Regulations amending quarterly statistics for some securities companies

Finansinspektionen’s Regulatory Code
Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished solely for information purposes. Only the printed version of the regulation in Swedish applies for the application of the law. Regulations amending Finansinspektionen’s regulations (FFFS 2010:1) regarding quarterly statistics for some securities companies; decided on 13 October 2020. Finansinspektionen prescribes pursuant to Chapter 6, section 1, points 56 and 57 of the Securities Market Ordinance (2007:572) that Appendix 2 to Finansinspektionen’s regulations (FFFS 2010:1) regarding quarterly statistics for some securities companies shall have the following wording. _______________ These regulations shall enter into force on 1 November 2020. ERIK THEDÉEN Nanny Hiort FFFS 2020:19 Published on den 19 October 2020

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Appendix 2
Instructions for the form Quarterly Statistics for Some Securities Companies
2. Classification of counterparties
Counterparties are classified in the form in accordance with the Standard Classification by Institutional Sector 2014 (INSEKT 2014). The implications of this include that all references to counterparties refer to domestic counterparties, unless otherwise specified. To assist in the classification of Swedish counterparties, an undertaking is able to gain access through Statistics Sweden to Statistics Sweden’s Business Register. Monetary financial institutions, MFI Banks (code 122100, 122200) Banks refers to limited banking companies, savings banks, members’ banks and branches of foreign banks in Sweden. The Riksbank (code 121000) The Riksbank is the Central Bank of Sweden. Housing credit institutions (code 122300) Housing credit institutions refers to undertakings with the principal activity of issuing credits for purchasing homes. Monetary security and derivative dealers (code 122500) Monetary security and derivative dealers refers to corporations that trade in financial instruments on their own account and have been classified as monetary financial institutions by the Riksbank. Money market funds (code 123000) Money market funds refers to mutual funds that have been classified as monetary financial institutions by the Riksbank. Other MFIs1 (code 122400, 122900, 123000) Other MFIs1 refers to other monetary credit market corporations, other deposit￾taking monetary financial institutions and money market funds that have been classified as monetary financial institutions by the Riksbank. Other MFIs2 (code 122400, 122900) Other MFIs2 refers to other monetary credit market corporations and other deposit￾taking monetary financial institutions that have been classified as monetary financial institutions by the Riksbank. Other financial corporations

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Investment corporations (code 125400)
Investment corporations refers to limited liability companies that primarily manage shares and other securities and are taxed as investment corporations. Non-monetary security and derivative dealers (code 125200) Non-monetary security and derivative dealers refers to corporations that trade in financial instruments on their own account and have not been classified as monetary financial institutions by the Riksbank. Non-MMF UCITS and non-UCITS funds (code 124000) Non-MMF UCITS and non-UCITS funds refers to funds that consist of shares and other financial instruments and are not classified as monetary financial institutions by the Riksbank. Please note that the term ‘investment fund’ is used in INSEKT 2014 but has since been removed from the fund legislation. Insurance corporations and pension funds (code 128100, 128200, 128300, 129100, 129200, 129300, 129400)1 Insurance corporations and pension funds refers to corporations that are engaged in financial intermediation for the purpose of pooling risks. For example, life insurance corporations and non-life insurance corporations. Pension foundations are also included here. Financial auxiliaries (code 126100, 126200) Financial auxiliaries refers to corporations that are not financial intermediaries themselves but whose operations support and are closely related to financial intermediation. This includes, for example, fund management companies, insurance brokers and securities companies that do not trade on their own account. Other financial corporations3 (code 127000, 125900, 125100, 124000) Other financial corporations3 refers to non-monetary financial institutions, holding corporations for units involved in financial intermediation, other financial intermediaries and non-profit institutions serving financial corporations. Other financial corporations4 (code 127000, 125900, 125300, 125100) Other financial corporations4 refers to non-monetary financial institutions as above, except for UCITS and non-UCITS funds. Non-financial corporations (111000, 112000, 113000, 114000) Non-financial corporations refers to corporations and quasi-corporations whose principal activity is the production of goods and non-financial services. This also includes foreign corporations’ branches in Sweden, non-profit institutions serving non-financial corporations and central government non-financial quasi-corporations. Households (code 141000, 142000, 143000, 144100, 144200, 144300) Households refers to individuals or groups of individuals in their capacity as consumers and entrepreneurs, i.e. sole proprietorships or similar. This amendment means that friendly societies have been removed.

