- trading at your own expense and at the expense of clients on the currency exchange, over-the-counter market or in any other way: financial market instruments, foreign exchange, derivatives, instruments related to exchange rates and interest rates, transferable securities, other negotiable instruments and financial assets;
- participation in the issue of securities;
- brokerage operations in the financial market;
- asset management;
- clearing services for financial assets, including securities, derivatives and other negotiable instruments;
- provision and transmission of financial information.
3. Each Party shall permit the persons of this Party in the territory of any other Party the following financial services described in subparagraphs "a" - "d" of paragraph 2 of this article.
2. Definitions
Definitions
For the purposes of this Appendix, the following terms mean:
1. "Supply / trade in financial services" in this Annex means "trade in services" as defined in paragraph "and" of Article 1 of this Agreement in the sectors specified in paragraph 4 of Article 2 of this Annex
2. "Financial Service Provider" means any natural or legal person of a Party that provides financial services, excluding government agencies.
3. "Government Office" means: State institution - means a public authority, or the Central Bank (National Bank), or an organization of the state of a Party, owned or controlled by the state of this Party, which exercises exclusively the powers delegated by the public authority of this Party or the Central Bank (National Bank) of such Party.
4. "Financial Service" means any service of a financial nature offered by a financial service provider of the State of a Party. Financial services include all insurance and insurance related services, as well as all banking and securities market services, in particular, include the following types of services:
4.1 Insurance and insurance-related services:
i. Insurance (co-insurance):
a) life insurance,
b) insurance other than life insurance.
ii. Reinsurance;
iii. Insurance mediation such as brokerage and agency mediation;
iv. Ancillary insurance services such as advisory, actuarial, risk assessment, and claims settlement services.
4.2. Banking services
i. Acceptance of deposits and other payable funds from the population;
ii. Issuance of loans of all types, including consumer loans, collateral loans, factoring and financing of commercial transactions;
iii. Financial leasing,
iv. All types of services for payments and money transfers, including lending, payment and debit cards, travelers checks and bank bills.
v. Trade at your own expense and at the expense of clients, on the currency exchange and outside the exchange, or otherwise:
a) foreign currency;
c) derivatives, including, but not exclusively, futures and options;
d) instruments relating to exchange rates and interest rates, including such as swap and forward transactions;
4.3. Services in the securities market
i. Trade at your own expense and at the expense of clients, on the currency exchange and outside the exchange, or otherwise
a) money market instruments (including checks, bills of exchange, certificates of deposit;
b) transferable securities;
c) other negotiable instruments and financial assets.
ii. Participation in issues of all types of securities, including guarantees and placement, as an agent (public or private), and the provision of services related to such issues;
iii. Brokerage operations in the financial market;
iv. Asset management such as cash or securities, all types of collective investment management, pension fund management, guardianship, custody and trust services;
v. Clearing services for financial assets, including securities, derivatives and other instruments;
vi. The provision and transmission of financial information and the processing of financial data and related software by other financial service providers;
vii. Advisory, intermediary and other support financial services in all activities listed in subparagraphs "i" - "v" of this paragraph, including reference and analytical materials on credit issues, research and recommendations on direct and portfolio investments, advice on acquisition, reorganization and corporate strategies.
3. Internal Regulation
1. The procedure for issuing licenses, as well as special permits for carrying out activities in the financial services markets in the territory of the State of the Party shall be carried out in accordance with the national legislation of the Party in whose territory the activities are supposed to be carried out.
2. Nothing in this Agreement prevents a Party from taking prudential measures, including protecting investors, depositors, policyholders and persons to whom the service provider has fiduciary responsibility, or measures to ensure the integrity and stability of the financial system. If such measures do not comply with the provisions of the Agreement, they should not be used as a means of evading a Party from fulfilling the obligations assumed by such a Party in accordance with the Agreement.
3. Nothing in this Appendix shall be construed as requiring a Party to disclose information relating to individual customer accounts or any other confidential or proprietary information held by government agencies.
4. Harmonization of Legislation of the Parties
Harmonization of Legislation of the Parties
The Parties shall harmonize national legislation on the basis of international principles and standards, or best international practice, and not lower than the best standards and practices already applied in the states of the Parties, in order to establish a harmonized level of requirements for persons of the Parties carrying out their activities in the following service sectors:
i. Banking services;
ii. Insurance services;
iii. Services in the securities market.
5. Procedure for Implementation of Harmonization
Harmonization procedure
1. The harmonization of the relevant rules is carried out in accordance with the following stages:
1.1. By December 31, 2013, the Parties will conclude an Agreement on the requirements for the implementation of activities in the financial markets of the member states of the Common Economic Space. This Agreement will provide for the directions and procedure for the harmonization of the national legislation of the Parties, in particular, in the area of requirements and conditions for issuing licenses to carry out activities in the service sectors specified in Article 4 of this Appendix.
