Annex III.
Schedule of Canada
Introductory Notes
1. For Canada, in the interpretation of a reservation in Section A, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken. To the extent that:
(a) the Measures element is qualified by a specific reference in the Description element as so qualified shall prevail over all other elements and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
2. For Canada, in the interpretation of a reservation in Section B, all elements of the reservation shall be considered. The Description element shall prevail over all other elements.
Headnotes
1. Commitments under this Agreement, in the subsectors listed in this Schedule, are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.
2. To clarify Canada’s commitment with respect to Article 18.5 (Financial
Services – Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Canada are subject to non-discriminatory limitations on juridical form1.
3. Article 18.10.1(c) (Financial Services – Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 18.5(b) (Financial Services – Market Access for Financial Institutions).
1 For example, partnerships and sole proprietorships are generally not acceptable juridical forms for financial institutions in Canada. This headnote is not itself intended to affect, or otherwise limit, a choice by a financial institution of the other Party between branches or subsidiaries.
A-1.
Sector: Financial Services
Sub-Sector: Banking and other financial services (excluding insurance) Obligations Concerned: Market Access for Financial Institutions (Article 18.5) Level of Government: Central
Measures: Bank Act, S.C. 1991, c.46, s. 524
Description: In order to establish a bank branch, a foreign bank must be
a bank in the jurisdiction under whose laws it is incorporated.
Sector: Financial Services
Sub-Sector: Banking and other financial services (excluding insurance)
Obligations Concerned: National Treatment (Article 18.3)
Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Bank Act, S.C. 1991, c.46 s. 520, 524, 540, 545
Sales or Trades (Authorized Foreign Banks) Regulations, SOR/2000-52
Description: A foreign bank must establish a subsidiary as a condition
for accepting retail deposits. Foreign lending branches may not accept deposits.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Trust and Loan Companies Act, S.C. 1991, c.45 Bank Act, S.C. 1991, c.46
Cooperative Credit Associations Act, S.C. 1991, c.48 Insurance Companies Act, S.C. 1991, c.47
Description: Federal laws do not permit a trust and loan company, credit
union, or fraternal benefit society in Canada to be established through branches of corporations organised under a foreign country’s law.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Bank Act, S.C. 1991, c.46 s. 510, 522.16, 524
Insurance Companies Act, S.C. 1991, c.47 s. 574, 581
Description: A bank branch must be established directly under the authorised foreign bank incorporated in the jurisdiction where the authorised foreign bank principally carries on business.
A foreign entity authorised to insure, in Canada, risks must be established directly under the foreign insurance company incorporated in the jurisdiction where the foreign insurance company, either directly or through a subsidiary, principally carries on business.
Sector: Financial Services
Sub-Sector: Banking and other financial services (excluding insurance)
Obligations Concerned: National Treatment (Article 18.3)
Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Bank Act, S.C. 1991, c.46 s. 520, 540, 545
Schedule I and Schedule II to the Bank Act
Canada Deposit Insurance Corporation Act, R.S.C. 1985, c, C-3 s. 2, 8, 17
Description: Full service foreign bank branches and lending foreign
bank branches are prohibited from becoming member institutions of the Canada Deposit Insurance Corporation.
Sector: Financial Services
Sub-Sector: Banking and other financial services (excluding insurance)
Obligations Concerned: National Treatment (Article 18.3)
Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Canadian Payments Act, R.S.C. 1985, c. C-21 s. 2, 4 Bank Act, S.C. 1991, c.46 s. 524, 540
Description: Lending branches of foreign banks are prohibited from
being members of the Canadian Payments Association.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: National Treatment (Article 18.3)
Most Favoured Nation Treatment (Article 18.4) Cross-Border Trade (Article 18.6)
Senior Management and Boards of Directors (18.9)
Level of Government: Regional
Measures:
Description: All existing non-conforming measures of all provinces and
territories.
B-1.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: National Treatment (Article 18.3)
Level of Government: Central
Description: With regard to the Canada Mortgage and Housing Corporation and its subsidiaries, Canada reserves the right to adopt or maintain any measure that grants advantages to that entity or any new, reorganised or transferee entity having similar functions and objectives with respect to housing finance.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Market Access for Financial Institutions (Article 18.5)
Level of Government: Regional
Description: Canada reserves the right to adopt or maintain any measure
that is not inconsistent with Canada’s obligations under Article XVI of GATS.
Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Most-Favoured Nation Treatment (Article 18.4)
Level of Government: Central
Description: Canada reserves the right to accord differential treatment to
a financial institution of a non-Party, or a cross-border financial service supplier of a non-Party that is subject to regulation, supervision and licensing, authorization or registration by a financial regulatory authority of Canada with regards to the use or location of computing facilities.
