Schedule of CanadaSchedule of MexicoSchedule of the United States |
Sector: | Financial Services |
Sub-Sector: | Insurance |
Industrial Classification: | |
Type of Reservation: | Cross-Border Trade (Article 1404) |
Level of Government: | Federal |
Measures: | Insurance Companies Act, S.C. 1991, c. 47
Reinsurance (Canadian Companies) Regulations, SOR/92-298 Reinsurance (Foreign Companies) Regulations, SOR/92-596 |
Description: | The purchase of reinsurance services by a Canadian insurer, other than a life insurer or a reinsurer, from a non-resident reinsurer is limited to no more than 25 percent of the risks undertaken by the insurer purchasing the reinsurance. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Holding Companies (Sociedades Controladoras)
Commercial Banks (Instituciones de Banca Múltiple) |
Industry Classification: | Holding Companies (Not applicable)
CMAP 811030 - Commercial Banks |
Type of Reservation: | Establishment of Financial Institutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley para Regular las Agrupaciones Financieras, Artículo 18
Ley de Instituciones de Crédito, Artículos 11, 15 |
Description: | Aggregate foreign investments in holding companies and in commercial banks are limited to 30 percent of common stock capital ("capital ordinario"). These percentage limits do not apply to investments in foreign financial affiliates as such term is defined in, and subject to terms and conditions under, Sections B and C of this Schedule. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Securities Firms (Casas de Bolsa)
Securities Specialists (Especialistas Bursátiles) |
Industry Classification: | CMAP 812001 - Securities Firms
Securities Specialists (Not Applicable) |
Type of Reservation: | Establishment of Financial Institutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley del Mercado de Valores, Artículo 17-II |
Description: | Aggregate foreign investments in securities firms and securities specialists are limited to 30 percent of capital ("capital social") and individual foreign investments are limited to 10 percent of capital, while individual investments by Mexicans may, with approval from the Secretaría de Hacienda y Crédito Público, rise to 15 percent of capital. These percentage limits do not apply to investments in foreign financial affiliates as such term is defined in, and subject to terms and conditions under, Sections B and C of this Schedule. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | General Deposit Warehouses (Almacenes Generales de Depósito)
Financial Leasing Companies (Arrendadoras Financieras) Financial Factoring Companies (Empresas de Factoraje Financiero) Bonding Companies (Instituciones de Fianzas) |
Industry Classification: | CMAP 811042 - General Deposit Warehouses
CMAP 811043 - Financial Leasing Companies Financial Factoring Companies (Not Applicable) CMAP 813001 - Bonding Companies |
Type of Reservation: | Establishment of Financial Intitutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley General de Organizaciones y Actividades Auxiliares del Crédito, Artículo 8-III-1
Ley Federal de Instituciones de Fianzas, Artículo 15-XIII |
Description: | Aggregate foreign investments in general deposit warehouses, financial leasing companies, financial factoring companies and bonding companies must be less than 50 percent of paid-in capital ("capital pagado"). These percentage limits do not apply to investments in foreign financial affiliates as such term is defined in, and subject to terms and conditions under, Section B of this Schedule. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Credit Unions (Uniones de Crédito)
Financial Agents (Comisionistas Financieros) Foreign Exchange Firms (Casas de Cambio) |
Industry Classification: | CMAP 811041 - Credit Unions
Financial Agents (Not Applicable) CMAP 811044 - Foreign Exchange Firms |
Type of Reservation: | Establishment of Financial Institutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley General de Organizaciones y Actividades Auxiliares del Crédito, Artículos 8-III-1, 82-III
Ley de Instituciones de Crédito, Artículo 92 Reglas de la Secretaría de Hacienda y Crédito Público |
Description: | Foreign investments in credit unions, financial agents and foreign exchange firms are not allowed. This limitation does not apply to investments in foreign financial affiliates as such term is defined in, and subject to terms and conditions under, Section B of this Schedule. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Development Banks (Bancos de Desarrollo) |
Industry Classification: | CMAP 811021 - Development Banks |
Type of Reservation: | Establishment of Financial Institutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley de Instituciones de Crédito, Artículo 33 |
Description: | Foreign investments in development banks are not allowed. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Insurance Companies (Instituciones de Seguros) |
Industry Classification: | CMAP 813002 - Insurance Companies |
Type of Reservation: | Establishment of Financial Institutions (Article 1403) National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley General de Instituciones y Sociedades Mutualistas de Seguros, Artículo 29-I |
