EUROSYSTEM...5. Consolidation basis The reporting of QIFS shall be done on a consolidated basis only in the case that a fund has one or more “artificial subsidiaries”. “Artificial

CENTRAL BANK OF CYPRUS

EUROSYSTEM

STATISTICS DEPARTMENT

INSTRUCTIONS CONCERNING THE REPORTING OF

INVESTMENT FUNDS STATISTICS

June 2016

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Table of Contents

SECTION I: INTRODUCTION ....................................................................................................... 3

1. Purpose of the Survey ................................................................................................... 3

2. Legal basis ...................................................................................................................... 3

3. Reporting population .................................................................................................... 4

4. Reporting requirements ................................................................................................ 4

5. Consolidation basis ........................................................................................................ 5

6. Frequency of reporting .................................................................................................. 5

7. Revision policy ............................................................................................................... 5

SECTION II: COMPLETION OF THE EXCEL TEMPLATE................................................................. 6

1. Form 1: General Information......................................................................................... 6

2. Form 2: Balance Sheet .................................................................................................. 7

3. Form 3: IF shares/units issued, per holder ................................................................... 8

SECTION III: TECHNICAL INFORMATION AND DATA VALIDATIONS ......................................... 10

1. Technical Information for the completion of the excel template ............................... 10

2. Data Validations .......................................................................................................... 10

2.1. Excel ..................................................................................................................... 10

2.2. Loading of data in the internal CBC database ..................................................... 11

Annex I: Excel Template .......................................................................................................... 12

Annex II: Definitions ................................................................................................................ 15

1. Fund’s classification ..................................................................................................... 15

2. Description of Balance sheet items ............................................................................. 16

2.1. Asset Categories ...................................................................................................... 16

2.2. Liability Categories .................................................................................................. 19

2.3. Reserves................................................................................................................... 20

2.4. Transaction items .................................................................................................... 20

2.5. Memo items ............................................................................................................ 21

2.6. IF shares/units issued .............................................................................................. 21

3. Institutional Sectors (ESA 2010) .................................................................................. 21

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SECTION I: INTRODUCTION

1. Purpose of the Survey The Central Bank of Cyprus (hereinafter to be referred to as “CBC”), hereby, prescribes the format and content of the statistical returns concerning the reporting of Investment Funds Statistics (hereinafter to be referred to as “QIFS”), which Investment Funds (hereinafter to be referred to as “IFs”) are required to submit to the CBC.

2. Legal basis The collection of the statistical information for the QIFS is governed by the provisions of the following legislation:

- Regulation ECB/2013/381, issued by the European Central Bank (hereinafter to be referred to as “ECB”) on 18 October 2013, concerning statistics on the assets and liabilities of investment funds.

- Guideline ECB/2014/152 on monetary and financial statistics - Regulation (EC) no. 549/2013 of the European Parliament and the Council of 21st

May 2013 on the European system of national and regional accounts in the European Union (ESA 2010)3

- Sections 63 and 64 of the Central Bank of Cyprus Laws of 2002-2013 (the “Law”)4. The Law ensures the confidentiality of the submitted data which will be used exclusively for statistical purposes and will be published only in an aggregate form without revealing the identity of the parties involved.

- Directive of the Central Bank of Cyprus for the definition of the word "resident of Cyprus" for statistical purposes, issued on 27 June 20085

The IFs are subject to the European Central Bank’s sanctions regime, based on

the Decision no.ECB/2015/50 dated 18 December 2015, which amends the Decision

no.ECB/2010/10 of 19th August 2010 on non-compliance of reporting agents with

statistical reporting requirements. The provisions of Decision ECB/2010/10 as

subsequently amended, apply for the procedure of collecting statistical information

on the assets and liabilities of Investment Funds in accordance with Regulation

ECB/2013/38(1), of 18 October 2013.

