RESTRICTED
WORLD TRADE GATS/SC/26/Suppl.1/Rev.1*
4October 1995
ORGANIZATION
(95-2866)
Trade inServices
CZECH REPUBLIC
Schedule ofSpecific Commitments
Supplement 1
Revision
(This isauthentic inEnglish only)
____________________
This textreplace theFinancial Services section contained inpages 24to30of
document GATS/SC/26.
_______________
*English andSpanish only.CZECH REPUBLIC -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
II. SECTOR-SPECIFIC COMMITMENTS
7. FINANCIAL SERVICES
Measuring applicable toallsectors infinancial services:
1. Commitments inthisChapter arebased ontheAgreement onTrade inServices, theAnnex onFinancial Services andtheUnderstanding onCommitments in
Financial Services.
2. Market access commitments withrespect tothe"cross-border supply" and"consumption abroad" arebound totheextent oftheobligations inpara3and4of
Market Access oftheUnderstanding applying onlytoindividual sectors listed andsubject tolimitations indicated therein.
3. Thepurchase andacquisition offinancial services bypublic entities oftheCzech Republic aregoverned inthisschedule byArticle XIIIoftheAgreement.
4. Theadmission tothemarket ofnewfinancial services andinstruments may besubject totheexistence of,andconsistency with thedomestic regulatory
framework aimed atachieving theobjectives indicated inArticle 2(a)oftheAnnex onFinancial Services.
5. Thecommitments onpresence ofnatural persons arebound according tothegeneral limitations applicable toallsectors inthisschedule (Part I).
6. Otherwise, thecommitments inthischapter aresubject tothegeneral conditions orlimitations applicable toallsectors inthisschedule.
A. Insurance andInsurance-Related Services
(CPC 812)
Compulsory motor third party liability insurance andcompulsory airtransport insurance areprovided byexclusive suppliers. These suppliers actinamanner
consistent withobligations under Article IIoftheAgreement andspecific commitments.
GATS/SC/26/Suppl.1/Rev.1
Page1CZECH REPUBLIC (continued)GATS/SC/26/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
(a)Lifeinsurance
(CPC 81211)
(b)Non-life insurance
(CPC 8129)
(c)Reinsurance and
retrocession
(d)Services auxiliary to
insurance
(CPC 8140, excluding
pension funding: 81402,
81409)(1)None other than:
Commercial presence isrequired forsupply
of:
-thelifeinsurance ofpersons with
permanent residence intheCzech
Republic,
-theinsurance ofproperty onthe
territory oftheCzech Republic,
-theinsurance ofliability forlossor
damage caused bytheactivity ofnatural
andjuridical persons ontheterritory of
theCzech Republic.
(2)None other than:
Insurance services covered bymode (1)
above maynotbepurchased abroad.(1)None
(2)NoneCZECH REPUBLIC (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
(3)None other than:
Authorization isrequired forprovision of
insurance services. Foreign nationals may
establish aninsurance company withtheseat
intheCzech Republic intheform ofajoint
stock company ormayconduct insurance
business through their subsidiaries or
branches withregistered office intheCzech
Republic under thegeneral conditions
established intheLawonInsurance.
Insurance business means insurance activity
including brokerage andreinsurance activity.(3)None
Intermediation activity aimed atthe
conclusion ofinsurance contract between
third party andinsurance company maybe
provided bynatural orjuridical person only
domiciled intheCzech Republic onbehalf
ofinsurance company having the
authorization oftheInsurance Supervisory
Authority.
Intermediation contract aimed atconclusion
ofinsurance contract bythird party with
insurance company maybeconcluded by
domestic orforeign insurance company only
onthebasis ofauthorization granted bythe
Insurance Supervisory Authority.
(4)Unbound except asindicated inhorizontal
section(4)Unbound except asindicated inhorizontal
section
GATS/SC/26/Suppl.1/Rev.1
Page3CZECH REPUBLIC (continued)GATS/SC/26/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
B.Banking andOther
Financial Services
(a)Acceptance ofdeposits
andother repayable funds
from thepublic
(CPC 81115, 81116,
81119)(1)Unbound forservices described in
subsectors (g),(i)and(j)andfor:
-transferable securities (CPC 81321),
-other negotiable instruments and
financial assets (excl. bullion)
(2)Unbound forservices described in
subsector (i).(1)None
(2)None
(b)Lending ofalltypes
(CPC 8113)
(c)Financial leasing
(CPC 81120)
(d)Allpayments andmoney
transmission services,
incl. credit, charge and
debit cards, travellers
cheques andbankers drafts(1),(2)None other than:
Deposit services areconfined todomestic
banks andbranches offoreign banks onthe
territory oftheCzech Republic.
