Circular D4/EB/2 - Quarterly Reporting - Supplementary Information to the Periodic Statement

COMMISSION BANCAIRE ET FINANCIERE Prudential Supervision of Investment Firms Avenue Louise 99, B-1050 Brussels telephone +32(2)535.22.11 - fax +32(2)535.23.08 PeC/MaF Brussels, January 3, 2000. D4/EB/2 CIRCULAR LETTER TO BRANCHES OF INVESTMENT FIRMS SUBJECT TO THE LAW OF ANOTHER MEMBER STATE OF THE EUROPEAN COMMUNITY

Dear Sirs,

Subject: quarterly reporting - supplementary information to the periodic statement.

The memorandum of October 19, 1996, from the Commission Bancaire et Financiere regarding the registration of a branch in Belgium of an investment firm subject to the law of another Member State of the European Community provides for the submission of:

• a periodic statement (composed exclusively of a balance sheet and an income statement);
• a securities balance sheet (for branches whose activity in Belgium includes the execution of orders or the safekeeping of client securities);
• supplementary information on the investment services and auxiliary services they provide on Belgian territory.

For the transmission of the latter, we invite you henceforth to use the form attached to this letter. For your convenience, we also enclose a new copy of the periodic statements and the securities balance sheet with the euro mentioned as the reporting currency (see below).

All these documents comprising the quarterly reporting will be sent to the Commission by the 25th calendar day, or, with regard to the fourth quarter, by the last day of the month following the closing date.

Finally, we remind you that pursuant to Circular D4/EB/97/3 regarding the consequences of the introduction of the euro of November 6, 1997, the submission of financial reports as of January 1, 1999, must be made in euros. We therefore request that you take this into account when preparing future reports. Given the amounts reported, branches will express these reports in euro units.

We thank you for the attention you will give to this letter and ask you to accept, Dear Sirs, the expression of our distinguished sentiments.

A. NIESTEN, Director

Quarterly Report to be completed by branches of investment firms subject to the law of another Member State of the European Community Name: Address: Report Date: (year) (month) (day) These statements must be returned no later than the 25th calendar day or, with regard to the fourth quarter, the last day of the month following the closing date. Signature(s): Made at ................................ on .......... Name: Position: Contact Person: Tel.

1 PERIODIC STATEMENT

1. ASSETS in EURO

3..-......- ...... 3..-......- ...... I. Organization costs 0100 ..................................... ..................................

II. Intangible fixed assets 0110 ..................................... ..................................

III. Tangible fixed assets 0120 ..................................... ..................................

IV. Financial fixed assets ..................................... .................................. a. Related undertakings and undertakings with which there is a participating interest

.................................... ..................................

1. Participations 0130 ..................................... ..................................
2. Loans 0140 ..................................... .................................. b. Other financial fixed assets 0150 ..................................... .................................. c. Cash deposits 0160 ..................................... ..................................

V. Receivables ..................................... .................................. a. Trade receivables ..................................... ..................................

1. Private clients 0170 ..................................... ..................................
2. Professional clients and counterparties 0180 ..................................... ..................................
3. Management and directors 0190 ..................................... ..................................
4. Other trade receivables 0200 ..................................... ..................................
5. Doubtful debts 0210 ..................................... .................................. b. Other receivables ..................................... ..................................
6. Management and directors 0220 ..................................... ..................................
7. Other receivables 0230 ..................................... ..................................

VI. Positions .................................... .................................. a. Financial instruments 0240 .................................... .................................. b. Currencies and precious metals 0250 ..................................... ..................................

VII. Cash placements and available funds ..................................... .................................. a. Time deposits ..................................... ..................................

1. Deposits of more than one month 0260 ..................................... ..................................
2. Deposits of one month or less 0270 ..................................... .................................. b. Current accounts, cash 0280 ..................................... .................................. c. Other available funds 0290 ..................................... ..................................

VIII. Accruals accounts 0300 .................................... .................................. TOTAL ASSETS ..................................... ..................................

2 2. LIABILITIES in EURO

3..-......- ...... 3..-......- ...... I. Share capital 0500 .................................... ...................................

II. Share premium 0510 .................................... ................................... III. Revaluation reserves 0520 .................................... ................................... IV. Reserves 0530 .................................... ...................................

V. Retained earnings (+) or accumulated losses (-) 0540 .................................... ...................................

VI. Result at the end of the period 0550 .................................... ................................... VII. Provisions for risks and charges 0560 .................................... ...................................

VIII. Debts with a maturity of more than one year .................................... ................................... a. Subordinated borrowings 0570 .................................... ................................... b. Financial debts 0580 .................................... ................................... c. Other debts 0590 .................................... ...................................

IX. Debts with a maturity of one year or less a. Financial debts 0600 .................................... ................................... b. Trade payables .................................... ...................................

1. Private clients 0610 ................................... ...................................
2. Professional clients and counterparties 0620 ................................... ...................................
3. Suppliers of goods and services 0630 .................................... ...................................
4. Other trade payables 0640 ................................... ................................... c. Tax, social security and payroll liabilities 0650 .................................... ................................... d. Other liabilities .................................... ...................................
5. Management and directors 0660 .................................... ...................................
6. Other liabilities 0670 ................................... ...................................

X. Positions 0680 .................................... ...................................

XI. Accruals accounts 0690 .................................... ...................................

TOTAL LIABILITIES .................................... ...................................

