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The OECD released the public consultation document on the Pillar One - Amount A: Regulated Financial Services Exclusion on 6 May 2022. Comments on the consultation document are due by 20 May 2022. This alert provides a short overview of the proposed approach to the Regulated Financial Services Exclusion and some initial observations. This is the fifth in a series of public consultations on the Pillar One Amount A Model Rules that the OECD is expected to release over the coming months, with very short comment periods, as part of a 'rolling consultation.' 

Similar to the consultation document on the Extractive Exclusion, the rules are presented mainly in narrative format as opposed to Model Rules format (noting that other parts of the Amount A Model Rules linked to the Regulated Financial Services Exclusion are yet to be finalised). 

It is particularly important to note – yet again – that these draft rules for the moment represent the work of the OECD Secretariat. The Inclusive Framework has not approved the draft rules yet. They may, therefore, be subject to change, unrelated to the consultation process. The consultation document specifically identifies several open issues that the Task Force on the Digital Economy (TFDE) is currently exploring and invites input from stakeholders. Extensive footnotes throughout the document state that the practical application of the rules and definitions will be covered in commentaries (which are not included in this document).