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Canada-Colombia Free Trade Agreement

Annex III - Colombia

Financial Services Non-Conforming Measures

1. The Schedule of Colombia to this Annex sets out:

2. Each reservation in Section I sets out the following elements:

3.Each reservation in Section II sets out the following elements:

4. The interpretation of a reservation in Section I, (except the reservation regarding the limitation on the number of primary dealers), all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Articles against which the reservation is taken. To the extent that:

5. Notwithstanding paragraph 4, for the reservation in Section I regarding the limitation on the number of primary dealers, in accordance with subparagraph 1(a) of Article 1109., and subject to subparagraph 1(c) of Article 1109, the articles of this Agreement specified in the Type of Reservation element of an entry do not apply to the non-conforming aspects of the law, regulation, or other measure identified in the Description element of that entry, except to the extent that such non-conforming aspects are inconsistent with a Specific Commitment in Annex III - Section III.

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. Where Colombia maintains a measure that requires that a service supplier be a citizen, permanent resident, or resident of its territory as a condition to the supply of a service in its territory, a Schedule entry for that measure taken with respect to Article
1102, 1103, 1104, or 1105 shall operate as a Schedule entry with respect to Article 803 (Investment - National Treatment), 804 (Investment - Most-Favored-Nation Treatment), or 807 (Investment Performance Requirements) to the extent of that measure.

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Schedule of Colombia

Headnotes

1. Commitments in these subsectors under the Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. To clarify the commitment of Colombia with respect to Article 1104 (Right of Establishment), financial institutions constituted under the laws of Colombia are subject to non-discriminatory limitations on juridical form.Footnote 1

3. Subparagraph 1(c) of Article 1109 shall not apply to those non-conforming measures relating to the obligation not to impose requirements of specific types of juridical form on the establishment of a financial institution by an investor of the other Party in paragraph 1 of Article 1104, except that, with respect to the specific commitments in subsections III (B) and (C), subparagraph 1(c) of Article 1109 shall apply.

Section - I

Sector
Financial Services

Sub-sector
Banking and other financial services (excluding insurance)

Level of Government
National

Type of Reservation
Right of Establishment (Article 1104)

Measures
Decreto 656 de 1994, Art. 8.

Description
At least every 12 months during the five years after its establishment, a Sociedad Administradora de Fondos de Pensiones and a Sociedad Administradora de Fondos de Pensiones y de Cesantía must offer shares of its capital stock to entities of the social solidarity sectorFootnote 2 and to
participants in and beneficiaries of the public social security system (Régimen de Ahorro Individual con Solidaridad) so that they may subscribe to a total of at least 20 percent of its capital stock. The same requirement applies with regard to increases in capital, but only with regard to the increase.

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Sector:
Financial Services

Sub-sector
Banking and other financial services (excluding insurance)

Level of Government
National

Type of Reservation
Right of Establishment (Article 1104)
National Treatment (Article 1102)

Measures
Decreto 2419 de 1999
, Art. 1 (en concordancia con la Ley 270 de 1996, Art. 203 y Decreto 1065 de 1999, Art. 16).

Description
The sums of money subject to court or police order, including caucionesFootnote 3, and funds consigned under leases must be deposited in the Banco Agrario de Colombia. S.A., which may derive a competitive advantage with respect to its overall operations from all or some portion of that exclusive right.

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Sector:
Financial Services

Sub-sector
Banking and other financial services (excluding insurance)

Level of Government
National

Type of Reservation
National Treatment (Article 1102)

Measures
Estatuto Orgánico del Sistema Financiero

Description
Colombia may grant advantages or exclusive rights to the following financial entities:

The advantages or exclusive rights may include, but are not limited to, the following:Footnote 4

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Sector:
Financial Services

Sub-sector
Banking and other financial services (excluding insurance)

Level of Government
National

Type of Reservation
Right of Establishment (Article 1104)

Measures
Resolución 6186 de 2006 del Ministerio de Hacienda y Crédito Público –
Dirección General de Crédito Público, as amended.

Description
The number of primary dealers in the debt securities of the Republic of Colombia is limited to a certain number of financial institutions, which can be varied from time to time.

