Agreement to Amend the Free Trade Agreement Between the Government of Canada and the Government of the Republic of Chile
Appendix II - Annex VI
Reservations Relating to Financial Services (Chapter H bis)
1. Section I of the Schedule of a Party sets out the reservations taken by that Party, pursuant to paragraphs 1 and 2 of Article H bis-09 (Financial Services) with respect to existing measures that do not conform with obligations imposed by articles relating to:
- a. National Treatment (Article H bis-02);
- b. Most-Favoured-Nation Treatment (Article H bis-03);
- c. Right of Establishment (Article H bis-04);
- d. Cross-Border Trade (Article H bis-05); or
- e. Senior Management and Boards of Directors (Article H bis-08).
2. Each reservation in Section I sets out the following elements:
- a. Sector refers to the general sector in which the reservation is taken;
- b. Sub-Sector refers to the specific sector in which the reservation is taken;
- c. Type of Reservation specifies the obligation referred to in paragraph 1 for which the reservation is taken;
- d. Measuresidentifies the laws, regulations or other measures, as qualified by the Description element, for which the reservation is taken. A measure cited in the Measures element:
- i. means the measure as amended, continued or renewed as of the date of entry into force of the Agreement to Amend the Free Trade Agreement between the Government of Canada and the Government of the Republic of Chile, done at Santiago on 5 December 1996, as amended, between the Government of Canada and the Government of the Republic of Chile;
- ii. includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
- e. Description sets out references, if any, for liberalization on the date of entry into force of the Agreement to Amend the Free Trade Agreement between the Government of Canada and the Government of the Republic of Chile, done at Santiago on 5 December 1996, as amended, between the Government of Canada and the Government of the Republic of Chile pursuant to other sections of a Party’s Schedule to this Annex, and the remaining non-conforming aspects of the existing measures for which the reservation is taken.
3. In the interpretation of a reservation in Section I, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken. To the extent that:
- a. the Measures element is qualified by a specific reference in the Description element, the Measures element as so qualified shall prevail over all other elements; and
- b. the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. Section II of the Schedule of a Party sets out reservations taken by the Party, pursuant to Articles H bis-09(3) for measures the Party may adopt or maintain that do not conform with obligations imposed by Article H bis-02 (National Treatment), H bis 03 (Most-Favoured-Nation Treatment), H bis-04 (Right of Establishment), H bis 05 (Cross Border Trade), or H bis-08 (Senior Management and Boards of Directors).
5. Each reservation in Section II sets out the following elements:
- a. Sector refers to the general sector in which the reservation is taken;
- b. Sub-Sector refers to the specific sector in which the reservation is taken;
- c. Type of Reservation specifies the obligation referred to in paragraph 4 for which a reservation is taken;
- d. Description sets out the scope of the sector, sub-sector or activities covered by the reservation; and
- e. Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the non-conforming measure.
6. In the interpretation of a reservation in Section II, all elements of the reservation shall be considered. The Description element shall prevail over all other elements.
7. For purposes of this Annex:
- CPC means Central Product Classification (CPC) numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991;
- existing means “existing” as defined in Article H bis-19; and
- SIC means, with respect to Canada, Standard Industrial Classification (SIC) number as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980.
Annex VI - Schedule of Canada
Headnote
1. Commitments in the financial services sector under this Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and the schedule below.
2. To clarify the commitment of Canada with respect to Article H bis-04 (Right of Establishment), enterprises supplying financial services and constituted under the laws of Canada are subject to non-discriminatory limitations on juridical form. For example, partnerships and sole proprietorships with limited or unlimited liability are generally not acceptable juridical forms for financial institutions in Canada. This headnote does not affect or otherwise limit a choice by an investor of the other Party between branches and subsidiaries
Section I
No reservations taken.
Section II
Sector: Financial Services
Sub-Sector: All
Type of Reservation: Most Favoured Nation Treatment (Article H bis-03)
Description: Canada reserves the right to adopt or maintain a measure relating to cross-border trade in securities services.
Existing measure:
Sector: Financial Services
Sub-Sector: Banking and Other Financial Services (excluding Insurance)
Type of Reservation: National Treatment (Article H bis-02) Right of Establishment (Article H bis-04)
Description: Canada reserves the right to adopt or maintain a measure requiring that a foreign bank establish as a subsidiary in order to accept or maintain retail deposits of less than CAD$150,000.
