OMB No. 0608-0065: Approval Expires xx/xx/2010
BEA Use Only Control Number
Form
BE-185
U.S. Department of Commerce
Bureau of Economic Analysis
QUARTERLY SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S.
FINANCIAL SERVICES PROVIDERS AND FOREIGN PERSONS
(This report is mandatory and confidential.)
Name and address of U.S. reporter –
Enter or correct as necessary
10001
10002
10003
10004
Complete and file this form or file electronically at https://www.bea.gov/efile.
Assistance is available at (202) 606-5588, M-F 8:30 A.M. – 5:00 P.M., eastern time.
How to file:
Step 1. Verify or correct name and address of the U.S. reporter named in the mailing label and complete Part 1.
Step 2. Complete Part 2 and Schedules A, B, and C based on the instructions given in Part 2.
Step 3. File the completed form within 45 days after the close of each fiscal quarter
(or within 90 days after the close of the final quarter of your fiscal year) .
By mailing to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50 (SSB)
Washington D.C. 20230
delivering to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50 (SSB)
Shipping and Receiving Section M-100
1441 L Street, N.W.
Washington D.C. 20005
faxing to :
(202) 606-5318
or file electronically at:
https://www.bea.gov/e-file
Part 1 – Section A
1.
Person to consult concerning questions about this report
1. Name
2. Title
3. Telephone number ( )
4. Fax number ( )
5. E-mail address
3.
Certification –
The undersigned official certifies that this report
has been prepared in accordance with the applicable instructions, is
complete, and is substantially accurate except that, in accordance
with VI. G of the General Instructions, estimates may have been
prepared where the data are not available from customary accounting
records or precise data could not be obtained without undue burden.
2.
May we use e-mail to correspond with you to discuss
questions relating to this form, including questions that may
contain information about your company that you may
consider confidential? (Note: Electronic mail is not
inherently confidential. We will treat information we
receive as confidential but your e-mail is not necessarily
secure against interception by a third party.)
1 [ ] Yes
2 [ ] No
Authorized official’s signature
Print or type name and title
Date
Part 2
1. Follow the steps in the section below to determine whether you must complete the mandatory tables or are being requested to
complete the voluntary tables of Schedule A and B on Pages 4 and 5.
Step 1
This survey covers transactions in the financial services by
U.S. financial services providers. Indicate below which
types of financial services transactions (either sales or
purchases), if any, occurred between the U.S. reporter and
foreign persons in the reporting period in item 5.
Mark all that apply. Complete descriptions are available in
Section IV of the General Instructions.
Type of Service
Code
Brokerage services related to equity
transactions ………………………………...….
1 [ ]
Other brokerage services ………………..…….
2 [ ]
Underwriting and private placement services…..
3
[ ]
Financial management services …………..….…
4 [ ]
Credit-related services, except credit
card services ……………………………………
5 [ ]
Credit card services ………………………...….
6 [ ]
Financial advisory and custody services ………
7 [ ]
Securities lending services ……………….……
8 [ ]
Electronic funds transfer services ……………..
9 [ ]
Other financial services ……………………….
10 [ ]
Step 2
Sales of financial services
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
Step 3
Purchases of financial servcies
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
1 [ ] Yes 2 [ ] No
2. Did the U.S. reporter have any transactions, either sales or purchases, in any of the financial services covered by this survey?
(Did you place a check next to any of the activities listed in step 1 of question 1?)
1 [ ] Yes
– Report mandatory transactions in Table 1 of the appropriate schedule and voluntary transactions in Table 2
of the appropriate schedule and return pages 1 through 5 according to the instructions on page 1.
2 [ ] No –
Return pages 1 through 3 according to the instructions on page 1.
3. Did your total sales of financial services marked “Yes” in Step 2 exceed $20 million in the reporting period in item 5?
1 [ ] Yes –
If “Yes” then reporting on Schedule A, Table 1 is mandatory for each service marked “Yes.”
2 [ ] No –
If “No” then voluntary reporting on Schedule A, Table 2 is requested for each service marked “Yes.”
4. Did your total purchases of financial services marked “Yes” in Step 3 exceed $15 million in the reporting period in item 5?
1 [ ] Yes –
If “Yes” then reporting is mandatory on Schedule B, Table 1 for each service marked “Yes.”
2 [ ] No –
If “No” then voluntary reporting on Schedule B, Table 2 is requested for each service marked “Yes.”
Part 3
5. What period does this quarterly report cover?
Beginning date ….
Month
Day
Year
Ending date….
Month
Day
Year
2007
6. Enter the 4-digit code that best describes the major activity of the U.S. reporter from the Summary of Industry Classifications
found on pages 13 of the General Instructions.
7. What is the primary Employer Identification Number used by the U.S. reporter to file U.S. income or payroll taxes?
-
8. Was the U.S. reporter in existence, as an independent company, during the entire reporting period?
1 [ ] Yes – Skip question 9.
2 [ ] No – If purchased by another U.S. financial services provider complete 5 below. Otherwise, complete the report for
the time that you were in existence and, in the space at the bottom of this page, explain why you did not exist as
a separate company for a part of the period
9.
During the reporting period identified in 1, did another U.S. financial services provider own more than 50 percent of the
voting stock of the U.S. reporter named in the mailing label on page 1?
1 [ ] Yes – Enter the name and address of the controlling U.S. person or entity in the box below, check box B of the
Basis For Not Reporting Data
below, and please return this form according to the instructions on page 1.
Name
Street
City
State
Zip Code
2 [ ] No – Continue with completion of the form.
Comments:
Basis For Not Reporting Data – Mark (X) in one box (A-F)
1. The U.S. Reporter has
not
reported data on Schedule A or B of this form because it –
A [ ] Was not in existence at any time during the reporting period.
