Consolidated TPP Text – Annex III – Schedule of Brunei Darussalam

Headnotes

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. To clarify Brunei Darussalam’s commitment with respect to Article 11.5(b) (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws, regulations and guidelines of Brunei Darussalam are subject to non-discriminatory limitations on juridical form.Footnote 1

3. All financial institutions offering Islamic financial products and services shall be subject to the Syariah requirements as determined by the laws of Brunei Darussalam and any supervisory bodies for the control of the administration and business dealings of financial institutions concerning Islamic products and any matters connected thereto.

4. Description sets out the non-conforming measure for which the entry is made.

5. For entries in Section A, in accordance with Article 11.10.1(a) (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the non-conforming measures identified in the Description element of that entry.

6. For entries in Section B, in accordance with Article 11.10.2 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the sectors, subsectors and activities identified in the Description element of that entry.

7. Brunei Darussalam reserves the right to require a foreign bank branch that is systemically important to be a locally incorporated bank in Brunei Darussalam, subject to the following prerequisites:

Annex III - Section A

Sector:

Financial Services

Sub-Sector:

Finance companies

Obligations Concerned:

Market Access for Financial Institutions (Article 11.5)

Level of Government:

Central

Measures:

Finance Companies Act (Chapter 89)

Description:

A finance company must be established as a company incorporated in Brunei Darussalam.

Sector:

Financial Services

Sub-Sector:

Money-changing and remittance businesses

Obligations Concerned:

National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government:

Central

Measures:

Money-Changing and Remittance Businesses Act (Chapter 174)

Description:

Only Bruneian citizens are allowed to carry on money-changing and money remittance businesses.

There is a limit to the number of licences awarded for these businesses.

Sector:

Financial Services

Sub-Sector:

Insurance

Obligations Concerned:

Cross-Border Trade (Article 11.6)

Level of Government:

Central

Measures:

Motor Vehicles Insurance (Third Party Risks) Act (Chapter 90)

Workmen’s Compensation Act (Chapter 74)

Description:

Compulsory insurance of motor third party liability and workmen’s compensation can only be purchased directly or through an intermediary from licensed insurance companies or takaful operators in Brunei Darussalam.

Sector:

Financial Services

Sub-Sector:

Insurance intermediaries

Obligations Concerned:

National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government:

Central

Measures:

Insurance Order, 2006

Takaful Order, 2008

Companies Act (Chapter 39)

Business Names Act (Chapter 92)

Description:

1. Insurance agents

Only Brunei nationals are allowed to be registered as an insurance agent in Brunei Darussalam.

2. Insurance brokers

Insurance brokers must be established as a company incorporated in Brunei Darussalam.

Sector:

Financial Services

Sub-Sector:

Banking

Obligations Concerned:

Cross-Border Trade (Article 11.6)

Level of Government:

Central

Measures:

Banking Order, 2006

Islamic Banking Order, 2008

Outsourcing Guidelines

Description:

Any outsourcing activities by licensed banks in Brunei Darussalam are subject to approval by Autoriti Monetari Brunei Darussalam with the following conditions:

Sector:

Financial Services

Sub-Sector:

Banking

Obligations Concerned:

National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government:

Central

Measures:

Banking Order, 2006

Islamic Banking Order, 2008

Description:

Autoriti Monetari Brunei Darussalam has absolute discretion not to grant a licence to a bank if it is satisfied that:

Sector:

Financial Services

Sub-Sector:

All

Obligations Concerned:

Senior Management and Boards of Directors (Article 11.9)

Level of Government:

Central

Measures:

Syariah Financial Supervisory Order, 2006

Islamic Banking Order, 2008

Description:

Financial institutions providing Islamic finance services are required to include Brunei nationals on their Syariah Advisory Board.

Annex III - Section B

Sector:

Financial Services

Sub-Sector:

Capital market

Clearing and settlement services

Obligations Concerned:

National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Services (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government:

Central

Description:

Brunei Darussalam reserves the right to limit the establishment or operation of the following:

For greater certainty, this reservation does not apply to financial institutions participating in, or seeking to participate in, any such exchange or securities market.

Existing Measures:

Autoriti Monetari Brunei Darussalam Order, 2010

Securities Markets Order, 2013

Payment and Settlement Systems (Oversight) Order, 2015

Sector:

Financial Services

Sub-Sector:

Credit reporting services

Obligations Concerned:

National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government:

Central

Description:

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the establishment and operation of credit reporting services.

Existing Measures:

Autoriti Monetari Brunei Darussalam Order, 2010

Banking Order, 2006

Islamic Banking Order, 2008

Sector:

Financial Services

Sub-Sector:

Banking

Obligations Concerned:

Market Access for Financial Institutions (Article 11.5)

Level of Government:

Central

Description:

Brunei Darussalam reserves the right to provide advantages to locally incorporated banks that are not available to licensed foreign bank branches such as, and not limited to, the following:

Existing Measures:

Banking Order, 2006

Islamic Banking Order, 2008

Sector:

Financial Services

Sub-Sector:

All

Obligations Concerned:

National Treatment (Article 11.3)

Level of Government:

Central

Description:

Existing Measures:

-

Date Modified: