Projet

JOINT DECLARATION OF THE CONTRACTING PARTIES

ON SECTION III (A) OF ANNEX I OF THE AGREEMENT

The Contracting Parties agree that they will examine the practical relevance of Section III (A) of Annex I which provides that preexisting Cash Value Insurance Contracts and Annuity Contracts are not required to be reviewed, identified or reported, provided the Reporting Financial Institution is effectively prevented by law from selling such Contracts to residents of a Reportable Jurisdiction.

The Contracting Parties have a common interpretation that under Section III (A) of Annex I the Reporting Financial Institution is effectively prevented by law from selling Cash Value Insurance Contracts and Annuity Contracts to residents of a Reportable Jurisdiction only where the European Union and domestic law of Member States or Swiss law applicable to a Reporting Financial

Institution resident in a Participating Jurisdiction (being a Member State or Switzerland) does not only effectively prevent that Reporting Financial Institution by law from selling Cash Value

Insurance Contracts or Annuity Contracts in a Reportable Jurisdiction (being, respectively,

Switzerland or a Member State), but those laws also effectively prevent the Reporting Financial Institution by law from selling Cash Value Insurance Contracts or Annuity Contracts to residents of that Reportable Jurisdiction in any other circumstances.

AMP/EU/CH/D/en 2