OECD Code of Liberalisation of Capital Movements (1961)
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Remark: The reservation applies only to the purchase of shares and other securities of a participating nature which may be affected by the laws on inward direct investment and establishment.

SPAIN

List A, Direct investment:
I/A—In the country concerned by non-residents.

Remark: The reservation applies only to:

i) investment originating in non-EU member countries in the following sectors:

a) airlines established in the country that must be majority owned and effectively controlled by EU states and/or nationals of EU states, unless otherwise provided for through an international agreement to which the EU is a signatory;

b) broadcasting (including television);
c)  strategic minerals;
d) gaming, lotteries, lotto and casinos;

ii) investment originating in non-EU member countries by governments, official institutions, and public enterprises;

iii) the extent that under EU Directive 85/611/EEC, a depository of an undertaking for collective investment in transferable securities (UCITS) must either have its registered office in the same EU country as that of the undertaking or be established in the EU country if its registered office is in another EU country.

List A, Operations in securities on capital markets:
IV/C1—Purchase in the country concerned by non-residents.

Remark: The reservation applies only to the purchase of shares and other securities of a participating nature which may be affected by laws on inward direct investment and establishment.

List A, Operations in collective investment securities:
VII/D1 —Purchase abroad by residents.

Remark: The reservation only applies to the holdings of collective investment bodies established outside the EU if the assets in question are to form part of the cover of the technical reserves of an insurance company.

List B, Operation of deposit accounts:
XI/B1—By residents in domestic currency with non-resident institutions.

SWEDEN

List A, Direct investment:
I/A VA—In the country concerned by non-residents.

Remark: The reservation applies only to:

i) airlines established in the country that must be majority owned and effectively controlled by EU states and/or nationals of EU states, unless otherwise provided for through an international agreement to which the EU is a signatory;

ii) acquisition of 50 per cent or more of Swedish flag vessels, except through an enterprise incorporated in Sweden;

iii) investment, whether directly or indirectly through residents, in the fields of transport and communications, unless a licence, concession or similar authorisation is granted;

iv) establishment of, or acquisition of 50 per cent or more of shares in, firms engaged in commercial fishing activities in Swedish waters, unless an authorisation is granted;

v) investment in the accountancy sector by non-EU residents exceeding 25 per cent;

vi) investment in a corporation or partnership carrying out the activities of an “‘advokat” by non-EU residents; (1)
viii) the extent that under EU Directive 85/611/EEC, a depository of an undertaking for collective investment in transferable securities (UCITS) must either have its registered office in the same EU country as that of the undertaking or be established in the EU country if its registered office is in another EU country.

List A, Operations in securities on capital markets:

IV/Cl — Purchase in the country concerned by non-residents.

Remark: The reservation applies only to shares and other securities of a participating nature which may be affected by laws on inward direct investment in fishing and civil aviation.

List B, Operation of deposit accounts:
XI/B1 —By residents in domestic currency with non-resident institutions.

(1) Unless the Swedish Bar Association grants a waiver, the requirement for EU residency applies for ownership of law firms carrying out business under the title of “advokat”.

SWITZERLAND

*List A, Direct investment:
I/A—In the country concerned by non-residents.

Remark: The reservation applies only to:

i) the establishment of companies for the distribution and exhibition of films;

ii) the acquisition of real estate, which is subject to authorisation by the competent cantonal authority, when the acquirer does not use the property to operate a permanent establishment;

iii) the registration of a ship in Switzerland serving two points on the Rhine and of a vessel intended to offer commercial maritime transport services;

iv) the registration of an aircraft in Switzerland and investment in an airline under majority Swiss control, unless otherwise implied by the provisions of international agreements to which Switzerland is a party;

v) investment in the sectors of hydroelectricity, oil and gas pipelines and nuclear energy;

vi) investment in a broadcasting company bringing foreign ownership above 49 per cent of the company's share capital.

List B, Operations in real estate:
III/A1, B1 —In the country concerned by non-residents.

Remark: The reservation applies only to the acquisition of real estate, which is subject to authorisation by the competent cantonal authority when the acquirer does not use the property to operate a permanent establishment. In addition, authorisations for holiday homes are subject to quotas. Real estate investments of a purely financial nature with some exceptions are not permitted.

—Building or purchase abroad by residents.

Remark: The reservation applies to the acquisition of real estate localised outside Switzerland, if these assets are:

i) to form more than 5 per cent of the assets representative of the liabilities of a private pension fund. Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves.

ii) to form the cover of the technical reserves of an insurance company.

List A, Operations in securities on capital markets:
IV/D1— Purchase abroad by residents.

