0. 1. What is the data collection system underlying your CPIS?

Equity

Long Term

Short Term

Comments

Security-By-Security

End-Investor

Banks

Using data reported by the regulatory authority and the information collected from custodian banks.

Insurance

Using data reported by the regulatory authority and the information collected from custodian banks.

Pension fund

Using data reported by the regulatory authority and the information collected from custodian banks.

Mutual funds, unit trusts

Using data reported by the Chamber of Mutual Funds and the information collected from custodian banks.

General Government

Nonfinancial corporation

Household

Other

Custodian

Banks

Insurance

Pension fund

Mutual funds, unit trusts

General Government

Nonfinancial corporation

Household

Other

Aggregated

End-Investor

Banks

Insurance

Pension fund

Mutual funds, unit trusts

General Government

Nonfinancial corporation

Household

Other

Custodian

Banks

Insurance

Pension fund

Mutual funds, unit trusts

General Government

Nonfinancial corporation

Only the assets held by resident custodians. Major part of these holdings is estimated.

Household

Only the assets held by resident custodians. Major part of these holdings is estimated.

Other

1. 1 Legal and institutional environment

1. 1. 1. What is the legal basis that governs the collection of the CPIS information? Ref.: CPISG2, par. 4.8 & 4.9

Response

Specify

Comments

CPIS is collected under statistical or other legislation that empowers the collection of statistics in general

The CPIS is conducted under the authority of legislation supporting the collection of statistics in general. However, a significant part of cross-border portfolio investment is not covered in these sources, for which partner country data sources are used.

CPIS is collected under specific legislation empowering the collection of CPIS statistics

CPIS is on a voluntary basis

Other

1. 1. 2. Which institution(s) is/are responsible for collecting the CPIS statistics.? Ref.: CPISG2, par. 4.8 & 4.9

Response

Specify

Comments

National central bank

National statistical office

Ministry of Finance or other ministries

Financial regulator (if not central bank or other government ministry)

Other

1. 1. 3. Which domestic institution(s) is/are responsible for publishing the CPIS statistics? Ref.: CPISG2, par. 4.8 & 4.9

Response

Specify

Comments

National central bank

National statistical office

Ministry of Finance or other ministries

Financial regulator

Other

Do not publish the CPIS data

1. 1. 4. If there are restrictions placed on cross-border portfolio investments, which of the following sectors (i) cannot invest in securities issued by nonresidents or (ii) can invest in securities issued by nonresident only within a certain threshold? (If there are not restrictions on outward portfolio investment, please go to the next question.)

No restriction

Not allowed

Allowed up to a threshold

Threshold

Specify

Comments

Banks

20%

Insurance

25%

Pension funds

20%

Pension Funds are allowed to have a maximum of 10% in debt securities and 10% in equities.

Mutual funds, unit trusts, etc

25%

Mutual Funds are allowed to have a maximum of 25% of cross-border portfolio investments. Investments in countries of Mercosur are not considered as foreign investment.

General Government

Monetary authorities

Nonfinancial corporation

Households

Other

1. 1. 5. If you follow a mixed end-investor and custodian approach: how did you organize your survey in order to avoid double-counting between end-investors and custodians? (Otherwise go to the next question)

Custodians report data by individual investors and sector. The data for individual holders are cross-checked against data reported by end-investors as held with resident custodians.

1. 2. Concepts and Definitions

1. 2. 1. Residence of the securities holder

1. 2. 1. 1. Was the CPISG2 principle adopted for determining the country of residence of the security holder?
Ref.: CPISG2, par. 3.6 to 3.10

Response

Specify

Comments

Yes

Partly

No

1. 2. 1. 2. For countries without offshore financial centers, were you able to implement the definition of residence of holders of securities in accordance with the principle underlining the CPIS? (in line with the answer to question 1. 2. 1. 1.) (Please pay attention to the treatment of resident Special Purpose Entities (SPEs), if relevant; those are defined in the IMF's Balance of Payments Textbook as entities "(1) generally organized or established in economies other than those in which the parent companies are resident and (2) engaged primarily in international transactions but in few or no local operations." For the CPIS, the country of residence of an SPE should be determined by its legal domicile, which, in most cases, will be the country where it is incorporated.

Response

Specify

Comments

Yes

Partly

No

Do not know

1. 2. 1. 3. For countries with offshore financial centers: were entities without a physical presence treated as resident for the purposes of the CPIS? (Enterprises without a physical presence are those incorporated and unincorporated enterprises legally domiciled in the reporting economy, that (i) either perform little production activity in the reporting country or (ii) undertake productive activities that do not require any physical presence (commonly business services and financial services connected with management of financial assets and liabilities)).

