RESTRICTED
WORLD TRADE S/FIN/W/12/Add.13
17July1997
ORGANIZATION(97-3321)
Original: Spanish Committee onTrade inFinancial Services
COMMUNICATION FROM VENEZUELA
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofVenezuela toMembers ofthe
Committee onTrade inFinancial Services.
_______________
Venezuela retains thepossibility ofwithdrawing ormodifying allorpartsofthisconditional
offer atanytimeupto12December 1997.
Thisoffer isconditional onsatisfactory results forVenezuela during thenegotiations.S/FIN/W/12/Add.13
Page2VENEZUELA
INITIAL CONDITIONAL OFFER ONFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7.FINANCIAL SERVICES
A.INSURANCE AND
RELATED SERVICES
(CPC 812**)Anauthorization from theNational Executive is
required forinsurance andreinsurance activities
A.1. -Insurance
(a)Lifeinsurance
services
(CPC 81211 -
81212) (excluding
pension funds)
(b)Non-life insurance
services
(CPC 81291 -
81292 -81295)
(CPC 81296 -
81297 -81299)(1)Unbound
(2)Unbound
(3)TheMinister ofFinance maybaninsurance
companies operating inVenezuela from
concluding reinsurance contracts withcertain
companies.
TheNational Executive may, where itdeems
appropriate, request conditions ofreciprocity for
Venezuelan capital from thecountries oforigin of
foreign capital participating intheVenezuelan
insurance system.(1)Unbound
(2)Unbound
(3)None
Inauthorizing theestablishment ofinsurance and
reinsurance companies, through
non-discriminatory provisions, theNational
Executive shall takeintoconsideration, amongst
other factors, general andlocal economic and
financial conditions.S/FIN/W/12/Add.13
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Branches offoreign insurance companies maynot
beestablished inVenezuela. Insurance companies
must taketheform ofpublic limited companies.
Theoperation ofcompanies known astontines or
"chatelusianas" oracombined form ofthetwois
prohibited.
TheAdministrative Board ofaninsurance
company must becomposed ofamajority of
Venezuelans domiciled andresident inthe
country. Atleast halfofitsVice-Presidents,
Directors, Managers, Assistant Managers, Legal
orTechnical Consultants orother Executives must
beVenezuelans domiciled andresiding inthe
country.
(4)Unbound, except asindicated inthehorizontal
section.(4)Unbound, except asindicated inthe
horizontal section.
A.2. -Reinsurance
(c)Reinsurance
(CPC 81299*)(1)TheMinister ofFinance maybanreinsurance
companies operating inVenezuela from
concluding reinsurance contracts withcertain
companies.(1)None
(2)TheMinister ofFinance maybanreinsurance
companies operating inVenezuela from
concluding reinsurance contracts withcertain
companies.(2)NoneS/FIN/W/12/Add.13
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)TheNational Executive may, where itdeems
appropriate, request conditions ofreciprocity for
Venezuelan capital from thecountries oforigin of
foreign capital participating intheVenezuelan
reinsurance system.
Inauthorizing theestablishment ofinsurance and
reinsurance companies, through
non-discriminatory provisions, theNational
Executive shall takeintoconsideration, amongst
other factors, general andlocal economic and
financial conditions.
Foreign reinsurance companies maymaintain
permanent representations inVenezuela forthe
acceptance ofreinsurance risks. Such
representation shall besubject toprior
authorization bytheInsurance Inspectorate, which
mayrestrict orrefuse itorsubject itto
conditions.
Reinsurance companies must taketheform of
public limited companies.(3)Foreign reinsurance companies
must renew their registration with
theInsurance Inspectorate every
twoyears, iftheyfailtodosothey
maybeexcluded from theRegister
ofReinsurance Companies.
TheAdministrative Board ofareinsurance
company must becomposed ofamajority of
Venezuelans domiciled andresident inthe
country. Atleast halfofitsVice-Presidents,
Directors, Managers, Assistant Managers,
Technical orLegal Consultants andother
Executives must beVenezuelans domiciled and
residing inthecountry.
(4)Unbound, except asindicated inthehorizontal
section.(4)Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.13
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A.3. -Insurance brokerage
(d)Insurance
brokerage
(CPC 81401)(1)Unbound
(2)Unbound
(3)TheNational Executive, may, where itdeems
appropriate, request conditions ofreciprocity for
Venezuelan capital from thecountries oforigin of
foreign capital participating intheVenezuelan
insurance system.
Branches offoreign insurance brokerage
companies maynotbeestablished inthecountry.
Insurance brokerage companies must takethe
form ofpublic limited companies orprivate
limited-liability companies.
Shareholders ininsurance brokerage companies
must beinsurance agents orbrokers authorized in
Venezuela withatleast three years ofpractice as
insurance agents orbrokers.
