BCL Circular 2009/227 of 22 July 2009 - Modification of statistical data collection from monetary UCIs

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Luxembourg, July 22, 2009
To all Luxembourg monetary undertakings for collective investment BCL CIRCULAR 2009/227 Modification of statistical data collection from monetary UCIs Ladies and Gentlemen, On December 19, 2008, the Governing Council of the European Central Bank (ECB) adopted Regulation ECB/2008/32, concerning the consolidated balance sheet of monetary financial institutions. This regulation amends and supplements the existing framework of ECB statistical activities necessary to enable the European System of Central Banks (ESCB) to fulfill its functions by defining the natural and legal persons subject to reporting obligations, the confidentiality regime, and adequate implementation and sanction provisions, in accordance with Article 5.4 of the Statute of the European System of Central Banks and of the European Central Bank. In this context, it is important to recall that statistical data collection from undertakings for collective investment (UCIs) is governed by two ECB regulations, namely:

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• Regulation ECB/2008/32 concerning the consolidated balance sheet of monetary financial institutions, which forms the basis for statistical reporting by monetary UCIs
• Regulation ECB/2007/8 concerning statistics on the assets and liabilities of investment funds, which forms the basis for statistical reporting by non-monetary UCIs.
  The statistical information subject to reporting in accordance with ECB requirements and the minimum standards to be observed are detailed in the aforementioned ECB regulations.
  In accordance with these texts, National Central Banks (NCBs) must submit monthly and quarterly information covering:
• the outstanding amounts of assets and liabilities of monetary and non-monetary UCIs
• transactions carried out by monetary and non-monetary UCIs on their assets and liabilities.
  Finally, it should be recalled that during the implementation of Regulation ECB/2007/8 concerning statistics on the assets and liabilities of investment funds in October 2007, the BCL had opted – in order to minimize the reporting burden for declarants – for the introduction of a new single quarterly statistical report for monetary and non-monetary UCIs. However, as the revision of Regulation ECB/2001/13, which forms the basis for statistical reporting by monetary UCIs, had not been completed in 2007, the BCL had preferred to keep report S 1.3 "Monthly statistical balance sheet for monetary UCIs" unchanged to avoid two consecutive revisions within two years. Insofar as the revision of Regulation ECB/2001/13 was finalized at the end of 2008 and the aforementioned regulation is repealed and replaced by Regulation ECB/2008/32, which provides for the entry into force of the revised collection in June 2010, the revision of report S 1.3 "Monthly statistical balance sheet for monetary UCIs" can now be implemented. Thus, based on the aforementioned ECB regulations, the BCL has developed a modified collection system for monetary undertakings for collective investment, the characteristics of which are detailed in this circular.

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1 Objectives
Based on ECB Regulations ECB/2007/8 and ECB/2008/32, the BCL has developed a collection system designed to meet the following objectives:

• full coverage of the foreseeable requirements of the European Central Bank regarding monetary and financial statistics
• minimization of the workload for reporting institutions
• consistency with data collected for prudential supervision purposes
  This consistency, which is not possible for all information to be collected, allows prudential data to be used in the compilation process of data intended for the ECB and contributes to the quality control of collected data.
• compatibility with SEC95 standard (European System of National Accounts 1995)
  The conformity of data collected according to the SEC95 standard will facilitate their use in national accounting and balance of payments and should avoid additional surveys.
  2 Main innovations
  Compared to the existing statistical collection system, the innovations concern both the reporting population and the existing monthly collection from monetary UCIs:
• the main innovation consists of the modification of report S 1.3 "Monthly statistical balance sheet for monetary UCIs."
  Indeed, the simultaneous existence of reports S 1.3 "Monthly statistical balance sheet for monetary UCIs" and S 2.13 "Quarterly statistical balance sheet for UCIs" implies that central administrations responsible for statistical reporting by UCIs must establish two different variants of security-by-security reporting, since the lines of the latter must refer to those of report S 1.3 for monetary UCIs and S 2.13 for non-monetary UCIs. Furthermore, although report S 2.13 "Quarterly statistical balance sheet for UCIs" is only to be submitted to the BCL on a quarterly basis, the majority of monetary UCIs prepare this report on a monthly basis to derive report S 1.3 "Monthly statistical balance sheet for monetary UCIs," which constitutes a regrouping of information from report S 2.13.

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Thus, in order to minimize the collection burden, report S 1.3 will be modified to take exactly the same form as report S 2.13, which implies that monetary UCIs will in fact submit report S 2.13 on a monthly basis under the designation S 1.3.

• in return, the modified S 1.3 report and security-by-security reporting for monetary UCIs must be submitted within 10 working days to enable the BCL to meet its obligations towards the European Central Bank.
• in addition, UCIs or UCI compartments of modest size are exempt from the BCL's statistical collection provided they submit the prudential report O 1.1 monthly to the BCL no later than 10 working days after the end of the month to which it relates.
  3 Statistical reporting by monetary UCIs
  Monetary UCIs and UCI compartments must therefore submit the following monthly statistical reports starting from January 2010:
  1 report S 1.3 "Monthly statistical balance sheet for monetary UCIs" as modified 2 security-by-security reporting.
  These two reports are to be provided to the BCL only by monetary UCIs that do not benefit from the reporting exemption provided in point 2 "Main innovations" below.
  Finally, it should be noted that all instructions for establishing statistical reporting are published and can be downloaded from the BCL website at the following addresses:
  http://www.bcl.lu/fr/reporting/OPC/index.html http://www.bcl.lu/en/reporting/monetary_UCIT/index.html

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4 Entities subject to reporting
The Banque centrale du Luxembourg informs central administrations by providing them with a list of monetary UCIs and/or monetary UCI compartments subject to reporting.
5 Quality of transmitted data
We wish to emphasize the importance of the quality of data transmitted to the BCL and the need to subject the data to the verification rules detailed in the technical documentation before transmission. Only rigorous control carried out from the data production stage will make it possible to meet both quality requirements and deadlines. This point is all the more important as the data thus collected will be checked by the ECB services before their aggregation with data from other Member States. Any significant error or negligence will have damaging repercussions on the reputation of the entire community of Luxembourg monetary financial institutions. 6 Compliance with reporting deadlines The BCL will establish and communicate, via its website, to UCIs a table listing the precise dates by which the monthly statistical tables are to be submitted. UCIs are reminded that the BCL must transmit the monthly statistical reports to the European Central Bank within 15 working days following the period to which they relate. It is therefore essential that institutions scrupulously respect the delivery deadlines defined in this circular so that the BCL can meet its commitments within the ESCB framework.

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7 Implementation of the modified collection
Communication of this information is mandatory from the end of December 2009.
The first revised monthly statistical report S 1.3 "Monthly statistical balance sheet for monetary UCIs" and security-by-security reporting are to be delivered by January 15, 2010, at the latest.
Please accept, Ladies and Gentlemen, the assurance of our highest consideration.
BANQUE CENTRALE DU LUXEMBOURG
Management

Pierre BECK Serge KOLB Yves MERSCH