Macroeconomic Surveys from the BEA: A Primer for Asset Managers and the Financial Services Industry
For many U.S. asset managers and other financial services providers, the recent BE-10 Benchmark Survey of U.S. Direct Investment Abroad (BE-10) and the upcoming BE-180 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Foreign Persons (BE-180) may represent a first encounter with the international surveys issued by the U.S. Commerce Department’s Bureau of Economic Analysis (BEA). The BE-10 and BE-180 are two examples from a lengthy list of surveys administered by the BEA (BEA Surveys) that collect data on the cross-border activities and holdings of participants in the asset management and related industries and their clients.
Many asset managers are already familiar with the U.S. Treasury Department’s Treasury International Capital (TIC) reporting system, administered by the Federal Reserve Bank of New York, that collects data on (among other things) cross-border holdings of investment securities. The TIC and BEA reporting regimes, in many respects, collect parallel and complementary data. Financial services firms should note that, because of these similarities, it is often helpful to take a holistic approach in assessing whether such firms have TIC and/or BEA reporting obligations and in designing systems and procedures for ongoing monitoring and reporting, as necessary.
The administration of two mandatory benchmark surveys in 2015, combined with increased focus on the financial services industry, likely will widen the net of entities that must report and increase the reporting burden on all who report, including with respect to the BEA’s more frequent annual and quarterly surveys. This Dechert OnPoint provides an overview of the BEA Surveys that are relevant to asset managers and other financial services providers.