B [ ] Was owned to the extent of more than 50% of its voting stock by another U.S. person for the entire reporting period.
C [ ] This company is not a financial services provider. (Please read General Instruction I. B. 1. for the definition of a financial services provider.)
D [ ] Had no financial services transactions, either sales or purchases, of the types covered with foreign persons.
E [ ] Had transactions, either sales or purchases, of the types covered but the sum of these transactions did not exceed the
threshold for mandatory reporting (either for sales or purchases) and the U.S. reporter does not choose to report voluntarily. The total
amount of these transactions with foreign persons for the most recent fiscal or calendar quarter, for all financial services
combined, was approximately
Sales
Purchases
2. The U.S. Reporter has reported data (sales and/or purchases) on one or more schedules of this form, but the U.S. Reporter also has not reported some
financial services transactions listed in Part 2, question 1, because – Mark (X), in box if appropriate.
F [ ] The value of transactions in one or more individual types covered did not exceed the threshold for mandatory reporting, and the U.S.
reporter chooses not to report these transactions (sales and/or purchases) voluntarily. The total amount of transactions, for all financial
services combined,
not
reported on any schedules of this form, was approximately
Sales
Purchases
SCHEDULE A – U.S. Reporter’s Sales of Financial Services to Foreign Persons
• For each service marked
Yes
in Step 2 of question 1, reporting is mandatory in Table 1 below.
• For each service marked
No
in Step 2 of question 1, voluntary reporting is requested in Table 2 below.
• For additional instructions, see the General Instruction A.1.a. and A.1.b.
• Report all currency figures in thousands of U.S. dollars. Example: If the amount is $1,555,555.00 report as 1,556.
• Round amounts of less than $500.00 to 0.
• In the column headings of Tables 1 and 2, enter the Type of Service Code as found in Step 1 of question 1.
• Use additional copied sheets or the attached overflow sheets as necessary.
U.S. Reporter's Sales of Financial Services to Foreign Persons
Report in thousands of U.S. dollars
Service code
Service code
___________
___________
SALES TO
Foreign
affiliates
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
Foreign
affiliates
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
BEA USE ONLY
Table 1 – Mandatory data
1.
Australia
2.
Canada
3.
Cayman Islands
4.
China
5.
France
6.
Germany
7.
Hong Kong
8.
India
9.
Israel
10.
Italy
11.
Japan
12.
Mexico
13.
Netherlands
14.
Philippines
15.
Singapore
16.
Sweden
17.
Switzerland
18.
United Kingdom
Other – Specify country
19.
20.
21.
22.
23.
24.
25.
26.
27.
All countries, total
Table 2 – Voluntary data
28.
Complete if total sales for all
types of transactions are $20
million or less annually.
29.
If you reported data under transaction code 10, Other financial services, specify the major type of service:
SCHEDULE B – U.S. Reporter’s Purchases of Financial Services from Foreign Persons
• For each service marked
Yes
in Step 3 of question 1, reporting is mandatory in Table 1 below.
• For each service marked
No
in Step 3 of question 1, voluntary reporting is requested in Table 2 below.
• For additional instructions, see the General Instruction A.1.a. and A.1.b.
• Report all currency figures in thousands of U.S. dollars. Example: If the amount is $1,555,555.00 report as 1,556.
• Round amounts of less than $500.00 to 0.
• In the column headings of Tables 1 and 2, enter the Type of Service Code as found in Step 1 of question 1.
• Use additional copied sheets or the attached overflow sheets as necessary.
U.S. Reporter’s Purchases of Financial Services from Foreign Persons
Report in thousands of U.S. dollars
Service code
Service code
___________
___________
PURCHASES FROM
Foreign
affiliates
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
Foreign
affiliates
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
BEA USE ONLY
Table 1 - Mandatory data
1.
Australia
2.
Canada
3.
Cayman Islands
4.
China
5.
France
6.
Germany
7.
Hong Kong
8.
India
9.
Israel
10.
Italy
11.
Japan
12.
Mexico
13.
Netherlands
14.
Philippines
15.
Singapore
16.
Sweden
17.
Switzerland
18.
United Kingdom
Other – Specify country
19.
20.
21.
22.
23.
24.
25.
26.
27.
All countries, total
Table 2 – Voluntary data
28.
Complete if total purchases
for all types of transactions
are $15 million or less
annually.
29.
If you reported data under transaction code 10, Other financial services, specify the major type of service:
GENERAL INSTRUCTIONS
Public reporting burden for this BE-185 report is estimated to
average 10 hours per response. This burden includes time for
reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this
burden estimate to Director, Bureau of Economic Analysis (BE-1),
U.S. Department of Commerce, Washington, DC 20230; and to
the Office of Management and Budget, Paperwork Reduction
Project 0608-0065, Washington, DC 20503.
Purpose — Reports on this form are required to obtain reliable
and up-to-date information on financial services transactions
between U.S. financial services providers and foreign persons.
The information will be used to formulate U.S. international
economic policy, and to analyze the impact of that policy and the
policies of foreign countries, on such international transactions.
The data will also be used in compiling the U.S. international
transactions accounts and national income and product accounts.
Authority — This survey is authorized by the International
Investment and Trade in Services Survey Act (P.L. 94-472, 90
Stat. 2059, 22 U.S.C. 3101-3108, as amended), and by Section
5408 of the Omnibus Trade and Competitiveness Act of 1988 (P.L.
100-418, 15 U.S.C. 4908(b)). Regulations for the survey may be
found in 15 CFR Part 801. The survey has been approved by the
Office of Management and Budget under the Paperwork Reduction
Act (44 U.S.C. 3501, et seq).
Penalties — Whoever fails to report may be subject to a civil
penalty of not less than $2,500, and not more than $25,000, and to
injunctive relief commanding such person to comply, or both.
These civil penalties are subject to inflationary adjustments.