1 http://www.ecb.europa.eu/ecb/legal/pdf/en_02013r1073-20131127-en.pdf 2 http://www.ecb.europa.eu/ecb/legal/pdf/oj_jol_2014_340_r_0001_en_txt.pdf 3 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:174:0001:0727:EN:PDF 4 http://www.centralbank.gov.cy/nqcontent.cfm?a_id=11324&lang=gr 5 http://www.centralbank.gov.cy/nqcontent.cfm?a_id=11622

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This decision adopts a harmonised approach concerning the procedure and the

calculation of sanctions to be followed by ECB in case Investment Funds fail to comply

with their statistical reporting obligations in relation to their assets and liabilities.

3. Reporting population Regulation ECB/2013/38 is legally binding on all entities which are resident of Cyprus and fulfil the relevant definition of an IF, as set out in Article 1. Therefore, the following entities should submit the required statistical data to the CBC:

1. Open – Ended Undertakings for Collective Investment (UCITS) regulated by the Cyprus Securities and Exchange Commission according to Law N.78(I)/2012 on UCITS,

2. Alternative Investment Funds (AIF), regulated by the Cyprus Securities and Exchange Commission according to Law Ν.131(Ι)/2014 on AIF,

3. Approved investment funds according to the Cyprus Securities and Stock Exchange Laws.

4. Any other entity that is deemed to fulfil the definition of an IF.

4. Reporting requirements The QIFS transpose the requirements of the above mentioned ECB legislation and they incorporate additional data requirements deemed necessary for the fulfilment of other related statistical requirements of the CBC. The required data to be submitted in the Investment Funds Statistics (QIFS) comprise information on the balance sheet, price revaluation and reclassification adjustments for items other than investments in equity and debt securities, as well as IF shares/units. In addition, information on the holders of issued shares/units should be submitted. Information concerning the investments in equity securities, investment fund shares/units and debt securities should be separately submitted as part of the Securities Holdings Statistics (SHS) survey, on a security-by-security basis. Separate excel template and accompanied instructions are provided for the submission of the SHS survey. The returns shall be duly completed and submitted to the CBC no later than 15 working days after the end of the reference month. A delivery calendar with the actual reporting dates shall be issued by the CBC every November for the following year.

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5. Consolidation basis The reporting of QIFS shall be done on a consolidated basis only in the case that a fund has one or more “artificial subsidiaries”. “Artificial subsidiaries” are defined as those Cyprus registered subsidiaries which are wholly owned by the IF and may be created to provide services to the parent or other corporations in the group, in order to manage their tax affairs, to minimise liabilities in the event of bankruptcy, or to secure other technical advantages under the tax or corporation legislation in force. They lack the ability to act independently from their parent corporation and may be subject to restrictions on their ability to hold or transact assets held on their balance sheets. In the case that an IF segregates its assets into different sub-funds in such a way that shares/units relating to each sub- fund are independently backed by different assets, each sub-fund shall be considered as an individual IF and separate returns should be submitted for each of them.

6. Frequency of reporting The frequency of reporting shall be either monthly or quarterly depending on the size of each IF. In particular, larger IFs, which cumulatively contribute to at least 95% of the total assets of the sector shall submit data on a monthly basis. Smaller IFs shall submit data on a quarterly basis. The frequency of reporting for each IF will be reviewed annually by the CBC and the IFs that are required to amend the frequency of their reporting will be notified accordingly. IFs should start submitting the statistical returns for the reference month during which they commence operations. The frequency of reporting pertaining to each fund will be communicated to the fund after the submission of its first returns.

7. Revision policy IFs may revise the data referring to the previous reference month or any periods prior to that should such a need arise. Revisions may arise from, for example valuation methods, mistakes, reclassifications, improved reporting procedure. IFs shall not systematically revise the data for the period prior to the previous reference month. In order to submit revisions, the CBC should be notified accordingly, in advance and significant revisions should be explained to the CBC by means of detailed written notes.

