All Member States:
The establishment of a specialised management company is required to perform the activities of management of unit trusts and investment companies (Articles 6 and 13 of UCITS Directive, 85/611/EEC).
Only firms having their registered office in the Community can act as depositories of the assets of investment funds (Articles 8.1 and 15.1 of the UCITS Directive, 85/611/EEC).
AT: Only members of the Austrian Stock Exchange may engage in securities trading at the Stock Exchange.
AT: For trading in foreign exchange and foreign currency authorisation of by the Austrian National Bank is required.
AT: Mortgage bonds and municipal bonds may be issued by banks specialised and authorised for this activity.
AT: For carrying out services of pension fund management a specialised company only for this activity and incorporated as a stock company in Austria is required.
BE: Any public bid to acquire Belgian securities made by or on behalf of a person, company or institution outside the jurisdiction of one of the Member States of the European Community shall be submitted to authorisation by the Minister of Finance.
Sub-sectors B.1. to B.5. (acceptance of deposits, lending of all types, financial leasing, all payment and money transmission services, guarantees and commitments)
Foreign banks intending to establish in the Republic of Bulgaria must be duly authorized under their national law and must not be prohibited from performing banking activities in their country of origin and in the countries where they operate. Unbound for caisses populaires.
Acquisition, directly or indirectly, of shares representing 5 % or higher of the voting rights of an established bank is subject to an authorisation by the Bulgarian National Bank. Criteria for authorisation are prudential and are consistent with the obligations of Articles XVI and XVII of the GATS.
The direct or indirect acquisition of participation in a company that is not a bank by a bank of more than 10 % of the capital of this enterprise is subject to the authorisation of the Bulgarian National Bank.
Exclusive service suppliers status may be granted as to deposit and money transmission services provided to public institutions financed from the budget.
Condition for permanent residence with respect to executive directors of the managing body who act on behalf and for the account of a bank.
Unbound for guarantees of the State Treasury.
Subsectors B.6., B.7. and B.9. (trading of securities, participation in issues of all kinds of securities, asset management):
Bound for investment intermediaries, investment companies and stock exchanges established as joint stock companies licensed by the Financial Supervision Commission (FSC). The grant of the relevant licence is related to the management and technical requirements as well as requirements related to the protection of investors.
Stock exchange JSC: Conditions of minimum capital (BGN 100 000.); not less than 2/3 of the capital distributed among financial institutions (insurance companies, financial houses, investment intermediaries); a 5 % ceiling of the capital of the Stock Exchange for direct or indirect participation by a shareholder.
None for investment intermediary activities effected on the territory of the Republic of Bulgaria, unless otherwise permitted by the FSC.
Condition for membership at the stock exchange for trading with securities at a stock exchange. The membership of an investment intermediary is limited to one stock exchange only in Bulgaria.
Investment companies: the activities of a bank, insurance company or of an investment intermediary are not to be conducted by an investment company.
Unbound for trading for own or customers account of negotiable instruments and financial assets other than transferable securities. Unbound for participation in issuance of treasury bonds. Unbound for pension fund management.
Subsectors B.8. and B.10 (money broking., settlement and clearing services for financial assets): Unbound.
Subsectors B.11. and B.12. (provision and transfer of financial information, and advisory services): Requirement to use the public telecommunication network, or the network of another authorised operator. Unbound for intermediation and other auxiliary financial services
CY: It is a statutory requirement and it is applied on a non-discriminatory manner that banks offering services in the Republic of Cyprus must be legal entities. Legal entities include branches of foreign banks/financial institutions which are registered in Cyprus.
CY: Direct or indirect ownership or voting rights in a bank by a person and his/her associates may not exceed 10 % unless with the prior written approval of the Central Bank.
CY: Further to the above, in the three existing local banks listed in the stock exchange, direct or indirect shareholding or acquisition of a stake in their capital by foreign persons is restricted to 0.5 % per individual or organisation and 6 % collectively.
Subsectors B.1. to B.5. and B.6.(b) (acceptance of deposits, lending of all types, financial leasing, all payment and money transmission services, guarantees and commitments, and trading of foreign exchange):
For new banks the following requirements apply:
A licence is required from the Central Bank for the carrying out of banking business. The Central Bank in granting a licence may apply an economic needs test.
Branches of foreign banks must be registered in Cyprus under the Companies Law and licensed under the Banking Law.
Subsector B.6.(e) (trading of transferable securities):
Only members (brokers) of the Cyprus Stock Exchange can undertake business pertaining to securities brokerage in Cyprus. Firms acting as brokers must only employ individuals who can act as brokers provided that they are appropriately licensed. Banks and Insurance companies may not undertake.
A brokerage firm may only be registered as a member of the Cyprus Stock Exchange if it has been established and registered in accordance with the Companies Law of Cyprus.