Only domestic banks, branches orforeign
banks ontheterritory oftheCzech Republic
andpersons possessing aforeign exchange
licence maytrade inforeign exchange
assets.CZECH REPUBLIC (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
(e)Guarantees and
commitments
(f)Trading forownaccount
orforaccount of
customers, whether onan
exchange, inan
over-the-counter market or
otherwise asfollows:
-money market
instruments (cheques,
bills, certificates of
deposits)
-foreign exchange
(CPC 81333)
-exchange rateand
interest rate
instruments, incl.
products such as
swaps, forward rate
agreementsNon-cash cross-border payments maybe
effected onlybydomestic banks and
branches offoreign banks. Foreign
exchange licence issued bytheCzech
National Bank orMinistry ofFinance is
required incaseofCzech residents for:
(a)opening anaccount abroad byaCzech
non-bank resident,
(b)capital payments abroad,
(c)obtaining financial credit from a
non-resident andgranting financial credit
andguarantees,
(d)export andimport oftheCzech currency
(applied alsotonon-residents),
(e)purchase offoreign securities,
(f)issuing allkinds ofsecurities
denominated inaforeign currency.
-transferable securities
(CPC 81321)Foreign exchange assets ofCzech residents
arerequired tobedeposited withdomestic
banks orbranches offoreign banks onthe
territory oftheCzech Republic.
GATS/SC/26/Suppl.1/Rev.1
Page5CZECH REPUBLIC (continued)GATS/SC/26/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
-other negotiable
instruments and
financial assets (excl.
bullion)(3)None other than: (3)None
(g)Participation inissues of
allkinds ofsecurities,
incl. underwriting and
placement asagent
(whether publicly or
privately) andprovision of
services related tosuch
issuesBanking services maybeprovided onlyby
domestic banks orbranches offoreign banks
authorized bytheCzech National Bank in
agreement withtheMinistry ofFinance.
(i)Asset management such as
cashorportfolio
management, allforms of
collective investment
management, pension fund
management, custodial,
depository andtrust
servicesThegranting oftheauthorization isbased on
theconsideration ofcriteria relating, in
particular, tothecapital endowment,
professional qualifications, integrity and
competence ofthemanagement and
economic usefulness oftheprojected bank
activities. Thecriteria areapplied
consistently withGATS. Mortgage loan
services maybeprovided onlybydomestic
banks.
(j)Settlement andclearing
services forfinancial
assets, excl. derivative
productsPrivate banks maybeestablished asjoint
stock companies only. Thepurchase of
shares ofexisting banks issubject toprior
approval oftheCzech National Bank.CZECH REPUBLIC (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
(k)Provisions andtransfer of
financial information and
financial dataprocessing
andrelated software by
suppliers ofother financial
servicesSecurities maybetraded publicly onlyifrelevant
authorization hasbeen granted andprospectus
covering thesecurity hasbeen approved bythe
Ministry ofFinance.
Theauthorization maynotbegranted if
public trading insecurities isinconflict with
theinterests ofinvestors, isinconsistent with
thegovernment financial policy orifitdoes
notconform withthefinancial market
requirements.
(l)Advisory, intermediation
andother auxiliary
financial services onall
activities listed in
subparagraphs above, incl.
credit reference and
analysis, investment and
portfolio research and
advice, advice on
acquisition andon
corporate restructuring
andstrategyThebusiness ofsecurity dealer, stockbroker,
stock exchange ororganizer ofanover-the-
counter market issubject toauthorization of
theMinistry ofFinance thegranting of
which isrelated tothefinancial market
requirements andqualifications, personal
integrity, management andtechnical
requirements.
Settlement andclearing services forallkinds
ofpayments aremonitored andreviewed by
theCzech National Bank toensure their
smooth andeconomical operation.
(4)Unbound except asindicated inthe
horizontal section.(4)Unbound except asindicated inthe
horizontal section.
GATS/SC/26/Suppl.1/Rev.1
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