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SECTION II: COMPLETION OF THE EXCEL TEMPLATE

The excel template designed by the CBC for the purposes of Investment Fund Statistics (QIFS) (refer to Annex I), aims to facilitate the completion of the required statistical data in a predefined structure and format. Detailed instructions on the completion of the three forms that comprise the excel template are given below.

1. Form 1: General Information

The following information is required on Form 1: A. Reference period

The reference month and year.

B. Identification of the reporting entity The name, the registration number6, the postal address, the telephone number and the fax number of the reporting entity. In case the IF is registered with the Registrar of Companies, the name to be inserted should be the exact name as recorded in the Registry of the Registrar of Companies.

C. Identification of the representative responsible for completing the survey The name of the company responsible for completing the survey and the name, the postal address, the telephone number, the fax number and the e-mail address of the reporting officer.

D. Classification of the Investment Fund 1. Nature of investment

This field should be completed, in accordance with the fund’s investment policy, as an equity fund, bond fund, mixed fund, real estate fund, hedge funds or other fund. Please refer to Part 1 of Annex II, for detailed definitions.

2. Type of Investment Fund This field should be completed in accordance with the nature of the fund’s capital, as an open-end or a closed-end fund. Please refer to Part 1 of Annex II, for detailed definitions.

3. Exchange traded fund? It should be indicated whether the fund is an exchange traded fund or not. Please refer to Part 1 of Annex II, for a detailed definition of an exchange traded fund.

4. Private equity fund (PEF)?

6 In case no official registration number issued by the Registrar of Companies exists, the relevant field should be left empty.

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It should be indicated whether the fund is a PEF or not. Please refer to Part 1 of Annex II, for a detailed definition of a PEF.

4.1. Type of PEF7 In case the fund is a PEF, it should be indicated whether it is a synthetic PEF, or a physical PEF.

5. Listed in CSE? It should be indicated whether the fund is listed in the Cyprus Stock Exchange (CSE) or not.

E. Reporting currency

Reporting can be done in any currency and the relevant currency code shall be indicated.

2. Form 2: Balance Sheet

Balance sheet information shall be completed on Form 2. The items for which information is required, are the following, the breakdowns and definitions of which can be found in Part 2 of Annex II:

a) Assets b) Liabilities c) Reserves d) Transaction items e) Memo items

Balance sheet items shall be broken down with the following analysis: (a) per currency analysis, as per the list of currencies provided in the excel

template. (b) per country analysis, where applicable, as per the ISO country list provided in

the excel template (c) per institutional sector analysis, where applicable, as per the breakdowns

described in Part 3 of Annex II. (d) per maturity categories, where applicable, as per the maturity bands provided

below:

Code Description

UP1Y Up to one year

OV1Y Over one year

The maturity bands shall refer to the maturity at issue (original maturity).

7 A definition of the type of PEF is not currently available. Once a suitable definition for this breakdown is available from the European Securities and Markets Authority (ESMA), IFs will be informed.

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For each item, three amounts should be reported: a) Stock The position as at the end of the reference month. b) Price revaluation A price revaluation refers to fluctuations in the valuation of an item, which arise because of a change in the price at which assets and liabilities are recorded or traded. The adjustment includes holding gains/losses (i.e. changes that occur over time in the value of end-period stocks because of changes in the reference value at which they are recorded) or realised gains/losses (i.e. valuation changes that arise from transactions in assets/liabilities). In the case of immovable property, the revaluation adjustment reported should take into account any revaluations as well as any depreciation charges in the reporting month. In this regard, depreciation charges are considered downward revaluations. Upward and downward revaluation adjustments should be reported with a positive and a negative sign, respectively. c) Reclassifications Reclassifications comprise any change in the balance sheet that arises from changes in the instrument or counterparty classification or the (partial) correction of reporting errors. These changes give rise to breaks in the series, and hence affect the comparability of two successive end-of-period stocks.