3 3. INCOME STATEMENT in EURO 3..-......- ...... 3..-......- ......

I. Services rendered .................................... ................................... a. On financial instruments .................................... ...................................

1. Brokerage 1000 .................................... ...................................
2. Commissions 1010 .................................... ...................................
3. Net results on positions .................................... ................................... 3.1. Net results 1020 .................................... ................................... 3.2. Income 1030 .................................... ...................................
4. Custody fees 1040 .................................... ...................................
5. Other income 1050 .................................... ................................... b. On currencies and precious metals .................................... ...................................
6. Net results on positions 1060 .................................... ...................................
7. Commissions 1070 .................................... ...................................
8. Other results 1080 .................................... ................................... c. Other operating income 1090 ................................... ...................................

II. Cost of services rendered .................................... ................................... a. Miscellaneous goods and services 1100 .................................... ................................... b. Remuneration, social charges and pensions 1110 .................................... ................................... c. Depreciation and impairment losses 1120 .................................... ................................... d. Provisions for risks and charges 1130 .................................... ................................... e. Other operating expenses 1140 .................................... ...................................

III. Operating profit (loss) 1150 .................................... ...................................

IV. Financial income ................................... ................................... a. Income from financial fixed assets 1160 ................................... ................................... b. Income from cash placements 1170 .................................... ................................... c. Other financial income 1180 ................................... ...................................

V. Financial charges .................................... ................................... a. Charges on debts ................................... ...................................

1. Credit institutions 1190 ................................... ...................................
2. Interest on trade debts 1200 .................................... ...................................
3. Other charges 1210 .................................... ................................... b. Other financial charges 1220 .................................... ...................................

VI. Current profit (current loss) before tax 1230 .................................... ................................... VII. Extraordinary results 1240 .................................... ................................... VIII. Profit (loss) before tax 1250 .................................... ................................... IX. Taxes 1260 ................................... ................................... X. Result at the end of the period 1270 ................................... ...................................

COMMISSION BANCAIRE ET FINANCIERE Prudential Supervision of Investment Firms Avenue Louise 99, B-1050 Brussels telephone +32(2)535.22.11 - fax +32(2)535.23.08 THE SECURITIES BALANCE SHEET (in EURO) (to be completed only by branches whose activity in Belgium includes the execution of orders or the safekeeping of client securities)

1. SECURITIES TO RECEIVE: ......................................... 1. SECURITIES TO DELIVER: .......................................
2. Exchange operations
3. Over-the-counter operations
4. Primary market operations
5. Sales - Resales
6. Securities lending
7. Adjustments
8. ... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... .........................................
9. Exchange operations
10. Over-the-counter operations
11. Primary market operations
12. Sales - Resales
13. Securities lending
14. Adjustments
15. ... ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................
16. SECURITIES ON DEPOSIT: ......................................... 2. SECURITIES ON DEPOSIT: .......................................
17. Suspense accounts
18. Securities deposited a. central securities depositories and transfer agents b. intermediaries and correspondents c. vaults of the stock exchange company d. missing securities e. debit balances on client securities accounts f. proprietary positions ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... .........................................
19. Suspense accounts
20. Securities received on deposit a. clients of the stock exchange company a.1 ordinary clients a.2. wealth management clients b. clients of wealth management companies c. unallocable securities d. proprietary positions e. credit balances on securities accounts with custodians ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................
21. SECURITIES IN COLLATERAL: ......................................... 3. SECURITIES IN COLLATERAL: .......................................
22. Suspense accounts
23. Securities given as collateral (debts of the stock exchange company)
24. Securities given as collateral (ongoing operations) ......................................... ......................................... .........................................
25. Suspense accounts
26. Securities received as collateral (receivables of the stock exchange company)
27. Securities received as collateral (ongoing operations) ........................................ ........................................ ........................................
28. GRAND TOTAL ........................................ 4. GRAND TOTAL: .......................................

COMMISSION BANCAIRE ET FINANCIERE Prudential Supervision of Investment Firms Avenue Louise 99, B-1050 Brussels telephone +32(2)535.22.11 - fax +32(2)535.23.08 ANNEX TO THE QUARTERLY ACCOUNTS TO BE COMPLETED BY BRANCHES OF INVESTMENT FIRMS SUBJECT TO THE LAW OF ANOTHER MEMBER STATE OF THE EUROPEAN COMMUNITY Branch: …………………………………… Report Date: ………………………….. Cumulative amounts for the current year Cumulative amounts for the previous year in EURO A INCOME FROM THE PROVISION OF INVESTMENT SERVICES1

1. a) reception and transmission of orders b) execution of these orders on behalf of third parties c) bringing together of two or more investors
2. proprietary trading
3. wealth management which: Brokerage income Fixed remuneration for management Management commissions accounted for linked to portfolio results

Other 4. a) firm commitment underwriting b) placement of issues B INCOME FROM THE PROVISION OF AUXILIARY SERVICES1

1. safekeeping and administration of financial instruments

2. safe deposit box rental

3. granting of credit

4. financial engineering

5. services related to firm commitment underwriting

6. investment advice

7. manual foreign exchange service C OTHER INCOME1

D TOTAL VALUE OF ASSETS UNDER MANAGEMENT2

1 The sum of the income mentioned under headings A, B and C must correspond to the amount indicated under heading “1. Services rendered” of the income statement of the periodic statement. 2 With regard to wealth management activity, the total value, at the end of the quarter, of assets managed evaluated according to the “market to market” method.