‘ANNEX XVIII

STATISTICS ON OTHER FINANCIAL INTERMEDIARIES EXCEPT INSURANCE CORPORATIONS AND PENSION FUNDS

REPORTING INSTRUCTIONS FOR THE COMPILATION OF STATISTICS FOLLOWING A SHORT-TERM APPROACH

1. Objective

The requirement for statistical information on other financial intermediaries except insurance corporations and pension funds (hereinafter “OFIs”) is twofold. Firstly, it is important to collect data on OFIs in order to monitor their role in financial intermediation outside the monetary and financial institutions (MFIs) sector. Activities undertaken by OFIs are similar and complementary to those undertaken by MFIs and, in particular, given that for European Central Bank (ECB) statistical purposes balance sheet data on OFIs totally or partially owned by MFIs are not included in the MFIs’ balance sheets, it is necessary to collect statistical data relating to OFIs in order to complete the statistical picture of the euro area. Secondly, the ECB needs to monitor OFIs in order to ensure that the list of MFIs remains up to date, accurate, as homogeneous as possible and sufficiently stable for statistical purposes. As mentioned in Regulation ECB/2001/13, financial innovation might affect the characteristics of financial instruments and induce OFIs to change the focus of their business.

The aim of this Annex is to provide guidance on the completion of the reporting forms for the transmission to the ECB of data relating to OFIs.

2. Compilation of euro area aggregates and type of statistical data to be provided

2.1. Compilation of euro area aggregates

The transmission of data relating to OFIs is to be done following a short-term approach, that is, on the basis of currently available data at national level. It follows that statistical information to be provided might not always be fully available in accordance with the definitions and specifications outlined below. In cases where the reported data deviate from the definitions set out in this Annex, national central banks (NCBs) are requested to provide explanatory notes to the ECB (1). In accordance with this approach, and on the basis of the conceptual framework outlined below, NCBs should provide actual data where currently available. Where actual data are not available or cannot be processed, national estimates should be provided. As a fallback solution, in respect of certain specific breakdowns where national estimates cannot be provided, the ECB may make estimates/assumptions on a case-by-case basis.

In view of the additional burden that the computation of national estimates would place on NCBs, efforts should be mainly concentrated on a limited number of key statistical data. Indeed, the short-term approach aims to concentrate efforts on one specific subcategory of OFIs (see Section 3.2.a): investment funds. No specific additional efforts are required for the provision of data in respect of security and derivative dealers (SDDs), financial corporations engaged in lending (hereinafter FCLs) or other OFIs (residual), in the case that actual data are not collected at national level.

2.2. Type of statistical data to be provided

Two types of indicators should be provided: key indicators and supplementary information

— Key indicators to be transmitted for the compilation of euro area aggregates. All participating Member States should transmit these detailed data when actual data are available. When no actual data are available for the required breakdowns or for the agreed frequency, timeliness or time range, estimates should be provided if feasible.

— Supplementary information to be transmitted as “memo items”. These data should be transmitted by countries for which further detail is currently available. They refer to breakdowns for which users have expressed a requirement and in respect of which the compilation of an euro area aggregate was initially not deemed feasible.

3. Conceptual framework

3.1. Reporting population

The European system of national and regional accounts (hereinafter the ESA 95 (2)) defines OFIs (S.123) as “non-monetary financial corporations and quasi-corporations (excluding insurance corporations and pension funds) principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits and/or close substitute for deposits from institutional units other than MFIs”.

The borderline with MFIs is determined by the non-existence of liabilities in the form of deposits held by non-MFIs, while the borderline with pension funds and insurance corporations is determined by the non-existence of liabilities in the form of insurance technical reserves.

The reporting population for the short-term approach will comprise all types of OFIs resident in the participating Member States. The term “resident” is as defined in Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of statistical information by the European Central Bank (3). Hence, the reporting population comprises:

— institutions located in the territory, including subsidiaries of parent companies located outside that territory, and

— resident branches of institutions that have their head office outside that territory.

3.2. Classification of subcategories of OFIs

In view of the heterogeneity of the activities undertaken by OFIs and differences in the availability of data by type of OFIs, four subcategories of OFIs have been identified for which data should be separately transmitted: 1. investment funds (except money market funds (MMFs)); 2. SDDs; 3. FCLs; and 4. other OFIs. Differences in the statistical details required will be outlined in this document.

The categories/groupings on the basis of which data should be provided are listed and defined below:

(a) Investment funds, except MMFs Investment funds are organised financial arrangements that pool investor funds for the purpose of acquiring financial or non-financial assets. Investment funds classified as OFIs include all types of investment funds except those included in the MFI sector. They can have different legal structures (contractual, corporate and unit trusts) and can be open or closed-end. Furthermore, they may be established either as an individual fund or as an umbrella fund (multiple compartment fund comprising various subfunds). Data in respect of investment funds should be provided for: Total investment funds: Data to be provided for total investment funds should cover all types of investment funds operating in the country. Key indicators and also a number of memo items should be provided. Investment funds by type: Data to be transmitted should provide a breakdown by type of investment fund: — Investment funds broken down by type of investment: Data for investment funds by type of investment are to be separately reported for 1. equity funds; 2. bond funds; 3. mixed funds; 4. real estate funds; and 5. other funds. In principle, investment funds by type of investment are to be classified according to the type of asset in which the investment portfolio is primarily invested. If the investment portfolio is primarily invested in shares and other equity, funds should be allocated to the “equity funds” category; if in debt securities, to the “bond funds” category; and if in real estate, to the “real estate funds” category. Funds investing in both equity and bonds with no prevalent policy in favour of one or the other instrument should be allocated to the “mixed funds” category (4). Where no classification in the above categories is feasible, funds should be included in the residual category “other funds”. With respect to the “funds of funds” (funds investing primarily in investment fund shares), the guidance is to allocate them in the category of funds in which they primarily invest. If this allocation is not deemed feasible, funds of funds should be allocated in the residual category “other funds”. The criteria for classifying investment funds by type are derived from the public prospectus, fund rules, instruments of incorporation, established statutes or by-laws, subscription documents or investment contracts, marketing documents, or any other statement with similar effects. At a later stage, consideration may also be given to collecting data relating to the number of investment funds broken down by type of investment. — Investment funds broken down by type of investor: Data for investment funds broken down by type of investor are to be reported for 1. general public funds the units/shares of which are sold to the public; and 2. special investors funds the units/shares of which are reserved for certain types of investors. Data for these types of funds should only be reported as memo items.

(b) Security and derivative dealers SDDs, classified as OFIs, are financial corporations principally engaged in the following financial intermediation activities: — trading of securities on their own account, through the acquisition and sale of those securities for the account and risk of the intermediary for the exclusive purpose of benefiting from the margin between the acquisition and selling price, — trading on their own account, through a financial intermediary authorised to operate on the stock market, or on other organised markets. With respect to SDDs, key indicators should be provided. Details on the breakdown to be provided are illustrated in this Annex.

(c) Financial corporations engaged in lending These financial corporations, classified as OFIs, are principally specialised in asset financing for households and non-financial corporations. Corporations specialising in financial leasing (5), factoring, mortgage lending and consumer lending are to be included in this category. These financial corporations may operate under the legal form of a building society, municipal credit institution, financial vehicle corporation created to be a holder of securitised assets, etc. With respect to FCLs, key indicators should be provided. Specific details on the breakdowns to be provided are given in this Annex.

(d) Other categories of OFIs Financial corporations included in this residual category are other types of financial corporations that do not specialise in any of the areas of activities that apply to the other three OFI categories. For example, corporations such as financial holding corporations, venture capital companies or development capital companies are to be included in this category. NCBs are required to specify the types of institutions allocated to this category in the explanatory notes provided. With respect to this subcategory of OFIs, only total assets is required as a memo item.

4. Statistical reporting requirements

4.1. Balance sheet items

The compilation of key statistical indicators for the OFI sector requires a specific financial instrument breakdown. To the extent possible, instrument, geographical and sectoral breakdowns follow the reporting scheme defined for the MFI sector. However, the breakdown is in practice less detailed than the breakdown required for the MFI balance sheet statistics.

Furthermore, in view of the heterogeneity of the activities undertaken by financial corporations classified as OFIs and in view of the differences in current availability of data by subcategory of OFIs, the balance sheet breakdowns required vary according to the type of OFI subcategory.

Instrument and maturity breakdown: The table below provides an overview of the required instrument breakdown by type of OFI subcategory. Specifications to these instrument breakdowns are described in the paragraphs below. In principle, the instrument breakdown is to be provided as key indicators for all subcategories of OFIs (except for “investment funds by type of investors” and “other OFIs”).

Overview of the instrument and maturity breakdown

INSTRUMENT AND MATURITY CATEGORIES ASSETS LIABILITIES 1. Deposits (reported by A and B) 2. Loans (reported by C) 3. Securities other than shares (reported by A, B and C) up to 1 year (reported by A) over 1 years (reported by A) 4. Shares and other equity (6) (reported by A, B and C) 5. Investment fund shares/units (reported by A and B) 6. Fixed assets (reported by A) 7. Financial derivatives (reported by A and B) 8. Other assets (reported by A, B and C) 1. Deposits and loans taken (reported by A, B and C) 2. Debt securities issued (reported by B and C) 3. Capital and reserves (reported by B and C) 4. Investment fund shares/units issued (reported by A) 5. Financial derivatives (reported by A and B) 6. Other liabilities (reported by A, B and C) Total assets = Total liabilities (reported by all categories)

Additional requirements for the purposes of compiling monetary union financial accounts (MUFA): The table below provides an overview of the required additional instrument breakdown. Specifications regarding this instrument breakdown are described in the paragraphs below. In principle, the additional instrument breakdown is to be provided as memorandum items only for the subcategory “total investment funds”.

Additional requirements for the purposes of MUFA compilation

INSTRUMENT AND MATURITY CATEGORIES ASSETS LIABILITIES 1. Quoted shares 2. MMF shares 3. Loans up to 1 year over 1 year

ASSETS

0. Total assets/liabilities: Total assets should be reported in respect of all OFI subcategories. Total assets should equal the sum of all items separately identified on the assets side of the balance sheet and should also equal total liabilities.

1. Deposits: The item “deposits” is separately required for all types of investment funds reporting separately and for SDDs. In the case of FCLs, this item should be allocated to “other assets”. This item (7) consists of two main subcategories: — Transferable deposits: Deposits (in national or in foreign currency) which are immediately convertible into currency or which are transferable by cheque, banker’s order, debit entry or the like, both without any kind of significant restriction or penalty (ESA 95, paragraphs 5.42 to 5.44). — Other deposits: All holdings in deposits other than transferable deposits. Other deposits cannot be used to make payments at any time and they are not convertible into currency or transferable deposits without any kind of significant restriction or penalty. This subcategory includes time deposits, savings deposits etc (ESA 95, paragraphs 5.45 to 5.49). Holdings of currency should also be included under this item. Currency comprises notes and coins in circulation that are commonly used to make payments. This item is expected to be insignificant. Valuation rules: in line with the ESA 95, deposits should be reported at face value, excluding accrued interests.

2. Loans: Data relating to “loans” are to be reported separately only for the subcategory FCLs. For the subcategories investment funds and SDDs, loans should be allocated under “other assets”. However, in addition, for the purpose of compiling MUFA, loans (with maturities of up to one year and over one year) should also be separately identified as a memorandum item for the subcategory “total investment funds”. Loans are funds lent by reporting OFIs to borrowers, which are not evidenced by negotiable documents or are represented by a single document (even if it has become negotiable). This item consists of: — loans granted to households in the form of consumer credit (loans granted for the purpose of personal use in the consumption of goods and services), lending for house purchases (credit extended for the purpose of investing in housing, including building and home improvements), and other (loans granted for purposes such as business, debt consolidation, education, etc.), — financial leases granted to third parties, — bad debt loans that have not yet been repaid or written off, — holdings of non-negotiable securities, — subordinated debt in the form of loans. Valuation rules: in line with the treatment of loans made by MFIs, loans made by OFIs should, in principle, be recorded gross of all related provisions, both general and specific, until the loans are written off by the reporting institution, at which point the loans are removed from the balance sheet. In accordance with the general principle of accruals accounting, interest earned on loans should be subject to on-balance-sheet recording as it accrues (i.e. on an accruals basis), rather than when it is actually received or paid (i.e. on a cash basis). Accrued interest on loans should be classified on a gross basis under the category “other assets”. Accrued interest should be excluded from the loan to which it relates, which should be valued at the nominal amount outstanding on the reporting date.

3. Securities other than shares: This item is separately required for all subcategories of OFIs, except for other OFIs. This item refers to holdings of securities other than shares and other equity which are usually negotiable and traded on secondary markets or can be offset on the market and which do not grant the holder any ownership rights over the issuing institution. This item includes holdings of securities which give the holder the unconditional right to a fixed or contractually determined income in the form of coupon payments and/or a stated fixed sum at a specific date (or dates) or starting from a date defined at the time of issue. It also includes negotiable loans that have been restructured into a large number of identical documents and that are traded on organised markets. Valuation rules: in line with the ESA 95, securities other than shares should be reported at market value. A maturity split (initial maturity) “up to one year” and “over one year” of “securities other than shares” is required for the OFI subcategory “investment funds” (total investment funds and investment funds broken down by type of investment).

4. Shares and other equity (excluding investment fund shares): This item is separately required for all subcategories of OFIs, except for other OFIs. This refers to holdings of securities which represent property rights in corporations or quasi-corporations. These securities generally entitle the holders to a share in the profits of corporations or quasi-corporations and to a share in their own funds in the event of liquidation. This category comprises three main subcategories: — quoted shares, excluding investment fund shares: Shares with prices quoted on a recognised stock exchange or other form of secondary market (ESA 95, paragraphs 5.88 to 5.93). Data on quoted shares should be provided separately for the subcategory “total investment funds”, — unquoted shares, excluding investment fund shares: Shares that are not quoted (ESA 95, paragraphs 5.88 to 5.93), — other equity: All transactions in other equity that are not covered by quoted and unquoted shares (ESA 95, paragraphs 5.94 and 5.95). Valuation rules: In line with the ESA 95, shares and other equity should be reported at market value.

5. Investment fund shares/units: Holdings of investment fund shares/units are to be reported as a separate item only for the subcategories investment funds (total investment funds and all types of investment funds) and SDDs. For the subcategory FCLs, investment fund shares/units should be allocated under “other assets”. Investment fund shares/units are shares/units issued by a specific type of financial corporation, whose exclusive purpose is to invest the funds collected on the money market, the capital market and/or the real estate market. Investment fund shares/units are exclusively liabilities of MFIs (only MMFs) and investment funds classified as OFIs. Shares/units of investment funds issued give the holders rights regarding the capital invested and on the returns arising from such investments but usually do not give any evidence of control of the collective investment (such as voting rights or participation in management). Valuation rules: in line with the ESA 95, investment fund shares/units should be reported at market value. In addition, for the subcategory “total investment funds”, holdings of MMF shares are reported.

6. Fixed assets: This item consists of: — tangible fixed assets for investment purposes (investments in dwellings, other buildings and structures, non-residential buildings). This part is identified as holdings of “real estate”, — non-financial assets, tangible or intangible, which are intended to be used repeatedly for more than one year by reporting OFIs. They include land and buildings occupied by the OFIs, as well as equipment, software and other infrastructures. “Fixed assets” are separately identified for total investment funds and also for investment funds broken down by type of investment and by type of investor. In the case of investment funds broken down by investment, fixed assets should only be separately identified for real estate, mixed and other funds, since these three types of funds are expected to hold real estate for investment purposes. All other categories of funds broken down by investment also have fixed assets, but the amount is expected to be insignificant as they would be mainly fixed assets for own use (buildings occupied by the OFI, equipment, software and other infrastructures). Where fixed assets do not have to be reported as a separate item, they will be allocated under “other assets”.

7. Financial derivatives: Data relating to “financial derivatives” are to be reported as a separate item only for the subcategories investment funds (total investment funds and all types of investment funds) and SDDs. In the case of FCLs, this item should be allocated under “other assets”. This item consists of all transactions in financial derivatives, i.e. financial assets based on or derived from a different underlying instrument. The underlying instrument is usually another financial asset, but may also be a commodity or an index (ESA 95, paragraph 5.65). The reporting of “financial derivatives” in the OFI reporting scheme should in principle be in line with the recommended treatment in the MFI reporting scheme. In this context, the Guidance Notes to the Regulation ECB/2001/13 on the MFI balance sheet statistics (8) state that, in accordance with existing international statistical standards, financial derivative instruments that have a market value should in principle be subject to on-balance-sheet recording. Derivatives have a market value when they are traded on organised markets (exchanges) or in circumstances in which they can be regularly offset on over-the-counter (OTC) markets. Under this item, the following financial derivatives should be reported: — options, tradable and OTC, — warrants, — futures, but only if they have a market value because they are tradable or can be offset, — swaps, but only if they have a market value because they are tradable or can be offset. Financial derivatives that are subject to on-balance-sheet recording should be entered at their market value, which is the prevailing market price or a close equivalent (fair value). Derivatives should be recorded on the balance sheet on a gross basis. Individual derivative contracts with gross positive market values should be recorded on the asset side of the balance sheet and contracts with gross negative market values on the liability side. Gross future commitments arising from derivative contracts should not be entered as on-balance-sheet items. It is recognised that financial derivatives may be recorded on a net basis according to different valuation methods. In the case that only net positions are available, or positions are recorded other than at market value, these positions should be reported as default. No breakdowns (by sector, currency, etc.) are requested.

8. Other assets: This item is separately required for all subcategories of OFIs, except for other OFIs. This item comprises assets not included elsewhere, such as: — accrued interest receivable on loans and accrued rent on buildings, — dividends to be received, — amounts receivable not related to the main OFI business, — gross amounts receivable in respect of suspense items, — gross amounts receivable in respect of transit items, — other assets not separately identified e.g. fixed assets, loans, deposits (depending on the subcategory of OFI). The above list is not comprehensive and varies according to the type of reporting category (see last bullet point). Indeed, the balance sheet required by type of subcategory of OFI varies according to the activity undertaken by the subcategory of OFI. Only the main items of the balance sheet are separately identified. All amounts that cannot be allocated in one of these main balance sheet items (BSI) should be allocated in “other assets”, e.g. as investment funds are not expected to grant loans, the item “loan” is not separately identified in the balance sheet. However, in the case that investment funds did in fact grant loans, this amount should be allocated in “other assets”. NCBs are required to provide details on the components of “other assets” in the explanatory notes.

LIABILITIES

0. Total assets/liabilities: Total liabilities should equal the sum of all items separately identified on the liability side of the balance sheet and should also equal total assets (see also “asset items — total assets/liabilities”).

9. Deposits and loans taken: This item is to be separately identified for investment funds, SDDs and FCLs. This item consists of: — Deposits: Transferable deposits and other deposits (see asset side) placed with OFIs. These deposits are generally placed by MFIs. — Loans: Loans granted to the reporting OFIs which are not evidenced by documents or are represented by a single document (even if it has become negotiable).

10. Debt securities issued: This item is to be separately reported for SDDs and FCLs. In the case of investment funds, this item is to be allocated under “other liabilities”, and is expected to be insignificant. This item refers to securities other than equity, which are instruments usually negotiable and traded on secondary markets or which can be offset on the market and which do not grant the holder any ownership rights over the issuing institution. In some countries, OFIs may issue negotiable instruments with characteristics that are similar to those of debt securities issued by MFIs. In this reporting scheme, all such instruments would be classified as debt securities.

11. Capital and reserves: This item is to be separately reported for SDDs and FCLs. In the case of investment funds, this item is to be allocated under “other liabilities”. This item comprises the amounts arising from the issue of equity capital by reporting OFIs to shareholders or other proprietors, representing for the holder property rights in the OFI and generally an entitlement to a share in its profits and to a share in its own funds in the event of liquidation. Funds arising from non-distributed benefits or funds set aside by reporting OFIs in anticipation of likely future payments and obligations are also included. Capital and reserves comprise the following elements: — equity capital, — non-distributed benefits or funds, — specific provisions against loans, securities and other types of assets, — operating profit/loss.

12. Investment fund shares/units issued: This item is to be separately reported only for the subcategory investment funds as only investment funds issue investment fund shares/units. This item refers to shares or units issued by investment funds other than MMFs.

13. Financial derivatives: See “asset items — financial derivatives”.

14. Other liabilities: This item is separately required for all subcategories of OFIs, except for other OFIs. This item is similar to the MFIs’ “remaining liabilities” except that it excludes financial derivatives. This item comprises liabilities not included elsewhere, such as: — gross amounts payable in respect of suspense items, — gross amounts payable in respect of transit items, — accrued interest payable on deposits, — dividends to be paid, — amounts payable not related to the main OFI business, — provisions representing liabilities against third parties, — margin payments made under derivative contracts, representing cash collateral placed to protect against credit risk but remaining in the ownership of the depositor and being repayable to the depositor when the contract is closed out, — net positions arising from securities lending without cash collateral, — net amounts payable in respect of future settlements of transactions in securities. The above list is not comprehensive and varies according to the type of reporting category. Indeed, the balance sheet required by the type of subcategory of OFI varies according to the activity undertaken by the subcategory of OFI. Only the main items of the balance sheet are separately identified. All amounts that cannot be allocated in one of these main items of the liability side should be allocated in “other liabilities”, e.g. as investment funds are not expected to issue “debt securities”, the item “debt securities” is not separately identified in the liability side. However, in the case that investment funds did in fact issue securities, this amount should be allocated in “other liabilities”. NCBs are required to provide details on the components of “other liabilities” in the explanatory notes.

ACCOUNTING RULES

Accounting rules followed by OFIs in drawing up their accounts should in principle comply with the national transposition of Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions (9) and any other international standards applicable. Without prejudice to the prevailing accounting practices in Member States, all assets and all liabilities are to be reported on a gross basis for statistical purposes. Specific guidance in the valuation methods are given under the relevant categories.

GEOGRAPHICAL, SECTORAL AND BY PURPOSE BREAKDOWN

The ECB requires, for some subcategories of OFIs and for a limited number of BSI, a geographical and sectoral breakdown similar to the MFI BSI.

Geographical and sectoral breakdowns

ASSETS LIABILITIES A. Domestic residents MFIs Non-MFIs Of which non-financial corporations (S.11) (10) Of which households, etc. (S.14) B. Residents of the other participating Member States MFIs Non-MFIs Of which non-financial corporations (S.11) Of which households, etc. (S.14) C. Residents of the rest of the world A. Domestic residents MFIs Non-MFIs B. Residents of the other participating Member States MFIs Non-MFIs C. Residents of the rest of the world

Geographical breakdowns

The compilation of OFI statistics for the euro area requires the identification of counterparties located in the participating Member States with a breakdown between domestic territory and other participating Member States. The full geographical breakdown required is therefore “domestic/other participating Member States/rest of the world”. In the case of non-participating Member States, the breakdown is “domestic/participating Member States/rest of the world”.

The geographical breakdown required relates to BSIs of:

— total investment funds/investment funds by type of investment policy: In particular for “securities other than shares”, “shares and other equity”, “investment fund shares/units” (asset side) and “investment fund shares issued” (liability side). In the case of the asset side, the information is to be provided as a key indicator, in the case of the liability side, it should be provided as memo item.

— FCLs: The item “loans” should provide a domestic/other participating Member States geographical breakdown (as a key indicator).

Sectoral breakdowns (11)

The main sectoral breakdown required is “MFI/non-MFI”. The definition of MFI is well known while “non-MFI” comprises the sectors “general government” (12) and “other resident sectors” (13).

The sectoral breakdown required for the domestic data and other participating Member States data is the same. No sectoral breakdown is required for the rest of the world data.

The sectoral breakdown is required for a limited number of items:

— It should be transmitted as a “memo item” for the subsector “investment funds” (for total investment funds and for investment funds by type of investment) and only for those items for which a geographical breakdown is required.

— It should be transmitted as a “key indicator” for the subsector “financial corporations engaged in lending” in respect to the item “loans”. A further identification of “loans” granted to “non-financial corporations and households” is, however, also required, only for this subcategory of OFIs and item.

Breakdown by purpose

This breakdown is only required for data relating to FCLs. It refers to the BSI “loans” and in particular to “loans” to households for which the purpose of the loan should be identified (broken down into consumer credit, lending for house purchases and other lending (residual)). This breakdown is required as a key indicator.

4.2. Adjustment data

Adjustment data should be reported only in the case of significant breaks in stocks. For example, adjustment data should be provided due to reclassifications in the context of the implementation of the ESA 95 framework. Data should be provided where currently available, on a voluntary basis.

4.3. Transactions data

Under the short-term approach to OFI statistics, data on financial transactions and sales and repurchases of units/shares issued by investment funds are to be provided as “memorandum items” for the subsector “investment funds” (for total investment funds and for investment funds by type of investment).

Instrument and maturity breakdown: The table below provides an overview of the required instrument and maturity breakdown of transactions data.

Overview of the instrument and maturity breakdown of transaction data

INSTRUMENT AND MATURITY CATEGORIES ASSETS LIABILITIES 1. Deposits 2. Securities other than shares up to 1 year over 1 years 3. Shares and other equity (14) 4. Investment fund shares/units 5. Fixed assets (15) 6. Other assets (including loans and financial derivatives) (16) 1. Deposits and loans taken 2. Investment fund shares/units issued 3. Other liabilities (including debt securities, capital and reserves, financial derivatives) Total assets = Total liabilities (reported by all categories)

Sales and repurchases of investment fund shares/units: The table below provides an overview of the required instrument breakdown of data on sales and repurchases of investment fund shares/units.

Sales and repurchases of investment fund shares/units

INSTRUMENT CATEGORIES ASSETS LIABILITIES 1. Investment fund shares/units issued — sale of new shares 2. Investment fund shares/units issued — repurchase of shares

Additional requirements for the purposes of compiling MUFA: The table below provides an overview of the required additional instrument and maturity breakdown of transactions data.

Additional requirements for the purposes of MUFA compilation

INSTRUMENT AND MATURITY CATEGORIES ASSETS LIABILITIES 1. Quoted shares 2. MMF shares 3. Loans up to 1 year over 1 year

4.4. Reporting frequency, timeliness and time range

The reporting frequency to the ECB is quarterly.

OFI statistics are transmitted to the ECB at the latest on the last calendar day of the third month following the end of the reference period, or on the preceding NCB business day (17) if the last calendar day of the month is not an NCB business day. The exact transmission dates are communicated to NCBs in advance in the form of a reporting calendar. Historical quarterly data are to be transmitted to the ECB starting with those for the first available reference period, at least starting with the data for the reference period fourth quarter 1998.

5. Electronic transmission of OFI statistics — key family identifier: OFI

The OFI key family refers to euro area OFI balance sheet statistics. It has been designed in such a way as to draw as much as possible on the key family code lists and values already defined for BSI statistics.

5.1. Dimensions

The table below describes the dimensions used in the OFI key family. For the OFI statistics, 11 dimensions have been specified as essential to identify the time series.

Position In key: Concept (mnemonic) Concept name Value format Code list (mnemonic) Code list name Dimensions 1 FREQ Frequency AN1 CL_FREQ Frequency code list (BIS, ECB) 2 REF_AREA Reference area AN2 CL_AREA_EE Area code list (Eurostat BoP, ECB) 3 ADJUSTMENT Adjustment indicator AN1 CL_ADJUSTMENT Adjustment indicator code list (BIS, ECB) 4 OFI_REP_SECTOR OFI reference sectoral breakdown AN2 CL_OFI_REP_SECTOR OFI reference sectoral breakdown code list (ECB) 5 OFI_ITEM OFI balance sheet item AN3 CL_OFI_ITEM OFI balance sheet item code list (ECB) 6 MATURITY_ORIG Original maturity AN1 CL_MATURITY_ORIG Original maturity code list (ECB) 7 DATA_TYPE Data type AN1 CL_DATA_TYPE Money and banking type of data, flow and position (ECB, BIS) 8 COUNT_AREA Counterparty area AN2 CL_AREA_EE Area code list (Eurostat BoP, ECB) 9 BS_COUNT_SECTOR Balance sheet counterparty sector AN4 CL_BS_COUNT_SECTOR Balance sheet counterparty sector code list (ECB, BIS) 10 CURRENCY_TRANS Currency of transaction AN3 CL_CURRENCY Currency code list (ECB, BIS, Eurostat BoP) 11 SERIES_DENOM Denomination of the series or special calculation AN1 CL_SERIES_DENOM Denomination of the series or special calculation code list (ECB)

Each of the 11 statistical dimensions takes its values from a corresponding code list. For example, according to the table above, the dimension REF_AREA (reference area) takes its values from the CL_AREA_EE code list. The dimensions of the OFI key family are described below, following the same sequence as they appear in the key.

Dimension No 1: Frequency (FREQ; length: one character)

This dimension indicates the frequency of the reported time series. The value used in the OFI key family is “Q” for quarterly data and is a subset of the values specified in the code list CL_FREQ. When national data are only available at a lower frequency (i.e. half-yearly or annual), NCBs estimate quarterly data. When quarterly estimates are not feasible, data are nevertheless provided as quarterly time series (i.e. annual data are provided as yyyyQ4 and half-yearly data are provided as yyyyQ2 and yyyyQ4 with the remaining quarters either not reported or reported as missing with observation status “L” (18)).

Dimension No 2: Reference area (REF_AREA; length: two characters)

This dimension represents the country of residence of the reporting institution. The associated code list CL_AREA_EE contains the standard ISO country list and some additional values (see also dimension No 8: Counterparty area). The subset of values used in the OFI key family corresponds to the European Union (EU) Member States.

Dimension No 3: Adjustment indicator (ADJUSTMENT; length: one character)

This dimension indicates whether a seasonal adjustment and/or a working day adjustment have been applied. The corresponding code list is CL_ADJUSTMENT. The value used in the OFI key family is “N” for neither seasonally nor working day adjusted series.

Dimension No 4: OFI reference sectoral breakdown (OFI_REP_SECTOR; length: two characters)

This dimension indicates which type of OFI is reporting and is linked to the code list CL_OFI_REP_SECTOR. The following 11 values have been defined: total investment funds (“10”); investment funds broken down by type of investment: equity funds (“11”), bond funds (“12”), mixed funds (“13”), real estate funds (“14”) and other funds (“15”); investment funds broken down by type of investor: general public funds (“1G”) and special investors funds (“1S”); SDDs (“20”); FCLs (“30”) and other categories of OFIs (“40”).

Dimension No 5: OFI balance sheet item (OFI_ITEM; length: three characters)

This dimension represents the BSI of the OFI balance sheet and is linked to the code list CL_OFI_ITEM. Values for assets and liabilities are identified by the prefix “A” or “L” and are organised and coded following, wherever possible, a hierarchical relation among the items. Since OFIs concentrate on different financial activities depending on their type, not all BSIs apply to all the types. In particular, on the asset side two different items have been defined for “other assets”:

— other assets (including loans) (“A8A”) which applies to all categories of OFIs except FCLs, and

— other assets (including deposits, cash, investment fund shares, fixed assets and financial derivatives) (“A8B”) which applies to FCLs.

On the liability side three different items have been defined for “other liabilities”:

— other liabilities (excluding debt securities, capital and reserves and financial derivatives) (“L6A”) which applies to SDDs,

— other liabilities (including financial derivatives) (“L6B”) which applies to FCLs, and

— other liabilities (including debt securities and capital and reserves) (“L6C”) which applies to the investment funds categories.

Dimension No 6: Original maturity (MATURITY_ORIG; length: one character)

This dimension represents the original maturity of the BSI and is linked to the code list CL_MATURITY_ORIG. The maturity breakdown up to one year (“F”) and over 1 year (“K”) applies to the item “securities other than shares” for the investment funds categories. Conceptually, although the maturity breakdown is not required in this context, original maturity also applies to the asset items “loans” and “deposits” and the liability items “deposits and loans taken” and “debt securities issued”. In these cases the value “A” is therefore used for total maturity. All other items show the value “X” for not applicable.

Dimension No 7: Data type (DATA_TYPE; length: one character)

This dimension is described by the code list CL_DATA_TYPE and indicates the type of data to be reported: gross stocks (“1”), sales (“2”), repurchases (“3”), financial transactions (“4”), and reclassification and other adjustments (“5”). Reclassification and other adjustments comprise changes in the assets and liabilities on the balance sheet of the OFI reporting sector arising from 1) changes in the reporting population; 2) corporate restructuring; 3) the reclassification of assets and liabilities; and 4) the correction of those reporting errors which, for technical reasons, cannot be removed from the stock data for the complete relevant period.

Dimension No 8: Counterparty area (COUNT_AREA; length: two characters)

This dimension represents the area of residence of the counterparty of the OFI balance sheet. The code list linked to this concept is CL_AREA_EE, which contains the standard ISO country list and additional values (e.g. “U6” — “Domestic: same country as of the reporting OFI”). For the purpose of the OFI key family a subset of values is used: domestic (home or reference area) (“U6”); other participating Member States (all countries except the reference area) (“U5”); rest of the world (“U4”) and world (all entities) (“A1”). When a country becomes a participating Member State, historical data referring to the pre-entry period are provided using the counterparty area codes Monetary Union (“U2”) and all areas other than the participating Member States and reference/home area(“U8”) (19).

Dimension No 9: Balance sheet counterparty sector (BS_COUNT_SECTOR; length: four characters)

This dimension represents the sectoral breakdown of the OFI BSI and is linked to the code list CL_BS_COUNT_SECTOR. Five counterparty sectors are required: MFIs (“1000”); non-MFIs (“2000”); other resident sectors — o/w non-financial corporations (“2240”); other resident sectors — o/w households (“2251”) and the unspecified sector (“0000”).

Dimension No 10: Currency of transaction (CURRENCY_TRANS; length: three characters)

This dimension describes the currency in which the OFI BSIs are denominated and is linked to the code list CL_CURRENCY. Only the value “Z01” is used for all currencies combined.

Dimension No 11: Denomination of the series or special calculation (SERIES_DENOM; length: one character)

This dimension specifies whether the reported series is expressed in national or in the common (euro) currency. It has two values (“N”, national currency and “E”, euro), that are represented by the code list CL_SERIES_DENOM. The code “E” is used by the participating Member States, while the code “N” is used by new participating Member States for the provision of historical data for the pre-entry period (20).

5.2. Attributes

In addition to the 11 dimensions defining the key, a set of attributes has been defined (21). These are attached at various levels of the exchanged information:

Balance sheet items key family (ECB_OFI): coded and uncoded attributes

Assignment level Statistical concept Value format Code list Attributes at sibling level (exchanged using the FNS group) Sibling TITLE_COMPL Title complement AN..1050 Uncoded Sibling UNIT Unit AN..12 CL_UNIT Unit code list (BIS, ECB, Eurostat BoP) Sibling UNIT_MULT Unit multiplier AN..2 CL_UNIT_MULT Unit multiplier code list (BIS, ECB, Eurostat BoP) Sibling DECIMALS Decimals N1 CL_DECIMALS Decimals code list (BIS, ECB) Sibling TITLE Title AN..70 Uncoded Sibling NAT_TITLE National language title AN..350 Uncoded Sibling COMPILATION Compilation AN..1050 Uncoded Sibling COVERAGE Coverage AN..350 Uncoded Attributes at time series level (exchanged using the FNS group) Time series COLLECTION Collection indicator AN1 CL_COLLECTION Collection indicator code list (BIS, ECB) Time series AVAILABILITY Availability AN1 CL_AVAILABILITY Organisation availability code list (BIS, ECB) Time series DOM_SER_IDS Domestic series ids AN..70 Uncoded Time series BREAKS Breaks AN..350 Uncoded Attributes at observation level (exchanged together with the data in the main ARR segment) Observation OBS_STATUS Observation status AN1 CL_OBS_STATUS Observation status code list (BIS, ECB, Eurostat BoP) Observation OBS_CONF Observation confidentiality AN1 CL_OBS_CONF Observation confidentiality code list (Eurostat BoP, ECB) Observation OBS_PRE_BREAK Pre-break observation value AN..15 - Observation OBS_COM Observation comment AN..350 Uncoded

Each of these attributes is characterised by some technical properties, which are listed in the table below.

Euro area NCBs reporting to the ECB

Common attribute properties for the ECB_OFI key family

Status First value set by… (23) Modifiable by NCBs TITLE_COMPL M ECB No UNIT M ECB No UNIT_MULT M ECB No DECIMALS M ECB No TITLE C ECB No NAT_TITLE C NCB Yes COMPILATION C NCB Yes (22) COVERAGE C NCB Yes (22) COLLECTION M ECB No AVAILABILITY M ECB/NCB Yes DOM_SER_IDS C NCB Yes BREAKS C NCB Yes OBS_STATUS M NCB Yes OBS_CONF C NCB Yes OBS_PRE_BREAK C NCB Yes OBS_COM C NCB/ECB Yes M:Mandatory, C: Conditional

Below is a description of each attribute including the reference code list (indicated in capital letters as CL_****) whenever it applies.

5.2.1. Attributes at sibling level

Mandatory:

— TITLE_COMPL (uncoded): The title complement is set, stored and disseminated by the ECB (in English with a maximum length of 350 characters). If an NCB would like to make a modification, a revision can be made after consultation with the ECB. This revision will however be made by the ECB.

— UNIT (code list: CL_UNIT): This attribute provides the unit of measure of the reported data. Participating Member States report the data in euro and the ECB sets this attribute to “EUR” (DENOM = “EUR”). In the case that a country becomes a participating Member State, the ECB sets the value of this attribute equal to the corresponding national currency in the case of historical data referring to the pre-entry period (24).

— UNIT_MULT (code list: CL_UNIT_MULT): This attribute provides information on whether the series is expressed in millions (UNIT_MULT = “6”), billions (UNIT_MULT = “9”), etc. NCBs report the data in millions and the ECB sets the value of the attribute at 6 (UNIT_MULT = “6”).

— DECIMALS (code list: CL_DECIMALS): This attribute indicates the number of decimal places given for the values of the observations. NCBs report the data with three decimal places and the ECB sets the value of the attribute at 3 for all series (hence DECIMALS = “3”).

Conditional:

— TITLE (uncoded): The series title allows a maximum of only 70 characters. In view of the limited space, the TITLE COMPLEMENT is used instead as the mandatory attribute. The TITLE attribute could be used for the construction of short titles.

— NAT_TITLE (uncoded): NCBs may use this attribute in order to provide a precise description and other supplementary specifications in the national language. Although the use of upper and lower case letters does not cause problems, the exchange of accented characters and extended alphanumeric symbols still needs to be tested before regular use.

— COMPILATION (uncoded): This attribute is used for providing detailed textual explanations of the compilation methods applied and comprises information such as: — data sources/data collection system, — compilation procedures (including description of estimations/assumptions made), — legal framework: information relating to the national legal framework and the links with EU directives for each type of OFI, — deviations from the ECB reporting instructions (instrument/maturity/geographical/sectoral classification and valuation methods), — criteria for classifying investment funds by type.

A detailed description of the information to be included under this attribute is provided in Appendix 2 (points 1 to 5).

— COVERAGE (uncoded): This attribute describes the reporting population coverage and should be specified under the series total assets/liabilities. It should describe the type of OFIs covered in the main categories. If the coverage is known to be partial, an estimation of the market share is provided. Further it should indicate whether the figures have been grossed up. Further details regarding the information to be included under this attribute are provided in Appendix 2 (point 6).

5.2.2. Attributes at time series level

Mandatory:

— COLLECTION (code list: CL_COLLECTION): This attribute provides an explanation of the time when observations are collected (e.g. beginning, middle or end of period) or an indication of whether data are averages, the highest or lowest in a given period etc. The ECB sets the OFI series as “end-of-period” (COLLECTION = “E”).

