Commission Implementing Regulation (EU) No 680/2014Show full title

[F1 [F2 19. ASSET MANAGEMENT, CUSTODY AND OTHER SERVICE FUNCTIONS (22) U.K.

112. For the purposes of the calculation of the threshold in Article 9(f), the amount of ‘ net fee and commission income ’ is the absolute value of the difference between ‘ fee and commission income ’ and ‘ fee and commission expense ’ . For the same purposes, the amount of ‘ net interest ’ is the absolute value of the difference between ‘ interest income ’ and ‘ interest expenses ’ . U.K.

19.1. Fee and commission income and expenses by activity (22.1) U.K.

113. The fee and commission income and expenses shall be reported by type of activity. Under IFRS or compatible National GAAP, this template includes fee and commission income and expenses other than: U.K.

(a)

amounts considered for the calculation of the effective interest of financial instruments [IFRS 7.20.(c)] and

(b)

amounts arising from financial instruments that are measured at fair value through profit or loss [IFRS 7.20.(c).(i)].

114. Transaction costs directly attributable to the acquisition or issue of financial instruments not measured at fair value through profit or loss shall not be included; they form part of the initial acquisition/issue value of these instruments and are amortised to profit or loss over their residual life using the effective interest rate [see IAS 39.43]. U.K.

115. Transaction costs directly attributable to the acquisition or issue of financial instruments measured at fair value through profit or loss shall be included as a part of ‘ Gains or losses on financial assets and liabilities held for trading, net ’ or ‘ Gains or losses on financial assets and liabilities designated at fair value through profit or loss, net ’ . They shall not be part of the initial acquisition or issuance value of these instruments and are immediately recognized in profit or loss. U.K.

116. Institutions shall report fee and commission income and expenses according to the following criteria: U.K.

(a)

‘ Securities. Issuances ’ includes fees and commissions received for the involvement in the origination or issuance of securities not originated or issued by the institution;

(b)

‘ Securities. Transfer orders ’ includes fees and commissions generated by the reception, transmission and execution on behalf of customers of orders to buy or sell securities;

(c)

‘ Securities. Other ’ includes fees and commissions generated by the institution providing other services related with securities not originated or issued by the institution;

(d)

‘ Clearing and settlement ’ includes fee and commission income (expenses) generated by (charged to) the institution when participating in counterparty, clearing and settlement facilities;

(e)

‘ Asset management ’ , ‘ Custody ’ , ‘ Central administrative services for collective investment undertakings ’ , ‘ Fiduciary transactions ’ , ‘ Payment services ’ include fee and commission income (expenses) generated by (charged to) the institution when providing these services;

(f)

‘ Structured finance ’ includes fees and commissions received for the involvement in the origination or issuance of financial instruments other than securities originated or issued by the institution;

(g)

‘ Servicing fees from securitisation activities ’ includes, on the income side, the fee and commission income generated by the institution providing loan servicing services and on the expense side, the fee and commission expense charged to the institution by loan service providers;

(h)

‘ Loan commitments given ’ and ‘ Financial guarantees given ’ include the amount, recognized as income during the period, of the amortization of the fees and commission for these activities initially recognised as ‘ other financial liabilities ’ ;

(i)

‘ Loan commitments received ’ and ‘ Financial guarantees received ’ include the fee and commission expense recognised by the institution as a consequence of the charge made by the counterparty that has given the loan commitment or the financial guarantee;

(j)

‘ Other ’ includes the rest of fee and commission income (expenses) generated by (charged to) the institution such as those derived from ‘ other commitments ’ , from foreign exchange services (such as exchange of foreign banknotes or coins) or from providing (receiving) other fee-based advice and services.

19.2. Assets involved in the services provided (22.2) U.K.

117. Business related to asset management, custody functions, and other services provided by the institution shall be reported using the following definitions: U.K.

(a)

‘ Asset management ’ refers to assets belonging directly to the customers, for which the institution is providing management. ‘ Asset management ’ shall be reported by type of customer: collective investment undertakings, pension funds, customer portfolios managed on a discretionary basis, and other investment vehicles;

(b)

‘ Custody assets ’ refers to the services of safekeeping and administration of financial instruments for the account of clients provided by the institution and services related to custodianship such as cash and collateral management. ‘ Custody assets ’ shall be reported by type of customers for which the institution is holding the assets distinguishing between collective investment undertakings and others. The item ‘ of which: entrusted to other entities ’ refers to the amount of assets included in custody assets for which the institution has given the effective custody to other entities;

(c)

‘ Central administrative services for collective investment ’ refers to the administrative services provided by the institution to collective investment undertakings. It includes, among others, the services of transfer agent; of compiling accounting documents; of preparing the prospectus, financial reports and all other documents intended for investors; of carrying out the correspondence by distributing financial reports and all other documents intended for investors; of carrying out issues and redemptions and keeping the register of investors; as well as of calculating the net asset value;

(d)

‘ Fiduciary transactions ’ refers to the activities where the institution acts in its own name but for the account and at the risk of its customers. Frequently, in fiduciary transactions, the institution provides services, such as custody asset management services to a structured entity or managing portfolios on a discretionary basis. All fiduciary transactions shall be reported exclusively in this item without regarding whether the institution provides additionally other services;

(e)

‘ Payment services ’ refers to the collection on behalf of customers of payments generated by debt instruments that are neither recognised on the balance sheet of the institution nor originated by it;

(f)

‘ Customer resources distributed but not managed ’ refers to products issued by entities outside the group that the institution has distributed to its current customers. This item shall be reported by type of product;

(g)

‘ Amount of the assets involved in the services provided ’ includes the amount of assets in relation to which the institution is acting, using the fair value. Other measurement bases including nominal value may be used if the fair value is not available. In those cases where the institution provides services to entities such as collective investment undertakings, pension funds, the assets concerned may be shown at the value at which these entities report the assets in their own balance sheet. Reported amounts shall include accrued interest, if appropriate.] ]

Textual Amendments

F1 Substituted by Commission Implementing Regulation (EU) 2015/227 of 9 January 2015 amending Implementing Regulation (EU) No 680/2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance).

F2 Substituted by Commission Implementing Regulation (EU) 2015/1278 of 9 July 2015 amending Implementing Regulation (EU) No 680/2014 laying down implementing technical standards with regard to supervisory reporting of institutions as regards instructions, templates and definitions (Text with EEA relevance).