Remark: The reservation applies to:

i) the purchase of debt instruments issued by non-residents if these assets are to form more than 30 per cent of the assets representative of the liabilities of a private pension fund;

ii) the purchase of shares or other securities of a participating nature issued by non-residents if these assets are to form more than 25 per cent of the cover of the technical reserves of an insurance company or of the assets representative of the liabilities of a private pension fund;

iii) the purchase of debt instruments issued by non-residents which are not securitised in a security, not quoted on a recognised security market or which are not traded on a regular basis in an active market, if these assets are to form the cover of the technical reserves of an insurance company.

Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves.

List B, Operations on money markets:
V/D1 —Purchase of money market securities abroad by residents.

Remark: The reservation applies to the purchase of debt instruments issued by non-residents if these assets are:

i) to form more than 30 per cent of the assets representative of the liabilities of a private pension fund. Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves;

ii) not securitised in a security, not quoted on a recognised security market or not traded on a regular basis in an active market, if these assets are to form the cover of the technical reserves of an insurance company.

List B, Other operations in negotiable instruments and non-securitised claims:
VI/D1—Purchase abroad by residents.

Remark: The reservation applies to:

i) purchase of or swap operations in instruments and claims issued by or contracted with non-residents if these assets are to form more than 20 per cent of the assets representative of the liabilities of a private pension fund;

ii) operations in negotiable instruments and non-securitised claims if these assets are to form the cover of technical reserves of an insurance company, except for:

a. Derivatives instruments in connection with these assets for which general qualitative and quantitative restrictions apply.

b. Alternative investments for which general qualitative and quantitative restrictions apply.

List A, Operations in collective investment securities:
VII/B1, D1— Issue through placing or public sale of foreign collective investment D1 securities on the domestic securities market.

Remark: The issue of foreign collective investment securities is subject to a stamp duty.

—Purchase abroad by residents.

Remark: The reservation applies to the purchase of securities issued by non-residents if these assets are to form more than 30 per cent of the cover of the technical reserves of an insurance company or of the assets representative of the liabilities of a private pension fund. Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves.

List B, Financial credits and loans: 
Credits and loans granted by residents to non-residents.

Remark: The reservation applies to credits and loans granted to non- residents, if these assets are:

i) to form more than 20 per cent of the assets representative of the liabilities of a private pension fund. Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves.

ii) not securitised in a security, not quoted on a recognised security market or not traded on a regular basis in an active market, if these are to form the cover of the technical reserves of an insurance company.

List B, Operation of deposit accounts:

XI/B1,B2
—By residents in domestic currency with non-resident institutions.

—By residents in foreign currency with non-resident institutions.
Remark: The reservation applies to deposits of funds with non- resident financial institutions, if these assets are:

i) to form more than 30 per cent of the assets representative of the liabilities of a private pension fund. Additionally, pension funds must operate within an overall limit of 30 per cent of total foreign assets allowed as part of mandatory reserves

ii) to cover technical reserves of an insurance company and if the priority privilege of these assets, as stated in Swiss Regulation, cannot be granted.

TURKEY

List A, Direct investment: 
I/A—In the country concerned by non-residents.

Remark: The reservation applies only to:

i) investment in the mining sector, except through a company to be established in Turkey;

ii) investment in exploration and exploitation of petroleum by enterprises controlled or owned by foreign states, unless an authorisation is granted;

iii) investment in the accountancy sector;

iv) foreign ownership above 25 per cent in radio and television broadcasting.

List B, Operations in real estate:
III/A1, B1— In the country concerned by non-residents.

—Building or purchase abroad by residents.

Remark: The reservation applies to the acquisition of real estate localised outside Turkey, if these assets are to form part of the cover of the technical reserves of an insurance company.

List A, Operations in securities on capital markets:
IV/B1, B2, D1—Issue through placing or public sale of foreign securities on the domestic securities market.

Remark: The reservation does not apply to:

i) issues through private placement;

ii) shares sold in the form of depository receipts which are issued by non-resident enterprises:

a) in operation since at least 2 years and with declared profits in the last year's financial statements prepared and audited according to international accounting standards; and

b) whose previously issued shares have been quoted for at least one year and traded for at least 100 days before application for public offering in Turkey;

iii) debt securities which have at least a medium investment grade rating.

List B, VBI, B2, D1, D3

Introduction of foreign securities on a recognised domestic securities market.

