ACTION REQUESTED
March 15, 1994
TO: INTERNATIONAL COMMITTEE NO. 5-94
RE: MEXICO ISSUES DRAFT REGULATIONS FOR FOREIGN FINANCIAL
SERVICES FIRMS
__________________________________________________________
Attached for your immediate review and comment are draft regulations
issued by Mexico on March 10 regarding applications by foreign firms seeking
to establish subsidiaries in Mexico to engage in financial services
activities.
As you know, the Institute worked throughout the NAFTA negotiations to
ensure that U.S. investment management firms would have access to the Mexican
mutual fund management market post-NAFTA. At the Institute's request, the
Treasury Department obtained confirmation from the Mexican government that,
following implementation of the Agreement, a U.S. firm may establish a wholly-
owned mutual fund operating company in Mexico to sponsor, advise and
distribute Mexican mutual funds.
The attached draft regulations apparently apply to U.S. firms seeking to
establish mutual funds or mutual fund operating companies in Mexico. See
Annex Nine and Annex Ten. The regulations may have been finalized as early as
March 14, or may be finalized at any time. Please forward any comments to the
undersigned at (202) 326-5834 or by fax at (202) 326-5841 as soon as possible,
preferably by C.O.B. on Thursday, March 17.
Angela C. Goelzer
Associate Counsel - International
Attachment