Existing measure:
Sector: Financial Services
Sub-Sector: Banking and Other Financial Services
(excluding Insurance)
Type of Reservation: National Treatment (Article H bis-02) Right of Establishment (Article H bis-04)
Description: Canada reserves the right to adopt or maintain a measure requiring that foreign banks that have been authorized to establish a branch in Canada be members of the Canadian Payments Association. Canada also reserves the right to adopt or maintain a measure prohibiting foreign lending branches from being members of the Canadian Payments Association.
Existing measure:
Annex VI
Schedule of Chile
Headnote
1. Commitments in the financial services sector under this Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and the schedule below.
2. Juridical persons supplying financial services and constituted under the laws of Chile are subject to non-discriminatory limitations on juridical form. For example, partnerships (sociedades de personas) are generally not acceptable juridical forms for financial institutions in Chile. This headnote is not in and of itself intended to affect or otherwise limit a choice by a financial institution of the other Party between branches and subsidiaries.
Section I
Insurance and Insurance-Related Services
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Senior Management and Board of Directors (Article H bis 08)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título III, artículo 58.
Decreto Supremo N° 863, 1989, del Ministerio de Hacienda, Diario Oficial, Abril 5, 1990, Reglamento de los Auxiliares del Comercio de Seguros, Título I, artículo 2, letra c).
Description: Administrators and legal representatives of legal entities performing the activity of insurance brokerage must be Chileans or foreigners with a residence permit.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I, artículo 16.
Description: Reinsurance brokerage can be performed by foreign reinsurance brokers. These brokers shall be juridical persons, demonstrate that the entity is legally established in its country of origin and authorized to intermediate risks ceded from abroad, and provide the date that such authorization was granted. Such entities shall designate a representative in Chile to represent them with broad powers. The representative may be subject to summons and must have residence in Chile.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Right of Establishment (Article H bis-04) Senior Management and Board of Directors (Article H bis 08)
Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título III, artículo 62.
Description: Legal entities performing the activity of claim settlement must be organized under Chilean law. The administrators and legal representatives of these legal entities must be Chileans or foreigners with a residence permit.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I, artículo 20.
Description: In the case of the types of insurance covered in Decreto Ley 3.500, involving the cession of reinsurance to foreign reinsurers, the deduction for reinsurance cannot exceed 40 percent of the total of the technical reserves associated with those types of insurance or a higher percentage if set by the Superintendencia de Valores y Seguros.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I, artículos 58 y 62.
Decreto Supremo N° 863, 1989, del Ministerio de Hacienda, Diario Oficial, Abril 5, 1990, Reglamento de los Auxiliares del Comercio de Seguros, Título I, artículo 2, letra c).
Description: Natural persons performing the activity of insurance brokerage and claim settlement must be Chileans or foreigners with a residence permit.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, de 1931, Ley de Seguros, Título I.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XI, artículo 121 y siguientes.
Description: Insurance activity can be provided only by insurance companies established in Chile as corporations or as branches, under Chilean law, in conformity with the Ley de Seguros and with Ley N° 18.046, related to the establishment of a foreign corporation agency.
These corporations and branches may not be constituted in such a way as to cover simultaneously risks of the first group (risk of loss or damage to property or patrimony (patrimonio)) and risks of the second group (personal risk or guarantees on capital or income within a specified term).
Credit risk (loss or damage to the patrimony (patrimonio) of the insured as a result of the non payment of a money debt or loan) can be insured only by insurance companies organized under the first group dedicated exclusively to covering this type of risk.
The patrimony (patrimonio) that foreign insurance companies assign to their branches must be effectively transferred and converted into domestic currency in conformity with any of the systems authorized by Law or by the Banco Central de Chile.
The increases in capital that do not come from the capitalization of reserves will have the same treatment as the initial capital.
In the transactions between a branch and its main office or other related companies abroad will be considered as independent entities.
No foreign insurance company will be able to invoke rights derived from its nationality regarding transactions that its branch may carry out in Chile.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I.