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Non-profit institutions serving households (code 151000, 152100, 152200) Non-profit institutions serving households refers to organisations which are private non-market producers whose purpose is to serve the interests of households. This includes, for example, investment clubs, trade unions and religious communities. Public sector Central government (code 131110, 131120, 131130, 131200) Central government refers to the Riksdag, ministries, authorities and the Swedish National Debt Office. This also includes other institutions that can be classified as
part of the central government sector.
Local government (code 131311, 131312, 131313, 131321, 131322, 131323) Local government refers to municipalities, county councils and local government associations, as well as other institutions that can be attributed to the local government sector. Social security funds (code 131400) Social security funds refers to the national pension insurance (AP) funds and the Swedish Pensions Agency. Member States of the euro area, EMU (code 211100) Member States of the euro area refers to counterparties that are in any of the countries that have adopted the euro as their currency. This also includes these countries’ embassies in Sweden. Rest of the EU (code 211200, 212100, 212200) Rest of the EU refers to counterparties that are in any of the EU Member States, except Sweden, that have not adopted the euro as their currency. This also includes these countries’ embassies in Sweden. Rest of the world (code 220000) Rest of the world refers to counterparties that are in a country outside of the EU. This also includes these countries’ embassies in Sweden.
3. Reporting quarterly information
The data are reported on the following forms, A–B:
– Assets (A)
– Liabilities (B)
A. Assets
Cash and bank balances at central banks 11000

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Cash 11001
Holdings of currency in circulation is reported here. Cash assets include legal tender, including foreign notes and coins. Cheques and money orders that had not been submitted to a bank for redemption on the reporting date are also reported here as cash equivalents. The Riksbank 11002 Balances at the Riksbank are reported here. Other 11003 Balances at foreign central banks and giro accounts in authority form are reported here if the following conditions are met:

1. the central bank or giro institution is from a country where the undertaking is
   established, and
2. the balances are readily available at all times.
   Claims against central banks and giro institutions in authority form that do not meet the requirements above shall be reported as ‘Lending’. Lending 12000 Lending refers to claims against counterparties but not claims that consist of bonds or other negotiable securities. Lending is reported at nominal value and gross, i.e. before impairment. Lending is reported exclusive of accrued interest that shall be reported under prepaid expenses and accrued income. Deductions shall be made for realised credit losses. Clearing claims against central banks and credit institutions are reported under this item. For genuine repurchase transactions, the transferee reports the consideration as a claim on the transferor. The claim should be reported under this item. A claim in the form of cash collateral on securities borrowing should be reported under this item. Doubtful claims that are not yet repaid or have been written off are reported under this item. Plain debt securities are reported as lending. Holdings of other securities that are not negotiable or transferable and that do not have any secondary market are reported as lending. Original maturity up to one year 12100 This refers to claims with an original maturity of up to and including one year against counterparties (refer to the section classification of counterparties above), however not to claims that consist of bonds or other interest-bearing securities. Original maturity greater than one year 12200 This refers to a claim with an original maturity of greater than one year against a counterparty, however not to claims that consist of bonds or other interest-bearing securities.