3. Form 3: IF shares/units issued, per holder

IFs shall report, per holder, information on IF shares/units issued. Information is required on the nominal or NAV price of each share/unit, the currency of denomination (according to the list of currencies provided in the excel template), the country of the holder (according to the list of countries provided in the excel template), and

If the holder is resident of Cyprus8, then either the registration number of the holder or the institutional sector of the holder (according to the list of institutional sectors in Part 3 of Annex II) should be submitted.

If the holder is not resident of Cyprus, then the institutional sector of the holder (according to the list of institutional sectors in Part 3 of Annex II) should be submitted.

8 Every organisation or enterprise of any legal form which has been incorporated or registered in Cyprus, irrespective of whether or not it maintains a physical presence in Cyprus, shall be considered as "resident of Cyprus" for statistical purposes.

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The registration number should be the number assigned by the Registrar of Companies in Cyprus preceded by the appropriate letters: C = Onshore limited company O = Overseas company P = Partnership N = Old Partnership EE = Business name For example a client with registration number HE1111 should be reported as C1111. No spaces should be included in the registration number.

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SECTION III: TECHNICAL INFORMATION AND DATA VALIDATIONS The excel template contains several built-in controls and validations (in the form of restricted lists of values, predefined excel validations and custom built Macros) to assist the reporting agents in the preparation of valid and consistent data. Moreover, various controls are performed when the data are loaded in the internal CBC database. For the submission details please refer to the separate user manual.

1. Technical Information for the completion of the excel template

The following should be noted for the successful completion and submission of the excel template:

Various macros are built in the excel template for validation purposes, and therefore the macros should be enabled9.

When the space provided on the template is insufficient, the reporting agent should insert extra rows by indicating how many lines should be inserted and then pressing the button “Insert new rows”. Moreover, rows can be deleted by pressing the button “Delete row”.

After completing the template, the button “Validate submission” should be pressed in order to perform the internal validations built in the excel file. Error messages (if any) will appear on the spreadsheet “Validation Errors”, which will help you to detect and resolve the error. All errors must be resolved before the submission of the template to the CBC.

Prior to submitting the template to the CBC, the excel file should be saved as “Excel 97-2003 workbook(*.xls)”. Note that after saving the file in this format, it is possible that the macros stop working and therefore, this step should be done after completing the template and validating the data.

2. Data Validations

2.1. Excel

When pressing the button “Validate submission”, it is checked that the correct fields are completed and that each value is included in the predetermined list of values where applicable. Moreover, the following checks are performed:

The amounts in Form 2 should be mandatory (if nothing is to be reported in an item, a zero should exist).

9 In case guidance is required on this issue, your local help desk or the CBC should be contacted.

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The total reclassifications for all asset items should equal the total reclassifications for all liability items.

If “Private equity fund?” is Yes, then Type of PEF should be completed.

If “Private equity fund?” is No, then Type of PEF should be left empty.

On Form 2, a unique combination of currency, country, sector and maturity should exist for each item.

2.2. Loading of data in the internal CBC database

Various controls will also be performed when the data are loaded in the internal CBC database.

All controls implemented in the excel template will be repeated during loading of submitted data in the internal CBC database.

The registration numbers both as regards the registration number of the reporting agent (reported on Form 1) as well as the registration numbers of the holders of the issued shares/units (reported on Form 3) will be cross-checked against an internal database that holds the official registration numbers issued by the Registrar of Companies. Note that no spaces should be included in the registration number.

The version of the template will be validated, in order to ensure that the latest template is submitted.

The reference date will be validated across the date for which the request has been made.

Moreover, upon submission of both files (QIFS and SHS), the data will be validated using the following controls:

The total assets (reported on Form 2 of QIFS) plus the total market value of securities (reported on Form 2 of SHS) should equal the total liabilities (reported on Form 2 of QIFS) plus the reserves (reported on Form 2 of QIFS) plus the total NAV/nominal value of issued shares (reported on Form 3 of QIFS). Note that all amounts will be converted in euro before applying this control.

