WORLD TRADE GATS/SC/98/Suppl.2
26February 1998
ORGANIZATION(98-0636)
Trade inServices
ECUADOR
Schedule ofSpecific Commitments
Supplement 2
(This Schedule isauthentic inSpanish only)
_______________
Thistextreplaces thefinancial services section onpages 10to16ofdocument GATS/SC/98.GATS/SC/98/Suppl.2
Page2ECUADOR
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
Express authorization bythecompetent Ecuadorian supervisory bodies, aswellascompliance withallstatutory provisions inforce ontheactivities concerned, is
required forenterprises engaged ininsurance andreinsurance activities andrelated services tobeabletooperate legally inthecountry andfortheprovision of
banking services andother financial services inanyform. Institutions providing insurance orreinsurance services andfinancial entities, inkeeping withtheir
nature, mayonlycarry outtheoperations authorized under theGeneral LawonInsurance Companies, theGeneral LawonFinancial Institutions, theLawonthe
Stock Market, theLawontheMonetary System andState Bank, andother provisions governing thefunctioning ofeach sector.
Thebusiness names ofbranch offices offoreign financial institutions shall always indicate their foreign status.
Thehead office shall allocate toitsbranch office inEcuador, andretain inthecountry, theamount ofcapital andreserves required under therelevant laws.
Thecommitments made byEcuador inthisschedule donotinclude newservices thatmayarise inthefuture inthefield ofinsurance services, banking services
andother financial services.
Allservices included inthis
scheduleForeign financial entities mayparticipate inthe
equity ofestablished banks andinsurance and
reinsurance companies. Since 3November 1995,
forreasons ofmonetary policy andbanking and
financial prudential considerations, nonewbanks,
finance companies, home savings andloanmutual
associations orsavings andloancooperatives
engaging infinancial intermediation withthe
public, orinsurance orreinsurance companies,
which aresubject tocontrol andsupervision bythe
Banking Supervisory Authority, maybesetupor
established. Thisprovision applies equally to
national andforeign investors.GATS/SC/98/Suppl.2
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
Foreign financial institutions intending toopen
representative offices toactasinformation centres
fortheir clients ortoloanorinvest funds inthe
country, must obtain prior authorization from the
corresponding supervisory body andmaynot
undertake anyfinancial intermediation transaction
within themeaning ofthelaw; noranyexchange
transactions; norreceive directly orindirectly
deposits ofanykindfortheir ownaccount orfor
theaccount ofothers; norparticipate in
borrowing operations which involve receiving
resources from thepublic, inwhich connection
theymust refrain from providing information,
engaging inadvertising orcarrying outanytypeof
activity orprocedure connected withsuch
operations. They maynotsolicit funds ordeposits
inEcuador forplacement abroad, noroffer or
place inthecountry securities issued abroad.GATS/SC/98/Suppl.2
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
A.Insurance Services
1.Insurance ofrisks relating
tolandormaritime
transport andcommercial
aviation, covering
vehicles, goods and
liability arising
therefrom, andinsurance
ofrisks relating togoods
ininternational transit;
2.Reinsurance and
retrocession;(1)Unbound
(2)Unbound
(3)None, except thatrepresentative offices are
notallowed.
(4)Unbound, except asindicated inthehorizontal
section.(1)Unbound
(2)Unbound
(3)None, except thatinforeign insurance
companies employees ofEcuadorian
nationality must account foratleast
50percentofthetotal amount ofsalaries
andcommissions.
(4)Unbound, except asindicated inthe
horizontal section.
3.Direct insurance
(including co-insurance)
(i)life
(ii)non-life:
-accident andhealth
insurance services
-freight insurance
services
-fireandother property
damage insurance
servicesGATS/SC/98/Suppl.2
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
-pecuniary loss
insurance services
-general liability
insurance services
4.Insurance intermediation
activities: broking and
agency services
5.Services auxiliary to
insurance: consultancy,
actuarial, risk-assessment
andclaim-settlement
servicesGATS/SC/98/Suppl.2
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
B.Banking andOther
Financial Services
(excluding insurance)
(a)Acceptance ofdeposits
andother repayable funds
from thepublic(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.
(b)Lending: consumer
credit, mortgage credit,
factoring andfinancing of
commercial transaction
(c)Financial leasing
(d)Payment andmoney
transmission services:
credit, charge anddebit
cards, traveller 'scheques
andbankers drafts
(e)Guarantees and
commitmentsGATS/SC/98/Suppl.2
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
(f)Trading forownaccount
orforaccount of
customers, whether onan
exchange, inanover-the-
counter market or
otherwise, thefollowing:
-money market
instruments (cheques,
bills, certificates of
deposit);
-foreign exchange;
-derivative products:
futures andoptions;
-exchange rateandinterest
instruments: swaps and
forward rateagreements;
-transferable securities;
-negotiable instruments
andfinancial assets:
bullionGATS/SC/98/Suppl.2
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
(i)Asset management: cash
orportfolio management,
allforms ofcollective
investment management,
pension fund
management, custodial
depository andtrust
services
(j)Settlement andclearing
services forfinancial
assets, including
securities, derivative
products, andother
negotiable instrumentsGATS/SC/98/Suppl.2
Page9Modes 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 under the
heading ofbanking and
other financial services
(excluding insurance),
indicated inthisschedule,
including credit reference
andanalysis, investment
andportfolio research and
advice, advice on
acquisitions andon
corporate restructuring
andstrategy
(l)Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
providers ofother
financial services