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ARTICLES

LEGAL RESOURSES

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$ 17.35

    • Article 1403: Establishment of Financial Institutions

    1. The Parties recognize the principle that an investor of another Party should be permitted to establish a financial institution in the territory of a Party in the juridical form chosen by such investor.

    2. The Parties also recognize the principle that an investor of another Party should be permitted to participate widely in a Party's market through the ability of such investor to:

  • Provide in that Party's territory a range of financial services through separate financial institutions as may be required by that Party;

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  • Expand geographically in that Party's territory; and

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  • Own financial institutions in that Party's territory without being subject to ownership requirements specific to foreign financial institutions.

    • 3. Subject to Annex 1403.3 (TLCAN: Anexo 1403.3), at such time as the United States permits commercial banks of another Party located in its territory to expand through subsidiaries or direct branches into substantially all of the United States market, the Parties shall review and assess market access provided by each Party in relation to the principles in paragraphs 1 and 2 with a view to adopting arrangements permitting investors of another Party to choose the juridical form of establishment of commercial banks.

    4. Each Party shall permit an investor of another Party that does not own or control a financial institution in the Party's territory to establish a financial institution in that territory. A Party may:

  • Require an investor of another Party to incorporate under the Party's law any financial institution it establishes in the Party's territory; or

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  • Impose terms and conditions on establishment that are consistent with Article 1405 (TLCAN: Art. 1405).

    • 5. For purposes of this Article, "investor of another Party" means an investor of another Party engaged in the business of providing financial services in the territory of that Party.