Ininsurance brokerage companies, thePresident
andthree quarters oftheVice-Presidents,
Directors, Managers orother Executives and
Commercial Agents must beVenezuelans
domiciled andresiding inthecountry.
(4)Unbound, except asindicated inthehorizontal
section.(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.13
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A.4. -Reinsurance brokerage
(d)Reinsurance
brokerage
(CPC 81401)(1)TheMinister ofFinance maybaninsurance and
reinsurance companies operating inVenezuela
from concluding reinsurance contracts withcertain
companies through reinsurance brokerage
companies.(1)None
(2)TheMinister ofFinance maybaninsurance and
reinsurance companies operating inVenezuela
from concluding reinsurance contracts withcertain
companies through reinsurance brokerage
companies(2)None
(3)Foreign reinsurance brokerage companies may
maintain permanent representations inVenezuela
fortheacceptance ofreinsurance risks. Such
representation shall besubject toprior
authorization bytheInsurance Inspectorate, which
mayrestrict orrefuse itorsubject itto
conditions.(3)None
Reinsurance brokerage companies must takethe
form ofpublic limited companies orprivate
limited-liability companies.
(4)Unbound, except asindicated inthehorizontal
section.(4)Unbound, except asindicated inthe
horizontal section.S/FIN/W/12/Add.13
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B.BANKS AND OTHER
FINANCIAL SERVICES
B.1. Banks andcredit
institutions
(a)Acceptance of
deposits andother
repayable funds
from thepublic
(CPC 81115-
81116)
(b)Lending ofall
types including,
inter alia,
consumer credit,
mortgage credit,
factoring and
financing of
commercial
transactions
(CPC 8113,
excluding 81139)Anauthorization from therelevant supervisory bodies
isrequired inorder tooperate asafinancial
intermediary inVenezuela.
(1)Unbound
(2)Unbound
(3)TheNational Executive may, where itdeems
appropriate, request conditions ofreciprocity for
Venezuelan capital from thecountries oforigin of
theforeign capital participating intheVenezuelan
financial system.
Thedevelopment andoperation ofbanks andother
financial institutions requires authorization from
theInspectorate ofBanks andOther Financial
Institutions, which through non-discriminatory
provisions willtakeintoaccount, amongst other
factors, general andlocal economic andfinancial
conditions.(1)Unbound
(2)Unbound
(3)NoneS/FIN/W/12/Add.13
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(c)Financial leasing
withoption to
purchase
(CPC 8112)
(d)Payment and
money
transmission
services
(CPC 81339)Theestablishment oropening ofinstitutions or
branches owned byfinancial institutions orforeign
investors orinstitutions established abroad requires
theauthorization oftheInspectorate ofBanks and
Other Financial Institutions, after receiving the
opinion oftheCentral Bank ofVenezuela andthe
assent oftheHigher Council oftheInspectorate of
Banks andOther Financial Institutions, andis
subject totherequirements andconditions laid
down intheGeneral LawonBanks andOther
Financial Institutions.
Banks andother financial institutions must takethe
form ofpublic limited companies andshares must
benominal andofthesame category, unless there
isaspecial authorization from theInspectorate of
Banks andOther Financial Institutions when the
circumstances sojustify.
Notlessthanonehalfofthemembers of
Administrative Boards ofbanks andother financial
institutions must reside inthenational territory.
(e)Guarantees
(h)Foreign exchange
operations
(CPC 81333)Bank orforeign institutions establishing branches
inVenezuela must assign capital tothem fortheir
operations inthecountry. Thisdoes notlimit the
liability ofthebank orforeign financial institution
concerned inrespect ofthetotal capital forits
operations inVenezuela.S/FIN/W/12/Add.13
Page9Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Representative offices ofbanks andforeign
financial institutions notdomiciled inVenezuela
maynotengage inanykindofborrowing or
lending operations andmayonlyactas
intermediaries between theentities theyrepresent
andthenatural andlegal persons receiving loans
therefrom. Tothisend,theyshall supply
information totheInspectorate ofBanks andOther
Financial Institutions concerning theterms,
conditions, modalities andcharacteristics ofthe
operations inquestion.
Representative offices ofbanks andother foreign
financial institutions maynotreceive, either
directly orindirectly, ontheir ownaccount orthat
ofathird party, deposits ofanykind, nor
intervene inborrowing operations thatinvolve
tapping public funds. Tothisend,theymust
refrain from providing information orengaging in
anyactivities ortransactions related tosuch
operations.
Anychange ofdomicile orlocation of
representative offices, closure oftheir offices and
thedesignation oftheir representatives require
prior authorization from theInspectorate ofBanks
andOther Financial Institutions.
Representative offices maynotadvertise their
activities inthecountry inanyform. They may,
however, identify theoffices where theyoperate
under thename ofthebank orfinancial institution
theyrepresent, interms determined bythe
Inspectorate ofBanks.S/FIN/W/12/Add.13
Page10Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4) Unbound, except asindicated inthehorizontal
section.(4) Unbound, except asindicated in
thehorizontal section.