Remark: The reservation does not apply to:

i) shares sold in the form of depository receipts which are issued by non-resident enterprises:

a) in operation since at least 2 years and with declared profits in the last year’s financial statements prepared and audited according to international accounting standards; and

b) whose previously issued shares have been quoted for at least one year and traded for at least 100 days before application for public offering in Turkey;

ii) debt securities which have at least a medium investment grade rating.

—Purchase abroad by residents.

Remark: The reservation applies to the purchase of securities issued by non-residents if these assets are to form part of the cover of the technical reserves of an insurance company.

List B, Operations on money markets:
V/B1, B2, D1, D3—Issue through placing or public sale of foreign securities and other instruments on the domestic money market.

Remark: The reservation does not apply to money market securities which are not regulated under the current legislation on capital markets, such as certificates of deposit and bankers' acceptances.

—Introduction of foreign securities and other instruments on a recognised domestic money market.

Remark: The reservation does not apply to money market securities which are not regulated under the current legislation on capital markets, such as certificates of deposit and bankers' acceptances.

—Purchase of money market securities abroad by residents.
Remark: The reservation applies:

i) to the purchase of securities issued by non-residents if these assets are to form part of the cover of the technical reserves of an insurance company;

ii) to the extent that Turkish banks’ lira-denominated transactions with non-resident banks, including inter-bank deposit facilities and repo transactions, are limited to a maximum percentage of a bank’s equity.

List B, Other operations in negotiable instruments and non-securitised claims:

VI/D1, D3—Purchase abroad by residents. D3

Remark: The reservation applies to purchase of or swap operations in instruments and claims issued by or contracted with non-residents if these assets are to form part of the cover of the technical reserves of an insurance company.

Exchange for other assets

Remark: The reservation applies to the extent that:

i) bank swap transactions of foreign currency for lira with non-residents are limited to a maximum percentage of the bank's equity;

ii) bank lira sell-side foreign exchange swaps with non-residents are limited to maximum percentages of the bank's equity depending on their maturity, unless the non-resident bank invest the lira funds in the country by buying lira-denominated securities or deposit the funds in a resident bank.

List A, Operations in collective investment securities:
VII/B1, B2, D1—Issue through placing or public sale of foreign collective investment B2, D1 securities on the domestic securities market.

Remark: The reservation does not apply to:

i) issues through private placement;

ii) securities issued by foreign unit trusts being at least three years old.

—Introduction of foreign collective investment securities on a recognised domestic securities market.

Remark: The reservation does not apply to securities issued by foreign unit trusts being at least three years old.

—Purchase abroad by residents.

Remark: The reservation applies to the purchase of securities issued by non-residents if these assets are to form part of the cover of the technical reserves of an insurance company.

List A, Credits directly linked with international commercial transactions or with the rendering of international services in cases where a resident participates in the underlying commercial or service transaction: 

VIII(i)/A, B—Credits granted by non-residents to residents.
Remark: The reservation applies only to pre-financing credits with a maturity of more than one year.

—Credits granted by residents to non-residents.

Remark: The reservation applies only to commodity credits of more than two years for the export of nondurable goods and of more than five years for the export of other goods.

List B,  Financial credits and loans: 
—Credits and loans granted by residents to non-residents.

Remark: The reservation applies:

i) to credits and loans granted to non-residents, if these assets are to form part of the cover of the technical reserves of an insurance company;

ii) to the extent that Turkish banks’ lira-denominated loans to non-resident banks are limited to a maximum percentage of a bank‘s equity.

List B, Operation of deposit accounts:

XI/B1, B2— By residents in domestic currency with non-resident institutions.

—By residents in foreign currency with non-resident institutions.

Remark: The reservation applies to deposits of funds with non-resident financial institutions, if these assets are to form part of the cover of the technical reserves of an insurance company.

List B, Operations in Foreign Exchange
XII/B— Abroad by residents

Remark: The reservation applies to the extent that:
i) bank forward and other derivative transactions of foreign currency for lira with non-residents are limited to a maximum percentage of the bank's equity;

ii) bank lira sell-side foreign exchange forwards and other derivatives with non-residents are limited to maximum percentages of the bank's equity depending on their maturity, unless the non-resident bank invest the lira funds in the country by buying lira-denominated securities or deposit the funds in a resident bank;

iii) export proceeds in foreign currency have to be repatriated to Turkey within 180 days from the date of export.

UNITED KINGDOM

*List A, Direct investment: 
I/A—In the country concerned by non-residents.