1.2. By 2015, the Parties will consider the possibility of creating and operating a supranational body for regulating the financial market of the states of the Parties.
1.3. By January 1, 2020, the Parties will complete the process of harmonization of national legislation in the service sectors specified in Article 4 of this Annex.
1.4. Acting in accordance with this Agreement, the Parties strive for mutual recognition from January 1, 2020 of licenses for carrying out activities in the service sectors specified in Article 4 of this Appendix, issued in the territory of any other Party.
2. By January 1, 2020, the Parties must achieve the following parameters:
2.1. In the banking sector
Within the framework of national legislation, the Parties create harmonized requirements for the regulation and supervision of credit institutions, guided in their actions by the Fundamental Principles for Effective Banking Supervision of the Basel Committee on Banking Supervision and best international practice, including with respect to:
i. the concept of "credit organization" and its legal status;
ii. the procedure and conditions for disclosing information by credit institutions, banking groups and their affiliates, bank holding companies;
iii. accounting rules and audits established in accordance with International Financial Reporting Standards for all types of activities, including the banking sector, and requirements for auditing financial (accounting) statements in accordance with International Auditing Standards;
iv. the procedure and conditions for creating a credit institution, in particular with respect to:
a) requirements for constituent documents;
b) the procedure for state registration of a legal entity / branch and state registration of a credit institution;
c) determining the minimum amount of the authorized capital of a credit institution, the procedure for its formation and methods of payment;
d) requirements for the professional qualifications and business reputation of the executives of the credit institution;
e) the procedure and conditions for issuing a license to carry out banking operations, including with respect to the requirements for documents required to obtain a license to carry out banking operations;
v. grounds for refusing national registration of a credit institution and issuing a banking license to it;
vi. the order, procedure and conditions for liquidation or reorganization of a credit institution (including compulsory liquidation);
vii. grounds for revoking a banking license from a credit institution;
viii. the procedure and features of the reorganization of credit institutions in the form of mergers, acquisitions and transformations;
ix. ensuring the financial reliability of the credit institution, including the definition of other, in addition to banking operations, types of activities allowed for credit institutions, prudential standards, required reserves and special provisions;
x. the procedure for exercising supervision by the competent authorities of each of the Parties over the activities of credit institutions, bank holdings and banking groups;
xi. the procedure, conditions and amounts of sanctions against credit institutions and bank holding companies;
xii. requirements for the activities and ensuring the financial reliability of banking groups and bank holdings;
xiii. creation and functioning of the system of insurance of deposits of the population (including the amount of payments of compensation for deposits);
xiv. procedures for financial rehabilitation and bankruptcy of credit institutions (including the regulation of creditors' rights, the order of satisfaction of claims);
xv. the list of transactions recognized as banking;
xvi. the list of organizations and their status, which are entitled to carry out certain technological parts of banking operations.
2.1.1. Within the framework of the Agreement on the requirements for the implementation of activities in the financial markets of the member states of the Common Economic Space, the Parties will develop parameters for interaction between the competent authorities of the Parties in the field of control and supervision of activities in this market and coordination in other areas related to the activities of credit institutions, bank holdings and banking groups.
2.2. In the insurance sector
2.2.1. Within the framework of national legislation, the Parties create harmonized requirements for the regulation and supervision of professional participants in the insurance market, guided in their actions by the Fundamental Principles of Effective Insurance Supervision of IAIS and international best practice, including in relation to:
i. the concept of "professional participant of the insurance market" and its legal status;
ii. ensuring the financial stability of a professional participant in the insurance market, including in relation to:
a) insurance reserves sufficient to fulfill obligations for insurance, coinsurance, reinsurance, mutual insurance;
b) the composition and structure of assets accepted to cover insurance reserves;
c) the minimum level and procedure for the formation of the authorized and equity capital;
d) the conditions and procedure for the transfer of the insurance portfolio.
iii. accounting rules and audits established in accordance with International Financial Reporting Standards for the insurance sector and requirements for auditing financial (accounting) statements in accordance with International Auditing Standards;
iv. procedure and conditions for the creation and licensing of insurance activities;
v. the procedure for the competent authorities of each of the Parties to supervise the activities of a professional participant in the insurance market;
vi. the procedure, conditions and amounts of sanctions for violations by professional participants of the insurance market of the procedure for carrying out activities in the market;
vii. requirements for professional qualifications and business reputation of executives of professional participants in the insurance market;
viii. grounds for refusal to issue a license to carry out insurance activities;
ix. the order, procedure and conditions for the liquidation or reorganization of a professional participant in the insurance market (including forced liquidation / bankruptcy);
x. grounds for revoking a license from a professional participant in the insurance market to carry out insurance activities, as well as cancellation, limitation or suspension of the license;
xi. the procedure and features of the reorganization of a professional participant in the insurance market in the form of merger, acquisition and transformation;
xii. requirements for the composition of insurance groups and insurance holdings and their financial reliability.