The “Market value of securities lent out or sold under repo” (reported on Form 2 of QIFS) should be less than or equal to the total market value of securities (reported on Form 2 of SHS).

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Annex I: Excel Template

Form 1

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Form 2

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Form 3

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Annex II: Definitions

1. Fund’s classification

1. Nature of investment

Equity funds are IFs primarily investing in shares and other equity.

Bond funds are IFs primarily investing in debt securities.

Mixed funds are IFs investing in both shares and debt securities with no prevalent policy in favour of one or the other instrument.

Real estate funds are IFs primarily investing in real estate.

Hedge funds are collective investment undertakings regardless of their legal structure, which apply relatively unconstrained investment strategies to achieve positive absolute returns and whose managers, in addition to management fees, are remunerated in relation to the fund’s performance. For that purpose, hedge funds have few restrictions on the type of financial instruments in which they may invest and may, therefore, flexibly employ a wide variety of financial techniques, involving leverage, short-selling or any other techniques. This definition also covers funds that invest, fully or partly, in other hedge funds provided that they otherwise meet the definition.

Other funds are IFs other than bond funds, equity funds, mixed funds, real estate funds or hedge funds.

The criteria for classifying IFs by sub-sector should be derived from the public prospectus, fund rules, instruments of incorporation, established statuses or by-laws, subscription documents or investment contracts, marketing documents or any other statement with similar effect. In case that the nature of the IF’s investment policy cannot be determined on the basis of the aforementioned documents, it should be determined based on the ex-post investment profile of the fund.

2. Type of Investment Fund

Open-end IFs are IFs the units or shares of which are, at the request of the holders, repurchased or redeemed directly or indirectly out of the undertaking’s assets.

Closed-end IFs are IFs with a fixed number of issued shares whose shareholders have to buy or sell existing shares to enter or leave the fund.

3. Exchange traded fund? An exchange traded fund (ETF) is defined as an IF, at least one unit or share class of which, is traded throughout the day on at least one regulated market or Multilateral Trading Facility with at least one market maker that takes action to ensure that the stock exchange value of its units or shares does not significantly vary from its net asset value and where applicable its indicative net asset value.

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4. Private equity fund (PEF)?

Private equity funds (PEFs) are unleveraged IFs that predominantly invest in equity instruments and instruments that are economically similar to equity instruments issued by unlisted companies. A sub-category of PEFs are venture capital funds (VCFs), which invest in start-up companies. PEFs (including VCFs) are normally constituted as closed-end funds or as limited partnerships managed by a private equity company (PEC) or venture capital company (VCC) in the case of VCFs. A PEF can either be synthetic or physical.

2. Description of Balance sheet items

2.1. Asset Categories

Item Description

Cash This item shall include holdings of euro and foreign currency banknotes and coins in circulation that are commonly used to make payments. Breakdown by currency is required.

Transferable deposits

Transferable deposits are those deposits placed with MFIs/banks, which are exchangeable for currency on demand, at par, and which are directly usable for making payments by cheque, draft, giro order, direct debit/credit or other direct payment facilities, without penalty or restriction. Transferable deposit accounts may have overdraft facilities. If the account is overdrawn, the amount of the overdraft should be classified under loans with maturity up to one year. This item should be reported excluding accrued interest. Breakdown by currency, country and institutional sector is required.

Accrued interest on transferable deposits

This item shall include Interest accrued, which relates to transferable deposits. Breakdown by country and institutional sector is required.

Other deposits This item shall include deposits placed with MFIs/banks and holdings of non-negotiable securities issued by MFIs/banks, other than transferable deposits. Other deposits cannot be used to make payments except on maturity or after an agreed period of notice, and they are not exchangeable for currency or for transferable deposits without some significant restriction or penalty. This category includes: time deposits, savings deposits, short term repurchase agreements, repayable margin payments related to financial derivatives etc.

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Item Description

Any balances with institutions other than MFIs/banks (e.g. balances with fund managers) should be reported under the item “Loans”. This item should be reported excluding accrued interest. Breakdown by currency, country and institutional sector is required.