Subsectors B.6. (a), (c), (d) and (f), and B.7. to B.12.: Unbound.
CZ: Non-central bank currency issue services, trading of derivative products and of bullion, money broking, settlement and clearing services for derivative products, and advisory, intermediation and other auxiliary financial services relating to these activities: Unbound.
CZ: None other than:
Banking services may be provided only by Czech established banks or branches of foreign banks having a licence granted by the Czech National Bank in agreement with the Ministry of Finance.
The granting of the licence is based on the consideration of criteria which are applied consistently with GATS. Mortgage loan services may be provided only by Czech established banks.
Banks may be established as joint stock companies only. The purchase of shares of existing banks is subject to prior approval by the Czech National Bank.
Securities may be traded publicly only if the relevant authorisation has been granted and prospectus covering the security has been approved.
The authorisation shall not be granted if public trading in securities is in conflict with the interests of investors, is inconsistent with the government financial policy or if it does not conform with financial market requirements.
The establishment and activities of securities dealers, stockbrokers, of the Stock Exchange or organisers of an overthecounter market, investment companies and investment funds are subject to authorisation granting of which is related to qualifications, personal integrity, management and material requirements.
Settlement and clearing services for all kinds of payments are monitored and reviewed by the Czech National Bank to ensure their smooth and economical operation.
DK: Financial institutions may engage in securities trading on the Copenhagen Stock Exchange only through subsidiaries incorporated in Denmark.
FI: At least one half of the founders, the members of the board of directors, the supervisory board and the delegates, the managing director, the holder of the procuration and the person entitled to sign in the name of the credit institution shall have their place of residence in the European Economic Area, unless the Ministry of Finance grants an exemption. At least one auditor shall have his place of residence in the European Economic Area.
FI: The broker (individual person) on derivative exchange shall have his place of residence in the European Economic Area. Exemption from this requirement may be granted under the conditions set by the Ministry of Finance.
FI: Payments from governmental entities (expenses) shall be transmitted through the Finnish Postal Giro System, which is maintained by the Postipankki Ltd. Exemption from this requirement may be granted for a special reason by the Ministry of Finance.
FR: In addition to French credit institutions, issues denominated in French francs may be lead managed only by French subsidiaries (under French law) of non-French banks which are authorised, based on sufficient means and commitments in Paris of the candidate French subsidiary of a non-French bank. These conditions apply to lead banks running the books. A non-French bank may be, without restrictions or requirement to establish, jointly-lead or co-lead manager of Eurofranc bond issue.
EL: Financial institutions may engage in the trading of securities listed on the Athens Stock Exchange only through stock exchange firms incorporated in Greece.
EL: For the establishment and operations of branches a minimum amount of foreign exchange must be imported, converted into drachmas and kept in Greece as long as a foreign bank continues to operate in Greece:
Up to four branches this minimum is currently equal to half of the minimum amount of share capital required for a credit institution to be incorporated in Greece;
For the operation of additional branches the minimum amount of capital must be equal to the minimum share capital required for a credit institution to be incorporated in Greece.
HR: None, except for settlement and clearing services where the Central Depositary Agency (CDA) is the sole supplier in Croatia. Access to the services of the CDA will be granted to non-residents on a non-discriminatory basis.
HU: It is intended to bind direct branching once it is bound in the GATS, and under the conditions set therein.
HU: Direct or indirect ownership or voting rights in a credit institution of a single shareholder other than a credit institution, insurance company or investment firm cannot exceed 15%.
HU: The board of a financial institution should include at least two members, who are Hungarian citizens, residents in the meaning of the relevant foreign exchange regulations and have had permanent residency in Hungary for at least one year.
HU: Long-term State ownership will be kept at a minimum of 25%+1 vote in Országos Takarékpénztár és Kereskedelmi Bank Rt.
IE: In the case of collective investment schemes constituted as unit trusts and variable capital companies (other than undertakings for collective investment in transferable securities, UCITS), the trustee/depository and management company is required to be incorporated in Ireland or in another Member State of the Community. In the case of an investment limited partnership, at least one general partner must be incorporated in Ireland.
IE: To become a member of a stock exchange in Ireland, an entity must either 1. be authorised in Ireland, which requires that it be incorporated or be a partnership, with a head/registered office in Ireland, or 2. be authorised in another Member State in accordance with the EC Investment Services Directive.
IE: The provision of investment services or investment advice requires either 1. authorisation in Ireland, which normally requires that the entity be incorporated or be a partnership or a sole trader, in each case with a head/registered office in Ireland (the supervisory authority may also authorise branches of third country entities), or 2. authorisation in another Member State in accordance with the EC Investment Services Directive.
IT: The public offer of securities (as provided for under Art. 18 of Law 216/74) other than shares, debt securities (including convertible debt securities) can only be made by Italian limited companies, foreign companies duly authorised, public bodies or companies belonging to local authorities whose assigned capital is not below ITL 2 billion.
