RESTRICTED
WORLD TRADE GATS/SC/18/Suppl.1/Rev.11
4October 1995
ORGANIZATION
(95-2865)
Trade inServices
CHILE
Schedule ofSpecific Commitments
Supplement 1
Revision
(This isauthentic inSpanish only)
____________________
This textreplaces theFinancial Services section contained inpages 16to35of
document GATS/SC/18.
1English only.CHILE -SCHEDULE OFSPECIFIC COMMITMENTS
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
FINANCIAL SERVICES (3)Inaddition tothehorizontal measures
inSection IofChile'sSchedule of
Commitments which affect allsectors,
asupplier offinancial services
operating through acommercial
presence maybesubject toevidence of
economic need. Thatis,hemust
obtain prior authorization tostartup,
suspend orterminate operations from
theBanking andFinancial Institutions
Supervision Department, inthecaseof
banking services, orfrom the
Securities andInsurance Supervision
Department, inthecaseofsecurities
andinsurance services.
Authorization tosupply financial
services through acommercial presence
willbegiven insofarastheapplicant
undertakes toensure theproper
functioning, integrity andstability of
themarket, fulfils therequirements of
thelawandserves thenational interest.
GATS/SC/18/Suppl.1/Rev.1
Page1CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page2
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
TheChilean financial services sector is
partially compartmentalized, thatisto
saytheinstitutions, domestic and
foreign, authorized tooperate asbanks
maynotencroach ontheinsurance and
securities business andviceversa.
However, subject toauthorization from
theBanking andFinancial Institutions
Supervision Department, domestic and
foreign banks operating inChile may
setupsubsidiaries, withtheirown
capital, tosupply other financial
services inaccordance withthe
relevant legislation.
(a)Banking services Foreign banking institutions must be
companies legally constituted intheir
country oforigin andmust putupthe
capital required byChilean law.
Where (i)shareholdings inestablished
Chilean banks and(ii)subsidiaries are
concerned, theymust acquire legal
personality inChile.CHILE (continued)
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
Foreign banking institutions mayonly
operate:
(i) Through shareholdings in
Chilean banks established as
corporations;
(ii) Subsidiaries; and
(iii) Branches. Inthislatter case
thelegalpersonality ofthe
country oforigin is
recognized. Forthepurposes
offoreign bankbranch
operations inChile, thecapital
effectively invested inChile is
considered, andnotthatofthe
parent house.
GATS/SC/18/Suppl.1/Rev.1
Page3CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page4
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
Nonational orforeign natural orlegal
person mayacquire directly orthrough
thirdparties shares inabankwhich,
alone oradded totheshares such
person already possesses, represent
more than10percentofthebank's
capital without having firstobtained the
authorization oftheBanking and
Financial Institutions Supervision
Department. Inaddition, thepartners
orshareholders ofafinancial
institution maynottransfer a
percentage ofrights orshares inthe
company inexcess of10percent
without having obtained authorization
from theSupervision Department.Foreign investors whoparticipate in
thefinancial services sector may
transfer theircapital abroad two(2)
years afterbringing itin.CHILE (continued)
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
Acceptance ofdeposits
(81115-81119)1(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Purchase ofpublicly-offered
securities
(8132)2(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Includes onlycurrent bank accounts, sight acceptances, termacceptances insaving accounts, financial instruments withrepurchase undertaking, and
deposits forissue ofbankguarantee vouchers.
2Includes onlypurchase ofbonds andpurchase ofletters ofcredit, subscription andplacement asagents, underwriting.
GATS/SC/18/Suppl.1/Rev.1
Page5CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page6
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
Credit granting
(8113)1(1)None2
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)None
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Issue ofcredit cards (1)None3
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)None
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Includes onlycurrent loans, discounting oracquisition ofbillsofexchange andpromissory notes, loans andletters ofcredit, endorsable mortgage loans,
purchase offinancial instruments withresale undertaking, credit forissueofbankguarantee vouchers orother types offinancing, endorsement andguarantee
ofthirdparty liabilities; issue andnegotiations ofletters ofcredit forimports andexports, issue andconfirmation ofstand-by letters ofcredit.