Description: Reinsurance companies can only be established in Chile as corporations. National insurance companies may also provide reinsurance services as a complement to their insurance business if their articles of association so allow. The latter only may reinsure risks from the group in which they are allowed to operate.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Right of Establishment (Article H bis-04)
Senior Management and Board of Directors (Article H bis 08)
Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título III;
Decreto Supremo N° 863, 1989, Reglamento de los Auxiliares del Comercio de Seguros, Título I.
Description: Legal entities performing the activity of insurance brokerage must be organized under Chilean law. The administrators and legal representatives of these legal entities must be Chileans or foreigners with residence permit.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I.
Description: The reinsurance activity may also be provided by foreign entities classified, according to risk rating agencies of international well-known reputation as indicated by the Securities and Insurance Commission (Superintendencia de Valores y Seguros), at least in the risk category BBB or other equivalent to it. These entities shall have a representative in Chile who will represent them with broad powers. The representative may be subject to summons. Notwithstanding the aforementioned, it will not be necessary the designation of a representative if a reinsurer broker, registered on the records of the Superintendencia de Valores y Seguros, carries out the reinsurance operation. For all purposes, specially for those relating to the application and performance in the country of the reinsurance contract, this broker shall be considered the legal representative of the reinsurers.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Cross-Border Trade (Article H bis-05)
Measures: Decreto Ley Nº 824, Diario Oficial, Diciembre 31, 1974, Ley sobre Impuesto a la Renta, Título IV.
Description: A tax of 22% is applied on all insurance premiums contracted outside Chile. In the case of reinsurance contracted with companies not established in Chile, the tax is 2% and is calculated on the ceded premium, without adjustments.
The premiums on the following types of insurance are exempted from this tax:
- insurance on hull and machines, excesos, cargo, desembolsos and others inherent to maritime activity;
- insurance on airplanes, cargo and others inherent to aviation;
- insurance on protection and indemnization related to both activities above;
- insurance and reinsurance of export credits; and
- bonds, insurance and reinsurance that guarantee the payment of obligations from loans or third-party rights, derived from the financing of works or from the issuance of debt related to that financing, of enterprises concessionaires of the public works of Decreto Supremo 900 of 1996 of the Ministerio de Obras Públicas, Ley de Concesiones de Obras Públicas, of the port enterprises created under Law 19.542, and of the enterprises concessionaires of ports under the same law.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título I, artículos 58 y 62.
Decreto Supremo N° 863, 1989, del Ministerio de Hacienda, Diario Oficial, Abril 5, 1990, Reglamento de los Auxiliares del Comercio de Seguros, Título I, artículo 2, letra c).
Description: Natural persons performing the activity of insurance brokerage and claim settlement must be Chileans or foreigners with a residence permit.
Banking and Other Financial Services (Excluding Insurance)
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley N° 3, Diario Oficial, Diciembre 19, 1997, Ley General de Bancos, Título II, artículos 27, 32 y 34.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XI, artículos 121 y siguientes.
Description: Banking institutions must be established as corporations (sociedades anónimas) or as branches, under Chilean law, in conformity with the Ley General de Bancos and with Ley N° 18.046, related to the establishment of a foreign corporation agency.
The capital and the reserves that foreign banks assign to their branches, must be effectively transferred and converted into domestic currency in conformity with any of the systems authorized by Law or by the Banco Central de Chile.
The increases of capital or reserves that do not come from capitalization of other reserves, will have the same treatment as the initial capital and reserves.
In the transactions between a branch and its main office abroad, both will be considered as independent entities.
No foreign bank will be able to invoke rights derived from its nationality regarding transactions that its branch may carry out in Chile.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley N° 3, Diario Oficial, Diciembre 19, 1997, Ley General de Bancos, Título II, artículo 33.
Description: The authorization given by the Superintendente de Bancos e Instituciones Financieras to representative offices is subject to revocation if its maintenance is found to be inconvenient, as expressed in the Ley General de BancosFootnote 1.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley N° 3, Diario Oficial, Diciembre 19, 1997, Ley General de Bancos, Título XIV, artículo 112.
