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[Federal Register: June 22, 2010 (Volume 75, Number 119)]
[Rules and Regulations]               
[Page 35289-35291]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn10-1]                         

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

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[[Page 35289]]

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 0908131235-0248-02]
RIN 0691-AA73

 
International Services Surveys: BE-180, Benchmark Survey of 
Financial Services Transactions Between U.S. Financial Services 
Providers and Foreign Persons

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends regulations of the Bureau of Economic 
Analysis, Department of Commerce (BEA) to set forth the reporting 
requirements for the BE-180, Benchmark Survey of Financial Services 
Transactions between U.S. Financial Services Providers and Foreign 
Persons. The BE-180 replaces a similar but more limited survey, the BE-
80, Benchmark Survey of Financial Services Transactions Between U.S. 
Financial Services Providers and Unaffiliated Foreign Persons. The 
agency form number and survey title are being changed because the 
survey will include the collection of data on transactions with 
affiliated foreigners and unaffiliated foreigners using the same survey 
instrument. The BE-180 survey will be conducted once every five years 
beginning with fiscal year 2009.
    The BE-180 survey covers financial services transactions with 
foreign persons. In nonbenchmark years, the estimates for these 
transactions will be derived from the sample data reported on BEA's 
follow-on survey (BE-185, Quarterly Survey of Financial Services 
Transactions between U.S. Financial Services Providers and Foreign 
Persons).
    The data collected by the BE-180 will be used by BEA to estimate 
the financial services component of the U.S. International Transactions 
Accounts and other economic accounts compiled by BEA. The data also are 
needed by the government to monitor U.S. exports and imports of 
financial services; analyze their impact on the U.S. and foreign 
economies; support U.S. international trade policy on financial 
services; and assess and promote U.S. competitiveness in international 
trade in services. In addition, they will improve the ability of U.S. 
businesses to identify and evaluate market opportunities.

DATES: The final rule will be effective July 22, 2010.

FOR FURTHER INFORMATION CONTACT: Chris Emond, Chief, Special Surveys 
Branch, Balance of Payments Division (BE-50), Bureau of Economic 
Analysis, U.S. Department of Commerce, Washington, DC 20230; e-mail 
Christopher.Emond@bea.gov; or phone (202) 606-9826.

SUPPLEMENTARY INFORMATION: In the March 9, 2010 Federal Register (75 FR 
10704), BEA published a notice of proposed rulemaking to amend 15 CFR 
Part 801 to set forth the reporting requirements for the BE-180, 
Benchmark Survey of Financial Services Transactions between U.S. 
Financial Services Providers and Foreign Persons.
    No comments were received on the proposed rule. Thus, the proposed 
rule is adopted without change.

Description of Changes

    The BE-180 survey is a mandatory survey and will be conducted by 
BEA every five years, with the initial survey covering fiscal year 
2009, pursuant to the authority provided in the International 
Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108), 
hereinafter, ``the Act'' and by Section 5408 of the Omnibus Trade and 
Competitiveness Act of 1988 (15 U.S.C. 4908). For the initial survey, 
BEA will send the survey to potential respondents in July of 2010; 
responses will be due September 30, 2010.
    The BE-180 will replace a similar but more limited survey, the BE-
80, Benchmark Survey of Financial Services Transactions Between U.S. 
Financial Services Providers and Unaffiliated Foreign Persons, unlike 
the BE-80, the BE-180 will include the collection of data on 
transactions with both affiliated and unaffiliated foreigners. The BE-
180 survey is intended to capture data on financial services 
transactions with foreign persons. In nonbenchmark years, the estimates 
for these transactions would be derived from the sample data reported 
on BEA's follow-on quarterly survey (BE-185, Quarterly Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons).
    The survey will be mandatory for those U.S. financial companies 
that engage in the financial services transactions in amounts that 
exceed the exemption level. For the BE-180, the covered financial 
services transactions are: (1) Brokerage services related to equity 
transactions, and (2) other brokerage services; (3) underwriting and 
private placement services; (4) financial management services; (5) 
credit-related services, except credit card services, and (6) credit 
card services; (7) financial advisory and custody services; (8) 
securities lending services; (9) electronic funds transfer services; 
and (10) other financial services. The exemption level for the survey 
is total sales or purchases of $3 million during the reporting period, 
for the above ten categories combined. Financial companies that exceed 
this threshold must supply data on the amount of their financial 
transactions for each category, disaggregated by country and by its 
relationship to the foreign transactor (foreign affiliate, foreign 
parent group or unaffiliated). In addition, this survey will collect 
the following subcomponents of financial management receipts at the 
global level: Mutual funds, pension funds, exchange-traded funds, 
private equity funds, corporate portfolio, individual portfolio, hedge 
funds, and trusts.
    U.S. financial companies that are exempt from the survey's 
reporting requirements because they do not meet the reporting threshold 
are requested to provide, on a voluntary basis, estimates of their 
covered financial services transactions. Any U.S. financial company 
that receives the BE-180 survey form from BEA, but is not required to 
report data because it is exempt under the regulations and chooses not 
to report data voluntarily, must file an exemption claim by completing 
pages one through five of the survey. This requirement is

[[Page 35290]]

necessary to ensure efficient administration of the Act by eliminating 
unnecessary follow-up contact. If a U.S. financial company does not 
receive the BE-180 survey form and is not otherwise required to report 
under these regulations, then the company is not required to take any 
action.