Those adjustments are found in 15 CFR 6.4. Whoever willfully
fails to report shall be fined not more than $10,000 and, if an
individual, may be imprisoned for not more than one year, or both.
Any officer, director, employee, or agent of any corporation who
knowingly participates in such violations, upon conviction, may be
punished by a like fine, imprisonment, or both. (See 22 U.S.C.
3105.) Notwithstanding the above, a U.S. person is not subject to
any penalty for failure to report if a valid Office of Management and
Budget control number is not displayed on the form. The control
number for Form BE-185 is at the top of page 1.
Confidentiality — The International Investment and Trade in
Services Survey Act provides that your report to this Bureau is
CONFIDENTIAL and may be used only for analytical and
statistical purposes. Without your prior written permission, the
information filed in your report CANNOT be presented in a manner
that allows it to be individually identified. Your report CANNOT be
used for purposes of taxation, investigation, or
regulation. Copies retained in your files are immune from legal
process.
I. WHO MUST REPORT AND GENERAL COVERAGE
A. Who must report
1. Mandatory and voluntary reporting
A. Mandatory reporting — A BE-185 report is required from each
U.S. person who:
(1) is a financial services provider or intermediary (see I.B.1. of
these Instructions), or whose consolidated U.S. enterprise
includes a separately organized subsidiary, or part, that is a
financial services provider or intermediary; and
(2) had receipts from foreign persons in all financial services
combined (see V. of these Instructions) in excess of
$20,000,000 for the previous fiscal year or for which reports are
expected to exceed that amount the current fiscal year or had
payments to foreign persons in all financial services combined
in excess of $15,000,000 for the previous fiscal year or for
which receipts are expected to exceed that amount the current
fiscal year.
The $20,000,000 (receipts) and the $15,000,000 (payments)
thresholds should be applied to financial services transactions
with foreign persons by all parts of the consolidated U.S.
enterprise that are financial services providers or
intermediaries. Because these thresholds apply separately to
sales and purchases, mandatory reporting may apply only to
sales, only to purchases, or to both.
Determining whether a U.S. financial services provider or
intermediary is subject to mandatory reporting may be based on
the judgment of knowledgeable persons in a company who can
identify reportable transactions with a reasonable degree of
certainty, without conducting a detailed records search.
Complete Parts 1 and 2 of the form and the mandatory tables of
the applicable schedule(s). Enter the total amounts of transactions
applicable to a particular schedule in the appropriate column(s) on
line 27 of the schedule. Distribute these amounts to the foreign
country(ies) involved in the transaction(s).
b. Voluntary reporting — If your covered sales (see IV. Of these
Instructions) were $20,000,000 or less, or if your covered
purchases were $15,000,000 or less during your previous fiscal
year and are expected to be below these amounts for the
current fiscal year, you are requested to provide an estimate of
the total for each type of service. Provision of this information is
voluntary. The estimates may be judgmental. Because these
thresholds apply separately to sales and purchases, voluntary
reporting may apply only to sales, only to purchases, or to both.
If you elect to file voluntarily, complete the voluntary table(s) of
the appropriate schedule(s). You may voluntarily report either,
(1) estimated totals by type of service only on line 28 of
Schedule A and/or Schedule B; or (2) totals by type of service
and a breakout by country in the mandatory table of the
appropriate schedule(s).
c. Exemption — The $20,000,000 and $15,000,000 exemption
levels for mandatory reporting are based upon total financial
services sold to, or purchased from, foreign persons by all parts
of the consolidated U.S. enterprise that are financial services
providers or intermediaries combined, regardless of the number
of subsidiaries or parts of the enterprise filing separate BE-185
forms.
2. Consolidation — A consolidated U.S. enterprise may file a
single Form BE-185 covering combined (total) financial services
transactions (purchases and sales) of all its subsidiaries, and
parts, that are financial services providers or intermediaries, or
it may file separate reports for its separately organized financial
services subsidiaries and parts. However, regardless of the
number of subsidiaries or parts of the enterprise filing separate
BE-185 forms, the reporting criteria must be applied with
reference to the transactions of the consolidated enterprise,
as described above.
B. General Coverage
1. Definition of financial services provider
Except for Monetary Authorities (i.e., Central Banks) the
definition of financial services providers used for this survey is
identical in coverage to Sector 52 – Finance and Insurance,
and holding companies from Sector 55 of the North American
Industry Classification System United States, 2002.
For example, companies and/or subsidiaries and other
separable parts of companies in the following industries are
regarded as financial services providers: depository credit
intermediation and related activities (including commercial
banking, holding companies, savings institutions, check
cashing, and debit card issuing); nondepository credit
intermediation (including credit card issuing, sales financing,
and consumer lending); securities, commodity contracts, and
other financial investments and related activities (including
security and commodity futures brokers, dealers, exchanges,
traders, underwriters, investment bankers, and providers of
securities custody services); insurance carriers and related
activities (including agents, brokers, and services providers);
investment advisors and managers and funds, trusts, and other
financial vehicles (including mutual funds, pension funds, real
estate investment trusts, investors, stock quotation services,
etc.).
Filing options for holding companies that own only
nonfinancial subsidiaries:
•
You may report your purchases of financial services
from foreign persons on Form BE-185; or
•
You may report such purchases on Forms BE-120
and BE-125, Benchmark and Quarterly Surveys of
Transactions in Selected Services and Intangible
Assets with Foreign Persons.
In either case, sales of financial services to foreign
persons must be reported on Form BE-185 if they are
expected to exceed $20 million in the current fiscal year
or exceeded that amount in the previous fiscal year.
