FINREP: COUNTERPARTY BREAKDOWN: HOUSEHOLDS

Annex V, Part 1.42 of Regulation (EU) No 680/2014 describes the six categories of counterparties according to FINREP. As mentioned in EBA Q&A 2015_1758 and Q&A 2017_3424 , the European System of National and Regional Accounts (ESA 2010) has been used as a basis on which to report counterparty sector information in templates of Annexes III and IV. For the specific case of a Personal Investment Company (PIC), the sectoral classification should be determined on a case-by-case basis, in line with the criteria of ESA 2010. In particular, it is necessary to assess whether the PIC has “autonomy of decision” (ESA2010 2.12). If it has autonomy of decision, then it is an institutional unit and would fit the definition of “financial corporation” (i.e. it can be considered a market producer of financial services) and should therefore be classified under “other financial corporations” for FINREP purposes. If it does not have autonomy of decision, then it is not an institutional unit and paragraph 2.13(c) applies (“ entities which, while keeping a complete set of accounts, have no autonomy of decision, are part of the units which control them; ”), and should therefore be classified as a household.