RESTRICTED
WORLD TRADE S/WPPS/W/4/Add.1*
5January 1996
ORGANIZATION(96-0007)
Original: English Working Party onProfessional Services
COMMUNICATION FROM THE OECD
Work intheArea ofProfessional Services
Addendum
Thefollowing communication hasbeenreceived fromtheOECD, about professions, activities
andregulations onaccess intheOECD area.
*English onlyS/WPPS/W/4/Add.1
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PROFESSIONS, ACTIVITIES AND REGULATIONS ONACCESS
INTHE OECD AREA
I. INTRODUCTION
AtthefirstOECD Workshop onProfessional Services, which tookplace inSeptember 1994,
participants expressed strong interest inOECD 'ssupport forfurther promotion ofliberalisation in
professional services, notably byimproving transparency andanalysis ofrulesandregulations applying
inthissector. Oneideaputforward wastheestablishment oftables showing therelationship between
professions/professional titles, activities andregulation onaccess across theOECD area.
Accordingly, andwiththeapproval oftheCommittee onCapital Movements andInvisible
transactions (CMIT), theSecretariat decided tolaunch asurvey onthese issues, inorder toobtain the
necessary information from Member countries (seeAnnex 1).Thetables established onthebasis of
thesurvey results were toshow asclearly aspossible, foreachOECD country:
i) theconditions ofaccess toaprofession and/or aprofessional titleineachcountry,
including information onwhether access isregulated bygovernment authorities orby
theprofessions, andwhether thisisdoneatthenational oratthesubnational level;
ii) thescope ofactivities exercised byeachprofession, bringing outalsothecases where
anactivity isexercised bymore thanoneprofession;
iii) theamount towhich access totheexercise ofaspecific activity isregulated, oreven
themonopoly ofoneormore specifically defined professions.
Itwasagreed thatthissurvey would beconfined todomestic regulatory requirements concerning
theaccountancy, legal, engineering andarchitectural professions. Thesurvey wasnotintended todeal
speficically withforeign professionals 'access tothemarket (although thedomestic conditions onaccess,
segmentation andprofessional monopolies reflected inthissurvey alsohaveconsiderable importance
toforeigners seeking topenetrate themarket). Measures specifically affecting international international
tradeinprofessional business services arecategorized anddiscussed intheOECD Categorized Inventory
ofMeasures affecting Trade inProfessional Services.
Thisnoteisbased ontheresponses of20Member countries tothequestionnaire (Austria,
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Mexico, Netherlands,
NewZealand, Norway, Portugal, Spain, Switzerland, Turkey, United Kingdom, United States). All
answers were incorporated inattached tables (Annex 2).S/WPPS/W/4/Add.1
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II. MAIN FINDINGS OFTHE SURVEY
Based ontheresponses tothesurvey, mostcountries seem tohavesimilar provisions which
ruleaccess tothedifferent professional services under consideration. Within eachprofession, similarities
canalsobenoticed. Differences areessentially tobereported between theprofessions.
Analysis oftheresponses indicates thatgovernment regulations established atnational level
generally governs access totheprofessions under consideration. These rules, established toassure
standards ofcompetence, performance, technical behaviour andaccountability, foresee thatservices
berendered byindividuals having attended theuniversity (orequivalent) forseveral years. Inaddition,
provisions frequently prescribe thataprofessional exam sanction theaccomplishment ofpractical
experience. Membership inprofessional bodies isprimarily compulsory inthelegalprofession, and,
although toasomewhat lesser extent, foraccountants.
Despitethefactthatself-regulatoryregimesareapparentlyrareandmembershipinaprofessional
association isnotalways required, professional organisations mayplayamajor role.Inmany cases,
government rulesonqualification, access totheprofession, standards etc.are,infact,elaborated by
professionalbodiesandthenendorsedbypublicregulatoryauthorities.Domesticprofessionalassociations
sometimes enjoy ahighdegree ofautonomy inthisrespect.
Different professionals maybedesignated within aservice industry toprovide specific activities.
Thisapplies inparticular inaccounting andlegalservices, inwhich alarge number ofactivities are
regulated andreserved tospecific practitioners.
1. Accountancy services
Theservices rendered byaccountants varyonlyslightly between OECD Member countries.
Coreactivities include traditional accounting (with theexception ofPortugal), audits (statutory ornon
statutory) andauditing ofmergers orcontributions inkind, andtaxadvice. Mostcountries alsoreported
thataccountants mayprovide management consultancy services, investment advice oractasexpert
witnesses. Some countries reported thatpublic sector audit, insolvency practice, taxrepresentation
arenotexercised byaccountants andnearly allrespondents indicated thataccountants donotprovide
legalservices.
There seems tobeacorrelation between thestatus ofanactivity anditsregulation. Statutory
audit andaudit ofmergers andofcontributions inkindareregulated inalmost allthecountries that
haveindicated whether anactivity isornotregulated, andare,simultaneously, reserved bylawto
accounting professionals. Other activities, suchasnonstatutory auditormanagement consultancy are
hardly regulated inanycountry andaregenerally reported asnotbeing reserved tospecific practitioners.
Exceptions tothisobservation arelegaladvice andlegalrepresentation, which areregulated inmore
thanhalftherespondent countries andarereserved inmost countries tothelegalprofessionals.
Despite these similarities, itneeds tobestressed thataccounting services arelessregulated
insome countries thaninothers asopposed toMexico where allactivities areregulated. Some reporting
countries, forexample Germany, Norway andPortugal regulate more extensively than, forinstance,
Finland, theNetherlands andNewZealand. Only Switzerland reported thatallactivities arefree.