2. Clarification of general coverage, including special
situations
a. Report purchases or sales in the periods when they occur or
are charged (that is, in the period when the provider of the
service recognizes or performs the service), whether
expensed by the purchaser of the service in that accounting
period, amortized over several accounting periods, or
included in expenses in a subsequent accounting period. For
example, report payments of credit-related fees (and
payments of securities brokerage commissions) in the period
when credit-related (securities brokerage) services are
charged, whether or not the charge for the service is included
in the purchaser’s expenses for that particular accounting
period. See IV. of these General Instructions for an
explanation of what measures should be applied in
determining whether you are subject to the BE-185 survey’s
mandatory reporting requirements for a given type of service.
b. Report covered transactions regardless of whether the service
was performed in the United States or abroad. Please note
that the reporting requirements are determined by whom the
transactions are with and not by where the services are
performed or the location of the buyer and seller at the time
of the transaction. Thus, reportable transactions may include
those conducted over the Internet or other networks (for
example, brokerage or financial advisory services sold to
foreign persons over the Internet).
c. When a sale or purchase consists of services that are
commingled or bundled (i.e., the different types of services are
not separately billed), you should unbundle the transaction
whenever possible. When the transaction cannot be
unbundled, it should be classified based upon
whichever service accounts for the largest share of its value.
However, do not unbundle the transaction if the services are
billed together because they are integral parts of the same
transaction (for example, if the fee for financial management
services includes payment for custody and other services that
are regarded as integral parts of financial management
services).
II. DEFINITIONS
A. Services mean economic activities whose outputs are other
than tangible goods. This term includes, but is not limited to,
banking, other financial services, insurance, transportation,
communications and data processing, retail and wholesale
trade, advertising, accounting, construction, design,
engineering, management consulting, real estate, professional
services, entertainment, education, and health care.
B. Financial services include trading, issuing, dealing,
underwriting, lending, custody, etc., of financial instruments;
financial advisory or management services; credit card
services; credit-related services (including establishing,
maintaining, or arranging credits, letters of credit, lines of
credit, mortgages, etc.); financial rating services; electronic
funds transfer services; insurance services; etc. These services
typically are performed by firms classified in Sector 52 –
Finance and Insurance and holding companies from Sector 55
of the North American Industry Classification System United
States, 2002 (see I.B.1.). Some types of financial services are
not covered on this survey. See IV. of the Instructions for a
list of financial services that are covered, and see V. of the
Instructions for a list of financial services that are not
covered on this survey.
C. U.S. Reporter means a U.S. person filing a report in this
survey. On Form BE-185, the U.S. Reporter may be either the
consolidated U.S. enterprise or a financial services subsidiary
or part of a consolidated U.S. enterprise reporting separately.
D. Consolidated U.S. enterprise means (i) a U.S. financial
services provider, (ii) any U.S. corporation, proceeding up the
financial services provider’s ownership chain, that owns more
than 50 percent of the voting securities of the corporation below
it, and (iii) any U.S. corporation, proceeding down the
ownership chain(s) of each of these corporations, whose voting
securities are more than 50-percent-owned by the U.S.
corporation above it.
E. United States, when used in a geographic sense, means the
several States, the District of Columbia, the Commonwealth of
Puerto Rico, and all territories and possessions of the United
States.
F. Foreign, when used in a geographic sense, means that which
is situated outside the United States or which belongs to or is
characteristic of a country other than the United States.
G. Person means any individual, branch, partnership, associated
group, association, estate, trust, corporation, or other
organization (whether or not organized under the laws of any
State), and any government (including a foreign government,
the United States Government, a State or local government, and
any agency, corporation, financial institution, or other entity or
instrumentality thereof, including a government sponsored
agency).
1. United States person means any person resident in the
United States or subject to the jurisdiction of the United
States.
2. Foreign person means any person resident outside the
United States or subject to the jurisdiction of a country other
than the United States.
H. Unaffiliated foreign person means, with respect to a given
U.S. person, any foreign person that is not an affiliated foreign
person as defined in paragraph I. below.
I. Affiliated foreign person means, with respect to a given U.S.
person, (i) a foreign affiliate of which the U.S. person is a U.S.
parent, or (ii) the foreign parent or other member of the
affiliated foreign group of which the U.S. person is a U.S.
affiliate.
J. Affiliate means a business enterprise located in one country
that is directly or indirectly owned or controlled by a person of
another country to the extent of 10 per cent or more of its
voting stock for an incorporated business or an equivalent
interest for an unincorporated business, including a branch.
1. Foreign affiliate means an affiliate located outside the
United States in which a U.S. person has direct investment.
2. U.S. affiliate means an affiliate located in the United States
in which a foreign person has direct investment.
K. Business enterprise means any organization, association,
branch, or venture which exists for profitmaking purposes or to
otherwise secure economic advantage, and any ownership of
any real estate. (A business enterprise is a "person" within the
definition in paragraph G. above.)
L. Direct investment means the ownership or control, directly or
indirectly, by one person of 10 per cent or more of the voting
stock of an incorporated business enterprise or an equivalent
interest in an unincorporated business enterprise.
M. Parent means a person of one country who, directly or
indirectly, owns or controls 10 per cent or more of the voting
securities of an incorporated business enterprise, or an
equivalent ownership interest in an unincorporated business
enterprise, which is located outside that country.
1. U.S. parent means the U.S. person that has direct
investment in a foreign business enterprise, including a
branch.
2. Foreign parent means the first person outside the United
States that has direct investment in a U.S. business
enterprise, including a branch.
N. Affiliated foreign group means (i) the foreign parent, (ii) any
foreign person, proceeding up the foreign parent’s ownership
chain, that owns more than 50 per cent of the person below
it up to and including that person which is not owned more than
50 per cent by another foreign person, and (iii) any foreign
person, proceeding down the ownership chain(s) of each of
these members, which is owned more than 50 per cent by
the person above it.
O. Country means, for purposes of this survey, the country of
location of the foreign person with whom a transaction has
occurred.