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Sector:
Financial Services

Sub-sector
Insurance and insurance-related services

Level of Government
National

Type of Reservation
Cross-Border Trade (Article 1105)

Measures
Estatuto Orgánico del Sistema Financiero – E.O.S.F., Art. 39, 108 numeral 3, y 188 numeral 1.

Description
The obligations of Colombia under paragraph 2 of Article 1105 (Cross-Border Trade) are limited to the provisions of subsection III (D) (Specific Commitment Regarding Cross-Border Consumption of Insurance and Insurance-Related Services).

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Sector
Financial Services

Sub-sector
Insurance and insurance-related services

Level of Government
National

Type of Reservation
National Treatment (Article 1102)

Measures
Estatuto Orgánico del Sistema Financiero – E.O.S.F., Art. 41, numeral 6, literal (d)

Description
A foreign national who has resided in Colombia for less than one year may not supply services in Colombia as an insurance agent.

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Section - II

Sector:
Financial Services

Sub-sector
All

Level of Government
National

Type of Reservation
Right of Establishment (Article 1104)

Description
Colombia reserves the right to adopt or maintain any measure requiring that financial institutions of Canada be constituted under the laws of Colombia.Footnote 5 Therefore, market access through branching is not permitted. This restriction is modified with respect to bank branches and insurance branches as provided in subsections III (B) (Specific Commitment Regarding Establishment of Bank Branches) and (C) (Specific Commitment Regarding Establishment of Insurance Company Branches).

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Sector:
Financial Services

Sub-sector
All

Level of Government
National

Type of Reservation
Most-Favored-Nation Treatment (Article 1103)

Description
Colombia reserves the right to adopt or maintain any measure that accords treatment inconsistent with most-favored-nation treatment under any bilateral or multilateral international agreement in effect or signed before the date of entry into force of this Agreement.

In accordance with the prior paragraph, Colombia reserves the right to adopt or maintain any measure that accords treatment inconsistent with most-favored-nation treatment, for the purpose of complying with the Cartagena Accord and judicial decisions of the Andean Community.

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Sector:
Financial Services

Sub-sector
All

Level of Government
National

Type of Reservation
Most-Favored-Nation Treatment (Article 1103)

Description
Colombia reserves the right to adopt or maintain any measure relating to securities services that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

Colombia reserves the right to adopt or maintain any measure relating to securities services that accords differential treatment to a country under any future bilateral or multilateral international agreement.

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Sector:
Financial Services

Sub-sector
Social services

Level of Government
National

Type of Reservation
Right of Establishment (Article 1104)

Description
Colombia reserves the right to adopt or maintain measures concerning to social services that do not conform with the obligations of Article 1104.

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Section - IIIFootnote 6

Specific Commitments

1. Specific Commitment Regarding Portfolio Management

Not later than four years following the entry into force of the Agreement, Colombia shall allow a financial institution organized either inside or outside its territory to provide the following services to a collective investment scheme located in the territory of Colombia:Footnote 7

2. Specific Commitment Regarding Establishment of Bank Branches

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3. Specific Commitment Regarding Establishment of Insurance Company Branches

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4. Specific Commitment Regarding Cross-Border Consumption of Insurance and Insurance-Related Services

No later than four years following the entry into force of this Agreement, Colombia will allow, in accordance with paragraph 2 of Article 1105, persons located in its territory, and its nationals wherever located, to purchase any insurance serviceFootnote 12 from cross-border financial service suppliers of Canada located in the territory of Canada or ColombiaFootnote 13, except for the following services:Footnote 14

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5.Specific Commitment Regarding Pension Fund Managers

Notwithstanding the Colombia’s reservation in Section II of this Annex for social services, and subject to Article 1101, including Annex 1101.3(a), Colombia shall, with regard to Sociedades Administradoras de Fondos de Pensiones y Cesantías, Sociedades Administradoras de Fondos de Pensiones, and Sociedades Administradoras de Fondos de Cesantías (collectively, "SAFPs"):Footnote 15

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Date Modified: