[Federal Register Volume 75, Number 119 (Tuesday, June 22, 2010)]
[Rules and Regulations]
[Pages 35289-35291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14996]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules
and Regulations
[[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
[email protected]; 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 [email protected], 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 [email protected], 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]
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