2Limited toonlyfreely-available credit, import andexport financing, confirmation ofletters ofcredit, andadvances andoverdrafts oncurrent accounts.
These services mayonlybeprovided tolocalbanks withauthorization from theCentral Bank ofChile. Other services forgrant ofcredit unbound.
3Limited tocredit cards issued abroad thatcirculate inChile under anagreement withabankoroperator established inChile.CHILE (continued)
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
Operation ofcredit cards (1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Provision andtransfer of
financial information and
processing offinancial data
(8131)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
GATS/SC/18/Suppl.1/Rev.1
Page7CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page8
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
Advisory andother
auxiliary financial services
(8131)
(Includes only
administrative services
connected withthe
management ofthebanking
services included inthis
Schedule)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
InChile advisory andother auxiliary
financial services (8131) areconsidered
tobecomplementary totheservices
which theestablished banks can
provide. Consequently, domestic and
foreign banks must setupsubsidiaries
withtheirowncapital inorder tobe
abletoprovide these services andmust
havetheappropriate authorization from
theBanking andFinancial Institutions
Supervision Department.
Financial leasing
(81112)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal sectionCHILE (continued)
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
Only domestic andforeign banking
enterprises established inChile canprovide
financial leasing services. Inorder to
supply financial leasing services theymust
establish subsidiaries withtheirown
separate legalpersonality, theirowncapital
andexclusive lineofbusiness subject to
prior authorization from theBanking and
Financial Institutions Supervision
Department. These companies mayoffer
leasing contracts forgoods acquired atthe
client'srequest, i.e.theycannot acquire
goods inorder tostock them andoffer them
forleasing. These subsidiaries canonly
operate theservices expressly authorized by
theBanking andFinancial Institutions
Supervision Department. Financial leasing
services areregarded ascomplementary
banking services and,consequently, the
Banking andFinancial Institutions
Supervision Department isempowered to
extend orrestrict theoperation ofthe
financial leasing services which the
institutions mayoffer.
GATS/SC/18/Suppl.1/Rev.1
Page9CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page10
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
(b)Insurance and
reinsurance servicesInsurance andreinsurance services canbe
provided onlybylimited insurance and
reinsurance companies established inChile
fortheexclusive purpose ofdeveloping this
lineofbusiness. Insurance andreinsurance
corporations canbelegally constituted only
inaccordance withtheprovisions ofthelaw
ofcorporations.
Contracts concluded inChile maybe
reinsured byinsurers andreinsurers with
insurance andreinsurance companies
authorized tooperate inChile:
Only thefollowing areempowered to
reinsure:
1. Insurers established inthe
country andthose corporations
whose solepurpose istooperate
reinsurance inoneofthetwo
groups indicated below, subject
toinspection bytheSecurities
andInsurance Supervision
Department; andCHILE (continued)
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
2. Those foreign reinsurers who
areenrolled intheRegister of
Foreign Reinsurers maintained
bytheSecurities andInsurance
Supervision Department.
Inaddition, insurers andreinsurers mayalso
reinsure through intermediaries orbrokers
enrolled intheRegister ofReinsurance
Brokers maintained bytheSupervision
Department.
InChile, theinsurance business isdivided
intotwogroups: thefirstgroup comprises
companies thatinsure goods andproperty
against theriskoflossordamage, while the
second comprises those thatprovide
personal insurance orguarantee, within or
attheendofacertain term, acapital sum, a
paid-up policy oranincome fortheinsured
orhisbeneficiaries. Insurance companies
maynotbeorganized tocover both
categories ofrisks.
GATS/SC/18/Suppl.1/Rev.1
Page11CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page12
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
Credit insurance companies, eventhough
classified inthefirstgroup, must be
established ascorporations withthesole
purpose ofcovering thistypeofrisk,i.e.
lossofordamage totheproperty ofthe
insured asaresult ofthenon-payment ofa
money debtorloan, being alsopermitted to
cover guaranty andfidelity risks.