Description: | Aggregate foreign investments in insurance companies must be less than 50 percent of paid-in capital ("capital pagado"). This percentage limit does not apply to investments in foreign financial affiliates as such term is defined in Sections B and C of this Schedule, or in insurance companies, in both cases subject to terms and conditions under Sections B and C of this Schedule. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Holding Companies (Sociedades Controladoras)
Securities Firms (Casas de Bolsa) Securities Specialists (Especialistas Bursátiles) General Deposit Warehouses (Almacenes Generales de Depósito) Financial Leasing Companies (Arrendadoras Financieras) Financial Factoring Companies (Empresas de Factoraje Financiero) Savings and Loan Companies (Sociedades de Ahorro y Préstamo) Managing Companies of Investment Companies (Sociedades Operadoras de Sociedades de Inversión) Investment Companies (Sociedades de Inversión) Bonding Companies (Instituciones de Fianzas) Insurance Companies (Instituciones de Seguros) |
Industry Classification: | Holding Companies (Not Applicable)
CMAP 812001 - Securities Firms Securities Specialists (Not Applicable) CMAP 811042 - General Deposit Warehouses CMAP 811043 - Financial Leasing Companies Financial Factoring Companies (Not Applicable) Saving and Loans Companies (Not Applicable) CMAP 812003 - Managing Companies of Investment Companies CMAP 812002 - Investment Companies CMAP 813001 - Bonding Companies CMAP 813002 - Insurance Companies |
Type of Reservation: | Establishment of Financial Institutions (Article 1403)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley para Regular las Agrupaciones Financieras, Artículo 18
Ley del Mercado de Valores, Artículo 17-II Ley General de Organizaciones y Actividades Auxiliares del Crédito, Artículos 8-III-1, 38-G Ley de Sociedades de Inversión, Artículos 9-III, 29-VI Ley Federal de Instituciones de Fianzas, Artículo 15-XIII Ley General de Instituciones y Sociedades Mutualistas de Seguros, Artículo 29-I |
Description: | Foreign governments and foreign state enterprises may not invest, directly or indirectly, in holding companies, securities firms, securities specialists, general deposit warehouses, financial leasing companies, financial factoring companies, savings and loan companies, managing companies of investment companies, investment companies, bonding companies or insurance companies. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Commercial Banks (Instituciones de Banca Múltiple) |
Industry Classification: | CMAP 811030 - Commercial Banks |
Type of Reservation: | Establishment of Financial Institutions (Article 1403) National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley de Instituciones de Crédito, Artículo 15 |
Description: | Foreign entities that exercise governmental functions may not invest, directly or indirectly, in commercial banks. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Insurance |
Industry Classification: | CMAP 813002 - Insurance |
Type of Reservation: | Cross-Border Trade (Article 1404)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley General de Instituciones y Sociedades Mutualistas de Seguros, Artículo 3 |
Description: | Mexico reserves its existing prohibitions and restrictions on cross-border trade in insurance services, which do not now include restrictions on the right of individuals to purchase, by physical mobility, life and health insurance. Mexico is not reserving its present restrictions with respect to the ability of residents of Mexico to purchase from cross-border insurance providers of another Party the following types of insurance:
|
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | CMAP 811021 - Development Banks
CMAP 811030 - Commercial Banks |
Type of Reservation: | Establishment of Financial Institutions (Article 1403) Cross-Border Trade (Article 1404)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Ley Orgánica de Nacional Financiera, Artículo 7
Ley Orgánica del Banco Nacional del Ejército, la Fuerza Aérea y la Armada |
Description: | The following activities are reserved solely to Mexican development banks:
|
Phase-Out: | None |
Type of Reservation :Establishment of Financial Institutions (Article 1403) National Treatment (Article 1405)
Type of Financial Institution | Concept of "Capital" |
commercial banks | capital neto |
securities firms | capital global |
insurance companies | |
|
requerimiento bruto de solvencia (allocation to casualty insurance) |
|
requerimiento bruto de solvencia (allocation to life and health insurance) |
factoring companies | capital contable |
leasing companies | capital contable; |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | SIC 6021 - National Commercial Banks |
Type of Reservation: | Senior Management and Boards of Directors (Article 1408) |
Level of Government: | Federal |
Measures: | The National Bank Act, 12 U.S.C. § 72 |
Description: | All directors of a national bank must be citizens of the United States. Because the president of a national bank must be a director, the president of a national bank must be a citizen of the United States. An exception exists for a national bank affiliated with or owned by a foreign bank. Such a bank need only have U.S. citizens constitute a simple majority of the board and thus need not employ a U.S. citizen as its president.
