Form FAQs

 FI-52360 - Securities and Commodity Contracts Intermediation and Brokerage and Other Financial Investments

 Categories

• Sector Questions
• Form Questions

 Questions

• Sector Questions

1.  Which finance or insurance form should I use?
2.  If I don't have information should I leave it blank?
3.  What should I report for revenue (Item 5)?
4.  What if I don't have any revenue (Item 5)?
5.  How should I report detail of sales, shipments, receipts, or revenue (Item 22)?
6.  How are holding companies classified?



• Form Questions

7.  What is access to security and commodity contract trade execution and clearing system fees (Item 22)?
8.  Where should I report interest income earned from bank-held investments (Item 22)?
9.  What are brokering and dealing products - debt instruments (Item 22)?
10.  What are brokering and dealing products - derivative contracts (Item 22)?
11.  What is financing related to securities (Item 22)?
12.  What are brokerage correspondent products (Item 22)?
13.  What is the difference between brokering products and dealing products (Item 26 C)?

 Answers

• Sector Questions




1.  Which finance or insurance form should I use?

Please use the census form(s) that you received. Completing and submitting the form you received will expedite your response, and any FI-52xxx form should be effective to provide information for any finance or insurance establishment. Please use the "Other..." category if necessary (for example, for Item 19 or 22), and include any needed explanation of your responses in the "Remarks" section available on most forms (after Item 29). If you need forms, please contact us.

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2.  If I don't have information should I leave it blank?

No. Please provide your best estimate of any item that is not available in your business records. We find that your best estimate is much better than no information at all. If you do provide estimates, use the "Remarks" section available on most forms (after Item 29) to identify and explain them.

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3.  What should I report for revenue (Item 5)?

Please report revenue on a gross (not net) basis. However, revenue for some establishments, such as brokers and dealers in products, should be reported on a net basis. Review your Information Sheet for examples of how to report revenue(s) in Items 5 and 22.

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4.  What if I don't have any revenue (Item 5)?

Please review your Information Sheet and census form, for both Items 5 and 22. If your establishment did not generate any revenue during 2007, please report zero in Items 5 and 22 and use the "Remarks" section, available on most forms (after Item 29), to identify and explain your report.

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5.  How should I report detail of sales, shipments, receipts, or revenue (Item 22)?

Please report for each listed service product that accounted for at least 1 percent of the establishment's total sales or revenue reported in Item 5, and provide the subtotals requested for selected sub-items. Report figures in either whole dollars or whole percentages, and assure that the total for all sub-items reported equals the dollar amount reported in Item 5 or 100 percent. Also, review your Information Sheet and census form information for Item 22 to find more complete instructions on how to report specific sub-items.

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6.  How are holding companies classified?

Holding companies, including finance and insurance holding companies, are classified in NAICS sector 55, Management of Companies and Enterprises. Bank, non-bank, and active management companies are included in sector 55 and will receive a census form numbered MN-55xxx.

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• Form Questions




7.  What is access to security and commodity contract trade execution and clearing system fees (Item 22)?

Security and commodity contract trade execution and clearing system fees are fees for services that provide broker-dealers with access to securities or commodity contract trading systems, including floor exchanges and electronic systems.

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8.  Where should I report interest income earned from bank-held investments (Item 22)?

All revenue earned from bank-held debt investments, including interest, would be reported on Line 10 - Trading debt instruments on own account - net gains (losses)

All revenue earned from bank-held equity investments, including interest would be reported on Line 11 - Trading equities on own account - net gains (losses)

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9.  What are brokering and dealing products - debt instruments (Item 22)?

Brokering and dealing products – debt instruments includes negotiable certificates of deposit, commercial paper, bankers acceptances, treasury bills, and other money market instruments. Also included are corporate, trust, and government (national, state, local, and foreign) notes and bonds.

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10.  What are brokering and dealing products - derivative contracts (Item 22)?

Brokering and dealing products - derivative contracts include futures contracts, options contracts, forward contracts, swaps, and other derivative contracts.

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11.  What is financing related to securities (Item 22)?

Financing related to securities consists of securities lending fees (including securities borrowed from a broker’s inventory and margin accounts), repurchase agreements, and other financing related to securities.

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12.  What are brokerage correspondent products (Item 22)?

Brokerage correspondent products are services performed by a broker-dealer that has access to a particular securities exchange, for another broker that does not have such access.

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13.  What is the difference between brokering products and dealing products (Item 26 C)?

Services related to trades in the securities industry can include both brokering and dealing products, but excludes trading on own account. Brokering product income comes from services rendered where a fee or commission is collected. Dealing product income comes from services rendered where a spread is earned from dealing stocks or other financial instruments.

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