Remark: The reservation applies only to:

i)  airlines established in the country that must be majority owned and effectively controlled by EU states and/or nationals of EU states, unless otherwise provided for through an international agreement to which the EU is a signatory;

ii) investment in certain broadcasting licences (including, in particular, commercial television, teletext and radio licence) other than by nationals of, or enterprises originating in, EU member countries;

iii) acquisition of United Kingdom flag vessels, except through an enterprise incorporated in the United Kingdom;

iv) the extent that under EU Directive 85/611/EEC, a depository of an undertaking for collective investment in transferable securities (UCITS) must either have its registered office in the same EU country as that of the undertaking or be established in the EU country if its registered office is in another EU country.

List B, In the country concerned by non-residents.

III/A1
Remark: The reservation applies only to a 2% Stamp Duty Land Tax surcharge to non-UK resident persons, companies and trustees of a trust (excluding bare trusts, life interest and interest in possession trusts), as well as UK resident close companies with more than 50% of the right or entitlements in hands of non-resident participators, for the purchases of both freehold and leasehold residential property and on rents on the grant of a new residential lease.

Reservations concerning operations between residents of Bermuda and non- residents:

List A, Direct investment:
I/A,B— In the country concerned by non-residents.

Remark: The reservation applies only to:

i) investments in enterprises, except hotels, carrying out business inside Bermuda, when the total foreign ownership exceeds 40 per cent of the share capital;

  • Part   I UNDERTAKINGS WITH REGARD TO CAPITAL MOVEMENTS 1
  • Article   1 General Undertakings 1
  • Article   2 Measures of Liberalisation 1
  • Article   3 Public Order and Security 1
  • Article   4 Obligations In Existing Multilateral International Agreements 1
  • Article   5 Controls and Formalities 1
  • Article   6 Execution of Transfers 1
  • Article   7 Clauses of Derogation 1
  • Article   8 Right to Benefit from Measures of Liberalisation 1
  • Article   9 Non-discrimination 1
  • Article   10 Exceptions to the Principle of Non-discrimination: Special Customs or Monetary Systems 1
  • Part   II PROCEDURE 1
  • Article   11 Notification and Information from Members 1
  • Article   12 Notification and Examination of Reservations Lodged Under Article 2(b) 1
  • Article   13 Notification and Examination of Derogations Made Under Article 7 1
  • Article   14 Examination of Derogations Made Under Article 7: Members In Process of Economic Development 1
  • Article   15 Special Report and Examination Concerning Derogations Made Under Article 7 1
  • Article   16 Reference to the Organisation - Internal Arrangements 1
  • Article   17 Reference to the Organisation - Retention, Introduction or Reintroduction of Restrictions 1
  • Part   III TERMS OF REFERENCE 1
  • Article   18 Investment Committee - General Tasks 1
  • Article   19 Investment Committee - Special Tasks. 1
  • Part   IV MISCELLANEOUS 1
  • Article   20 Definitions 1
  • Article   21 Title of Decision 1
  • Article   22 Withdrawal 1
  • Annex A  Liberalisation Lists of Capital Movements  (1) 1
  • Annex B  Reservations to the Code of Liberalisation of Capital Movements 3
  • Australia 3
  • Austria 3
  • Belgium 3
  • Canada 3
  • Chile 3
  • Colombia 4
  • Costa Rica 4
  • CZECH REPUBLIC 4
  • DENMARK 5
  • ESTONIA 5
  • Finland (1) 5
  • FRANCE 5
  • GERMANY 5
  • GREECE 5
  • HUNGARY 5
  • ICELAND 5
  • IRELAND 5
  • ISRAEL 6
  • ITALY 6
  • JAPAN 6
  • KOREA 6
  • LATVIA 6
  • LITUANIA 6
  • LUXEMBOURG 6
  • MEXICO 6
  • NETHERLANDS 7
  • NEW ZEALAND 7
  • NORWAY 7
  • POLAND 7
  • PORTUGAL 7
  • SLOVAK REPUBLIC 7
  • SLOVENIA 7
  • SPAIN 8
  • SWEDEN 8
  • SWITZERLAND 8
  • TURKEY 8
  • UNITED KINGDOM 8
  • UNITED STATES 9
  • Annex C  Decision of the Council Regarding the Application of the Provisions of the Code of Liberalisation of Capital Movements to Action Taken by the States of the United States 9
  • Annex D  General List of International Capital Movements and Certain Related Operations  (1) 9
  • Annex E: Decision of the Council Regarding Measures and Practices Concerning Reciprocity and/or involving Discrimination among Investors Originating in Various Member Countries in the Area of Inward Direct Investment and Establishment 10
  • APPENDIX 1. List of Council Acts Included in the Present Edition of the Code 10
  • APPENDIX 2. Decision on Adherence of Non-OECD Countries to the Code 12
  • BIBLIOGRAPHY 12