III. OTHER INSTRUCTIONS
A. Differentiating between U.S. and foreign persons
In II.G.2. of these Instructions, a "foreign person" is defined as
any person resident outside the United States or subject to the
jurisdiction of a country other than the United States. Persons
who reside or expect to reside for 1 year or more in a foreign
country are considered to be foreign persons. International
organizations are considered to be foreign persons whether
they are based in the United States (such as the International
Monetary Fund, Inter-American Development Bank, United
Nations, World Bank, and the Organization of American States)
or abroad.
Use the following procedure to identify financial services
transactions with foreign persons:
1. Billing records or mailing address information to identify the
country of the foreign person(s) – report receipts and
payments with a given foreign country, or international
organization, if the billing records or mailing address identify
that foreign country as the location of the foreign person who
was a party to the transaction.
2. IRS Form W-8, Certificate of Foreign Status filed by foreign
persons, and IRS Form W-9, Request for Taxpayer
Identification Number and Certification (filed by U.S.
persons).
3. Any other available information on residency of persons with
whom you have sold or purchased financial services.
NOTE: Steps 1 and 2 above may be necessary when foreign
customers provide billing addresses of U.S. agents or other
locations of convenience in the United States. Also, for
underwriting services it may be necessary to rely on additional
information to correctly determine the residency of your
customers in order to assure accuracy; for other types of
services, it will probably be sufficient to use billing address
information alone.
B. Who must report a transaction when an intermediary is
involved
Financial services transactions between a U.S. person and a
foreign person are frequently arranged by, billed through, or
otherwise facilitated by, a financial services provider or
intermediary. The intermediary may be U.S. or foreign, and
may be affiliated or unaffiliated with the U.S., or the foreign,
person. The U.S. financial services provider or intermediary
who directly deals with a foreign person, and not the U.S.
customer of the intermediary, is typically responsible for
reporting the transaction on this survey.
Use the following guidelines to determine who should report
data on payments of brokerage fees and commissions (service
number 1 and 2) in cases where more than one U.S. financial
services provider is involved in or knowledgeable about the
transaction.
•
Where a U.S. broker is involved in the transaction, the broker
should report the data on payments of brokerage
commissions.
•
If a U.S. broker is not involved, a U.S. financial manager,
such as a fund or investment manager, involved in the
transaction should report the data.
•
Where neither a U.S. broker nor a U.S. manager is involved
in the transaction, a U.S. custodian should report; this would
be the case, for example where the principal uses a foreign
(rather than a U.S.) financial manager, but a U.S. custodian.
(In this case, the custodian may wish to contact the principal
to determine which of its financial managers are foreign
persons.)
•
If the custodian does not have or cannot obtain the
information needed to report, then the U.S. principal, or its
paying agent, should report the data; the U.S. principal must
make the determination of whether it or its paying agent is
responsible for reporting.
Respondents may deviate from these guidelines by agreement
among themselves. Please confer with one another to assure
that the data reported on payments of brokerage commissions
are neither omitted from all BE-185 reports, resulting in under-
counting of data, nor reported on more than one BE-185 report,
resulting in duplication.
C. Distinguishing between affiliated and unaffiliated
transactions
For purposes of reporting on this survey, it is necessary to
distinguish between transactions between affiliated U.S. and
foreign persons, and transactions between unaffiliated U.S. and
foreign persons. An unaffiliated foreign person is a foreign
person that is neither the foreign affiliate nor the foreign parent
(or other member of the affiliated foreign group) of the
consolidated U.S. enterprise filing Form BE-185. (See II.H., I.,
J., M. and N. in these Instructions.)
Transactions with unaffiliated foreign persons by or through a
foreign activity of a U.S. person that is not a foreign affiliate of
the U.S. person are deemed to be direct transactions of the
U.S. person. Report such direct transactions in this survey.
If a U.S. person’s foreign activity or operation is incorporated
abroad, it is a foreign affiliate.
If a U.S. person’s foreign activity or operation is NOT
incorporated abroad, its status is based on the weight of the
evidence when the following factors are considered.
An unincorporated foreign activity or operation generally
WOULD NOT be considered a foreign affiliate if it:
1. conducts business abroad only for the U.S. person’s account
and not for its own account;
2. has no separate financial statements (including an income
statement and balance sheet);
3. receives funds to cover its expenses only from the U.S.
person;
4. is not subject to foreign income taxes; and
5. has limited physical assets, or employees, permanently
located abroad.
Criteria for determining which U.S. activities do or do not
constitute a U.S. affiliate of a foreign person are parallel to
those listed above.
Under the Treasury International Capital reporting system, the
Department of the Treasury conducts mandatory surveys on the
international financial position of the United States and on
movements of portfolio investment capital between the United
States and foreign countries that may give rise to financial services
transactions. Inquiries about these surveys should be directed to
the Federal Reserve Bank of New York (as fiscal agent for the
Treasury Department) at (212) 720–7993.
IV. SERVICES COVERED
This survey covers receipts (Schedule A of Form BE-185) and
payments (Schedule B) of fees and commissions for the following
types of financial services:
1. Brokerage services related to equity transactions — Report
on Schedule A your receipts of commissions and fees (inclusive
of taxes and stamp duties) directly from foreign customers for
executing orders to purchase or sell securities. Report on
Schedule B your payments of commissions and fees directly to
foreign brokers for executing your or your customers’ equities
orders. Include brokerage transactions with foreign persons
conducted over the Internet and Electronic-communications
networks (ECN).
Do not report income where you were a dealer or other principal
who was at risk of incurring a loss on the financial instruments
rather than acting solely as the broker. For example, exclude
income from marking positions to market and inherent earnings
from dealer markups on buy and sell transactions (i.e., bid/ask
price spreads in dealing in securities).
