Common use of RIGHT OF ESTABLISHMENT Clause in Contracts

RIGHT OF ESTABLISHMENT. 1. A Party shall permit an investor of the other Party that does not own or control a financial institution in the territory of the Party to establish, without the imposition of numerical restrictions or requirements of specific types of legal form, a financial institution that is permitted to provide a financial service that a similar institution of the Party could provide under the Party's domestic law at the time of establishment. The obligation not to impose a requirement to adopt a specific legal form does not preclude a Party from imposing a condition or requirement in connection with the establishment of a particular type of entity chosen by an investor of the other Party. 2. A Party shall permit an investor of the other Party that owns or controls a financial institution in the territory of the Party to establish such additional financial institutions as may be necessary to enable the supply of the full range of financial services permitted under the Party's domestic law at the time of the establishment of the additional financial institutions. Subject to Article 14.2, a Party may impose a term or condition on the establishment of additional financial institutions and determine the institutional and legal form to be used for the supply of a specified financial service or the conduct of a specified activity. 3. The right of establishment under paragraphs 1 and 2 shall include the acquisition of an existing entity. 4. Subject to Article 14.2, a Party may prohibit a particular financial service or activity. Such a prohibition may not apply to all financial services or to an entire sub- sector of financial services such as banking activities. 5. For purposes of this Article, without prejudice to other forms of prudential regulation, a Party may require that an investor of the other Party be engaged in the business of supplying financial services in the territory of that other Party. 6. For the purposes of this Article, "numerical restrictions" means limitations imposed on the number of financial institutions whether in the form of a numerical quota, a monopoly, an exclusive service provider or the requirements of an economic needs test.

RIGHT OF ESTABLISHMENT. 1. A Party shall permit an investor of the other Party that does not own or control a financial institution in the Party’s territory of the Party to establish, without the imposition of numerical restrictions or requirements of to take a specific types of legal juridical form, a financial institution that is permitted to provide supply a financial service that a similar like institution of the Party could provide may supply under the Party's domestic law of the Party at the time of establishment. The obligation not to impose a requirement to adopt take a specific legal juridical form does not preclude prevent a Party from imposing a condition or requirement in connection with the establishment of a particular type of entity chosen by an investor of the other Party. 2. A Party shall permit an investor of the other Party that owns or controls a financial institution in the Party’s territory of the Party to establish in that territory such additional financial institutions as may be necessary to enable for the supply of the full range of financial services permitted allowed under the Party's domestic law of the Party at the time of the establishment of the additional financial institutions. Subject to Article 14.212.03, a Party may impose a term or condition on the establishment of additional financial institutions and determine the institutional and legal juridical form to be used for the to supply of a specified financial service or the conduct to carry out of a specified activity. 3. The right of establishment under paragraphs 1 and 2 shall include includes the acquisition of an existing entity. 4. Subject to Article 14.212.03, a Party may prohibit a particular financial service or activity. Such a prohibition may not apply to all financial services or to an entire sub- sector of a complete financial services sub-sector such as banking activitiesbanking. 5. For purposes the purpose of this Article, without prejudice to other forms of prudential regulation, a Party may require that an investor of the other Party be engaged in the business of supplying providing financial services in the territory of that other Party. 6. For the purposes purpose of this Article, "“numerical restrictions" ” means limitations imposed either on the basis of a regional subdivision or on the basis of the entire territory of a Party, on the number of financial institutions whether in the form of a numerical quota, a monopoly, an exclusive service provider supplier or the requirements of an economic needs test.