1. Financial services explicitly charged and other financial services in Belgium
Luxembourg, April 2018
Kim JANSSENS
Statistician

2. Content Data sources Compilation method
Specific treatment of asset management costs taken out of income

3. Data sources (1) Survey based system
Financial institutions: exhaustive
Credit institutions (M:89)
(Re)Insurance companies (M:21, Q:83)
Other financial institutions (M:44, Q:56, Y:211)
Non-financial institutions: cut off and sampling
Large companies (M:2,942, Q:4,942)
Smaller enterprises (Q:1,462)
Tour operators (M:25, Q:41)
Insurance brokers (M:30, Q:94)
Declarations via web application: OneGate

4. Data sources (2) Alternative sources
Eurostat database: Balance of payments of the EU institutions
Calculations of asset management costs taken out of income (see next slides)

5. Compilation method (1) Uniform code list for services
Financial services excluding insurance-related services
Financial intermediation, financial management, bank costs and auxiliary services (mostly expressed in commission fees and compensations) relating to deposits and credits, financial leasing intermediation, letters of credit and trade bills, factoring, securities issues, securities brokerage, bond redemption, financial derivatives, financial advice, financial assets, asset management, clearing, etc.

6. Compilation method (2) Declaration by partner country
Does not include:
the principal amount or value itself of the deposits, credits, financial leasing etc. (not services)
commissions, assessments, estimates and other services related to (re)insurances
commissions and brokerage services relating to trade
interests (not services)
Declaration by partner country
Extrapolations and non-response
based on VAT
Importance < 10%

7. Asset management costs taken out of income
BPM6 Financial services:
Explicit charges
Margins on buying and selling transactions
Asset management costs taken out of income
FISIM

8. “Some institutional units have the sole or predominant function of holding financial assets on behalf of their owners. In the process of managing assets, these enterprises incur administrative expenses, such as payments to fund managers or their own staff. The expenses can be charged for explicitly as a fee, or implicitly by being paid out of investment income received or out of the assets of the enterprise. The expenses implicitly paid for should be recognized as a service to the owners.”
(BPM6 paragraph )

9. Basic principle
Undertakings for collective investment (UCIs) have a net operating surplus of zero
interest and dividends received from assets are distributed to shareholders
and
expenses are passed on to shareholders (explicitly and implicitly)

10. Impact BOP
Corresponding entry: increase net value of investment income payable to the investor to gross value before deduction of expenses
impact on current account: zero
BPM5
BPM6
Services
- 1
Income
+ 99
+ 100
Net impact

11. Resident UCIs Annual accounts available
Calculation of “imputed production” by National Accounts: expenses of the UCIs not covered by commissions explicitly charged to shareholders
Recorded by partner country in proportion to the shares of the partner country in the Belgian UCIs (BE-BE excluded at this stage)

12. imputed production/total assets
Non-resident UCIs
Asset management rate of resident UCIs as proxy:
imputed production/total assets
Breakdown by partner country: asset management rate * assets of residents in nonresident UCIs (by country)

13. Impact in figures (in mio EUR)
2015
2016
2017 C D
Financial services (excl. FISIM)
4,401
4,352
3,970
4,484
4,726
4,840
Of which Asset management costs taken out of income
311
1,914
283
1,779
2,036

14. Questions?