2. Other brokerage services — Report on Schedule A your
receipts of commissions and fees (inclusive of taxes and stamp
duties) directly from foreign customers for executing orders to
purchase or sell options, futures, and other financial
instruments. Also include fees and commissions on brokering
foreign currencies. Report on Schedule B your payments of
commissions and fees directly to foreign brokers for executing
your, or your customers,’ orders related to options, futures or
other financial instruments. Include brokerage transactions with
foreign persons conducted over the Internet and Electronic-
communications networks (ECN).
Report origination fees in connection with the over-the-counter
derivative financial instruments only if the fees are separately
identified in transaction documentation issued by the dealers in
the instruments to the customers, and are not considered
undifferentiated components of overall trading or marketmaking
gains.
Do not report income where you were a dealer or other principal
who was at risk of incurring a loss on the financial instruments
rather than acting solely as the broker. For example, exclude
income from marking positions to market and inherent earnings
from dealer markups on buy and sell transactions (i.e., bid/ask
price spreads in dealing in foreign currencies and other financial
instruments).
Report brokerage commissions for arranging a joint venture in
service number 10, Other financial services. Report multi-
currency conversion fees of credit card companies in service
number 6, Credit card services.
Do not report fees for commodity or merchandise brokerage
services, real estate brokerages, and business services
brokerage because they are not considered to be financial
services (as opposed to fees for purchasing or selling
commodity futures and other financial instruments which are
reportable on this survey).
3. Underwriting and private placement services — Report in
underwriting services your earnings from buying and reselling
an entire or substantial portion of newly issued securities.
Report on Schedule A as negative receipts your losses from
purchasing securities from a foreign person (issuer or lead
underwriter) and reselling them at a lower price. (This is the only
financial service category where negative amounts may be
reported.)
Also report fees you received from an issuer of securities for
privately placing its securities, or fees that you paid to a foreign
person who privately placed your securities, including fees on
dealer-placed commercial paper. Do not report earnings from
buying and selling (i.e., trading) commercial paper or other
securities for your own account, because they are not
considered to be financial services.
Where you are lead underwriter, report separately your receipts
of underwriting fees and payments of selling concessions and
other expenses. Report on Schedule A your underwriting fees,
before deduction of selling concessions paid to other members
of the syndicate, according to the country of the person (issuer)
from whom you purchased the securities. Report on Schedule B
your selling concessions and reimbursements for expenses
paid by you to foreign members of the syndicate based upon the
country(ies) of the foreign syndicate members receiving these
sums.
Where you are a syndicate member other than the lead
underwriter, report on Schedule A selling concessions received
by you based upon the country of the lead underwriter.
Report payments of underwriting fees (on Schedule B) by an
issuer of securities as:
The estimated gross proceeds to the foreign lead
underwriter from the sale to the public of the securities –
base this estimate on the number of units of securities
sold times the per unit public offer price
Minus
The net proceeds received by the issuer from the foreign
lead underwriter.
Classify these payments according to the country of the foreign
lead underwriter.
Report fees or commissions received by, or paid to,
intermediaries that arrange the sale of securities (including
mutual fund shares) they do not themselves own as brokerage
services (under service number 1) rather than as underwriting
services.
4. Financial management services — Report services in which
the provider of the service has the authority to direct the use or
investment of funds or other assets. Report fee income from (to)
foreign persons for managing or administering financial
portfolios, such as cash, securities, futures, and other financial
instruments or assets, if you (they) have this authority. Report
the fees under service number 7, financial advisory and custody
services, if a U.S. or foreign person has input into the decision-
making process but does not have this authority. Report these
fees whether or not the assets are in the custody of the
manager or in the custody of another U.S. or foreign person
whom the manager directs. Report fees from actively managed
accounts (where research and market timing skills are also
provided) and fees from passively managed, or indexed,
accounts.
U.S. persons (including trustees and fiduciaries with
management authority) should report on Schedule A their fees
from managing foreign commodity pools, mutual funds, hedge
funds, trusts (including trusts containing mortgages), etc.,
(which are considered foreign persons). Do not report fees from
managing U.S. mutual funds, hedge funds, trusts (including
trusts containing mortgages), etc., (which are considered U.S.
persons) unless the management fee is charged directly to a
foreign investor, owner, beneficiary, maker, etc., of the U.S.
mutual fund, hedge fund, or trust rather than charged to the U.S.
mutual fund, etc., itself.
Report under service number 7, financial advisory and custody
services, receipts from and payments to foreign persons
(including foreign-based custodians or subcustodians) for
managing the custody or safekeeping of securities.
Foreign participation in U.S. futures markets frequently occurs
indirectly, by foreign persons investing directly in a foreign
commodity pool that, in turn, invests directly in the U.S. futures
market. Foreign commodity pools may be organized by U.S.
commodity pool operators (CPO’s), such as U.S. brokerage
institutions. U.S. CPO’s report on Schedule A fees from
managing foreign commodity pools, including additional
management fees received based upon positive returns.
Exclude gains and losses to principal amounts you have
invested in the pool; in this case, your earnings are considered
to be capital gains, which are not covered on Schedules A and
B. (Similar guidelines pertain to the earnings of U.S. persons
who manage foreign hedge funds; i.e., report management fees
including additional fees based on positive returns, but do not
report gains or losses to principal amounts invested in the
funds.)
Do not report receipts (payments) of your foreign affiliates from
(to) foreign persons. For example, where your foreign affiliate
manages foreign assets, do not report the management fee paid
by foreign clients to your foreign affiliate because the fee was
not received by the U.S. reporter from a foreign person. (See
III. of the Instructions for a discussion of foreign activities of a
U.S. person that constitute a foreign affiliate.) Similarly, do not
report fees paid by you to, or received by you from, a U.S.
affiliate of a foreign person.
