RESTRICTED
WORLD TRADE S/FIN/W/12/Add.50
11December 1997
ORGANIZATION(97-5564)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM ROMANIA
Conditional Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofRomania toMembers ofthe
Committee onTrade inFinancial Services.
_______________
Romania hereby presents itsconditional offerofspecific commitments onfinancial services.
Thisofferisconditional uponotherWTO Members ’readiness tocontribute significantly totheon-going
negotiating process withasatisfactory levelofliberalization commitments onfinancial services.
Therefore, Romania reserves therighttoreduce, modify orwithdraw thisconditional offer
inwhole orinpart, ortolistMFN exemptions, during thenegotiations iftheoverall level of
commitments onfinancial services submitted byother WTO Members isfound insufficient.
Furthermore, Romania reserves therighttomake anytechnical changes totheoffer, correct
errors oromissions, ifany,initprior totheconclusions ofthenegotiations.S/FIN/W/12/Add.50
Page2ROMANIA
CONDITIONAL OFFER ONSPECIFIC COMMITMENTS ONFINANCIAL SERVICES
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 and
insurance-related services
a) Lifeinsurance services
(8121)(1) Unbound
(2) Unbound
(3) Theestablishment ofcompanies with
foreign participation isallowed onlyin
partnership withRomanian legal or
natural persons.
Therepresentatives offoreign companies
andoftheassociations offoreign insurers
have theright toconclude insurance
contracts onlywithforeign legal and
natural persons.
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) Unbound
(3) None
(4) None, onlyasindicated inthe
horizontal section.
b) Non-life insurance services
(8129)(1) Unbound
(2) Unbound(1) Unbound
(2) UnboundS/FIN/W/12/Add.50
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) Theestablishment ofcompanies and
intermediation agencies withforeign
participation isallowed onlyin
partnership withRomanian legal or
natural persons.
Therepresentatives offoreign insurance
companies andoftheassociations of
foreign insurers have theright toconclude
insurance contracts onlywithforeign legal
andnatural persons andfortheir goods.
4) Unbound, except asindicated inthe
horizontal measures section.(3) None
(4) None, only asindicated inthe
horizontal section.
c) Reinsurance and
retrocession services
(81229)(1) None, except thatreinsurance on
international market isallowed only if
thereinsured riskcannotbeplaced on
Romanian market .
(2) None, except thatceding inreinsurance
oninternational market canbemade
only ifthereinsured riskcannotbe
placed ondomestic market .
(3) Theestablishment ofcompanies with
foreign participation isallowed onlyin
partnership withRomanian legal or
natural persons.
(4) Unbound, except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures sectionS/FIN/W/12/Add.50
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
d) Services auxiliary to
insurance (including
broking andagency
services)
(8140)(1) Unbound
(2) Unbound
(3) Theestablishment ofcompanies and
intermediation agencies withforeign
participation isallowed onlyin
partnership withRomanian legal or
natural persons.
Intermediation agencies arenotallowed to
conclude insurance contracts forforeign
insurance companies withRomanian legal
ornatural persons orfortheir goods.
Therepresentatives offoreign insurance
companies andoftheassociations of
foreign insurers have theright toconclude
onlythefollowing types ofinsurance
contracts:
a)insurance andreinsurance contracts
withlegal andnatural foreign
persons orfortheir goods;
b)reinsurance contracts withRomanian
insurance companies,
insurance-reinsurance companies and
reinsurance companies
(4) Unbound, except asindicated inthe
horizontal measures section(1) Unbound
(2) Unbound
(3) None
(4) None, onlyasindicated inthe
horizontal section.S/FIN/W/12/Add.50
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
B. Banking andother financial
services (excluding
insurance)
a)Acceptance ofdeposits
andother reimbursable
funds from thepublic
(81115-81119)(1) None
(2) Theopening ofaccounts andutilization of
foreign currency resources abroad by
natural andlegal Romanian persons is
allowed onlywithprior permission from
theNational Bank ofRomania
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures section
b) Lending ofalltypes
(8113)(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures sectionS/FIN/W/12/Add.50
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
d) Allpayments andmoney
transmission services
(81339)(1) Allowed onlythrough aresident bank
(2) Theopening ofaccounts andutilization of
foreign currency resources abroad by
natural andlegal Romanian persons is
allowed onlywithprior permission from
theNational Bank ofRomania
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures section
e) Guarantees and
commitments
(8199)(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures sectionS/FIN/W/12/Add.50
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
f) Trading forownaccount
orforaccount of
customers, whether onan
exchange, inan
over-the-counter market
orotherwise, the
following:
-transferable securities
(81321*)(1) Unbound
(2) Theopening ofaccounts andutilization
offoreign currency resources abroad
bynatural andlegal Romanian persons
isallowed only with prior permission
from theNational Bank ofRomania.
