WORLD TRADE GATS/SC/85/Suppl.3
26February 1998
ORGANIZATION(98-0707)
Trade inServices
THAILAND
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
_______________
Thistextreplaces theFinancial Services section contained indocument
GATS/SC/85/Suppl.1/Rev.1.GATS/SC/85/Suppl.3
Page2THAILAND
SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
FINANCIAL SERVICES
- With regard tothescope ofoperation andtypes offinancial services thatcanbeprovided, each typeoffinancial institution willbepermitted tooperate the
sector orsubsector ofbanking andother financial services onlytotheextent thattheir respective governing legislation permit them todoso.
- Allcommitments inthissector aresubject tohorizontal commitments inThailand 'sGATS schedule ofspecific commitments.
A. Insurance including
reinsurance and
retrocession
(a) Lifeinsurance services
(CPC 81211)(1) None
(2) None(1) None
(2) Lifeinsurance premium istax
deductible uptoacertain
amount forholders ofpolicies
issued bylocal companies.
(3) (a)Foreign equity participation
limited to25percentof
registered share capital.
(b)New establishment issubject to
licence approved bytheMinister
withtheconsent oftheCabinet.(3) None
(4) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner.(4) NoneGATS/SC/85/Suppl.3
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(b) Non-life insurance
services (CPC 8129)
(d) Services auxiliary to
insurance (excluding
pension funding
services)
Insurance broking and
agency services
(CPC 81401)
(Brokers shall not
induce, advise ordo
anyactssoastocause
anyperson toenter into
insurance contracts
withinsurers abroad,
except forreinsurance
contracts)(1) Unbound except forinternational
marine, aviation andtransit andall
classes ofreinsurance.
(2) None
(3) (a)Foreign equity participation
limited to25percentof
registered share capital.
(b)New establishment issubject to
license approved bytheMinister
withtheconsent oftheCabinet.
(4) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner.
(1) Unbound
(2) Unbound
(3) Foreign equity participation notto
exceed 25percent.
(4) (a)Only senior managerial
personnel, specialists and
technical assistants withthe
approval oftheInsurance
Commissioner.
(b)Unbound forindividual broker
andagent.(1) Unbound
(2) None
(3) None
(4) None
(1) Unbound
(2) Unbound
(3) Nolimitations aslongasforeign
equity participation does notexceed
25percent.
(4) NoneGATS/SC/85/Suppl.3
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Insurance consultancy
services excluding
pension consulting
services
(CPC 81402)(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section.(1) None
(2) None
(3) Nolimitations aslongas
foreign equity participation
does notexceed 49percent.
(4) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner.(4) None
Average andloss
adjustment services
(CPC 81403)(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section.
(4) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner.(1) None
(2) None
(3) Nolimitations aslongas
foreign equity participation
does notexceed 49percent.
(4) NoneGATS/SC/85/Suppl.3
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Actuarial services
(CPC 81404)(1) None
(2) None(1) None
(2) None
(3) None other thanthatindicated inthe
horizontal section.
(4) Only senior managerial personnel,
specialists andtechnical assistants
withtheapproval oftheInsurance
Commissioner.(3) Nolimitations aslongas
foreign equity participation
does notexceed 49percent.
(4) None
Services auxiliary to
financial intermediation
other thantoinsurance
andpension funding
services
Credit cardservices
(CPC 81133)
(Mobilizing funds from
thepublic isprohibited,
unless licensed under a
financial law)(1) None
(2) None
(3) (a)Asindicated inB(3)(j) below.
(b)Financial institutions must obtain
prior approval from theBank of
Thailand.(1) None
(2) None
(3) Nolimitations aslongas
foreign equity participation
does notexceed 49percent.
(4) Asindicated inthehorizontal
section.(4) NoneGATS/SC/85/Suppl.3
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Financial consultancy
services
(CPC 81332)(1) Unbound
(2) None
(3) None other thanthatindicated inthe
horizontal section.