2.2.2. Within the framework of the Agreement on the requirements for carrying out activities in the financial markets of the member states of the Common Economic Space, the Parties will develop parameters for interaction between the competent authorities of the Parties in the field of control and supervision over activities in this market.
2.3. On the securities market
2.3.1. Within the framework of national legislation, the Parties create harmonized requirements and conditions for the following activities:
i. Brokerage in the securities market;
ii. Dealer activity in the securities market;
iii. Activities related to the management of securities, financial instruments, trust management of pension assets and collective investments;
iv. Activities to determine mutual obligations (clearing);
v. Depository activities;
vii. Keeping a register of securities owners;
vii. Activities for organizing trading on the securities market;
2.3.2. Within the framework of national legislation, the Parties create harmonized requirements for the regulation and supervision of the securities market specified in subparagraph 2.3.1 of this Article, guided in their actions by the Fundamental Principles of Effective Supervision of Securities Market Entities IOSCO, OECD and best international practice, including respect:
i. determination of the procedure for the formation and payment of the authorized capital, as well as requirements for the adequacy of equity capital;
ii. the procedure and conditions for issuing a license to operate on the securities market, including with respect to the requirements for documents required to obtain a license to operate on the securities market;
iii. requirements for professional qualifications and business reputation of executives of professional participants in the securities market;
iv. grounds for refusal to issue a license to operate on the securities market, as well as cancellation, restriction or suspension of the license;
v. accounting rules and audits established in accordance with International Financial Reporting Standards for all types of securities market activities and requirements for auditing financial (accounting) statements in accordance with International Auditing Standards, as well as the organization of internal accounting and internal control;
vi. the order, procedure and conditions for the liquidation or reorganization of a professional participant in the securities market (including forced liquidation);
vii. grounds for revoking a license from a professional participant in the securities market to operate on the securities market;
viii. the procedure, conditions and amounts of administrative sanctions for violations by professional securities market participants of the procedure for carrying out activities in the financial market;
ix. the procedure for the competent authorities of each of the Parties to supervise the activities of the subjects (participants) of the securities market;
X. requirements and conditions for the activities of professional participants in the securities market.
2.3.3. Within the framework of the Agreement on the requirements for carrying out activities in the financial markets of the member states of the Common Economic Space, the Parties will develop parameters for interaction between the competent authorities of the Parties in the field of control and supervision over activities in this market.
6. Recognition
Recognition
1. A Party may recognize the prudential measures of any other Party in determining whether it will apply measures related to the supply of financial services. Such recognition, which can be achieved through the harmonization of the national legislations of the Parties or otherwise, can be based on an agreement or arrangement with the interested Party, or can be provided unilaterally.
2. A Party that is a Party to an Agreement or agreement on the recognition of prudential measures of any other Party, both future and current, shall provide other interested Parties with an appropriate opportunity to negotiate their accession to such agreements or arrangements, or to negotiate similar agreements with it. or agreements that, as the case may be, could contain equivalent rules, controls, a mechanism for the implementation of such rules, and, if possible, procedures regarding the exchange of information between the parties to such agreements and arrangements. If a Party grants recognition unilaterally, then it also guarantees the realization of the corresponding opportunity for any other Party to demonstrate (using legal mechanisms),
7. Application of other Eea Agreements
Application of other CES agreements
The provisions of this Appendix shall apply without prejudice to the provisions of the Agreement on the agreed principles of monetary policy in the states - members of the Common Economic Space dated 09.12.2010 and the Agreement on the creation of conditions in financial markets to ensure free movement of capital in the states - members of the Common Economic Space dated 09.12.2010 .
8. Cancellation of Restrictions
Cancellation of restrictions
Each Party ceases to apply the measures specified in its individual national list in Appendix IV to this Agreement in relation to those sectors of financial services in which all the Parties have met the condition on harmonization of national legislation provided for in paragraph 1.3 of Article 5 of this Appendix, the condition of mutual recognition licenses specified in clause 1.4 of Article 5 of this Appendix and the parameters specified in clause 2 of Article 5 of this Appendix have been achieved.