Survey Background

    The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, 
will conduct the survey under the International Investment and Trade in 
Services Survey Act (22 U.S.C. 3101-3108), and Section 5408 of the 
Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4908). Section 
4(a) of the International Investment and Trade in Services Survey Act 
provides that the President shall, to the extent he deems necessary and 
feasible, conduct a regular data collection program to secure current 
information related to international investment and trade in services 
and publish for the use of the general public and United States 
Government agencies periodic, regular, and comprehensive statistical 
information collected pursuant to this subsection.
    In Section 3 of Executive Order 11961, as amended by Executive 
Orders 12318 and 12518, the President delegated the responsibilities 
under the Act for performing functions concerning international trade 
in services to the Secretary of Commerce, who has redelegated them to 
BEA.
    Data from the survey are needed to monitor U.S. exports and imports 
of financial services; analyze their impact on the U.S. and foreign 
economies; compile and improve the U.S. international transactions, 
national income and product, and input-output accounts; support U.S. 
international trade policy on financial services; assess and promote 
U.S. competitiveness in international trade in services; and improve 
the ability of U.S. businesses to identify and evaluate market 
opportunities.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of E.O. 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
Assessment under E.O. 13132.

Paperwork Reduction Act

    The collection-of-information requirement in this final rule has 
been approved by the Office of Management and Budget (OMB) under 
control number 0608-0062 pursuant to the requirements of the Paperwork 
Reduction Act.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act unless that collection 
displays a currently valid Office of Management and Budget Control 
Number. The collection will display this number.
    The benchmark survey is expected to result in the filing of reports 
from approximately 8,000 respondents. Approximately 1,000 respondents 
will report mandatory or voluntary data on the survey and approximately 
7,000 will file exemption claims. The respondent burden for this 
collection of information will vary from one respondent to another, but 
is estimated to average ten hours, including time for reviewing the 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information for the respondents that file mandatory or 
voluntary data, and two hours for exemption claim responses. Thus, the 
total respondent burden for the survey is estimated at 24,000 hours.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule should be sent to: (1) The Bureau of Economic Analysis via 
mail to U.S. Department of Commerce, Bureau of Economic Analysis, Chris 
Emond, Chief, Special Surveys Branch (BE-50) Washington, DC 20230, via 
e-mail at Christopher.Emond@bea.gov, or by FAX at 202-606-5318; and (2) 
the Office of Management and Budget, Office of Information and 
Regulatory Affairs, Control Number 0608-0062, PRA Desk Officer for BEA, 
via e-mail at pbugg@omb.eop.gov, or by FAX at 202-395-7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration, under provisions of the Regulatory Flexibility Act (5 
U.S.C. 605(b)), that this rule will not have a significant economic 
impact on a substantial number of small entities. The factual basis for 
this certification was published with the proposed rule and is not 
repeated here. No comments were received regarding the economic impact 
of this rule. As a result, a final regulatory flexibility analysis is 
not required and none was prepared.

List of Subjects in 15 CFR Part 801

    International transactions, Economic statistics, Foreign trade, 
Penalties, Reporting and recordkeeping requirements.

    Dated: June 2, 2010.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

0
For the reasons set forth in the preamble, BEA amends 15 CFR Part 801, 
as follows:

PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. 
AND FOREIGN PERSONS

0
1. The authority citation for 15 CFR Part 801 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; 
and E.O. 11961, 3 CFR, 1977 Comp., p.86, as amended by E.O. 12318, 3 
CFR, 1981 Comp., p. 173, and E.O. 12518, 3 CFR, 1985 Comp., p 348.

0
2. Amend Sec.  801.9 by revising paragraph (a) to read as follows:

Sec.  801.9  Reports required.

    (a) Benchmark surveys. Section 4(a)(4) of the Act (22 U.S.C. 3103) 
provides that benchmark surveys of trade in services between U.S. and 
foreign persons be conducted, but not more frequently than every 5 
years. General reporting requirements, exemption levels, and the years 
of coverage for the BE-120 survey may be found in Sec.  801.10. General 
reporting requirements, exemption levels, and the years of coverage for 
the BE-140 survey may be found in Sec.  801.11. More detailed 
instructions are given on the forms themselves; and general reporting 
requirements, exemption levels, and the years for coverage for the BE-
180 survey may be found in Sec.  801.12.
* * * * *

Sec.  801.11  [Removed]

0
3. Remove Sec.  801.11.

