RESTRICTED
WORLD TRADE GATS/SC/85/Suppl.1/Rev.1
4October 1995
ORGANIZATION(95-2900)
Trade inServices
THAILAND
Schedule ofSpecific Commitments
Supplement 1
Revision
(This isauthentic inEnglish only)
_______________
This textreplaces theFinancial Services section contained inpages 29to38of
document GATS/SC/85.THAILAND -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
7.FINANCIAL
SERVICES
A.Insurance including
reinsurance and
retrocession
(a)Lifeinsurance services
(CPC 81211)(1)None
(2)None
(3) (a) Foreign equity participation limited
to25percentofregistered share
capital.
(b) New establishment issubject to
licence approved bytheMinister
withtheconsent oftheCabinet.
(4) Only senior managerial personnel,
specialists andtechnical assistants withthe
approval oftheInsurance Commissioner.(1) None
(2) Lifeinsurance premium istax
deductible uptoacertain amount for
holders ofpolicies issued bylocal
companies.
(3) None
(4) None
- With regard tothescope ofoperation andtypes offinancial services thatcanbeprovided, each typeoffinancial
institution willbepermitted tooperate thesector orsubsector ofbanking andother financial services onlytothe
extent thattheir respective governing legislation permit them todoso.GATS/SC/85/Suppl.1/Rev.1
Page1THAILAND (continued) GATS/SC/85/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
(b) Non-life insurance
services
(CPC 8129)(1) Unbound except forinternational marine,
aviation andtransit andallclasses of
reinsurance.
(2) None
(3) (a) Foreign equity participation limited
to25percentofregistered share
capital.
(b) New establishment issubject to
licence approved bytheMinister
withtheconsent oftheCabinet.
(4) Only senior managerial personnel,
specialists andtechnical assistants withthe
approval oftheInsurance Commissioner.(1) Unbound
(2) None
(3) None
(4) None
(d) Services auxiliary to
insurance (excluding
pension funding
services)
Insurance broking and
agency services
(CPC 81401)
(Brokers shall not
induce, advise ordo
anyactssoastocause
anyperson toenter into
insurance contracts with
insurers abroad, except
forreinsurance
contracts)(1) Unbound
(2) Unbound
(3) Foreign equity participation nottoexceed
25percent.
(4) (a) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner
(b) Unbound forindividual broker and
agent.(1) Unbound
(2) Unbound
(3) Nolimitations aslongasforeign equity
participation does notexceed 25per
cent.
(4) NoneTHAILAND (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
Insurance consultancy
services excluding
pension consulting
services
(CPC 81402)(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section
(4) Only senior managerial personnel,
specialists andtechnical assistants withthe
approval oftheInsurance Commissioner.(1) None
(2) None
(3) Nolimitations aslongasforeign equity
participation does notexceed 49per
cent.
(4) None
Average andloss
adjustment services
(CPC 81403)(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section
(4) Only senior managerial personnel,
specialists andtechnical assistants withthe
approval oftheInsurance Commissioner.(1) None
(2) None
(3) Nolimitations aslongasforeign equity
participation does notexceed 49per
cent.
(4) None
Actuarial services
(CPC 81404)(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section
(4) Only senior managerial personnel,
specialists andtechnical assistants withthe
approval oftheInsurance Commissioner.(1) None
(2) None
(3) Nolimitations aslongasforeign equity
participation does notexceed 49per
cent.
(4) None
GATS/SC/85/Suppl.1/Rev.1
Page3THAILAND (continued) GATS/SC/85/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
Services auxiliary to
financial intermediation
other thantoinsurance
andpension funding
services
Credit cardservices
(CPC 81133)
(Mobilizing funds from
thepublic isprohibited,
unless licensed under a
financial law)(1) None
(2) None
(3) (a) Asindicated inB(3)(j) below.
(b) Financial institutions must obtain
prior approval from theBank of
Thailand.
(4) Asindicated inthehorizontal section.(1) None
(2) None
(3) Nolimitations aslongasforeign equity
participation does notexceed 49per
cent.
(4) None
Financial consultancy
services
(CPC 81332)(1) Unbound
(2) None
(3) None other thanthatindicated inthe
horizontal section
(4) Asindicated inthehorizontal section.(1) None
(2) None
(3) Nolimitations aslongasforeign equity
participation does notexceed 49per
cent.
(4) NoneTHAILAND (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
B. Banking andother
financial services
(excluding insurance)
Acceptance ofdeposits
andother payable funds
from thepublic
Lending ofalltypes,
including consumer
credit, mortgage credit,
factoring andfinancing
ofcommercial
transactions(1) None forfinancial advisory andfinancial
dataprocessing. Unbound forallother
services.
(2) None forfinancial advisory andfinancial
dataprocessing. Unbound forallother
services.
(3) (a) Representative office ofbanks
None
(b) Foreign bank branches(1) None
(2) None
(3) (a) Representative office ofbanks
None
(b) Foreign bank branches
GATS/SC/85/Suppl.1/Rev.1
Page5THAILAND (continued) GATS/SC/85/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
Financial leasing
Payment andmoney
transmission services
including credit, charge
anddebit cards,
travellers cheques and
bankers drafts
Guarantees and
commitments
Trading forown
account, orforaccount
ofcustomers inthe
following:
(a)money market
instrumentsI.Bound forexisting foreign bank
branches under present shareholding
structure. Unbound togrant new
licence except in(d)IV.