Description: Financial companies (sociedades financieras) must be established as corporations (sociedades anónimas) under Chilean law, in conformity with the Ley General de Bancos.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.840, Diario Oficial, Octubre 10, 1989, Ley Orgánica Constitucional del Banco Central de Chile, Título III, artículo 41.
Description: Only banks, juridical persons, stockbrokers and securities agents, all of which must be established in Chile as legal entities, can operate in the Formal Exchange Market.
Juridical persons, stockbrokers and securities agents require prior authorization from the Banco Central de Chile to operate in the Formal Exchange Market.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Senior Management and Boards of Directors (Article H bis 08)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Títulos VI y VII, artículos 24, 26 y 27.
Description: Legal entities performing the activities of stockbroker and securities agent must be established under Chilean law.
The directors, administrators, managers or legal representatives of these legal entities, must be Chileans or foreigners with a residence permit.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto Ley N° 1.328, Diario Oficial, Diciembre 19, 1979, Ley de Fondos Mutuos, Título I, artículos 3, 6 y 7.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XXVII, artículos 220 a 238.
Description: The management of mutual funds can be performed only by mutual fund management companies and general fund management companies established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.815, Diario Oficial, Julio 29, 1989, Ley de Fondos de Inversión, Título I y II, artículos 3, 6 y 7.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XXVIII, artículos 220 a 238.
Description: The management of investment funds can be performed only by investment fund management companies and general fund management companies established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: National Treatment (Article H bis-02)
Right of Establishment (Article H bis-04)
Measures: Ley N° 18.657, Diario Oficial, Septiembre 29, 1987, Ley de Fondos de Inversión de Capital Extranjero, Títulos I y II, artículos 12, 14 y 18.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XXVII, artículos 220 a 238.
Description: The management of foreign capital investment funds (FICE) can be performed only by foreign capital investment fund management companies, investment fund management companies and general fund management companies, established as special purpose corporations (sociedades anónimas especiales) under Chilean law. However, the administration of foreign capital investment funds created by foreign institutional investors can be managed through a legal representative with domicile in Chile.
The capital of a foreign capital investment fund may not be remitted abroad until five years from the date in which the contribution was made.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 19.281, Diario Oficial, Diciembre 27, 1993, Ley de Administradoras de Fondos para la Vivienda, Título VI, artículo 55.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XXVII, artículos 220 a 238.
Description: The management of housing funds can be performed only by housing fund management companies and general fund management companies established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.876, Diario Oficial, Diciembre 21, 1989, Ley de Depósito y Custodia de Valores, Títulos I y II, artículos 1 y 18.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: Securities deposit and custody agencies must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XVIII, artículos 132 y 133.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: The activity of securitization can be performed only by special purpose corporations (sociedades anónimas especiales) established under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título VII, artículos 38, 40 y 41.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: Stock exchanges must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XIX, artículo 155.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: Clearing houses of futures, options and other contracts of similar nature that the Superintendencia de Valores y Seguros may authorize, must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Only stock exchanges established in Chile and stock brokers who are members of those exchanges can be shareholders of clearing houses.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Título XIV, artículos 71 y 72.
Description: The activity of credit risk rating and analysis can be performed only by partnerships (sociedades de personas) established under Chilean law.
Not less than 60 percent of the partnership’s capital must be held by the principal partners.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 19.220, Diario Oficial, Mayo 31, 1993, Ley de Bolsa de Productos Agropecuarios, Título I, artículos 1, 2 y 3.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: Cattle and agricultural commodities exchanges must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 19.220, Diario Oficial, Mayo 31, 1993, Ley de Bolsa de Productos Agropecuarios, Título IV, artículos 24, 25 y 26.
Ley N° 18.046, Diario Oficial, Octubre 22, 1981, Ley de Sociedades Anónimas, Título XIII, artículos 126 a 132.
Description: Clearing houses of futures and options on cattle and agricultural commodities must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 19.220, Diario Oficial, Mayo 31, de 1993, Ley de Bolsa de Productos Agropecuarios, Título II, artículos 6, 7, 8, 9, 10 y 11.
Description: Legal entities performing the activity of cattle and agricultural commodities broker must be established under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Título V, artículo 88.