Two-thirds of the directors of a national bank must
|
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | SIC 6021 - National Commercial Banks
SIC 6022 - State Commercial Banks SIC 6029 - Other Commercial Banks SIC 6081 - Branches and Agencies of Foreign Banks SIC 6712 - Bank Holding Companies Foreign Banks (Not Applicable) |
Type of Reservation: | National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Bank Holding Company Act of 1956, 12 U.S.C.
§ 1842(d) International Banking Act of 1978, 12 U.S.C. § 3103(a) (5) |
Description: | Federal authorities may not approve the establishment of, or acquisition of an interest in, a bank subsidiary within a state ("the target state") by a foreign bank that has a full-service branch in the United States, unless the measures of the target state expressly permit such an establishment or acquisition by domestic bank holding companies with their principal place of banking operations (as that term is described under the Bank Holding Company Act) in the foreign bank's "home state" (as that term is defined in the International Banking Act).
Federal authorities also may not approve the establishment of, or acquisition of an interest in, a bank subsidiary within a state ("the target state") by a bank holding company, including a foreign bank, that maintains its principal place of banking operations in another state, as defined under the Bank Holding Company Act, unless the measures of the target state expressly permit the establishment and acquisition by bank holding companies from the state of the company's or bank's principal place of banking operations. Due to these Federal measures and certain state measures, foreign banks with direct deposit-taking branches or bank subsidiaries in the United States are not permitted to establish or acquire interests in banks located in some states on the same basis as domestic bank holding companies from the state of the foreign bank's principal place of banking operations or the foreign bank's home state. The following types of measures, among others, fall into this category:
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Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | SIC 6082 - Foreign Trade and International Banking Institutions |
Type of Reservation: | National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Federal Reserve Act, 12 U.S.C. § 619 |
Description: | Edge corporations (specialized international banking companies chartered under Federal law) may be owned by domestically-owned banks and bank holding companies, and by domestic non-bank companies willing to restrict their business activities to those closely related to banking. Foreign ownership of Edge corporations is limited to foreign banks and U.S. subsidiaries of foreign banks. Other foreign persons may not directly or indirectly own Edge corporations. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | SIC 6081 - Branches of Foreign Banks |
Type of Reservation: | National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | International Banking Act of 1978, 12 U.S.C. §3104(c) |
Description: | In order to accept or maintain domestic retail deposit accounts having balances of less than $100,000, a foreign bank must establish an insured banking subsidiary. This prohibition does not apply to a foreign bank branch that was engaged in insured deposit-taking activities on December 19, 1991. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking |
Industry Classification: | SIC 6081 - Branches and Agencies of Foreign Banks |
Type of Reservation: | National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Federal Reserve Act, 12 U.S.C. §§ 221, 302, 321 |
Description: | Foreign banks with branches or agencies in the United States may not be members of the Federal Reserve System, and thus may not vote for directors of a Federal Reserve Bank. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking and Securities |
Industry Classification: | SIC 6021 - National Commercial Banks
SIC 6022 - State Commercial Banks SIC 6029 - Other Commercial Banks SIC 6081 - Branches and Agencies of Foreign Banks SIC 6211 - Security Brokers, Dealers and Flotation Companies |
Type of Reservation: | National Treatment (Article 1405)
Most-Favored-Nation Treatment (Article 1406) |
Level of Government: | Federal |
Measures: | The Primary Dealers Act of 1988, 22 U.S.C. §§ 5341-5342 |