Accrued interest on other deposits

Interest accrued, which relates to other deposits. Breakdown by country and institutional sector is required.

Loans This item shall include funds lent by IFs to borrowers and holdings of non-negotiable securities issued by sectors other than MFIs/banks. Any balances with institutions other than banks/MFIs should be reported under the item “Loans” . This item should be reported excluding accrued interest. Breakdown by currency, country, institutional sector and maturity is required.

Accrued interest on loans

This item shall include interest accrued, which relates to loans. Breakdown by currency, country, institutional sector and maturity is required.

Financial derivatives This item shall include financial instruments linked to a specified financial instrument or indicator or commodity, through which specific financial risks can be traded in financial markets in their own right. Financial derivatives meet the following conditions: a. they are linked to a financial or non-financial asset, to a

group of assets, or to an index; b. they are either negotiable or can be offset on the

market; and c. no principal amount is advanced to be repaid. Financial derivatives include options, warrants, futures, forwards, swaps, credit derivatives. This category also includes employee stock options, which are agreements made on a given date under which an employee has the right to purchase a given number of shares of the employer’s stock at a stated price either at a stated time or within a period of time immediately following the vesting date. Financial derivatives are recorded at market value, 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.

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Item Description

Financial derivatives may be recorded on a net basis according to different valuation methods. Breakdown by currency, country and institutional sector is required. For financial derivatives traded in organised markets, the country of the stock exchange on which the contract is traded should be reported. For non-exchange traded financial derivatives, the country in which the direct counterparty is resident should be reported.

Outstanding insurance claims

This item shall include claims due but not yet settled with the insurance company, including cases where the amount is in dispute or the event leading to the claim has occurred but has not yet been reported. Breakdown by currency, country and institutional sector is required.

Claims of employers on pension funds

This item refers to the case where the employer contracts with a third party the administration of the pension fund of his employees and the pension fund is overfunded (i.e. the amount accruing to the pension fund exceeds the increase in entitlements). This excess amount should be reported under this item. Breakdown by currency, country and institutional sector is required.

Trade credits and advances

This item shall include financial claims arising from prepayments by customers for services or goods not yet provided.

Other accounts receivable, excluding trade credits and advances

This item shall include financial claims arising from timing differences between accrued transactions and payments made in respect of, for example:

a) wages and salaries b) taxes and social contributions c) dividends d) rent; and e) purchase and sale of securities.

Immovable property This item shall include land buildings which are either intended for investment purposes or intended to be used repeatedly for more than one year by IFs. Breakdown by currency and country is required.

Other non-financial assets

This item shall include holdings of non-financial assets (excluding immovable property), tangible or intangible, which are intended to be used repeatedly for more than one year by the IF (e.g. machinery and equipment, valuables and intellectual property products such as computer software and databases). Breakdown by currency and country is required.

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2.2. Liability Categories

Item Description

Loans This item shall include amounts owed to creditors by IFs, other than those arising from the issue of negotiable securities. This item consists of: Loans: loans granted to the reporting IF which are either

evidenced by non negotiable documents or not evidenced by documents

Repos and repo-type operations against cash collateral: counterpart of cash received in exchange for securities sold by the IF at a given price under a firm commitment to repurchase the same (or similar) securities at a fixed price on a specified future date. Amounts received by IFs in exchange for securities transferred to a third party (temporary acquirer) are to be classified under “repurchase agreements” where there is a firm commitment to reverse the operation and not merely an option to do so. This implies that IFs all risks and rewards of the underlying securities during the operation.

Cash collateral received in exchange for securities lending: amounts received in exchange for securities temporarily transferred to a third party in the form of securities lending operations against cash collateral

Cash collateral received in operations involving the temporary transfer of gold against collateral.

Overdrafts: Overdrafts should be reported as Loans with maturity up to 1 year.

This item should be reported excluding accrued interest. Breakdown by currency, country, institutional sector and maturity is required.

