestic banks are
exempt from registration. The
registration requirement involves record
maintenance, inspections, submission of
reports andpayment ofafee.
Foreign banks cannot bemembers ofthe
Federal Reserve System, andthusmay
notvotefordirectors ofaFederal
Reserve Bank. Foreign-owned bank
subsidiaries arenotsubject tothis
measure.S/FIN/W/12/Add.5
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
3) Unbound forinitial entry byestablishment
oracquisition ofstate chartered or
licensed banks asindicated inthe
following forms: California (branch; also
savings andloanassociation); Connecticut
(bank orholding company; alsocredit
union); Georgia (agency); Illinois
(branch); Kentucky (subsidiary);
Louisiana (agency); Massachusetts
(subsidiary orbranch); Michigan
(agency); North Carolina (subsidiary,
branch, agency, orrepresentative office);
Pennsylvania (anydeposit-taking or
representative bank office); Texas
(agency); Washington (branch, agency,
orrepresentative office). Thelimitations
inthisparagraph donotapply toinitial
establishment oracquisition ofanational
bank subsidiary, branch oragency bya
foreign person thatdoes notalready have
abanking presence intheUnited States,
ortointerstate expansion.
Thefollowing states areunbound forthe
specified activities: Indiana (establishment
ofservice offices byforeign-owned credit
unions);S/FIN/W/12/Add.5
Page20Modes 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
Iowa (activities offoreign-owned savings
andloanassociations; foreign-owned
bank ortrustcompany acting asfiduciary;
useofsatellite banking terminals).
Initial entry orexpansion byaforeign
person (butnotadomestic person)
through acquisition orestablishment ofa
commercial bank subsidiary isprohibited
orotherwise limited inthefollowing
states: Alabama; Arizona; Arkansas;
California (limit onforeign non-bank
ownership ofinternational banking
corporation); Colorado; Delaware;
Indiana; Kansas; Louisiana; Maryland;
Michigan; Minnesota; Mississippi;
Montana; Nebraska; Nevada; New Jersey;
North Carolina; North Dakota; Ohio;
Oklahoma; Oregon; Pennsylvania; South
Carolina; Tennessee; Vermont; Virginia;
Washington; West Virginia; Wisconsin;
Wyoming. Thelimitations inthis
paragraph donotapply toestablishment
oracquisition ofanational bank
subsidiary byaforeign person thatdoes
notalready have abanking presence in
theUnited States.
Thefollowing states limit initial entry or
expansion byaforeign person through
acquisition orestablishment ofthe
following entities: Delaware (savings and
loanassociations); Ohio (savings andloan
associations; savings banks; credit
unions);S/FIN/W/12/Add.5
Page21Modes 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
Tennessee (savings andloanassociations;
savings banks; credit unions; trust
companies); Washington (savings andloan
associations; savings banks; credit unions;
trustcompanies).
Theboards ofdirectors ofdepository
financial institutions organized under the
following states 'laws aresubject to
citizenship requirements ofuptothe
specified proportions: Alabama (all);
Colorado (3/4); District ofColumbia
(all); Florida (majority); Georgia (all);
Indiana (3/4); Iowa (majority); Kentucky
(all); Louisiana (3/5); Massachusetts
(3/4); Mississippi (all); Missouri (all);
New Hampshire (majority); New Jersey
(all); New Mexico (3/4); New York (all;
applies alsototrustees ofmutual savings
bank orsavings andloanassociations, and
tocommittees ofcredit unions); North
Carolina (3/4); North Dakota (majority);
Ohio (3/4); Oklahoma (majority); Oregon
(majority); Pennsylvania (all); South
Dakota (3/4); Tennessee (3/4); Vermont
(2/3); Virginia (majority); Wisconsin
(2/3).S/FIN/W/12/Add.5
Page22Modes 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
Citizenship isalsorequired forthe
incorporators ororganizers ofdepository
financial institutions organized under state
law. Residence within astate mayalso
berequired fordirectors, incorporators,
organizers, orexecutive committee
members ofdepository financial
institutions organized under state law.
Citizenship isrequired toengage in
specified activities inthefollowing states:
Arizona (collection agency); Indiana
(collection agency); Illinois (safe
deposits); Nevada (collection agency);
Rhode Island (member ofmutual savings
bank).S/FIN/W/12/Add.5
Page23Modes 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
Establishment ofadirect branch or
agency byaforeign bank islimited as
specified inthefollowing states:
State branch licence subject tospecified
limitations --California (notrust/fiduciary
powers); Illinois (restricted toChicago
business district); Massachusetts; Oregon;
Pennsylvania; Washington (limited
trust/fiduciary powers andrestricted to
oneoffice perbank). These limitations
donotapply toFederal branches.
State branch licence notavailable, but
state agency licence isinIdaho and
Michigan.
Nostate branch oragency licence
available --Arizona; Arkansas; Colorado;
Indiana; Iowa; Maine; Minnesota;
Montana; Nebraska; Nevada; New
Hampshire; New Mexico; North Dakota;
Ohio; Oklahoma; Rhode Island; South
Carolina; South Dakota; Tennessee; Utah;
Vermont; Virginia; Wisconsin. These
limitations donotapply toFederal
offices.3) Texas allows pre-judgment seizure
remedies andcivil discovery requests to
beapplied against foreign bank agencies,
while subsidiaries areexempt.