Schedule of Ecuador
Introductory Notes
1. The Schedule of Ecuador to this Annex sets out:
(a) headnotes or introductory notes that limit or clarify the commitments of Ecuador with respect to the obligations described in subparagraphs (b) and (c);
(b) in Section A, pursuant to Article 18.10 (Financial Services – Non-Conforming Measures), the existing measures of Ecuador that do not conform with some or all of the obligations imposed by:
(i) Article 18.3 (Financial Services – National Treatment);
(ii) Article 18.4 (Financial Services – Most-Favored-Nation Treatment);
(iii) Article 18.5 (Financial Services – Market Access for Financial Institutions);
(iv) Article 18.6 (Financial Services – Cross-Border Trade); or
(v) Article 18.9 (Financial Services – Senior Management and Boards of Directors); and
(c) in Section B, pursuant to Article 18.10 (Financial Services – Non-Conforming Measures), the specific sectors, subsectors, or activities for which Ecuador may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by:
(i) Article 18.3 (Financial Services – National Treatment);
(ii) Article 18.4 (Financial Services – Most-Favored-Nation Treatment);
(iii) Article 18.5 (Financial Services – Market Access for Financial Institutions);
(iv) Article 18.6 (Financial Services – Cross-Border Trade); or
(v) Article 18.9 (Financial Services – Senior Management and Boards of Directors).
2. Each entry in Section A sets out the following elements:
(a) Sector refers to the general sector for which the entry is made;
(b) Sub-Sector, when referenced, refers to the specific sector for which the entry is made;
(c) Obligations Concerned specifies the articles referred to in paragraph 1(b) that, pursuant to Article 18.10.1(a) (Financial Services – Non-Conforming Measures), do not apply to the non-conforming aspects of the law, regulation or other measures, as set out in paragraph 4;
(d) Level of Government indicates the level of government maintaining the listed measure;
(e) Measures identifies the laws, regulations or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
(f) Description provides a general non-binding description of the measure for which the entry is made.
3. Each entry in Section B sets out the following elements:
(a) Sector refers to the general sector for which the entry is made;
(b) Sub-Sector, when referenced, refers to the specific sector for which the entry is made;
(c) Obligations Concerned specifies the articles referred to in paragraph 1(c) that, pursuant to Article 18.10 (Financial Services – Non-Conforming Measures), do not apply to the sectors, subsectors, or activities scheduled in the entry;
(d) Level of Government indicates the level of government maintaining the listed measure;
(e) Description sets out the scope of the sectors, subsectors, or activities covered by the entry; and
(f) Existing Measures identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors, or activities covered by the entry.
4. In the interpretation of a non-conforming measure in Section A, all elements shall be considered. A non-conforming measure shall be interpreted in the light of the relevant provisions of the Chapter with respect to which the entry is taken. To the extent that:
(a) the Measures element is qualified by a specific reference in the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless a discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
5. In the interpretation of a non-conforming measure in Section B, all elements shall be considered. The Description element shall prevail over all other elements.
Headnotes
1. Commitments in these sub-sectors under this Agreement are made subject to the limitations and conditions set out in these headnotes and in this Schedule.
2. For greater clarity regarding the commitments of Ecuador under Article 18.5 (Financial Services – Market Access for Financial Institutions), financial institutions incorporated under the law of Ecuador are subject to non-discriminatory limitations on juridical form.
3. Article 18.10.1(c) (Financial Services – Non-Conforming Measures) does not apply to non-conforming measures related to Article 18.5 (Financial Services – Market Access for Financial Institutions) with respect to specific types of juridical form.
4. For greater certainty, institutions in the private financing system and their directors must not, either directly or indirectly, hold shares and interest in undertakings or commercial companies outside the financial sector, with presence or activity in the Ecuadorian market. This prohibition does not apply to shareholders, that individually or together through economic, corporate or family business ties, hold less than 25 percent of the share capital of a financial institution, who may, either directly or indirectly, hold shares and interest in undertakings or commercial companies outside the financial sector.
Section A
1. Sector: Financial Services
Sub-Sector: All
Obligations Concerned: National Treatment (Article 18.3)
Market Access for Financial Institutions (Article 18.5)
Level of Government: Central
Measures: Código Orgánico Monetario y Financiero (Monetary and Financial Organic Code), Official Gazette, Supplement 332, of 12 September 2014 (last reform of 29 July 2024), Book I:
Articles 14.1(f), 162, 179, and 194, Book II.
Description: Foreign financial institutions that intend to establish branches in Ecuador, to exercise financial activities or to constitute representative offices, must obtain prior authorization from national control bodies.
Following authorization, branches must register their domicile in Ecuador.
Ecuadorian law does not permit institutions authorized to operate in the securities market to be established as branches. These institutions include brokerage houses (casas de valores), funds management companies (administradoras de fondos), and stock exchanges (bolsas de valores).
The representative offices of foreign financial institutions may only act as information centres to their clients. They must not solicit funds or deposits in Ecuador to be placed abroad, neither must they offer or invest in Ecuador securities issued abroad.
The Financial Policy and Regulation Board has the power to establish non-discriminatory moratoriums for the constitution of new entities in the financial, securities and insurance sectors.
2. Sector: Financial Services
Sub-Sector: All
Obligations Concerned: Market Access for Financial Institutions
(Article 18.5)
Level of Government: Central
Measures: Monetary and Financial Organic Code), Official
Gazette, Supplement 332, of 12 September 2014