TheChilean Insurance Schedule doesnot
include insurance related tothesocial
security system.
Insurance maybetaken outdirectly or
through insurance brokers who, toengage in
thatactivity, must beenrolled inthe
Register maintained bytheSupervision
Department andmust satisfy theprudential
requirements ofthelaw.
Saleofdirect lifeinsurance
(does notinclude insurance
related tothesocial security
system)
(81211)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal sectionCHILE (continued)
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
Saleofdirect general
insurance
(8129)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Saleofdirect general
insurance
Credit insurance
(81296)(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Policy reinsurance
(81299)(1)Foreign reinsurance companies must be
enrolled intheRegister ofForeign
Reinsurers oftheSecurities and
Insurance Supervision Department and
fulfil therequirements laiddown bythe
Department.(1)Premiums ceded under thisheading
aresubject toataxof6percent.
(2)Unbound (2)Unbound
(3)None (3)None
(4)Unbound, except asindicated inthe
horizontal section(4)Unbound, except asindicated inthe
horizontal section
GATS/SC/18/Suppl.1/Rev.1
Page13CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page14
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
Reinsurance brokers
(Reinsurance
intermediation)
(8140)(1)None
(2)Unbound
(3)Reinsurance brokers must beenrolled
intheRegister ofReinsurance Brokers
oftheSecurities andInsurance
Supervision Department andfulfil the
requirements laiddown bythe
Department.
(4)Unbound, except asindicated inthe
horizontal section(1)None
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Insurance brokers (8140) (1)Unbound
(2)Unbound
(3)Must beenrolled intheRegister
maintained bytheSecurities and
Insurance Supervision Department and
fulfil therequirements laiddown bythe
Department. Only legalpersons
legally constituted inChile forthis
specific purpose.
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal sectionCHILE (continued)
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
(c)Securities services Publicly offered securities maybetraded by
natural orlegalpersons engaged in
brokering securities, either asmembers ofa
stock exchange (stockbrokers) oroutside the
exchange (securities agents). However,
onlystockbrokers maytrade shares or
derivatives (options) onthestock exchange.
Other securities maybetraded by
stockbrokers orsecurities agents registered
withtheSecurities andInsurance
Supervision Department, orbybanks and
finance companies, inaccordance withtheir
legalpowers.
Thepurpose offinancial portfolio
management istodiversify investments, on
behalf ofthirdparties, overarange of
instruments.
TheChilean Schedule inthesecurities
sector doesnotinclude assetfund
management (mutual funds, investment
funds, foreign capital investment funds, and
pension funds).
GATS/SC/18/Suppl.1/Rev.1
Page15CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page16
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
Publicly offered securities riskrating
services areprovided byrating agencies
enrolled intheRegister ofRiskRating
Agencies maintained bytheSecurities and
Insurance Supervision Department. These
must beconstituted asacompany ofpersons
inaccordance withthelegislation andare
inspected andcontrolled bythe
above-mentioned Supervision Department.
Ontheother hand, theinspection ofrating
agencies withrespect totherating of
securities issued bybanks andfinance
companies istheresponsibility oftheBanks
andFinancial Institutions Supervision
Department.CHILE (continued)
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
Securities custody consists ofthephysical
safe-keeping ofcustomers 'stocks andshares
andmaybeundertaken bysecurities
intermediaries (complementary activity) or
byindividuals. TheChilean Schedule inthe
securities sector doesnotinclude the
services offered byfirms which
simultaneously undertake thecustody,
clearance andsettlement ofsecurities
(centralized securities depositories).
Financial advisory services involve giving
financial advice onfinancing alternatives,
investment appraisal, investment
possibilities, debtrescheduling strategies,
etc.
GATS/SC/18/Suppl.1/Rev.1
Page17CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page18
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
Intermediation ofpublicly
offered securities, except
shares (81321)1(1)Unbound
(2)Unbound
(3)None2
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Intermediation oflimited
company shares (81321)3(1)Unbound
(2)Unbound
(3)None4
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Does notinclude intermediation ofshares. Includes subscription andplacement asagents, underwriting.