B.2. Foreign exchange
houses
(h)Foreign exchange
houses
(Buying andselling
offoreign banknotes
andtravellers
cheques from orto
thepublic)
(CPC 81333)(1) Unbound
(2) Unbound
(3) TheNational Executive may, when itdeems
appropriate, request conditions ofreciprocity for
Venezuelan capital from thecountries oforigin
offoreign capital participating inthecountry 's
system offoreign exchange houses.
Foreign exchange houses must taketheform of
public limited companies.
Atleast halfthemembers ofAdministrative
Boards offoreign exchange houses must reside
inthenational territory.
(4) Unbound, except asindicated inthehorizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated in
thehorizontal section.
B.3. Capital markets
(i)Collective
investment entities
(CPC 81319)(1) Unbound
(2) Unbound(1) Unbound
(2) Unbound
(1)Mutual funds
(2)Collective property
investment entities(3) Collective investment entities (EIC) must take
theform oftrading companies orprovide equity
through atrust fund, andmust obtain
authorization tooperate from theNational
Securities Commission.(3) NoneS/FIN/W/12/Add.13
Page11Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Collective risk
capital investment
entitiesEICs maynotacquire investment units unless
thisisprovided forintheir statutes and
prospectus. Their resources must beinvested
exclusively insecurities legally permitted under
Venezuelan legislation.
Buying andselling byEICs ofsecurities quoted
onVenezuelan stock exchanges must bethrough
therespective stock exchange institutions.
Noinvestor mayholdmore than10percentof
thecapital ofaCollective Investment Entity.
(4) Unbound, except asindicated inthehorizontal
section.(4) Unbound, except asindicated in
thehorizontal section.
(i)Securities funds
(CPC 81319)(1) Unbound
(2) Unbound
(3) Inorder toprovide securities fund services, the
form ofpublic limited company isrequired
Securities funds must beestablished and
domiciled intheRepublic ofVenezuela andmust
beauthorized bytheNational Securities
Commission tooperate.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthehorizontal
section.(4) Unbound, except asindicated in
thehorizontal section.
(i)Mutual fund
management
companies
(CPC 81319)(1) Unbound
(2) Unbound(1) Unbound
(2) UnboundS/FIN/W/12/Add.13
Page12Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3) Must taketheform ofatrading company or
provide equity atrustfund.
Mutual fund management companies maynot
simultaneously provide services tomore than
onemutual investment fund when theinvestment
goals andsales plans areofthesame type, inthe
opinion oftheNational Securities Commission.
Iftheyareadministered byother companies,
mutual funds established inVenezuela must be
managed byamanagement company likewise
constituted inVenezuela forthatpurpose.(3) None
(4) Unbound, except asindicated inthehorizontal
section.(4) Unbound, except asindicated in
thehorizontal section.
(k)Investment advisory
services
(CPC 81332)(1) Unbound
(2) Unbound
(3) Inthecaseofadvisory services relating to
investment inforeign securities orforacting asa
contact withforeign brokers orrepresenting
them, authorization shall depend onthe
country 'seconomic andfinancial situation, inthe
opinion oftheNational Securities Commission.(1) Unbound
(2) Unbound
(3) None
TheNational Securities Commission mayrevoke
orcancel authorizations relating toadvisory
services forinvestment inforeign securities or
foracting asacontact withbrokers abroad or
representing them, when initsopinion the
country 'seconomic andfinancial conditions are
unsuitable forsuch activities.S/FIN/W/12/Add.13
Page13Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4) Unbound, except asindicated inthehorizontal
section.(4) Unbound, except asindicated in
thehorizontal section.
(g)Securities brokerage
(excluding
brokerage in
options, futures and
other derivatives)
(CPC 8132)(1) Unbound
(2) Unbound
(3) Authorization ofthepublic offering offoreign
securities inVenezuela depends onwhether this
isinthenational interest, withtheprior assent
oftheNational Executive.
Administrators ofabrokerage house must be
resident inthecountry.
(4) Unbound, except asindicated inthehorizontal
section.(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated in
thehorizontal section.S/FIN/W/12/Add.13
Page14VENEZUELA -LIST OFARTICLE II(MFN) EXEMPTIONS INFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Countries towhich the
measure appliesIntended duration Conditions creating
theneed forthe
exemption
- Banking
(CPC 8115 -81116 -
8112 -8113 -81339 -
81333)
- Insurance
(CPC 812**)Authorizations foraccess offoreign capital to
thedomestic market through theparticipation of
existing institutions, theopening ofbranches or
theestablishment ofnewsuppliers offinancial
services maybesubject toreciprocity, where
theNational Executive deems appropriate.Allcountries Indefinite Toreflect thecurrent
situation of
Venezuelan legislation
andtoguarantee
similar treatment for
Venezuelan capital.