## Direct Investment Task Team (DITT) Inaugural Meeting

## Source details

**Canonical URL:** [Direct Investment Task Team (DITT) Inaugural Meeting](https://www.imf.org/-/media/files/data/statistics/bpm6/ditt/ditt-inaugural-meeting-presentation-imf-cochair.pdf)

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### Meeting overview and outline
- Event: Direct Investment Task Team (DITT) Inaugural Meeting
- Date: June 9, 2020
- Main agenda items:
  - Updating the BPM6: Timeline and Process
  - DITT Terms of Reference
  - Working Procedures with the BPTT
  - Life Cycle & Governance of TEG Guidance Notes (GNs)
  - Timeline: Preparation of the GNs
  - Direct Investment Task Team (DITT) Research Topics: Proposed Assignments

### Governance and institutional roles
- Institutional structure:
  - Balance of Payments Committee: oversight body.
  - Balance of Payments Task Team (BPTT): Chair/Secretariat: IMF; oversight/coordinating role.
  - Direct Investment Task Team (DITT): Co-chairs: IMF and Poland; Secretariat: IMF and OECD.
  - Current Account Task Team (CATT): Co-chairs: IMF and Eurostat; Secretariat: IMF and Eurostat.
- BPTT responsibilities:
  - Review draft Guidance Notes (GNs) to ensure overall consistency.
  - Final decisions on DITT conclusions and proposals reside with the Committee, in consultation with ISWGNA on issues of common interest.
- Interaction with SNA/ISWGNA:
  - Only GNs impacting SNA will be asked to be reviewed by the AEG/ISWGNA.
  - For cross-cutting SNA and BP issues, joint endorsement by Committee and ISWGNA is sought; if divergent views emerge, Committee and ISWGNA Chairs request SNA/BPM editors’ views.
  - If editors’ views diverge, Committee and ISWGNA may adopt respective positions with transparent documentation of points of departure.

### Working procedures and communication
- Working procedures to avoid duplication:
  - Take into account current or completed work on certain direct investment topics.
  - Coordinate with other Task Forces or Working Groups (including AEG Task Team on Globalization) on cross-cutting issues.
- Reporting:
  - Periodic reports to the Committee.
  - Key report: Committee’s annual meeting progress reports to include outcomes and recommendations from GNs.
- Organization and communication features:
  - A public webpage related to the DITT work program.
  - Availability of Terms of Reference and CRI.
  - Links for a separate Guidance Note page, for providing feedback on GNs, and to a restricted collaboration site for comments (DITT members provided login/password).

### Life cycle and approval process for Guidance Notes (GNs)
- Life cycle steps and governance:
  1. BPTT reviews draft GNs for overall consistency; AEG reviews those impacting SNA.
  2. After second round review by BPTT (if major changes from public consultation), DITT sends GNs to the Committee; for issues impacting SNA, DITT sends to both Committee and ISWGNA.
  3. For cross-cutting SNA and BP issues, if joint endorsement arises Committee decides; if divergent views arise, Chairs request editors’ views; if editors’ views diverge, Committee and ISWGNA may adopt respective positions with transparent documentation.
  4. Final endorsement of recommendations on the BPM6 Update resides with the Committee; the Committee may retain status quo and place the issue on a future research agenda.
- Approval process steps for a Guidance Note:
  - Step 1: First draft of the GN by authors, including summary of recommendations
  - Step 2: Review by Secretariat and Co-chairs
  - Step 3: Written consultations within DITT (via VC, if necessary)
  - Step 4: Finalize GN based on consultation
  - Step 5: Submit for review to BPTT (AEG consultation for issues impacting SNA)
  - Step 6: Incorporate comments and circulate within DITT
  - Step 7: Release of draft Guidance Note for wider public consultation
  - Step 8: Second review by BPTT only if there are significant changes (AEG second review for issues that impact SNA)
  - Step 9: Presentation to the Committee (and to ISWGNA for cross-cutting SNA issues) for endorsement

### Timeline and key targets
- Key Committee meeting targets:
  - June 2020 Committee Meeting
  - October 27-29, 2020 Committee Meeting
  - October 2021 Committee Meeting
- Timeline for GNs (task-level schedule and weeks):
  - Drafting of the GN: 3 weeks
  - Consultation within the TT members: 2 weeks
  - Draft Finalized: 1 week
  - Draft GN submitted for review to BPTT (and AEG/WGIIS) by TT Chairs: 1 week
  - Incorporate comments and circulate within TT: 1 week
  - Posting for public consultation: 4 weeks
  - Incorporation of comments, discussion within TT and finalization by co-chairs: 1 week
  - If significant changes, only, second round of review to BPTT/AEG/WGIIS/other stakeholders: 1 week
  - GN final version including recommendations completed and sent to BOPCOM (via BPTT): 1 week
  - BOPCOM Discussion/Decision*: 2 weeks
  - Total: 17 weeks
  - Note: GNs to be discussed at BOPCOM meetings should be sent at least 2 weeks in advance of meeting date; for written consultations, two weeks timeline suggested.

### DITT research topics — High-priority items
- Issue D.1: Compiling statistics of greenfield investments and extension of capacity
- Issue D.2: Valuation of unlisted equity in direct investment
- Issue D.3: Treatment of collective investment institutions (FITT)
- Issue D.4: Corporate inversion
- Issue D.5: Eliminating imputations for an entity owned or controlled by general government that is used for fiscal purposes
- Issue D.6: Ultimate investing economy and ultimate host economy in direct investment (including identifying capital in transit)
- Issue D.7: Sectoral breakdown of direct investment

### DITT research topics — Medium-priority items
- Issue D.8: Public-private partnerships (PPPs)
- Issue D.9: Reconciling BPM-based direct investment and FATS/AMNE statistics
- Issue D.10: Defining the boundaries of direct investment, including whether direct investment relationships can be achieved other than by economic ownership of equity
- Issue D.11: Removing debt between affiliated insurance corporations and pension funds from direct investment
- Issue D.12: Including intra-concern [between affiliates] derivatives in direct investment
- Issue D.13: Treatment of large construction financed by government
- Issue D.14: Financial conduits
- Issue D.15: Treatment of payments made by nonresident affiliated enterprises on behalf of DI enterprises
- Issue D.16: Treatment of retained earnings:
  - in the case of investment pools whose assets are not readily available to their investors;
  - whether gross or net of financial assets management services charges (for investment funds); and
  - whether it should more clearly differentiate between when the investment fund or institutional unit that provides financial assets legally and economically owns the financial assets
- Issue D.17: Identifying superdividends and establishing the borderline between dividends and withdrawal of equity

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/ditt/ditt-inaugural-meeting-presentation-imf-cochair.pdf_