(4) Asindicated inthehorizontal
section.(1) None
(2) None
(3) Nolimitations aslongas
foreign equity participation
does notexceed 49percent.
(4) None
B. Banking andother
financial services
(excluding insurance)
Acceptance ofdeposits and
other repayable funds from the
public
Lending ofalltypes, including
consumer credit, mortgage
credit, factoring andfinancing
ofcommercial transactions(1) None forfinancial advisory and
financial dataprocessing. Unbound
forallother services.
(2) None forfinancial advisory and
financial dataprocessing. Unbound
forallother services.(1) None
(2) NoneGATS/SC/85/Suppl.3
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Financial leasing
Payment andmoney
transmission services including
credit, charge anddebit cards,
travellers cheques andbankers
drafts
Guarantees andcommitments(3) (a)Representative office ofbanks
None.
(b)Foreign bank branches
I.None forexisting foreign bank
branches under present shareholding
structure. New establishment is
subject tolicence approved bythe
Minister ofFinance withthe
consent oftheCabinet.(3) (a)Representative office ofbanks
None.
(b)Foreign bank branches
None, except asindicated
inthemarket access
column.
Trading forownaccount,
orforaccount ofcustomers
inthefollowing:
(a) money market
instruments
(b) foreign exchange
(c) exchange rateand
interest rate
instrumentsII.ATM operations permitted
under thefollowing conditions
only:
(i)joining ATM pools operated
byThai banks; or
(ii)operation within own
premises orsharing the
facilities withother
commercial banks in
Thailand.
(d) transferable securities
Participation inissues ofall
kinds ofsecurities, including
underwriting andplacement as
agents (whether publicly or
privately) andprovision of
services related tosuch issuesIII.Existing foreign banks which
already hadthefirstbranch
office inThailand prior to
July1995 willeach be
permitted toopen nomore
thantwoadditional branches.GATS/SC/85/Suppl.3
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Asset management asfollows:
- cashorportfolio
management
- collective investment
management
- custodian anddepository
services
Advisory, intermediation and
other auxiliary financial
services
Provision andtransfer of
financial information, and
financial dataprocessing and
related softwareIV.None forparticipation in
cheque clearing and
settlement system.
(c)Locally incorporated banks
I.Market access limited tothe
acquisition ofshares ofexisting
banks.
II.(i)Maximum foreign equity
participation limited to25per
centofpaid-up registered
capital. Combined shareholding
ofanindividual andhis/her
related persons nottoexceed 5
percentofbank'spaid-up
registered capital.
(ii)TheMinister ofFinance upon
recommendation oftheBank of
Thailand mayrelax theabove -
mentioned limits onmaximum
foreign equity participation and
combined shareholding ofan
individual andhis/her related
persons, subject totheterms and
conditions announced bythe
Minister ofFinance, including
thefollowing:
-therelaxation isdeemed
necessary toimprove the
condition orbusiness ofthe
commercial bank;(c)Locally incorporated banks
None, except asindicated
inthemarket access
column.GATS/SC/85/Suppl.3
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
-such equity participation
willbeauthorized fora
period ofupto10years,
withforeign shareholders
whoenter inthisperiod
being grandfathered
thereafter withrespect to
theabsolute amount oftheir
equity holding.
III.Atleast three-fourths ofthedirectors
must beofThai nationality. The
Minister ofFinance upon
recommendation oftheBank of
Thailand mayallow more foreign
nationals thanspecified above subject
tothesame terms andconditions as
stated inII(ii)above.
(d)International Banking Facility1
New establishment issubject to
licence approved bytheMinister of
Finance.(d) International Banking Facility
None, except asindicated in
themarket access column
1IBFunits permitted tooperate onlythebanking andinvestment banking business asspecified intheMinisterial Order issued on16September 1992, andNotification
oftheBank ofThailand dated 14December 1993.GATS/SC/85/Suppl.3
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(e) Finance companies andcredit
foncier companies
I. None forrepresentative offices.
II.Market access limited tothe
acquisition ofshares ofexisting
companies.
