Barriers to Financial Services Trade
Contribution to Financial Services Leaders Group

Hong Kong Coalition of Service Industries
June 2001

The following is an incomplete inventory of barriers to trade in financial services compiled by the Hong Kong Coalition of Service Industries from its “Services 2000” Study.

The list reflects the interests of members of the HKCSI. It is not an exhaustive listing. It should be noted that regulatory frameworks of individual countries and their applications may change according to circumstances.

India

Our survey has revealed trade restrictions of a general nature encountered in the following areas:

Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Discriminatory tax
Government subsidy to local firms
Restrictions on ownership of land
Discriminatory licensing requirements
State procurement policy
Quotas on foreign service
Local content rules
Flexibility in hiring/dismissing workers
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Burdensome domestic regulations
E-commerce regulation
Simplify customs clearance
Unify product safety standards
Export restrictions
Travel restrictions (duration/currency)
Restrictions on profit repatriation

Japan

Respondents to our study reported restrictions in the following sectors:

The detailed nature of the trade restrictions are as follows:

Clearing/settlement/custodian Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Local content rules
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Funds management Restrictions on scope of business
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Residency requirement
Inquiry points for laws/regulations
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Insurance Restrictions on scope of business
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Discriminatory tax
Discriminatory licensing requirements
Residency requirement
Double-income taxation
Inquiry points for laws/regulations
Restrictions on marketing channels
Competition law enforcement
Simplify customs clearance
Unify product safety standards
Speed up certification/testing
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Lending (loans, mortgage, leases) Restrictions on scope of business
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Double-income taxation
Restrictions on marketing channels
Competition law enforcement
Simplify customs clearance
Unify product safety standards
Speed up certification/testing
Travel restrictions (duration/currency)
Trading (securities, derivatives, forex) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Restrictions on profit repatriation

Korea

Respondents to our study reported restrictions in the following sectors:

Details of these trade restrictions are as follows:

Advisory (credit ref, portfolio advice) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation
Clearing/settlement/custodian Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Local content rules
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Insurance Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Double-income taxation
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Lending (loans, mortgage, leases) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Double-income taxation
Transparency of court rulings
Restrictions on marketing channels
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Trading (securities, derivatives, forex) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Discriminatory tax
Government subsidy to local firms
Restrictions on ownership of land
Discriminatory licensing requirements
State procurement policy
Quotas on foreign service
Local content rules
Minimum wage regulation
Flexibility in hiring/dismissing workers
Residency requirement
Social security contribution
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Unify product safety standards
Speed up certification/testing
Export restrictions
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Underwriting/placement Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation

Malaysia

Respondents to our study reported restrictions in the following sectors:

Details of these trade restrictions are as follows:

Clearing/settlement/custodian Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Local content rules
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Deposit taking Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of operating licences
Burdensome domestic regulations
Competition law enforcement
Insurance Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of operating licences
Burdensome domestic regulations
Competition law enforcement
Trading (securities, derivatives, forex) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Local content rules
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Underwriting/placement Limits on foreign equity ownership
Restrictions on scope of business

Singapore

Respondents to our study reported restrictions in the following sectors:

Details of these trade restrictions are as follows:

Advisory (credit ref, portfolio advice) Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Unreasonable qualification requirements
Discriminatory licensing requirements
Clearing/settlement/custodian Restrictions on scope of business
Restrictions on number of operating licences
Government subsidy to local firms
Discriminatory licensing requirements
Social security contribution
Burdensome domestic regulations
Deposit taking Restrictions on scope of business
Restrictions on number of operating licences
Government subsidy to local firms
Discriminatory licensing requirements
Social security contribution
Burdensome domestic regulations
Funds management Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Duration of stay
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Residency requirement
Inquiry points for laws/regulations
Restrictions on marketing channels
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Insurance Restrictions on scope of business
Unreasonable qualification requirements
Recognition of qualified professionals
Discriminatory tax
Discriminatory licensing requirements
Residency requirement
Inquiry points for laws/regulations
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Lending (loans, mortgage, leases) Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Duration of stay
Discriminatory tax
Discriminatory licensing requirements
Quotas on foreign service
Restrictions on marketing channels
Trading (securities, derivatives, forex) Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Recognition of qualified professionals
Quota of foreign work visas
Duration of stay
Procedure for obtaining visa
Discriminatory tax
Government subsidy to local firms
Restrictions on ownership of land
Discriminatory licensing requirements
State procurement policy
Quotas on foreign service
Local content rules
Minimum wage regulation
Flexibility in hiring/dismissing workers
Residency requirement
Social security contribution
Double-income taxation
Inquiry points for laws/regulations
Restrictions on transfer of information
Transparency of court rulings
Set up EDI facilities
Restrictions on marketing channels
Burdensome domestic regulations
Intellectual property rights enforcement
Competition law enforcement
E-commerce regulation
Simplify customs clearance
Unify product safety standards
Speed up certification/testing
Export restrictions
Travel restrictions (duration/currency)
Restrictions on profit repatriation
Underwriting/placement Restrictions on scope of business
Restrictions on number of branches

Thailand

Respondents to our study reported restrictions in the following sectors:

Details of these trade restrictions are as follows:

Advisory (credit ref, portfolio advice) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation
Clearing/settlement/custodian Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation
Trading (securities, derivatives, forex) Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Discriminatory tax
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation
Underwriting/placement Restrictions on minimum capital requirement
Limits on foreign equity ownership
Restrictions on scope of business
Restrictions on number of branches
Restrictions on composition of local partners
Restrictions on number of operating licences
Unreasonable qualification requirements
Quota of foreign work visas
Discriminatory tax
Double-income taxation
Inquiry points for laws/regulations
Set up EDI facilities
Restrictions on profit repatriation