Accrued interest on loans

This item shall include interest accrued, which relates to loans. Breakdown by currency, country, institutional sector and maturity is required.

Debt securities issued

This item shall include securities other than equity issued by IFs, 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. Breakdown by currency and maturity is required.

Financial derivatives

See asset category “Financial derivatives”. Breakdown by currency, country and institutional sector is required.

Provision for calls under standardised guarantees

This item shall include liabilities to meet outstanding calls under standardised guarantees, prepayments of net fees and calls (claims) not yet settled. Standardised guarantees are guarantees that are issued in large numbers, usually for fairly small amounts, along identical lines.

Pension fund liabilities

This item includes:

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Item Description

a) Financial claims that current and former employees hold against their employers or a scheme, designated by the employer, to pay pensions as part of a compensation agreement between the employer and the employee.

b) In cases where the employer contracts with a third party the administration of the pension fund of his employees and the pension fund is underfunded (i.e. the amount accruing to the pension fund falls below the increase in entitlements).

Trade credits and advances

This item shall include financial liabilities arising from prepayments by customers for services or goods not yet provided.

Other accounts payable, excluding trade credits and advances

This item shall include financial liabilities arising from timing differences between accrued transactions and payments made in respect of, for example:

a) wages and salaries b) taxes and social contributions c) dividends d) rent and e) purchase and sale of securities.

Non financial liabilities

This is the residual item on the liabilities side of the balance sheet and shall include liabilities of non-financial nature e.g. provisions representing liabilities against third parties i.e. dividends etc, deferred tax etc.

2.3. Reserves

Reserves

This item shall include funds arising from non-distributed benefits or gains set aside by the IF in anticipation of likely future payments are obligations. This item shall include “Share premium”, “Revaluation Reserves” and any other reserves.

2.4. Transaction items

Nominal value/NAV of IF shares/units issued during the month/quarter

IFs are required to report the IF shares/units issued at nominal or NAV value, if any, during the reporting month or quarter, depending on the frequency of reporting. It should be noted that only issues that lead to a change in the nominal/NAV value of capital should be reported.

Nominal value/NAV of IF shares/units redeemed during the month/quarter

IFs are required to report the IF shares/units redeemed at nominal or NAV value, if any, during the reporting month or quarter depending on the frequency of reporting. It should be noted that only redemptions that lead to a change in the nominal/NAV value of capital should be reported.

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2.5. Memo items

Market value of securities lent out or sold under repo

This item shall include the market value or securities lent out or sold under repurchase agreements. Securities include quoted and unquoted shares and other equity, investment fund shares and debt securities.

2.6. IF shares/units issued

This item shall include all shares or units, including in the form of equity capital, issued by IFs. It should be reported at nominal or NAV value. This item represents the total liability of the IF to the IFs shareholders. It should comprise the par value of quoted and unquoted capital issued by the reporting IF. Breakdown by holder is required for this item.

3. Institutional Sectors (ESA 2010)

Non-financial corporations (S_11) The sector “non-financial corporations” (S_11) consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services. This sector also includes non-financial quasi-corporations.

Central Banks (S_121)

The sub-sector the “central bank” (S.121) consists of all financial corporations and quasi-corporations whose principal function is to issue currency, to maintain the internal and external value of the currency and to hold all or part of the international reserves of the country.

Deposit-taking corporations except the central bank (S_122) The sub-sector “deposit-taking corporations except the central bank” (S_122) includes all financial corporations and quasi- corporations, except those classified in the central bank and in the MMF sub-sectors, which are principally engaged in financial intermediation and whose business is to receive deposits from institutional units and, for their own account, to grant loans and/or to make investments in securities.

Money market funds (MMFs) (S_123) The sub-sector “MMFs” (S_123) consists of all financial corporations and quasi-corporations, except those classified in the central bank and in the credit institutions sub-sectors, which are principally engaged in financial intermediation and whose business is to issue investment fund shares or units as close substitutes for deposits from institutional units and, for their own account, to make investments primarily in MMF shares/units, short- term debt securities, and/or deposits.