2. Legal services
Legal practitioners seemtobetheexclusive providers oflegalservices inmostcountries. This
isreflected intheorganisation ofthisprofession andintheregulation ofitsactivities. Clear exceptionsS/WPPS/W/4/Add.1
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tothisobservation areFinland andSweden, where legal services arenotregulated andcanalsobe
provided bylaymen. Itshould benoted, however, thatinboththese countries thetitle"Advocat" is
protected.
Althoughdifferentorganisationalpatternsemerge,legalservicesareprovidedwithinmostOECD
countriesbydifferentlegalpractitioners.Forexample,somecountriesmakeadistinctionbetweenlawyers
allowed torepresent clients inCourts andlegalprofessionals -notaries -thathavetherighttorecord
Acts(notably France, Germany, Mexico, Netherlands, Portugal, Switzerland). Another oradditional
distinctionfrequentlymaderelatestopractitionersresponsibleforpatentlaw(interaliaAustria,Germany,
NewZealand, United States). Finally, anumber ofcountries mentioned foreign lawyers, whoaremostly
entitled toadvise onmatters predominantly regulated byforeign law,sometimes alsointernational law
(Australia, Canada, Germany, Japan, Mexico, NewZealand, United Kingdom, United States).
These professional distinctions alsoimpact ontheregulation oflegalactivities. Indeed, the
majorityofMembercountriesindicatedthatlaws/regulationsoftenstipulatewhoisauthorisedtoexercise
particular activities andthatmany ofthese activities werereserved bylawtofullyintegrated lawyers.
With theexception ofFinland andSweden, "representation inCourt" and"recording ofActs" are
reserved inallcountries. Advice onmatters predominately regulated bydomestic laworadvice and
representation onpatent lawarealsofrequently regulated andreserved. Activities thatarelessregulated
and/or notreserved tolawyers are"Insolvency practice" and"management consulting".
3. Engineering andarchitectural services
Theactivities provided byarchitects orprofessional engineers arerelatively seldom regulated
bylaworreserved tospecific practitioners inOECD countries (itistobenoted thatthissection does
notapply toconstruction engineering services, which fallintotheconstruction sector under theGATS).
OnlyJapanreportedthatalmostallengineeringandarchitecturalservicesareregulated.Severalcountries
reported thatnolegalprovisions applied withregard toaccess totheprovision ofengineering services
(Australia, Denmark, Finland, Switzerland, United Kingdom) orconcerning architectural services
(Denmark, Finland, Norway). However, itshould benoted thatthetitle"architect" isprotected in
thesome countries (Finland, Norway, United Kingdom).
Engineering services thataremostly regulated andreserved tospecific practitioners are"design
andplanning" aswellas"obtention ofpermits". "Request forconstruction permit" and"technical control
ofcertification" areindicated tobemostly reserved toarchitects. "Topographic determination,
demarcation, landsurveying", reported toberegulated inthelargest number ofcountries, isgenerally
reserved tosurveyors.
Control ofprofessional standards inthese more technical professions probably tendtotake
placemorethrough object-related regulations, norms andstandards (building regulations, safety norms,
etc.).S/WPPS/W/4/Add.1
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Annex 1
Methodological notes
OECD Member Countries wereinvited togivesimplified answers tostandardised tables. To
provide ageneral overview, answers were tobegeneralised asmuch aspossible. Specific points,
indispensable forthereading ofacountries situation --forinstance concerning federal countries where
regulation mayvaryfrom statetostate--were tobementioned infootnotes.
Thestandardised tables were completed inthefollowing way:
Inthefirstleft-hand column, theprofessions playing amajor roleinthefieldofactivities listed
were tobeidentified (usually, acoreprofession, plusanumber ofother professions intervening in
thatsector).
Inthecolumn "1.Access toprofession/professional titleregulated" information relating to
theprotection oftheprofessional titleandtheregulation applying totheobtaining ofthetitlewere
tobespecified.
Inthecolumn "2.Main qualification/licensing requirements" respondents wereasked tovery
briefly summarise therequirements foradmission tothefullexercise oftheprofession inquestion i.e.
years ofhigher education, ifany;thenumber ofyears ofpractical training/experience, ifany;theneed
ofaprofessional exam.
Thenextitem"3.Membership inprofessional association/order compulsory" thepossible
obligation tobeaMember ofaprofessional association, aprofessional order oraself-regulatory body
wastobeshown.
TheItem"4.Scope ofactivities" wasdesigned togeneralise thesituation asfaraspossible
forthedifferent professions soastoaccommodate awiderange ofdifferent countries. Countries were
asked to:
- specify whether thedifferent activities listed under thatitemareregulated ornot
("regulated" inthiscontext means thatthere isalaw/regulation which stipulates who
isauthorised toexercise thatparticular activity); and
- indicate which profession(s) listed under thefirstleft-hand-column is/are entitled to
provide theservice. Adouble cross (xx)istosignal anactivity thatmust, according
tolaw/regulation, beexercised bytheprofession(s) inquestion; asingle cross (x)is
toidentify anactivity which is,inpractice, exercised byacertain profession butnot
reserved tothatprofession asamatter oflaworregulation; adash(-)istoindicate
thatanactivity isnotexercised bythatprofession, either voluntarily orbecause itis
precluded bylaw/regulation from doing so.S/WPPS/W/4/Add.1
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Annex 2
Standardised tables
A.ACCOUNTANCY SERVICES
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Italy
Japan
Mexico
Netherlands
New Zealand
Norway
Portugal
Spain
Switzerland
Turkey
United Kingdom
United States