Do not report funding for foreign sales promotion and
representative offices in this survey. Report such funding on
Form BE-120 or BE-125.
5. Credit-related services, except credit card services —
Report fees received from or paid to foreign persons, including
fees paid directly and fees that are withheld or deducted from
the proceeds for:
•
Credit-related or lending-related services, such as fees for
renegotiating debt terms and fees for establishing/originating,
maintaining, accepting or arranging standby letters of credit
•
Commercial and similar letters of credit
•
Letters of indemnity
•
Lines of credit
•
Participations in acceptances
•
Mortgages
•
Credit facilities
•
Reimbursement commissions for honoring import letters of
credit (ILC’s), and of discrepancy fees for financial services
provided when goods imported under ILC’s do not fully meet
specifications
•
Factoring services
•
Issuing financial guarantees and loan commitments (to make
or purchase loans)
•
Arranging or entering into financial lease contracts
•
Credit-related services received by, or paid to, note issuance
facilities (NIF’s)
Do not report underwriting fees on notes issued by NIF’s
(these should be reported under service number 3,
underwriting services). Also, do not report interest received
or paid, including discounts and premiums on notes
purchased or sold.
If you are a member of a loan syndicate, or of loan participations
other than syndicates, report fees received and paid for
organizing, managing, or participating in the operation. Do not
report the sale of assets (i.e., of parts or shares in the
syndicated loan), because these are not financial services.
Where you have collected a fee from a foreign person on a loan
syndication and passed through a portion of the fee to foreign
syndicate members, report the total fee you received on
Schedule A and report the portion of the fee you passed through
on Schedule B. Borrowers under loan syndicates or loan
participations other than syndicates should report payments of
fees according to the country of the lead manager of the
syndicate.
Report payments of credit-related fees in the accounting period
in which the fee is assessed by the provider of credit-related
services, whether included in expenses for that particular
accounting period or amortized over several accounting periods.
If compensating balances are reflected in the cost of credit-
related services, report the (net) amount received or paid for
credit-related services after credit for the value of the
compensating balances. Do not report the value of the
compensating balance to the bank (in the form of foregone
interest expense). If the bank returns some portion of its savings
to its customers in the form of a credit against other financial
services provided, the amount to report for the other financial
services provided should be the reduced charge after
consideration of this credit.
6. Credit card services — Report all cross-border receipts and
payments for credit card services, whether paid separately or in
the form of a discount from face or par value.
U.S. credit card companies must report specified transactions in
which they themselves engage with foreign persons, as well as
specified transactions of their independent issuers or acquirers
with foreign persons. To avoid duplication, their independent
credit card issuers and acquirers are exempt from reporting data
on these credit card services.
Listed below are the major types of credit card services sold to
or purchased from foreign persons. The credit card company
must report separately total receipts and payments through the
system it controls or monitors. Total receipts (or total payments)
of credit card services are the sum of receipts (or payments)
from all of these services combined.
•
Transaction and service fees received from or paid to foreign
acquirers and issuers
•
Interchange received from foreign acquirers or paid to foreign
issuers
•
Discount (including interchange and overhead assessments,
reimbursements for telecommunication services, etc.)
received from or paid to foreign acquirers and issuers
•
Payments to foreign issuers, acquirers, or merchants under
guarantees to protect them from losses from a default in the
processing network
•
Fees you received from foreign issuers for credit authorization
services
•
Fees you received from foreign issuers for listing lost or stolen
credit card numbers in warning bulletins or on electronic files
•
Resignation assessments or membership fees received from
foreign issuers and acquirers
•
Multi-currency conversion fees received from foreign issuers or
paid to foreign acquirers, processing centers, or issuers
Independent issuers, acquirers, and processors must report
credit card services that are conducted outside the system
controlled or monitored by the credit card companies. Such
transactions may include annual dues and other fees received
by issuers from cardholders, payments to
processors by independent issuers and acquirers, and any
interchange reimbursements that do not go through the credit
card system.
Do not report receipts or payments for credit card
enhancements, such as travel insurance, extended warranties,
and discounts on tour packages or other purchases.
7. Financial advisory and custody services — Report receipts
from and payments to foreign persons (including foreign-based
custodians or subcustodians) for managing the custody or
safekeeping of securities. Include the following:
•
Financial advisory services on mergers and acquisitions
•
Investment newsletters or investment advice
•
Commodity trading advisory services
•
Proxy voting advisory services
•
Custody services (including payments and settlements
services such as mortgage servicing services)
•
Other advisory and custody services provided by U.S. or
foreign persons who have no discretion, or who have very
limited discretion, to act independently from instructions
provided by the investor or another principal
Include services with foreign persons conducted over the
Internet. Exclude services where you are at risk of incurring a
loss, such as underwriting services (service number 3).
U.S. issuers of American Depositary Receipts (ADR’s) and
American Depositary Shares (ADS’s) – Report on Schedule B
your payments to foreign correspondent institutions for holding
the securities backing the ADR’s and ADS’s. U.S. issuers of
ADS’s should also report, on Schedule A, any receipts of
sponsorship fees from foreign persons.
Do not report fees received from or paid to a U.S. subsidiary (or
U.S. affiliate) of a foreign person, because, under balance of
payments conventions, these are considered U.S., not foreign,
persons.
Where you do have complete (or substantially complete)
discretion to act independently from instructions provided by
investors or other principals, report your receipts under service
number 4, financial management services. Where you are an
investor or principal, and a foreign person has complete (or
substantially complete) discretion to act independently on your
behalf, report your payments under service number 4.
8. Securities lending services — U.S. securities lenders and
borrowers, and their agents, should report amounts received
directly from, or paid directly to, foreign persons, for lending or
borrowing securities. Report fees received by or paid to
principals or agents for arranging loan terms and conditions,
monitoring the value of collateral, providing guarantees against
default, and providing other securities lending services. Report
rebates received or paid on "borrow versus cash transactions."