2These intermediaries must haveastheirsolepurpose thebuying andselling ofsecurities, although theymayalsocarry outcomplementary activities
asauthorized bytheSupervision Department.
3Includes subscription andplacement asagents, underwriting.
4These intermediaries must haveastheirsolepurpose thebuying andselling ofsecurities, although theymayalsocarry outcomplementary activities
asauthorized bytheSupervision Department. Inaddition, tobeabletooperate theymustacquire ashare inthestock exchange inwhich theyperform their
broking functions, and,moreover, must beaccepted asmembers ofthatexchange.CHILE (continued)
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
Financial portfolio
management (81323)
Thepurpose offinancial
portfolio management isto
diversify investments, on
behalf ofthirdparties over
arange ofinstruments.
(Itdoesnotinclude
management ofmutual
funds, foreign capital
investment funds,
investment funds orpension
funds).(1)Unbound
(2)Unbound
(3)None1
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Those whoofferfinancial portfolio management services intheircapacity assecurities intermediaries mustfulfil therequirements appropriate totheir
principal function (whether itbethatofstockbroker orthatofsecurities agent). Otherwise, inthecaseofother legalpersons, theymayengage insuchactivity
iftheyholdabroad mandate tooperate fortheaccount ofthirdparties.
GATS/SC/18/Suppl.1/Rev.1
Page19CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page20
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
Securities riskrating
(81339)1(1)Unbound
(2)Unbound
(3)Riskrating agencies must haveastheir
solepurpose therating ofpublicly
offered securities, although theymay
alsocarry outcomplementary activities
asauthorized bytheSupervision
Department. Moreover, theymust be
established asacompany ofpersons
andbeenrolled intheRegister ofRisk
Rating Agencies oftheSecurities and
Insurance Supervision Department.
Thespecific requirements tobe
fulfilled include thefollowing:(1)Unbound
(2)Unbound
(3)None
- Notlessthan60percentofthe
company 'scapital must beheld
bytheprincipal partners;
1Relates solely torating orgiving anopinion onpublicly offered securities.CHILE (continued)
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
- Therating board must consist of
professionals withauniversity
degree orequivalent higher
education andanunblemished
business record, themajority of
whom must havehadatleast
three years'work experience in
theeconomic andfinancial field.
(4)Unbound, except asindicated inthe
horizontal section(4)Unbound, except asindicated inthe
horizontal section
Securities custody
(81319)
Does notinclude the
services offered by
suppliers whocombine
custody withsecurities
clearance andsettlement
(custodial accounts).(1)Unbound
(2)Unbound
(3)None1
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Those whooffersecurities custody services intheircapacity assecurities intermediaries mustfulfiltherequirements appropriate totheirprincipal function
(whether itbethatofstockbroker orthatofsecurities agent).
GATS/SC/18/Suppl.1/Rev.1
Page21CHILE (continued) GATS/SC/18/Suppl.1/Rev.1
Page22
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
Financial advisory services
(81332)
Thefinancial advice refers
onlytothesecurities
services included inthis
Schedule(1)Unbound
(2)Unbound
(3)Only securities intermediaries, bank
subsidiaries andother natural andlegal
persons1
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
Warrants
Corresponds tomerchandise
warehousing services
accompanied bytheissue of
adeposit andachattel
mortgage receipt(1)Unbound*
(2)Unbound
(3)Only natural orlegalpersons legally
established inChile whohavethe
provision ofwarrant services astheir
solebusiness
(4)Unbound, except asindicated inthe
horizontal section(1)Unbound*
(2)Unbound
(3)None
(4)Unbound, except asindicated inthe
horizontal section
1Those whoprovide financial advisory services intheircapacity assecurities intermediaries must fulfil therequirements appropriate totheirprincipal
function (whether itbethatofstockbroker orthatofsecurities agent). Otherwise, legalpersonality mustbeestablished inorder toengage insuchactivity.