This is a member perspective and the views of the author are their own and do not necessarily reflect the
views or position of IIUSA. This blog was originally published Brownstein Hyatt Faber Schreck, an IIUSA Member, on August 3, 2020. See Here.
By Rikard Lundberg, Shareholder, Brownstein Hyatt Farber Schreck & John Kyed, Associate, Brownstein Hyatt Farber Schreck
The U.S. Bureau of Economic Analysis (the “BEA”) is conducting a Form BE-180, Benchmark Survey of Financial Services Transactions Between U.S. Financial Service Providers and Foreign Persons in 2020 covering the 2019 fiscal year. The following are responses to commonly asked questions about the BEA and the BE-180 survey.
What is the BEA?
The BEA is an agency of the U.S. Department of Commerce, and it collects and analyzes economic data and produces economic accounts statistics to assist government and business decision-makers, researchers and the American public to follow and understand the performance of the nation’s economy.
What is the BE-180 survey, and why is the BEA conducting the BE-180 survey?
The BEA conducts a BE-180 survey every five years to monitor U.S. exports and financial services transactions in order to analyze their effects and assist in formulating policy. The U.S. government uses the data in estimating the United States’ international transactions accounts. The U.S. government also uses the collected information to help support U.S. international economic policy and to and to analyze the impact of that policy on international trade in financial services, the U.S. economy and foreign economies.
In 2020, the BE-180 survey collects data on U.S. financial services companies’ transactions with foreign persons during the 2019 fiscal year.
The BEA is conducting the BE-180 survey under the International Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108), and under Section 5408 of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4908(b)).
Who must respond to the BE-180 survey?
A response is required from persons subject to the reporting requirements of the BE-180 survey whether or not they are contacted by the BEA. Specifically, a response to the BE-180 survey is required from each U.S. person that (i) is a financial services provider or intermediary, or whose consolidated U.S. enterprise includes a separately organized subsidiary, or part, that is a financial services provider or intermediary, and (ii) had financial services transactions with foreign persons in the categories covered by the BE-180 survey during its 2019 fiscal year.
Any U.S. person that receives the BE-180 survey from the BEA, but is not subject to the reporting requirements, must file an exemption claim by completing the determination of reporting status section of the BE-180 survey and returning it to the BEA by the due date of the BE-180 survey.
Who is a “U.S. financial services provider” for purposes of the BE-180 survey?
A “U.S. financial services provider” for the purposes of the BE-180 survey is a company that falls under North American Industry Classification System (NAICS) Sector 52 (available here) [provide link: https://www.naics.com/six-digitnaics/?code=52], which encompasses establishments primarily engaged in financial transactions (transactions involving the creation, liquidation or change in ownership of financial assets) and/or in facilitating financial transactions. “U.S. financial service provider” also includes holding companies that own or influence the management decisions of such companies. Examples of “U.S. financial service providers” include companies in the following industries:
- Depository credit intermediation and related activities (including commercial banking, savings institutions, credit unions and other depository credit intermediation);
- Non-depository credit intermediation (including credit card issuing, sales financing and other non-depository credit intermediation);
- Activities related to credit intermediation (including mortgage and nonmortgage loan brokers, financial transactions processing, reserve and clearinghouse activities and other activities related to credit intermediation);
- Securities and commodity contracts intermediation and brokerage (including investment banking and securities dealing, securities brokerage, commodity contracts and dealing, and commodity contracts brokerage); Securities and commodity exchanges;
- Other financial investment activities (including miscellaneous intermediation, portfolio management, investment advice and all other financial investment activities);
- Insurance carriers;
- Insurance agencies, brokerages and other insurance-related activities;
- Insurance and employee benefit funds (including pension funds, health and welfare funds and other insurance funds); and
- Other investment pools and funds (including open-end investment funds, trusts, estates, and agency accounts, real estate investment trusts and other financial vehicles).