Description: | The Primary Dealers Act of 1988 prohibits a foreign firm from being designated as a primary dealer in U.S. government debt obligations unless the home country of the foreign firm accords to U.S. firms the same competitive opportunities as are accorded to domestic firms in the underwriting and distribution of government debt instruments in the firm's home country. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking and Securities |
Industry Classification: | SIC 6289 - Services Allied with the Exchange of Securities or Commodities |
Type of Reservation: | Cross-Border Trade (Article 1404)
National Treatment (Article 1405) Most-Favored-Nation Treatment (Article 1406) Senior Management and Boards of Directors (Article 1408) |
Level of Government: | Federal |
Measures: | Trust Indenture Act of 1939, 15 U.S.C. § 77jjj(a) (1) |
Description: | Under the Trust Indenture Act of 1939, a foreign firm located outside the United States may be prohibited from acting as the sole trustee under an indenture for debt securities sold in the United States if U.S. institutional trustees cannot act as sole trustees for securities sold in the foreign firm's home country. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Banking and Securities |
Industry Classification: | SIC 6211 - Security Brokers, Dealers and Flotation Companies |
Type of Reservation: | Most-Favored-Nation Treatment (Article 1406) |
Level of Government: | Federal |
Measures: | Securities Exchange Act of 1934, 15 U.S.C. § 78o(c)
17 C.F.R. § 240.15c3-3 |
Description: | A broker-dealer that maintains its principal place of business in Canada may maintain its required reserves at a bank in Canada subject to supervision by an authority of Canada. A broker-dealer that maintains its principal place of business in any other foreign country must maintain reserves in the United States. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Commodity Futures and Options |
Industry Classification: | SIC 6221 - Commodity Contracts Broker and Dealers
SIC 6231- Commodity Exchanges SIC 6282 - Investment Advice SIC 6289 - Services Allied with the Exchange of Commodities |
Type of Reservation: | Cross-Border Trade (Article 1404)
New Financial Services and Data Processing (Article 1407) |
Level of Government: | Federal |
Measures: | Commodity Exchange Act, 7 U.S.C. §§ 2, 13-1 |
Description: | Federal law prohibits the offer or sale of futures contracts on onions, options contracts on onions and options on futures contracts on onions in the United States and services related thereto. |
Phase-Out: | None |
Sector: | Financial Services |
Sub-Sector: | Insurance |
Industry Classification: | SIC 6351 - Surety Insurance |
Type of Reservation: | Cross-Border Trade (Article 1404)
National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | 31 U.S.C. § 9304 |
Description: | Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts. |
Phase-Out: | None |
Sub-Sector: | Banking and Securities |
Industry Classification: | SIC 6081- Branches and Agencies of Foreign Banks
SIC 6282 - Investment Advice |
Type of Reservation: | National Treatment (Article 1405) |
Level of Government: | Federal |
Measures: | Investment Advisers Act of 1940, 15 U.S.C. §§ 80b-2, 80b-3 |
Description: | Foreign banks are required to register as investment advisers under the Investment Advisers Act of 1940 to engage in securities advisory services in the United States, while domestic banks are exempt from registration. |
Phase-Out: | None |
With respect to Canada, the United States reserves the right to adopt any measure relating to cross-border trade in securities services that derogates from Article 1404(1) or 1406.
The United States commits to permit an eligible grupo financiero that, in formation of the grupo in Mexico before the date of entry into force of this Agreement, lawfully acquires an eligible Mexican bank and a Mexican securities firm which owns or controls a securities company in the United States, to continue to engage through the U.S. securities company in the activities in which that securities company was engaged on the date of acquisition by the grupo for a time period of five years from the date of that acquisition. The U.S. securities company :
For purposes of this Section :
an "eligible grupo financiero" is a Mexican financial group that has not previously benefitted from this commitment; and an eligible Mexican bank means any Mexican institución de crédito that owned or controlled a subsidiary bank, or operated a branch or agency, in the United States on January 1, 1992.
last updated on october 5, 03 by TMTM