Do not report amounts received from, or paid to, foreign persons
by a U.S. or foreign agent upon the default of a customer,
because such payments are not considered to be for financial
services. Do not report interest under repurchase or reverse
repurchase agreements, because interest is not reportable
(although, as mentioned, rebates are reportable) on this form.
9. Electronic funds transfer services — Report fees for the
electronic funds transfers of money or financial assets received
directly from, or paid directly to, foreign persons. Include
payments to SWIFT, in Belgium.
10. Other financial services (Specify primary type(s) on line 29 of
the appropriate schedule.) — Report the total amount of fees
you received from or paid to foreign persons for all other
financial services combined. Report the type(s) of service(s)
accounting for the largest share of the data being reported
on line 29 provided at the bottom of the schedules. Examples of
services that may be reported under this category include:
•
Asset pricing services
•
Security exchange listing fees
•
Demand deposit fees
•
Securities rating services
•
Check processing fees
•
Mutual fund exit fees, load charges and 12b–1 service fees
•
Security redemption or transfer services
•
ATM network services
•
Securities or futures clearing and settling services
•
Brokerage services not covered above, such as for arranging
joint ventures
Do not report real estate brokerage fees (real estate services),
business brokerage fees (business services), and commodity or
merchandise brokerage fees (wholesale or retail trade services),
because these are not considered financial services.
Note that some types of financial services are not covered on
this form. See V. of the Instructions for a list of types of
financial services not to be reported.
V. TYPES OF FINANCIAL SERVICES EXCLUDED FROM
COVERAGE
Do not report the following types of financial services on this
survey:
A. Stock quotation and financial information services —
These are instead covered by Form BE-120 or BE-125, under
data base and other information services.
B. Insurance premiums and losses, and commissions on
insurance — These are covered on other BEA forms. (See
BEA’s web site www.bea.gov/bea/surveys for information on
whom to call regarding these forms.) Charges at the individual
policy level also are not covered.
C. Annuity purchases and payments to annuitants — Annuity
purchases and payments to annuitants are not covered. Also,
charges at the individual policy level, including insurance-
company fees on variable annuities, are not covered.
D. Pension fund contributions and benefits — Pension fund
contributions and pension benefits are not covered. However,
U.S. pension funds may engage in other financial services
transactions that are reportable on this form, including payments
of brokerage commissions and fees for investment management
or financial advisory services to foreign persons.
E. Interest and dividend receipts and payments — Under
balance of payments conventions, interest and dividends are
considered to be investment income rather than income from
services, and are therefore not covered by this survey.
F. Premiums and other proceeds from writing (selling)
options, forwards, futures, and swaps — Premiums from
writing options, and fees and other proceeds from writing
forwards, futures, and swaps are not covered. (However, explicit
brokerage commissions on transactions in these financial
instruments are covered under service number 2, Other
brokerage services.)
G. Earnings of principals from buying and selling (including
dealing, trading, holding, or arbitrage) of financial
instruments, except foreign currency exchange
transactions — Under balance of payments conventions,
these types of earnings are considered to be "capital gains"
(i.e., earnings that are not from current production) rather than
payments for financial services, and are therefore not covered.
However, underwriting is considered to be a financial service,
and is covered under service number 3.
H. Foreign currency exchange transactions — Bid/ask price
spreads and trading profits on currency exchange transactions
are not covered. However, explicit commissions paid to
currency exchange brokers are covered under service number
2, Other brokerage services.
VI. REPORTING PROCEDURES
A. Due date — A completed form is due within 45 days after the
close of each fiscal year quarter, except the final quarter of the
fiscal or calendar year, when the report is due within 90 days
after the close of the quarter.
B. Fiscal year — For the purposes of this report your current fiscal
year is your fiscal year that ends in the calendar year 2007 or
calendar year 2007. Your previous fiscal year is the fiscal year
that ended in calendar year 2006 or calendar year 2006.
C. Extension — Requests for an extension of the reporting
deadline will not normally be granted. However, in a hardship
case, a written request for an extension will be considered if it is
received at least 15 days before the due date. You may Fax the
request to (202) 606-5318 or e-mail the request to
BE-185extension@bea.gov. BEA will provide a written response
to such a request.
D. Assistance and additional copies of the forms — Phone
(202) 606–5588 between 8:30 a.m. and 5:00 p.m., eastern time
for assistance. Copies of our forms are also available on BEA’s
web site: www.bea.gov/bea/surveys/iussurv.htm
.
E. Original and file copies — File a single original copy of each
form. Please use the copy with the address label if such a
labeled copy has been provided. Companies that elect to file
separate reports for their separately organized financial services
subsidiaries or parts must file a separate original copy of the
form for each separate subsidiary or part. In addition, retain a
copy of each report in your files to facilitate resolution of
problems; these copies should be retained by the U.S. Reporter
for a period of not less than three years beyond the original due
date.
F. Where to send the report — Send reports filed by mail through
the U.S. Postal Service to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50(SSB)
Washington, DC 20230
Send reports filed by direct private express delivery to:
U.S. Department of Commerce
Bureau of Economic Analysis, BE-50(SSB)
Shipping & Receiving Section, M-100
1441 L Street, NW
Washington, DC 20005
Fax reports to: (202) 606-5318
To file a report electronically see our web site at
www.bea.gov/efile for details.
G. Estimates — If actual figures are not available, supply
estimates and label them as such. When data items cannot be
fully subdivided as required, report totals and an estimated
breakdown of the totals.
| File Type | application/pdf |
| File Title | Microsoft Word - BE185 Page 3.doc |
| Author | Iicje1 |
| File Modified | 2006-11-21 |
| File Created | 2006-11-21 |