IT: Centralised deposit, custody and administration services can be provided only by the Bank of Italy for Government securities, or by Monte Titoli SpA for shares, securities of a participating nature and other bonds traded in a regulated market.
IT: In the case of collective investment schemes other than harmonised UCITS under the directive 85/611/EEC, the trustee/ depository is required to be incorporated in Italy or in another Member State of the European Community, being established through a branch in Italy. Only banks, insurance companies, securities investment companies having their legal head office in the European Community may carry out activity of pension fund resources management. Management companies (closed-end funds and real estate funds) are also required to be incorporated in Italy.
IT: In providing the activity of door-to-door selling, intermediaries must utilise authorised financial salesmen resident within the territory of a Member State of the European Communities.
IT: Clearing and settlement of securities may be conducted only by the official clearing system. A company authorised by the Bank of Italy in agreement with Consob could be entrusted with the activity of clearing, up to the final settlement of securities.
IT: Representative offices of foreign intermediaries cannot carry out activities aimed at providing investment services.
Subsector B.7. (participation in issues of all kinds of securities): The Bank of Latvia (Central Bank) is a financial agent of the government in the T-bills market.
Subsector B.9. (asset management): Pension fund management is provided by State monopoly.
Subsectors B.1. to B.12.: At least one manager must be Lithuanian citizen.
Subsector B.3. (financial leasing): Financial leasing can be reserved for special financial institutions (such as banks and insurance companies). None as of 1 January 2001, except as indicated in horizontal part of section “Banking and Other Financial Services”.
Subsector B.9. (asset management): Establishment only as Public Stock Corporations (AB) and Close Corporations (UAB) which should be founded in a closed manner (when all initially issued stock are acquired by incorporators). For the purpose of asset management, the establishment of a specialised management company is required. Only firms having their registered office in Lithuania can act as the depositories of the assets.
Subsectors B.1. and B.2. (acceptance of deposits and lending of all types): Foreign-owned credit and other financial institutions may operate either in the form of a branch or a local subsidiary. Authorisation may be made subject to economic needs test.
Subsectors B.3. to B.12.: Unbound.
Subsectors B.1. , B.2., B.4. and B.5. (excluding guarantees and commitments of the State Treasury): Establishment of a bank only in a form of joint-stock company or a licensed branch. System of permits in relation to establishment of all banks based on prudential grounds. Nationality requirement for some – at least one – of the bank executives.
Subsectors B.6.(e), B.7. (excluding participation in issues of Treasury papers), B.9. (only portfolio management services) and B.12. (advisory and other auxiliary financial services only in relation to the activities committed for Poland.): Establishment, after obtaining a licence, only in a form of joint-stock company or a branch of foreign legal entity providing securities services.
Subsector B.11.: Requirement to use the public telecommunication network, or the network of another authorised operator, in the case of cross-border provision and/or consumption abroad of these services.
All other subsectors: Unbound.
PT: The establishment of non-EC banks is subject to an authorisation issued, on a case-by-case basis, by the Minister of Finance. The establishment has to contribute to increase the national banking system's efficiency or has to produce significant effects on the internationalisation of the Portuguese economy.
PT: Venture capital services may not be provided by branches of venture capital companies having their head office in a non-EC country. Broker-dealer services on the Lisbon Stock Exchange may be provided by broker and dealer companies incorporated in Portugal or by branches of investment firms authorised in another EC country and authorised in their home country to provide those services. Broker and dealer services in the Oporto Derivatives Exchange and in the OTC market may not be provided by branches of non-EC broker/dealer companies.
Pension fund management may be provided only by companies incorporated in Portugal and by insurance companies established in Portugal and authorised to take up the life insurance business.
RO: The securities (brokerage) company must be a Romanian legal entity set up as a joint-stock company under Romanian law, and having as an exclusive business objective the intermediation of securities. Any public offer of securities shall require, previous to the publication of its prospectus, the authorisation
of the National Securities Commission of Romania. Companies performing asset management must be established as joint-stock companies under Romanian law; open-ended investment funds
must be established under civil Romanian law. Unbound for financial leasing. Unbound for trading for own or customers account of negotiable instruments and financial assets other than transferable securities.
SK: Trading of derivative products and of bullion, money broking, and intermediation: Unbound.
SK: Banking services may be provided only by domestic banks or branches of foreign banks authorised by the National Bank of Slovakia upon the agreement with the Ministry of Finance. The granting of authorisation is based on the consideration of criteria relating, in particular, to capital endowment (financial strength) professional qualifications, integrity and competence of the management of the projected bank activities. Banks are legal entities incorporated in the Slovak Republic, established as jointstock companies or public (State-owned) financial institutions.