Description: Mortgage Loans Management Agencies must be established as corporations (sociedades anónimas) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: Right of Establishment (Article H bis-04)
Measures: Ley N° 19.491, Diario Oficial, Enero 29, 1997, Administradoras de Recursos Financieros de Terceros Destinados a la Adquisición de Bienes, artículos 1 y 2.
Description: Companies managing collective plans for the acquisition of certain goods, must be established as special purpose corporations (sociedades anónimas especiales) under Chilean law.
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: National Treatment (Article H bis-02)
Measures: Ley N° 18.045, Diario Oficial, Octubre 22, 1981, Ley de Mercado de Valores, Títulos VI y VII, artículos 24 y 26.
Description: Natural persons performing the activity of stockbroker and securities agent in Chile must be Chileans or foreigners with a residence permit.
Section II
Sector: Financial Services
Subsector: All Subsectors
Type of Reservation: National Treatment (Article H bis-02)
Right of Establishment (Article H bis-04)
Description: Chile reserves the right to adopt measures that restrict or require specific types of juridical form or establishment, such as subsidiaries, with respect to financial conglomerates, including the entities forming part of it.
Existing Measures: None
Sector: Financial Services
Subsector: All Subsectors
Type of Reservation: Cross Border Trade (Article H bis-05)
Description: The purchase of financial services, by persons located in the territory of Chile and its nationals wherever located, from financial services suppliers of Canada shall be subject to the exchange rate regulations adopted or maintained by the Banco Central de Chile in accordance with its Organic Law (Ley Nº 18.840).
Existing Measures: Ley Nº 18.840, Diario Oficial, Octubre 10, 1989, Ley Orgánica Constitucional del Banco Central de Chile, Título III.
Sector: Financial Services
Subsector: All Subsectors
Type of Reservation: National Treatment (Article H bis-02)
Senior Management and Board of Directors (Article H bis 08)
Description: In the transfer or disposal of any interest in stock or asset held in an existing state enterprise or governmental entity, Chile reserves the right to prohibit or impose limitations on the ownership of said interest or asset, and on the right of foreign investors or their investment to control any State company created thereby or investments made by the same. In connection with any such transfer or disposal, Chile may adopt or maintain any measure related to the nationality of senior management and member of the Board of Directors.
A State company means any company owned or controlled by Chile by means of an interest share in the ownership thereof, and it shall include any company created after the effective date of the Amending Agreement for the sole purpose of selling or disposing of its interest share in the capital or assets of an existing state enterprise governmental entity.
Existing Measures: None
Sector: Financial Services
Subsector: Banking and Other Financial Services
Type of Reservation: National Treatment (Article H bis-02)
Description: Chile may grant advantages or exclusive rights to Banco del Estado de Chile, a Chilean state owned bank, including but not limited to the following: the management of the Chilean government financial resources is made only through deposits in the Cuenta Única Fiscal and in its subsidiary accounts, all of which must be kept at Banco del Estado de Chile.
Existing Measures: Decreto Ley N° 2.079, Diario Oficial, Enero 18, 1978, Ley Orgánica del Banco del Estado de Chile.
Decreto Ley N° 1.263, Diario Oficial, Noviembre 28, 1975, Decreto Ley Orgánico de Administración Financiera del Estado, artículo 6.
Sector: Financial Services
Subsector: Insurance and Insurance-related Services
Type of Reservation: Cross Border Trade (Article H bis-05)
Description: All types of insurance that Chilean law makes or may make compulsory, and all insurance related to social security, cannot be contracted outside Chile. This reservation shall not apply to the types of insurance included in Chile’s commitments listed in paragraph 3(a)(i) and 3(a)(ii) of Annex H bis-05.
Existing Measures: Decreto con Fuerza de Ley N° 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Titulo I, Articulo 4.
Sector: Financial Services
Subsector: Social Services
Type of Reservation: National Treatment (Article H bis-02)
Most-Favoured-Nation Treatment (Article H bis-03)
Right of Establishment (Article H bis-04)
Cross Border Trade (Article H bis-05)
Senior Management and Board of Directors (Article H bis 08)
Description: Chile reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care.
Existing Measures: None
Footnotes
- Footnote 1
This non-conforming measure is not intended to limit any remedies that the investor affected by the revocation of the authorization may have under Chilean law to challenge the measure.
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