Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	No, domestic regulators do not monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	Foreign investors are restricted from purchasing certain series of shares in Mexico. While the exact restrictions will be specified in the company by-laws and can vary from company to company, generally speaking foreign investors are restricted from purchasing series A shares. These can only be held by foreign investors through a neutral trust established for this purpose. The Mexican Foreign Investment Law and its regulations sets forth (i) areas or activities reserved exclusively for the Mexican State (such as petroleum and basic petrochemicals), (ii) areas or activities reserved exclusively to Mexican nationals (such as TV, radio services and retail gasoline stations), and (iii) concrete limitations as to foreign investments participation in certain activities. For example, the Mexican Foreign Investment Law provides limitations to foreign investment participation in companies dedicated to mining, some areas of telecommunications, financial activities and maritime activities.
3.	Can sales proceeds and income be repatriated without any restrictions?	Yes, sale proceeds and income can be repatriated without any restriction.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	Even though double tax agreements vary a lot and might be complicated to be applied, foreign investors receive on a promptly and fast basis their full dividends and interest payment entitlements.