Sec.  801.12  [Redesignated as Sec.  801.11]

0
4. Redesignate Sec.  801.12 as Sec.  801.11.

0
5. Add new Sec.  801.12 to read as follows:

Sec.  801.12  Rules and regulations for the BE-180, Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons.

    (a) The BE-180, Benchmark Survey of Financial Services Transactions 
between U.S. Financial Services Providers and Foreign Persons, will be

[[Page 35291]]

conducted beginning with fiscal year 2009 and every fifth year 
thereafter. More detailed instructions are given on the report forms 
and instructions.
    (b) Who must report- (1) Mandatory reporting. A report is required 
from each U.S. person that is a financial services provider or 
intermediary, or whose consolidated U.S. enterprise includes a 
separately organized subsidiary, or part, that is a financial services 
provider or intermediary, and that had transactions (either sales or 
purchases) directly with foreign persons in all financial services 
combined in excess of $3,000,000 during its fiscal year covered by the 
survey on an accrual basis. The $3,000,000 threshold should be applied 
to financial services transactions with foreign persons by all parts of 
the consolidated U.S. enterprise combined that are financial services 
providers or intermediaries. Because the $3,000,000 threshold applies 
separately to sales and purchases, the mandatory reporting requirement 
may apply only to sales, only to purchases, or to both.
    (i) The determination of whether a U.S. financial services provider 
or intermediary is subject to this mandatory reporting requirement may 
be based on the judgment of knowledgeable persons in a company who can 
identify reportable transactions on a recall basis, with a reasonable 
degree of certainty, without conducting a detailed manual records 
search.
    (ii) Reporters that file pursuant to this mandatory reporting 
requirement must provide data on total sales and/or purchases of each 
of the covered types of financial services transactions and must 
disaggregate the totals by country and by relationship to the foreign 
transactor (foreign affiliate, foreign parent group, or unaffiliated).
    (2) Voluntary reporting. If, during the fiscal year covered, sales 
or purchases of financial services by a firm that is a financial 
services provider or intermediary, or by a firm's subsidiaries, or 
parts, combined that are financial services providers or 
intermediaries, are $3,000,000 or less, the U.S. person is requested to 
provide an estimate of the total for each type of service. However, 
submission of this information is voluntary. Because the $3,000,000 
threshold applies separately to sales and purchases, this voluntary 
reporting option may apply to sales, to purchases, or to both.
    (3) Exemption claims. Entities that receive the BE-180 survey but 
are not subject to the mandatory reporting requirements and choose not 
to report data voluntarily must file an exemption claim by completing 
pages one through five of the BE-180 survey andreturning them to BEA.
    (c) BE-180 definition of financial services provider. The 
definition of financial services provider used for this survey is 
identical to the definition of the term as used in the North American 
Industry Classification System, United States, 2007, Sector 52-Finance 
and Insurance, and holding companies that own or influence, and are 
principally engaged in making management decisions for these firms 
(part of Sector 55-Management of Companies and Enterprises). For 
example, companies and/or subsidiaries and other separable parts of 
companies in the following industries are defined as financial services 
providers: Depository credit intermediation and related activities 
(including commercial banking, savings institutions, credit unions, and 
other depository credit intermediation); non-depository credit 
intermediation (including credit card issuing, sales financing, and 
other non-depository credit intermediation); activities related to 
credit intermediation (including mortgage and nonmortgage loan brokers, 
financial transactions processing, reserve, and clearinghouse 
activities, and other activities related to credit intermediation); 
securities and commodity contracts intermediation and brokerage 
(including investment banking and securities dealing, securities 
brokerage, commodity contracts and dealing, and commodity contracts 
brokerage); securities and commodity exchanges; other financial 
investment activities (including miscellaneous intermediation, 
portfolio management, investment advice, and all other financial 
investment activities); insurance carriers; insurance agencies, 
brokerages, and other insurance related activities; insurance and 
employee benefit funds (including pension funds, health and welfare 
funds, and other insurance funds); other investment pools and funds 
(including open-end investment funds, trusts, estates, and agency 
accounts, real estate investment trusts, and other financial vehicles); 
and holding companies that own, or influence the management decisions 
of, firms principally engaged in the aforementioned activities.
    (d) Covered types of services. The BE-180 survey covers the 
following types of financial services transactions (sales or purchases) 
between U.S. financial companies and foreign persons: Brokerage 
services related to equity transactions; other brokerage services; 
underwriting and private placement services; financial management 
services; credit-related services, except credit card services; credit 
card services; financial advisory and custody services; securities 
lending services; electronic funds transfer services; and other 
financial services.

[FR Doc. 2010-14996 Filed 6-21-10; 8:45 am]
BILLING CODE 3510-06-P
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