Canada-Panama Free Trade Agreement

Annex III

Schedule of Canada

Section I

Sector: Financial Services

Sub-sector: Insurance

Type of Reservation: Cross-Border Trade (Article 12.06)

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/92-302

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% of the risks undertaken by the insurer purchasing the reinsurance.

Section II

Sector: Financial Services

Sub-sector: Banking and Other Financial Services (Excluding Insurance)

Type of Reservation: Right of Establishment (Article 12.05)

National Treatment (Article 12.03)

Level of Government: Federal

Description: Canada reserves the right to adopt or maintain a measure requiring that a foreign bank establish a subsidiary in order to accept or maintain retail deposits of less than CAD $150,000.

Sector: Financial Services

Sub-sector: Banking and Other Financial Services (Excluding Insurance)

Type of Reservation: Right of Establishment (Article 12.05)

National Treatment (Article 12.03)

Level of Government: Federal

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.

Sector: Financial Services

Sub-sector: All

Type of Reservation: Most-Favoured-Nation Treatment (Article 12.04)

Level of Government: National and Sub-national

Description: Canada reserves the right to adopt or maintain a measure relating to cross-border trade in securities services.

Section III

Specific Commitment Regarding Portfolio Management
  • 1. Subject to paragraph 2, Canada shall allow a financial institution organized outside its territory to provide the following services to a collective investment scheme located in its territory:
    • a. investment advice; and
    • b. portfolio management services, with the exception of:
      • i. custodial services, unless they are related to managing a collective investment scheme,
      • ii. trustee services, excluding the holding in trust of investments by a collective investment scheme established as a trust, and
      • iii. execution services, unless they are related to managing a collective investment scheme.
  • 2. This commitment is subject to Article 12.02 (Scope of Application), Article 12.06(3) (Cross-Border Trade) and the Appendix to this Section.
  • 3. Notwithstanding paragraph 1, Canada may require a collective investment scheme located in Canada to retain ultimate responsibility for managing the collective investment scheme or the funds that it manages.
  • 4. For the purposes of this commitment, in Canada “collective investment scheme” means investment funds or fund management companies regulated or registered under provincial securities laws and regulations.
  • 5. This commitment comes into force only on entry into force of the TPA.

Appendix

Canada’s commitment in Section III applies at the sub-national level to only the following provinces, subject to paragraph 2:

Ontario

Manitoba

  • 1. The commitment regarding the provinces listed in paragraph 1 does not apply to a non-conforming measure of those provinces existing upon the entry into force of Canada’s commitment in Section III, the continuation or prompt renewal of that measure or an amendment to that measure to the extent that the amendment does not decrease the conformity of the measure, as it existed upon the entry into force of Canada’s commitment in Section III, with the commitment.
  • 2. Within 3 years after the entry into force of Canada’s commitment in Section III, the Committee established in Article 12.15(1) shall consider the liberalization of cross-border trade in portfolio management services, further to that set out in this specific commitment. The Committee shall determine whether Canada’s specific commitment should be maintained or further liberalized.