RESTRICTED
WORLD TRADE S/FIN/W/12/Add.18
16September 1997
ORGANIZATION(97-3716)
Original: Spanish Committee onTrade inFinancial Services
COMMUNICATION FROM ECUADOR
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofEcuador toMembers ofthe
Committee onTrade inFinancial Services.
_______________
Ecuador reserves thepossibility ofwithdrawing ormodifying allorparts ofthisconditional
offer atanytimeupto12December 1997.
Thisofferisconditional asitsratification depends onresults thatEcuador considers suitable
from thenegotiations intheWTO Committee onTrade inFinancial Services.S/FIN/W/12/Add.18
Page2ECUADOR
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 Services1,2,3
(1)Insurance ofrisks relating
tomaritime shipping and
commercial aviation
covering bothvehicles,
goods andliability arising
therefrom oreither of
them, andinsurance of
risks relating togoods in
international transit;(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except where specified in
horizontal commitments. Intheforeign
insurance companies atleast 50% ofthe
totalamount ofsalaries must correspond to
Ecuadorian employees.(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except where specified in
horizontal commitments. Intheforeign
insurance companies atleast 50% ofthe
totalamount ofsalaries must correspond to
Ecuadorian employees.
(2)Reinsurance and
retrocession;S/FIN/W/12/Add.18
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
(3)Direct insurance
(including co-insurance)
(i)life
(ii)non-life
(4)Insurance intermediation,
such asbrokerage and
agency;
(5)Services auxiliary to
insurance, such as
consultancy, actuarial,
riskassessment andclaim
settlement services.
B.Banking andOther
Financial Services
(excl. insurance)1,2,3
(a)Acceptance ofdeposits
andother repayable funds
from thepublic
(CPC 81115-81119)(1)None
(2)None
(3)None
(4)Unbound, except where specified inthe
horizontal commitments.(1)None
(2)None
(3)None
(4)Unbound, except where specified inthe
horizontal commitments.S/FIN/W/12/Add.18
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
(b)Lending ofalltypes,
including inter alia,
consumer credit,
mortgage credit, factoring
andfinancing of
commercial transaction
(CPC 8113)
(c)Financial leasing
(CPC 8112)
(d)Allpayment andmoney
transmission services
(CPC 81339)
(e)Guarantees and
commitments (part of
CPC 81199)S/FIN/W/12/Add.18
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
(f)Trading forownaccount
orforaccount of
customers, whether onan
exchange, inanover-the-
counter market or
otherwise, thefollowing:
-money market
instruments (cheques,
bills, certificate of
deposits, etc.) (part of
81339)
-foreign exchange
(CPC 81333)
-derivative products
including, butnotlimited
to,futures andoptions
(part ofCPC 81339)S/FIN/W/12/Add.18
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
-exchange rateandinterest
instruments, including
products such asswaps,
forward rateagreements,
etc.(CPC 81339)
-transferable securities
(CPC 81321)
-other negotiable
instruments andfinancial
assets, including bullion
(part ofCPC 81339)
(g)Participation inissues of
allkinds ofsecurities,
including under-writing
andplacement asagent
(whether publicly or
privately) andprovision
ofservice related tosuch
issues (CPC 8132)S/FIN/W/12/Add.18
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
(h)Money broking (part of
CPC 81339)
(i)Asset management, such
ascashorportfolio
management, allforms of
collective investment
management, pension
fund management,
custodial depository and
trustservices (part of
CPC 8119+81323)
(j)Settlement andclearing
services forfinancial
assets, including
securities, derivative
products, andother
negotiable instruments
(part ofCPC 81339 or
81319).S/FIN/W/12/Add.18
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
(k)Advisory andother
auxiliary financial
services onallthe
activities listed in
Article 1Bof
MTN.TNC/W/50,
including credit reference
andanalysis investment
andportfolio research and
advice, advice on
acquisitions andon
corporate restructuring
andstrategy (CPC 8131
or8133)
(l)Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
providers ofother
financial services
(CPC 8131).
1Atpresent, foreign financial institutions mayparticipate intheequity ofestablished banks andinsurance andreinsurance companies. However, pursuant toResolution SB-JB-95-001
oftheBanking Board, dated 3November 1995, since thatdate, forreasons ofmonetary policy andbanking andfinancial prudential considerations, temporarily newbanks, finance companies,
home savings andloanmutual associations, andsavings andloanco-operatives engaging infinancial intermediation withthepublic andinsurance andreinsurance companies, which aresubject
tocontrol andsupervision bytheBanking Supervisory Authority, maynotbeestablished. Thisprovision applies equally tonational andforeign investors.
2Authorization from thecorresponding Ecuadorian supervisory bodies isrequired forthelegaloperation ofcompanies engaged ininsurance andreinsurance activities andrelated services
andinorder toengage inanyform offinancial intermediation.
3Aforeign financial institution shallalways indicate itsforeign nature initscompany name; allocate andretain inthecountry theamount ofcapital andreserves required under therelevant
laws; andtakeintoaccount thatcreditors ofthebranch ofaforeign bank inEcuador shall enjoy preferential rights withregard totheassets which thatbranch possesses inthecountry in
theevent ofthewinding upofitsheadoffice orofitsbusiness inEcuador foranyreason. Without prejudice totheforegoing, theheadoffice oftheforeign bankshallbeliable fortheobligations
entered intobythebranch office inEcuador.