Page 315 - Regional Comprehensive Economic Partnership (RCEP)

(i) is recognised as a self-regulatory organisation and 4. Article 8.11 (Local Presence) shall not apply to services covered
exercises regulatory or supervisory authority over by this Annex.
financial service suppliers or financial institutions by
legislation or delegation from central, regional, or 5. In the event of any inconsistency between this Annex and any
local governments or authorities; or other provision in this Agreement, this Annex shall prevail to the
extent of the inconsistency.
(ii) exercises regulatory or supervisory authority over
financial service suppliers or financial institutions by
legislation or delegation from central, regional, or Article 3: New Financial Services
local governments or authorities.
1. Each host Party shall endeavour to permit financial institutions of
another Party established in the territory of the host Party to
Article 2: Scope supply a new financial service in the territory of the host Party that
the host Party would permit its own financial institutions, in like
1. This Annex shall apply to measures by a Party affecting the circumstances, to supply without adopting a law or modifying an
supply of financial services. Reference to the supply of a financial existing law.
2
service in this Annex shall mean the supply of a service as defined
in subparagraph (r) of Article 8.1 (Definitions). 2. Where an application is approved, the supply of the new financial
service is subject to relevant licensing, institutional or juridical
2. For the purposes of subparagraph (l) of Article 8.1 (Definitions) form, or other requirements of the host Party.
and subparagraph 2(c) of Article 10.2 (Scope), “services supplied
in the exercise of governmental authority” means the following:
Article 4: Prudential Measures
(a) activities conducted by a central bank or monetary
authority or by any other public entity in pursuit of monetary Notwithstanding any other provision of this Agreement, a Party shall not
or exchange rate policies; be prevented from adopting or maintaining measures for prudential
1
3
reasons, including for the protection of investors, depositors, policy-
(b) activities forming part of a statutory system of social holders, or persons to whom a fiduciary duty is owed by a financial
security or public retirement plans; or service supplier, or to ensure the integrity and stability of the financial
system. Where such measures do not conform with the provisions of
(c) other activities conducted by a public entity for the account this Agreement, they shall not be used as a means of avoiding the
or with the guarantee or using the financial resources of the Party’s commitments or obligations under this Agreement.
government.

If a Party allows any of the activities referred to in subparagraph Article 5: Treatment of Certain Information
(b) or (c) to be conducted by its financial service suppliers in
competition with a public entity or a financial service supplier, Nothing in this Agreement shall be construed to require a Party to
“services” shall include such activities. disclose information relating to the affairs and accounts of individual

3. Subparagraph (o) of Article 8.1 (Definitions) and the definition set
out in subparagraph 2(c) of Article 10.2 (Scope) shall not apply to 2 For greater certainty, a Party may issue a new regulation or other subordinate
services covered by this Annex. measure in permitting the supply of the new financial service.

3 The Parties understand that “prudential reasons” includes the maintenance of the
safety, soundness, integrity, or financial responsibility of individual financial institutions
1 Activities referred to in this subparagraph include any regulatory and enforcement or financial service suppliers, as well as the safety and financial and operational
activities conducted in pursuit of monetary or exchange rate policies. integrity of payment and clearing systems.

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