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Bonds and other interest-bearing securities 13000 Holdings of bonds and other interest-bearing securities (including zero-coupon and discount instruments) that are transferable and normally have a secondary market or can be used for settlement in the market, and do not give the holder any form of ownership of the institution that issued the securities are reported here. Convertible debt instruments are also reported here. Treasury bills that are eligible for refinancing are also reported under this item. This includes – treasury bills, government bonds, treasury bonds and other similar securities that are issued by public bodies and are eligible for refinancing with the central bank of the country where the undertaking is established, and – other securities that are eligible for refinancing with the central bank of the country where the undertaking is established, provided the eligibility for refinancing applies pursuant to national legislation. This part of the holding of bonds and other interest-bearing securities that are eligible for refinancing with central banks is specified on rows 13199 and 13299. Transferable loans that have been restructured to a large number of identical documents and have a secondary market are also reported here. Securities lent out under securities lending operations shall remain on the original owner’s balance sheet if there is a firm commitment to reverse the operation (not simply an option to do so). The intention is thus to treat these transactions the same as repos or similar transactions. Plain debt securities are reported not here but under one of the lending items. Repurchased own bonds and subordinated debentures may not be reported under this item and shall instead have been deducted from the issued securities and subordinated debt on the liabilities side. Bonds and other interest-bearing securities are valued at fair value, irrespective of how they are valued under the rules for external reporting. Original maturity up to one year 13100 Transferable debt instruments with an original maturity of up to and including one year are reported here. Original maturity greater than one year 13200 Transferable debt instruments with an original maturity of greater than one year are reported here. Shares and participations 14000 Holdings of shares and participations, other than units in UCITS and non-UCITS funds, are reported here, as are subscription rights and fractional rights. Shares and participations in associated companies or group companies are also reported here.

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Examples of participations are shares in a tenant-owner association or shares in another cooperative society. Listed shares and participations are valued at fair value. Listed shares 14100 Listed shares encompasses shares admitted to trading on a regulated market or a trading facility in accordance with the Securities Market Act (2007:528) or equivalent foreign regulated market or trading facility. Unlisted shares 14200 Unlisted shares encompasses shares that are not admitted to trading on a regulated market or trading facility. Amounts are stated at book value. Other participations 14300 Shares in cooperative societies, partnerships and limited partnerships. Fund units 15000 Units in Swedish UCITS and non-UCITS funds and units in foreign UCITS that are registered abroad are reported here. Intangible assets and property, plant and equipment Property, plant and equipment and intangible assets are reported here. Financial assets are reported under the respective type of instrument such as lending, bonds and other interest-bearing securities, shares and other participations or units in UCITS and non-UCITS funds etc. Intangible assets 16100 For example, goodwill is reported here. Property, plant and equipment 16200 Buildings and land, plant and machinery, equipment, tools fixtures and fittings, fixed assets under constructions, and advance payments for property, plant and equipment are reported here. The item includes both real estate that the undertaking has taken over to cover a claim and real estate where its own operations are conducted. Other assets This is used for reporting, among other things, financial derivative positions with a positive book value and claims on securities settlement proceeds Financial derivatives 17000 Financial derivative positions such as options, futures, swaps and similar financial instruments that have a positive book value. Derivative instruments, e.g. premiums paid for bonds, are valued at fair value.

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Please note that equity-related and interest rate-related derivative instruments are not reported together with corresponding underlying instruments. Other 18000 Other is defined as assets that are not attributable to any other category and this includes claims on securities settlement proceeds. Of which claims on securities settlement proceeds 18011, 18021, 18031 and 18041 Claims on securities settlement proceeds refers to all claims that relate to transactions conducted in financial instruments that are recorded on the transaction date. Prepaid expenses and accrued income 19100 Expenditure that is recorded during the accounting period but consists both of expenses for the period after the balance sheet date and income that is recorded during the accounting period but consists of income after the balance sheet date is reported here. Of which accrued interest 19110, 19120, 19130, 19131 and 19132 Accrued interest on lending and accrued coupon interest on interest-bearing securities are specified here. Total assets 10000 The asset amounts from rows 110001–19132 are added together in this item. Branch difference 31000 This item only concerns undertakings that have branches abroad and is only included in the branch report (cf. corresponding item for negative differences 33000). Positive differences that arise when transactions with the undertaking are excluded from the balance sheet for its own branches’ combined financial position are reported in this item. Balance sheet total 32000 The balance sheet total in accordance with the balance sheet in the statistical report is reported in this item. This item is specified both on a balance sheet for the undertaking and on a balance sheet for its own branches’ combined financial position. B. Liabilities Deposits and borrowing 21000