The purchase of shares expressing interest in the equity capital of an existing commercial bank from the determined limit is subject to prior approval by the National Bank of Slovakia. Investment services in the Slovak Republic can be provided by banks, investment companies, investment funds and security dealers which have legal form of jointstock company with equity capital according to the law. A foreign investment company or investment fund must obtain an authorisation from the Ministry of Finance to sell its securities or investment certificate units on the territory of the Slovak Republic in accordance with domestic law. For an issue of debt securities the permission of the Ministry of Finance is required either for the issue inland or abroad.
Securities may be issued and traded only after a permission by the Ministry of Finance has been granted for public trading according to the Securities Act. The business of security dealer, stockbroker or organiser of an overthe counter market is subject to authorisation by the Ministry of Finance. Settlement and clearing services for all kinds of payments are regulated by the National Bank of Slovakia.
Settlement and clearing services relating to change of physical property of securities are recorded in Centre of Securities (Clearing and Settlement House for Securities). Centre of Securities may provide only transfers on the property accounts of security owners. Cash part clearing and settlement goes through Banking Clearing and Settlement House (where the National Bank of Slovakia is major shareholder) for Bratislava Stock Exchange, jointstock company or through Jumbo account for RMSystem Slovakia.
Participation in issues of Treasury bonds, pension fund management and related advisory and other auxiliary financial services: Unbound.
Subsectors B.11. and B.12. (provision and transfer of financial information, and advisory and other auxiliary financial services, except those related to participation in issues of Treasury bonds and to pension fund management): None.
All other subsectors:
Establishment of all types of banks are subject to obtaining a licence from the Bank of Slovenia.
Foreign persons may become shareholders of banks or acquire additional shares of banks only subject to prior approval by the Bank of Slovenia. (Remark: this provision shall be abolished upon the adoption of the new Law on Banking.)
Under license of the Bank of Slovenia, banks, subsidiaries and branches of foreign banks can be permitted to provide all or limited banking services, depending on the amount of the capital.
When considering issuing a licence to a bank to set up as wholly-owned or with a majority of foreign investors, or when considering approval of the acquisition of additional shares of banks, the Bank of Slovenia shall take into account the following guidelines:
the existence of investors from different countries; and
the opinion of the foreign institution in change of banking supervision.
(Remark: this provision shall be abolished on the adoption of the new Law on Banking.)
Unbound in relation to foreign participation in banks under privatisation.
Branches of foreign banks must be incorporated in the Republic of Slovenia and have legal personality.
(Remark: this provision shall be abolished upon the adoption of the new Law on Banking.) Unbound with respect to all types of mortgage banks, savings and loans institutions.
Unbound with respect to establishment of private pension funds (non-compulsory pension funds).
Management Companies are commercial companies established solely for the purpose of managing investment funds.
Foreign persons may directly or indirectly acquire a maximum up to 20 % of shares or voting rights of management companies; for a larger percentage, approval by the Securities Market Agency is required.
An Authorised (privatisation) Investment Company is an investment company established solely for the purpose of gathering the ownership certificates (vouchers) and the purchase of shares issued in accordance with regulations on ownership transformation. An Authorised Management Company is established solely for the purpose of managing the authorised investment companies.
Foreign persons may directly or indirectly acquire a maximum up to 10 % of shares or voting rights of Authorised (privatisation) Management Companies; for a larger percentage approval by the Securities Market Agency is required with the consent of the Ministry of Economic Relations and Development.
Investments of the Investments Funds into securities of foreign issuers are limited to 10 % of the investments of the Investments Funds. Such securities shall be listed on those stock exchanges previously determined by the Securities Market Agency.
Foreign persons may become shareholders or partners in a Stock Broking Company up to 24 % of the capital of the Stock Broking Company subject to prior approval by the Securities Market Agency. (Remark: this provision shall be abolished upon the adoption of the new Law on Securities Market.)
Securities of a foreign issuer which have not yet been offered in the territory of the Republic of Slovenia may only be offered by a Stock Broking Company or a bank licensed to carry out such transactions. Prior to launching the offer the Stock Broking Company or a bank shall obtain the permission of Securities Market Agency.
The request for this permission to offer securities of a foreign issuer in the Republic of Slovenia shall be accompanied by draft prospectus, documentation proving that the guarantor of the issue of securities of the foreign issuer is a bank or a stock broking company, except in the case of the issue of shares of a foreign issuer.
SE: Undertakings not incorporated in Sweden may establish a commercial presence only through a branch, and in case of banks, also through a representative office.
SE: A founder of a banking company shall be a natural person resident in the European Economic Area or a foreign bank. A founder of a savings bank shall be a natural person resident in the European Economic Area.
UK: Inter-dealer brokers, which are a category of financial institutions dealing in Government debt, are required to be established in the European Economic Area and separately capitalised.