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Non-MMF investment funds (S_124) The sub-sector “non-MMF investment funds” (S_124) consists of all collective investment schemes, except those classified in the MMF sub-sector, which are principally engaged in financial intermediation and their business is to issue investment fund shares or units which are not close substitutes for deposits and, on their own account, to make investments primarily in financial assets other than short-term financial assets and in non-financial assets. Non-MMF investment funds cover investment trusts, unit trusts and other collective investment schemes whose investment fund shares or units are not seen as close substitutes for deposits.

Other financial intermediaries, except financial vehicle corporations (S_125_1)

The sub-sector “other financial intermediaries, except financial vehicle corporations” (S_125) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits, or investment fund shares, or in relation to insurance, pension and standardised guarantee schemes from institutional units. In particular, this sector includes security and derivative dealers on own account, financial corporations engaged in lending, specialised financial corporations, such as venture and development capital companies, export/import financing companies.

Financial vehicle corporations (FVCs) engaged in securitisation transactions (S_125_2)

The sub-sector “financial vehicle corporations” includes those financial corporations and quasi-corporations which carry out securitisation transactions.

Financial auxiliaries (S_126) The sub-sector “financial auxiliaries” (S_126) consists of all financial corporations and quasi-corporations which are principally engaged in activities closely related to financial intermediation but which are not financial intermediaries themselves. In particular, this sector includes securities brokers, investment advisers, corporations which arrange derivative and hedging instruments, such as swaps, options and futures, corporations providing infrastructure for financial markets, central supervisory authorities of financial intermediaries and financial markets, managers of mutual funds, corporations providing stock exchange and insurance exchange, payment institutions etc.

Captive financial institutions and money lenders (S_127) The sub-sector “captive financial institutions and money lenders” (S_127) consists of all financial corporations and quasi-corporations which are neither engaged in financial intermediation nor in providing financial auxiliary services, and where most of either their assets or their liabilities are not transacted on open markets. In particular, this sector includes units such as trusts, estates, agencies accounts or “brass plate” companies, holding companies whose principal activity is owning the group without providing any other service, special purpose entities that raise fund in open markets to be used by their parent corporation, money lenders, corporations

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engaged in lending to students or for foreign trade form funds received from a sponsor and pawnshops that predominantly engage in lending.

Insurance corporations (S_128) The sub-sector “insurance corporations” (S_128) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of risks mainly in the form of direct insurance or reinsurance. In particular, this sector includes life and non life insurance corporations or reinsurance corporations.

Pension funds (S_129) The sub-sector “pension funds” (S_129) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of social risks and needs of the insured persons (social insurance). Pension funds as social insurance schemes provide income in retirement, and often benefits for death and disability.

General government (S_13) The sector “general government” (S_13) consists of institutional units which are non-market producers whose output is intended for individual and collective consumption, and are financed by compulsory payments made by units belonging to other sectors, and institutional units principally engaged in the redistribution of national income and wealth. The general government sector is divided into four sub- sectors: central government (S_1311); state government (S_1312); local government (S_1313); and social security funds (S_1314).

Households (S_14) The sector “households” (S_14) consists of individuals or groups of individuals as consumers and as entrepreneurs producing market goods and non-financial and financial services (market producers) provided that the production of goods and services is not by separate entities treated as quasi-corporations. It also includes individuals or groups of individuals as producers of goods and non-financial services for exclusively own final use.

Non-profit institutions serving households (S_15) The sector “non-profit institutions serving households” (S_15) consists of non-profit institutions which are separate legal entities, which serve households and are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households in their capacity as consumers, from payments made by general governments and from property income. In particular, this sector includes trade unions, professional societies, associations, political parties, churches or religious societies, charities, relief and aid organisations financed by voluntary transfers in cash or in kind, social, cultural, recreational and sports clubs.