II.ATM operations permitted under the
following conditions only:
(i) joining ATM pools operated by
Thai banks; or
(ii) operation within ownpremises or
sharing thefacilities withother
commercial banks inThailand.None forexisting foreign bank
branches. Unbound togrant new
licence except in(d)IV.THAILAND (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
(b)foreign exchange
(c)exchange rateand
interest rate
instruments
(d)transferable
securities
Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagents
(whether publicly or
privately) andprovision
ofservices related to
such issuesIII.By1997, existing foreign banks which
already have branches inThailand will
each bepermitted toopen nomore than
twoadditional branches under terms
andconditions tobeannounced.
IV. None forparticipation incheque
clearing andsettlement system.
(c) Locally incorporated banks
I.Market access limited toshare
acquisition ofexisting banks andnot
more thanfiveother newbanks the
licences ofwhich willbegranted by
1997 only.
II.Maximum foreign equity participation
limited to25percentofpaid-up
registered capital. Combined
shareholding ofanindividual and
his/her related persons nottoexceed 5
percentofbank'spaid-up registered
capital.(c) Locally incorporated banks
None.
GATS/SC/85/Suppl.1/Rev.1
Page7THAILAND (continued) GATS/SC/85/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
Asset management as
follows:
-cashorportfolio
management
-collective
investment
management
-custodial and
depository services
Advisory,
intermediation andother
auxiliary financial
services
Provision andtransfer
offinancial information,
andfinancial data
processing andrelated
softwareIII.Atleast three-fourths ofthedirectors
must beThai nationality.
(d) International banking facility1
I. Licences required from theMinistry
ofFinance.
II. Bound forthose Bangkok
International Banking Facility
(BIBF) licences granted toforeign
banks andstilleffective in
May 1994.
III. Bound forthose Provincial
International Banking Facility
(PIBF) licences asgranted toforeign
banks inJanuary 1995.
IV. Notmore thanseven foreign banks
withBIBF licence inIIabove will
begranted full-branch licence by
1997 under terms andconditions to
beannounced.(d) International banking facility
None.
1IBFunits permitted tooperate onlythebanking andinvestment banking business asspecified intheMinisterial Order issued on16September 1992, andNotification
oftheBank ofThailand dated 14December 1993.THAILAND (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
V. Alimited number ofBIBF licences
tobegranted tonewforeign banks
by1997 under terms andconditions
tobeannounced.
VI. Foreign banks withBIBF licence in
IIabove willeach begranted to
open nomore thantwoadditional
PIBF by1997.
(e) Finance companies andcredit foncier
companies
I. None forrepresentative offices.
II. Market access limited toshare
acquisition theacquisition ofshares
ofexisting companies only.
Unbound fornewlicences.(e) Finance companies andcredit foncier
companies
None.
III. Maximum foreign equity
participation limited to25percent
ofpaid-up registered capital.
Combined shareholding ofan
individual andhis/her related
persons nottoexceed 10percent.
IV. Atleast three-fourths ofthe
directors must beThai nationality.
(f) Securities companies
Securities brokerage, securities dealing,
investment advisory service andsecurities
underwriting:(f) Securities companies
None.
GATS/SC/85/Suppl.1/Rev.1
Page9THAILAND (continued) GATS/SC/85/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
I. None forrepresentative offices.
II. Market access limited toshare
acquisition ofexisting companies
only. Unbound fornewlicence.
III. Maximum foreign equity
participation limited to49percent
ofpaid-up registered capital.
IV. Atleast one-half ofthedirectors
must beThai national.
(g) Asset management companies
Collective investment schemes:
I. None forrepresentative offices.THAILAND (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
II. Market access limited toshare
acquisition ofexisting companies
andnotmore thanfiveother new
licences willbegranted to
companies which meet Securities
andExchange Commission (SEC)
prudential requirement (excluding a
licence thatwillbegranted toa
wholly-owned subsidiary setupby
theStock Exchange ofThailand
(SET) tooperate theThai trust fund
scheme).
III. Maximum foreign equity
participation limited to25percent
ofpaid-up registered capital during
thefirstfiveyears after thelicences
have been granted.
IV. Atleast three-fourths ofthe
directors must beThai national.
V. After fiveyears, maximum foreign
equity participation limited to49per
centofpaid-up registered capital,
andatleast one-half ofthedirectors
must beThai nationals.
GATS/SC/85/Suppl.1/Rev.1
Page11THAILAND (continued) GATS/SC/85/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
(h) Financial leasing services
Canonlybeprovided byleasing companies
which aresubject tomaximum foreign
equity participation of49percentofpaid-
upregistered capital, orbyfinance
companies which aresubject tomaximum
foreign equity participation of25percent
ofpaid-up registered capital.(h) Financial leasing services
None.
(i) Factoring services
Canonlybeprovided byfactoring
companies which aresubject tomaximum
foreign equity participation of49percent
ofpaid-up registered capital, orbyfinance
companies which aresubject tomaximum
foreign equity participation of25percent
ofpaid-up registered capital.(i) Factoring services
None.
(j) Credit, charge anddebit cards
Credit, charge anddebit cards canonlybe
provided bycompanies which aresubject to
maximum foreign equity participation of49
percentofpaid-up registered capital or
locally incorporated banks andforeign bank
branches.
Theconduct ofbusinesses under (h),(i)
and(j)willbesubject tolicensing and
regulations tobeannounced.THAILAND (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
(4) Limitations onthenumber offoreign
personnel perforeign bank office:
(a)twopersons forbanks operating as
representative office
(b)sixpersons foreach full-licensed
branch
(c)fourpersons foreach BIBF branch
(d)twopersons foreach PIBF branch
(e)eight persons forbanks operating as
full-licensed andBIBF branch.(4) None
Forfinance companies:
(a)twopersons forarepresentative office
(b) maximum offourdirectors permitted for
finance companies
Forsecurities companies andasset
management companies:
twopersons forarepresentative office.
GATS/SC/85/Suppl.1/Rev.1
Page13