Thefollowing states require direct
branches oragencies offoreign banks to
register under securities broker-dealer or
investment adviser measures, while bank
subsidiaries offoreign banks areexempt
from such registration tothesame extent
asdomestic banks incorporated inthe
state: Alabama; Arizona; Arkansas;
California; Connecticut; Delaware;
District ofColumbia; Georgia; Idaho;
Illinois; Iowa; Kansas; Kentucky;
Louisiana; Maine; Maryland; Mississippi;
Missouri; Montana; Nebraska; New
Hampshire; New Jersey; New Mexico;
New York; North Carolina; Ohio;
Oklahoma; Pennsylvania; South Dakota;
Tennessee; Texas; Vermont; Washington.
These limitations donotapply to
Federally licensed branches oragencies.S/FIN/W/12/Add.5
Page24Modes 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
Branch licence notavailable butagency
licence is,subject toanyspecified
limitations --Delaware (state licence
limited tooneoffice perbank andcannot
operate inamanner likely toresult ina
substantial detriment toexisting bank; no
fiduciary powers); Florida (available only
toaforeign bank withatleast $25million
incapital orthatisoneoffivelargest
banks initshome country); Georgia
(available onlytoforeign bank withat
least $50million inexcess ofliabilities;
nofiduciary andlimited other powers);
Hawaii (foreign bank must have $10
billion inassets andbeatleast 10years
old;limited fiduciary powers); Louisiana
(limited toparishes withmore than
350,000 residents); Mississippi; Missouri
(nofiduciary powers); Oklahoma (foreign
bank must have atleast $25million in
capital or,inter alia, beoneoffive
largest banks initshome country; special
asset maintenance/capital equivalency
rules apply, asdoother restrictions);
Texas (oneoffice only, limited tocounties
withatleast 1.5million residents; no
fiduciary powers).Thefollowing states require direct
branches oragencies offoreign banks, but
notbank subsidiaries offoreign banks, to
register orobtain licences inorder to
engage inthefollowing activities:
Arkansas (selling checks; mortgage
transactions); California (selling payment
instruments); Delaware (sale orcashing of
checks, drafts, money orders; motor
vehicle financing; transportation of
money/valuables); Georgia (mortgage
lending/brokerage); Indiana (money
transmission; loanbrokerage); Kansas
(money transmission); Maryland (selling
payment instruments, travellers checks);
Massachusetts (check selling/cashing;
foreign transmittal agencies; motor
vehicle financing; insurance premium
financing; retail instalment
sales/servicing; residential realestate
mortgage financing); North Carolina
(selling checks); Oklahoma (selling
checks); Pennsylvania (mortgage
banking/brokerage); Tennessee (money
transmission; residential
lending/brokerage; industrial loanand
thrift activities); Texas (currencyS/FIN/W/12/Add.5
Page25Modes 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
exchange ortransmission --does not
apply toTexas agencies; selling checks);
Virginia (mortgage lending/brokerage;
money transmission; saleofmoney
orders; check cashing); Wisconsin (selling
checks).
Nobranch orstate agency licence
available --Wyoming.
Nobranch oragency licence available --
Alabama; Kansas; Maryland; New Jersey;
North Dakota; West Virginia.Thefollowing states restrict various
commodities transactions byforeign bank
branches andagencies, butnotbyother
depository financial institutions: Arizona;
Idaho; Indiana; Iowa; Maine; Mississippi;
Missouri; Nebraska; New Hampshire;
Washington.
Offers andsales ofsecurities toforeign
bank branches andagencies inthe
following states aresubject to
registration/disclosure requirements that
donotapply ifthetransaction involves
other financial institutions: Illinois;
Indiana; Louisiana; Montana; Nebraska;
New Jersey; North Dakota; Tennessee;
Texas (applies tobranches andagencies
ofallforeign financial institutions).S/FIN/W/12/Add.5
Page26Modes 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
Representative offices offoreign banks
arenotpermitted inthefollowing states,
orarelimited asspecified: Arizona;
Arkansas; Colorado; Hawaii (foreign
bank must have $10billion inassets and
beatleast 10years old); Kansas;
Kentucky; Michigan; Mississippi;
Montana; Nevada; New Hampshire; New
Jersey; North Dakota; Ohio; Oklahoma
(foreign bank must have atleast $10
million incapital or,inter alia,beoneof
thefivelargest banks initshome country;
special asset maintenance/capital
equivalency requirements mayapply);
Oregon; Rhode Island; South Carolina;
South Dakota; Tennessee; Utah;
Vermont; Virginia; West Virginia;
Wisconsin; Wyoming. Other states
require incorporation ofrepresentative
offices.
4) Unbound, except asindicated inthe
horizontal section.4) Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.5
Page27Modes 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
Trading ofSecurities and
Derivative Products andServices
Related Thereto; Participation in
Securities Issues1),2),3)
Federal lawprohibits theoffer orsaleof
futures contracts ononions, options
contracts ononions, andoptions on
futures contracts ononions intheUnited
States, andservices related thereto.
Unbound fortheauthority toactasasole
trustee ofanindenture forabond offering
intheUnited States.
Unbound withrespect totheuseof
simplified registration andperiodic
reporting forms forsecurities issued by
small business corporations.
4) Unbound, except asindicated inthe
horizontal section.1),3)
None (except asnoted intheheadnote
above)
4) Unbound, except asindicated inthe
horizontal section.
Participation inIssues of
Government Debt Securities1),2)None
3) Unbound forthegranting orcontinuation
ofFederal Reserve designation asa
primary dealer inUSgovernment debt.
4) Unbound, except asindicated inthe
horizontal section.1),2)None
3) None (except asnoted intheheadnote
above)
4) Unbound, except asindicated inthe
horizontal section.