— AVAILABILITY (code list: CL_AVAILABILITY): This attribute indicates the institutions to which the data can be made available. When special treatment for specific observations is needed, the observation confidentiality attribute can be used (see below).

Conditional:

— DOM_SER_IDS (uncoded): This attribute allows reference to be made to the code used in national databases to identify the corresponding series (formulae using national reference codes can also be specified).

— BREAKS (uncoded): This attribute provides a description of breaks and major changes over time in the collection, reporting coverage and compilation of the series. In the case of breaks, it is desirable to state the extent to which old and new data may be considered comparable (up to 350 characters).

5.2.3. Attributes at observation level

Mandatory:

— OBS_STATUS (code list: CL_OBS_STATUS): NCBs report an observation status value attached to each communicated observation. This attribute is mandatory and must be provided with every data transmission for every individual observation. When NCBs revise the value of this attribute, both the observation value (even if unchanged) and the new observation status value are reported. The list below specifies the expected values (according to the agreed hierarchy) for these attributes for the purpose of the OFI statistics: “A” = normal value, “B” = break value (25), “M” = non-applicable data (26), “L” = data exist but are not collected (27), “E” = estimated value/assumption, “P” = provisional value (this attribute can be used, in particular, with each data transmission referring to the last observation) (28).

— If an observation is qualified by two characteristics, the most important is reported. If, for example, an observation is both a provisional value and the result of an estimate, priority is given to the “estimate” property, and the value “E” is used.

Conditional:

— OBS_CONF (code list: CL_OBS_CONF): If an NCB wishes to differentiate between the confidentiality status of one or more specific observations, it may use the OBS_CONF attribute. The value of this attribute (if any) may be modified at the time of the data transmission by the sender of the information.

— OBS_PRE_BREAK: This attribute contains the pre-break observation value, which is a numeric field like the observation. It is provided when a series break occurs. For the purpose of the OFI key family, this attribute is not requested since this information is already available from the reclassification series. It has been added to the list of attributes since it is part of the common subset of attributes for all key families. However, if the observation status “B” (break value) is provided, it must be accompanied by a pre-break observation value.

— OBS_COM (uncoded): This attribute can be used to provide textual comments at the observation level (e.g. describing the estimate or assumption made for a specific observation due to lack of data, explaining the reason for a possible abnormal observation or giving details of a change in the reported time series).

6. Exchange of information

6.1. List of series

The ECB maintains and distributes to the NCBs tables containing lists with series keys of OFI time series to be transmitted. The series to be provided to the ECB are set out in Appendix 1. The following series to be reported can be distinguished:

KEY INDICATORS

The stock data to be reported under this category refer to:

Total investment funds and investment funds broken down by type of investment:

— Total funds: Balance sheets broken down by instrument, maturity and geographical counterparty (total of 29 series).

— Investment funds broken down by type of investment policy: Subject to minor differences, the breakdowns required are the same as those for total investment funds. The data to be reported under this category cover: — equity funds and bond funds balance sheets (total of 28 series for each category), — mixed funds balance sheets (total of 29 series), — real estate funds balance sheets (total of 20 series), — other funds balance sheets (total of 29 series).

— SDDs (total of 12 series).

— FCLs balance sheets broken down by instrument, sector and geographical counterparty and the BSI “loans” broken down by purpose (total of 32 series).

MEMORANDUM ITEMS

The stock data to be reported under this category refer to:

— Total investment funds: Balance sheet data broken down by sector MFI/non-MFI (total of 27 series); additional requirements for the purposes of MUFA compilation (5 series).

— Equity funds (27 series), bond funds (27 series), mixed funds (27 series), real estate funds (15 series), other funds (27 series): Balance sheet for investment funds by type of investment broken down by sector MFI/non-MFI.

— Balance sheet data on general public funds (12 series) and special investors funds (12 series).

— Total assets/liabilities for other categories of OFI (1 series).

ADJUSTMENTS AND TRANSACTIONS DATA

In addition to the series on stocks, the corresponding series on “reclassification and other adjustments” and “transactions”, including data on sales and repurchases of investment fund shares/units, are required when available.

6.2. Data requirements

Key indicators should be transmitted by all participating Member States when actual data are available. When no actual data are available for certain breakdowns or for the agreed quarterly frequency, estimates are to be provided if feasible.

“Supplementary data” should only be transmitted by those countries for which actual data are available.

In the case that the underlying economic phenomenon exists but is not monitored statistically and therefore national estimates cannot be provided, NCBs may choose either not to report the time series or to report it as missing with observation status “L”. Any time series that is not reported will therefore be interpreted as “data that exist but are not collected” and assumptions/estimates may be made at ECB level for the purpose of compiling euro area aggregates.

For transactions data, where transactions are estimated by taking the change in stocks (Qt-Qt-1), NCBs should either not report the time series or report it as missing with observation status “L”.

If the underlying phenomenon does not exist, then the time series must be reported as missing with observation status “M”.

In the case of data on “reclassifications and other adjustments”, data must only be reported when a reclassification or other adjustment as described in Section 4.2 occurs.

7. Revision policy

NCBs may have to revise the data transmitted the previous quarter (ordinary revisions). In addition, revisions to data on earlier quarters (historical revisions) may also occur.

The following general principles apply:

— On the occasion of all regular quarterly data transmissions, in addition to the data on the latest quarter, only “ordinary” revisions (i.e. revisions to the data transmitted the previous quarter) can be sent.

— “Historical” revisions should be limited and reported on a different date from the regular reporting. In principle, minor routine historical revisions to the data should only be provided on a yearly basis (together with the transmission of data for the fourth quarter). However exceptionally, historical revisions, which significantly improve the quality of the data, may be accepted during the year (outside the regular production cycles).

— the case of significant revisions explanatory notes must be provided to the ECB.