NACE sector K- 'Financial and insurance activities' in F 06.01

Can EBA confirm that Holding companies, as defined in ESA 2010, are out of scope of template F06.01?

On 28 April 2023, the EBA published a Final Q&A on NACE 2022_6673 with subject: sector K- 'Financial and insurance activities' in F 06.01.  It concludes that Holding companies whose subsidiary corporations are non-financial corporations (NFCs) would be considered as non-financial corporations and classified in section K 'Financial and insurance activities', for the purposes of template F 06.01 (Breakdown of loans and advances other than held for trading, trading or held for sale assets to non-financial corporations by NACE codes). The ITS on Supervisory reporting Annex V 6.42(e) for template F 06.01, refer to NFCs as “Corporations and quasi-corporations not engaged in financial intermediation but principally in the production of market goods and non-financial services, as defined in the Table of Part 3 of Annex II to the ECB BSI Regulation.”  The ECB BSI regulations state that Holding companies that hold controlling-levels of equity of a group of subsidiary corporations and whose principal activity is owning the group without providing any other service to the businesses in which the equity is held, that is, they do not administer or manage other units (ESA 2010, paragraphs 2.98 to 2.99) are classified In ESA 2010 2.14(b) as a captive financial institution (S.127) and classified as a financial corporation. ECB BSI regulations and ESA 2010 regulations classify holding companies as captive financial institutions (S.127) and as financial corporations, which are out of scope of template F 06.01.