III.(i)Maximum foreign equity
participation limited to25per
centofpaid-up registered
capital. Combined shareholding
ofanindividual andhis/her
related persons nottoexceed 10
percent.(e) Finance companies and
credit foncier companies
None, except asindicated
inthemarket access
column.
(ii)TheMinister ofFinance upon
recommendation oftheBank of
Thailand mayrelax theabove -
mentioned limits onmaximum
foreign equity participation and
combined shareholding ofan
individual andhis/her related
persons, subject totheterms and
conditions announced bythe
Minister ofFinance, including
thefollowing:
-therelaxation isdeemed
necessary toimprove the
condition orbusiness ofthe
finance company andcredit
foncier company.GATS/SC/85/Suppl.3
Page11Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
-such equity participation
willbeauthorized fora
period ofupto10years,
withforeign shareholders
whoenter inthisperiod
being grandfathered
thereafter withrespect to
theabsolute amount oftheir
equity holding.
IV.Atleast three-fourths ofthedirectors
must beofThai nationality. The
Minister ofFinance upon
recommendation oftheBank of
Thailand mayallow more foreign
nationals thanspecified above subject
tothesame terms andconditions as
stated inIII(ii)above.
(f)Securities companies
Securities brokerage, securities
dealing, investment advisory
service andsecurities
underwriting:
I.None forrepresentative
offices.
II.Market access limited to
share acquisition ofexisting
companies only. Unbound
fornewlicences.(f) Securities companies
None, except asindicated in
themarket access column.
III.Maximum foreign equity
participation limited to49per
centofpaid-up registered capital.GATS/SC/85/Suppl.3
Page12Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
IV.Atleast one-half ofthe
directors ofalocally
incorporated securities firm
must beThai national.
(g)Asset management companies:
I.None forrepresentative
offices.
II.Market access limited to
share acquisition ofexisting
companies.
III.During thefirstfiveyears
after thelicence hasbeen
granted, maximum foreign
equity participation islimited
to25percentofpaid-up
registered capital andatleast
three-fourths ofthedirectors
must beThai national.
IV.After fiveyears, maximum
foreign equity participation is
limited to49percentofpaid-up
registered capital andat
least one-half ofthedirectors
must beThai national.(g) Asset management companies:
None ,except asindicated inthe
market access column.GATS/SC/85/Suppl.3
Page13Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(h)Financial leasing services
Canonlybeprovided byleasing
companies which aresubject to
maximum foreign equity
participation of49percentof
paid-up registered capital, orby
finance companies which are
subject tomaximum foreign
equity participation of25percent
ofpaid-up registered capital,
except in(e)III(ii).
(i)Factoring services
Canonlybeprovided by
factoring companies which are
subject tomaximum foreign equity
participation of49percentof
paid-up registered capital, orby
finance companies which aresubject
tomaximum foreign equity
participation of25percentof
paid-up registered capital, except in
(e)III(ii).(h) Financial leasing services
None.
(i) Factoring services
None.GATS/SC/85/Suppl.3
Page14Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
(j)Credit, charge anddebit cards
Credit, charge anddebit cards can
onlybeprovided bycompanies which
aresubject tomaximum foreign
equity participation of49percent of
paid-up registered capital orlocally
incorporated banks andforeign bank
branches.
Theconduct ofbusinesses under h),
i)andj)willbesubject tolicensing
andregulations tobeannounced.(j) Credit, charge anddebit cards
None.
(4) Limitations onthenumber offoreign
personnel perforeign bank office:
(a)twopersons forbanks operating
asrepresentative office;
(b)sixpersons foreach full-licensed
branch;
(c)fourpersons foreach BIBF
branch;
(d)twopersons foreach PIBF
branch;
(e)eight persons forbanks operating
asfull-licensed andBIBF branch;(4) None.GATS/SC/85/Suppl.3
Page15Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Forfinance companies:
(a)twopersons forarepresentative
office;
(b)Maximum offourdirectors
permitted forfinance companies;
Forsecurities companies andasset
andmanagement companies:
twopersons forarepresentative
office.