Foreign natural orlegal persons have to
beregistered with theNational Bank of
Romania fortaxation purposes and
with theNational Securities
Commission (NSC) fordisclosure
purposes.
(3) Thesecurities (brokerage) company
must beaRomanian legal entity setup
asajoint-stock company under the
Romanian law, andhaving asexclusive
business objective theintermediation of
securities.
(4) Unbound, except asindicated inthe
horizontal measures section.(1) Unbound
(2) None, except thatthesecurities
transactions, ontheorganized securities
markets, byanatural orlegal person
which isanon-resident ofRomania are
taxed upto1.5percentofthetotal
value ofeach transaction.
(3) None, except thattherepatriation of
theinvested capital andoftheprofits
shall bemade inthesame currency in
which initial investment wasmade.
(4) None, only asindicated inthe
horizontal measures section.S/FIN/W/12/Add.50
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
g) Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagent
(whether publicly or
privately) andprovision of
services related tosuch
issues.
(81322+ 81329)(1) Unbound
(2) Unbound
(3) Thesecurities company must bea
Romanian legal entity setupasa
joint-stock company under the
Romanian law, andhaving asits
exclusive business objective the
intermediation ofsecurities.
Anypublic offer ofsecurities shall
require, previous tothepublication of
itsprospectus, theauthorization ofthe
National Securities Commission of
Romania.
(4) Unbound, except asindicated inthe
horizontal measures section(1) Unbound
(2) Unbound
(3) None, except thattherepatriation of
theinvested capital andofprofits shall
bemade inthesame currency inwhich
initial investment wasmade.
(4) None, only asindicated inthe
horizontal measures section
h) Money broking
(81339)(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures sectionS/FIN/W/12/Add.50
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
i) Management, such ascash
orportfolio management,
allforms ofcollective
management, pensions
fund management,
custodial depository and
trust services:
- portfolio management
(81323*)
- closed-end investment
trust services (81191*)
- open-ended investment
funds services (81193*)
- securities custody services
(81319*)(1) Unbound
(2) Unbound
(3) None, except:
- companies performing thelisted
services (except CPC 81193*) must be
established asjoint-stock companies
under theRomanian law;
- theopen-ended investment funds must
beestablished under civilRomanian
law.
(4) Unbound, except asindicated inthe
horizontal measures section(1) Unbound
(2) Unbound
(3) None, except thattherepatriation of
theinvested capital andoftheprofits
shall bemade inthesame currency in
which initial investment wasmade.
(4) None, only asindicated inthe
horizontal measures sectionS/FIN/W/12/Add.50
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
j) Settlement andclearing
services forfinancial
assets, including
securities, andderivative
products, andother
negotiable instruments:
applies only to:
-settlement and
clearing services for
securities
(81319**)(1) Unbound
(2) Unbound
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) Unbound
(2) Unbound
(3) None
(4) None, only asindicated inthe
horizontal measures section
k) Consultancy andother
auxiliary services
(8131*)(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, onlyasindicated inthehorizontal
measures section
l) Provision andtransfer of
financial information, and
financial data processing
andrelated software by
providers ofother
financial services
applies only to:
-securities related
services
(8131*)(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal measures section(1) None
(2) None
(3) None
(4) None, only asindicated inthe
horizontal measures sectionS/FIN/W/12/Add.50
Page11Additional information fortransparency andclarification purposes:
Normal prudential measures areapplied tofinancial (insurance, reinsurance, banking, andsecurities) institutions, withaview toprotecting theinvestors,
depositors andtoensure thestability ofthefinancial system.
Theestablishment andtheactivity ofinsurance andreinsurance companies aresubject totheauthorization from theInsurance andReinsurance Activity
Surveillance Body.
Theestablishment andtheactivity ofbanking companies aresubject totheauthorization from theNational Bank ofRomania. There arenorestrictions forthe
establishment ofaforeign bank inRomania, other thantheobservance ofprudential measures setupbytheNational Bank ofRomania.
Theestablishment andtheactivity ofsecurities market related entities (natural orlegal persons, asthecasemay be)aresubject toanauthorization from
theNational Securities Commission ofRomania (NSC). Allentities authorized bytheNSC have toobserve theprudential measures setupbytheNSC.
After theestablishment ofacommercial presence, thefinancial institutions have tocarry outtheir transactions withresidents onlyinthenational currency of
Romania.