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Deposits and borrowing refers to liabilities to creditors but not to liabilities that consist of bonds or other securities that are reported under issued securities or liabilities that are reported as subordinated debt. Deposits and borrowing are reported at nominal value. Deposits and borrowing are reported exclusive of accrued interest, which is reported under accrued expenses and deferred income. The book value of the consideration obtained from genuine/binding repurchase transactions and refundable cash equivalents that are used as collateral for securities lending. Original maturity up to one year 21100 This refers to liabilities with an original maturity of up to and including one year, but not to liabilities that consist of bonds or other securities that are reported under issued securities or liabilities that are reported as subordinated debt. Original maturity greater than one year 21200 This refers to liabilities with an original maturity of greater than one year, but not to liabilities that consist of bonds or other securities that are reported under issued securities or liabilities that are reported as subordinated debt. Issued securities 22000 Bonds and other liabilities for which negotiable or transferable securities have been issued. If it is not possible to specify counterparties, the liability should be listed against the country in which it was issued. Issued securities are valued at book value. Transferable debt securities are reported under this item, while plain debt securities are reported under deposits and borrowing. Repurchased own-debt securities are deducted from the outstanding liability. Original maturity up to one year 22100 Debt instruments with an original maturity of up to and including one year are reported here. Original maturity greater than one year 22200 Debt instruments with an original maturity of greater than one year are reported here. Other liabilities Financial derivatives 23000 Financial derivative positions such as options, futures, swaps and similar financial instruments that have a negative book value are reported here. When valuing liabilities that consist of derivative instruments with negative values, the valuation shall be in accordance with fair value. Please note that equity-related and interest rate-related derivative instruments are not reported together with corresponding underlying instruments. Other 24000

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Other is defined as liabilities that are not attributable to any other category and this includes liabilities on securities settlement proceeds. Of which liabilities on securities settlement proceeds 24011, 24021, 24031 and 24041 Liabilities on securities settlement proceeds refers to all liabilities that relate to transactions conducted in financial instruments that are recorded on the transaction date. Accrued expenses and deferred income 25100 Both income that is reported during the accounting period but consists of income for periods after the balance sheet date and expenses that pertain to the reporting period but entail expenditure only after the balance sheet date are reported here. Of which accrued interest 25110, 25120, 25121 and 25122 Accrued interest on deposits and borrowing and accrued coupon interest on issued securities are specified here. Provisions 26000
Section 20, Appendix 1, Regulations and general guidelines (FFFS 2008:25)
regarding annual accounts for credit institutions and securities companies is applied for this item. Subordinated debt 27000 Liabilities, irrespective of whether or not they represent securities, that, in the event of liquidation or bankruptcy, are only repaid as agreed after the other creditors have been provided for are reported under this item. Examples of subordinated debt are debenture loans (which are specified on row 27100). Untaxed reserves 28000 Accumulated excess depreciation, replacement reserves, tax allocation reserves and other untaxed reserves, for example, are reported here. Equity 29000 Capital that is subscribed by shareholders or other participants is reported here. Share premium reserves, revaluation reserves and other reserves are also reported here. Profit or loss brought forward and profit/loss for the period are reported under this item. Total liabilities 20000 The liability items from rows 21100–29000 are added together in this item. Branch difference 33000

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This item only concerns undertakings that have branches abroad and is only included in the branch report (cf. corresponding item for positive differences 31000). Negative differences that arise when transactions with the undertaking are excluded from the balance sheet for its own branches’ combined financial position are reported in this item. Balance sheet total 34000 The balance sheet total in accordance with the balance sheet in the statistical report is reported in this item. This item is specified both on a balance sheet for the institution and on a balance sheet for the institution’s own branches’ combined financial position.