Canada-Panama Free Trade Agreement

Annex III

Schedule of Panama

Section I

Sector: Financial Services

Sub-sector: Banking

Classification: CPC 811 Financial Intermediation Services Except Insurances and Pension Funds

Type of Reservation: National Treatment (Article 12.03)

Level of Government: Central

Measures: Article 37 of Decree-Law No. 9 of February 26, 1998

Description: The branches of foreign banks must designate at least 2 general proxies. Both of these proxies must be natural persons with residence in Panama and at least one of them must be a Panamanian national.

Sector: Financial Services

Sub-sector: Banking

Classification: CPC 811 Financial Intermediation Services Except Insurances and Pension Funds

Type of Reservation: Senior Management and Boards of Directors (Article12.09)

Level of Government: Central

Measures: Article 10 of Law No. 52 of December 13, 2000

Description: The General Manager, Assistant General Manager and Director or Deputy Director of the Board of Directors of the Savings Bank must be Panamanian nationals by birth or naturalization, who have resided in Panama for at least 10 years.

Sector: Financial Services

Sub-sector: Banking

Classification: CPC 811 Financial Intermediation Services Except Insurances and Pension Funds

Type of Reservation: Senior Management and Boards of Directors (Article12.09)

Level of Government: Central

Measures: Articles 12, 18 and 19 of Decree Law No. 4 of January18,2006

Description: The General Manager, Legal Representative and Director of the Board of Directors of the Panama National Bank must be Panamanian nationals.

Sector: Financial Services

Sub-sector: Insurance Companies

Administrators of Insurance Enterprises

Insurance Brokers or Adjustors

Classification: CPC 812 Insurance (including reinsurance) and Pension Fund Services, Except Compulsory Social Security Services

CPC 8140 Services Auxiliary to Insurance and Pension Funding

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

National Treatment (Article 12.03)

Senior Management and Boards of Directors (Article12.09)

Level of Government: Central

Measures: Articles 26, 90, 105 and 108 of Law No. 59 of July29,1996

Articles 1 and 7 of Executive Decree No. 12 of April7,1998

Description:

  • 1. Persons domiciled in the Republic of Panama must insure all property and persons located in Panama with insurance companies that are authorized to operate in Panama. The Superintendency of Insurance and Reinsurance, having verified that such insurance policies cannot be obtained from insurance carriers authorized to operate in Panama, may grant authorization to obtain them abroad and will record this authorization in the pertinent register.
  • 2. The persons referred to in paragraph 1 must register any granted authorizations with the Superintendency of Insurance and Reinsurance.
  • 3. Only a Panamanian residing in the Republic of Panama or an applicant complying with the retail business ownership requirements described in the Schedule of Panama, Annex I at page I-PA-1 to I-PA-2 may obtain an insurance broker license.
  • 4. At least 49% of the shares of an enterprise operating as an insurance brokerage enterprise in Panama must be owned by Panamanian nationals licensed as insurance brokers in Panama.
  • 5. The legal representative of an insurance brokerage enterprise must be a Panamanian national licensed as an insurance broker in Panama.

Sector: Financial Services

Sub-sector: Reinsurance or Underwriters Entities

Administrators of Reinsurance

Reinsurance Brokers

Classification: CPC 812 Insurance (including reinsurance) and Pension Fund Services, Except Compulsory Social Security Services

CPC 8140 Services Auxiliary to Insurance and Pension Funding

Type of Reservation: National Treatment (Article 12.03)

Level of Government: Central

Measures: Article 10 ofLaw No. 63 of September 19, 1996

Description: Companies authorized to engage in the reinsurance business must designate at least 2 general proxies. Both of these proxies must be natural persons resident in Panama and at least 1 of them must be a Panamanian national.

Sector: Financial Services

Sub-sector: Insurance and Banking

Classification:

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

Level of Government: Central

Measures: Article 5 of Decree 317-LEG of December 12, 2006

Article 85 of Law No. 22 of June 27, 2006

Description: Only insurance companies and banks established in Panama that are in good standing with the Superintendency of Insurance and Reinsurance or the Superintendency of Banks may provide surety bonds or banking guarantees, respectively, that are associated with government procurement bids or contracts.

Section III

Specific Commitment Regarding Portfolio Management

  • 1. Subject to paragraph 2, Panama 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, but not 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) and Article12.06(3) (Cross-Border Trade).
  • 3. For purposes of this commitment, “collective investment scheme” means investment funds or fund management companies regulated or registered in the National Securities Commission.
  • 4. This commitment comes into force only on entry into force of the TPA.
  • 5. Within 3 years after the entry into force of this commitment, 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 Panama’s specific commitment should be maintained or further liberalized.