Response

Specify

Comments

Yes

Partly

No

Do not know

1. 2. 2. Distinction between long-term and short term debt securities: principle adopted and practical implementation

1. 2. 2. 1. Were the CPISG2 principles on distinguishing short and long-term debt securities adopted?
Ref.: CPISG2, Appendix 1

Response

Specify

Comments

Yes

Partly

No

1. 2. 2. 2. In practice, were respondents generally able to implement the distinction between short and long-term debt securities in accordance with the principle underlining the CPIS? (in line with answer to question 1. 2. 2. 1.)
Ref.: CPISG2, par. 3.87 to 3.94

Response

Specify

Comments

Yes

Partly

The estimated component cannot be broken down by term.

No

Do not know

1. 2. 3. Distinction between direct and portfolio investment: principle adopted and practical implementation

1. 2. 3. 1. Were the CPISG2 principles for distinguishing between direct and portfolio investment adopted?
Ref.: CPISG2, par. 3.51 to 3.58

Response

Specify

Comments

Yes

Partly

No

1. 2. 3. 2. In practice, how did you implement the distinction between direct and portfolio investments in accordance with the principle underlining the CPIS? (in line with answer to question 1.2.3.1.)
Ref.: CPISG2, par. 3.51 to 3.58

Response

Specify

Comments

A separate direct investment survey was run for sectors believed to have direct investment relationship

Guidance note was supplied to respondents to clarify the definition of direct and portfolio investment

Other

Portfolio and direct investments are estimated through different sources. Security by security information is used to determine whether there is a direct investment relationship by comparing the holdings of an individual end-investor with the value of shares on issue.

1. 2. 4. Valuation of portfolio investment holdings

1. 2. 4. 1. Were the CPISG2 principles on valuing stock of assets at current market prices at the appropriate reference date adopted?
Ref.: CPISG2, par. 3.33 to 3.42

Response

Specify

Comments

Yes

Partly

No

1. 2. 4. 2. In practice, were respondents able to implement the market valuation of securities in accordance with the principle underlining the CPIS? (in line with answer to question 1.2.4.1.)
Ref.: CPISG2, par. 3.33 to 3.42

Equity securities

Debt securities

Specify

Comments

Listed on organized market/readily tradable

Not quoted on stock exchanges/not regularly traded

Yes

Partly

No

Do not know

1. 3. Statistical techniques

1. 3. 1. Was there any exemption threshold? (if yes, please specify the sector where the threshold applies, the value and the currency and currency unit used)

Threshold

Simplification

Exemption

Specify

Comments

For all respondents

1,000 US$

For some class of respondents only

No

1. 3. 2. If you answer "Yes" to question 1. 3. 1., do you have an indication of the proportion of holdings in hands of the survey population below the threshold?

Response

Specify

Comments

Yes

No

1. 3. 3. What steps were undertaken to deal with nonresponse?

Response

Specify

Comments

Grossing-up techniques

Other estimation techniques

Contact with respondents

No action

Other

1. 4. Assessment and validation of data

1. 4. 1. Are independent checks made on CPIS data supplied by respondents?
Ref.: CPISG2, par. 5.28 to 5.52

Response

Specify

Comments

CPIS data compared with totals obtained from regulatory sources

CPIS data reconciled with IIP data supplied by respondent

CPIS data reconciled with BOP flow data for the respondent

CPIS data compared with data supplied from other statistical collections

Other

No

1. 4. 2. What kind of action was taken when the checks showed some errors?

Respondents were contacted and asked to revise the information. Where there were differences, data reported by end-investor were preferred over data reported by resident custodians.

1. 5. 1. Were data collected (but not provided) for any of the following CPIS encouraged items?
Ref.: CPISG2, par. 2.11 to 2.14

Equity securities

Long-term debt securities

Short-term debt securities

Comments

Portfolio investment liabilities

Currency breakdown of portfolio investment assets

Sector breakdown of portfolio investment assets according to institutional sector of the holder

1. 5. 2. If sector data for assets were produced, which sector classification was used?
Ref.: CPISG2, par. 3.43 to 3.50

Response

Specify

Comments

Not applicable, no sector data.

1993 System of National Accounts (SNA) classification

Balance of Payments Manual (5th edition) (BPM5) classification

BPM5 classification extended in line with the SNA framework

Other

1. 6. Consistency issues

1. 6. 1. Which institution is in charge of compiling the international investment position (IIP) statement in your country/jurisdiction?

Response

Specify

Comments

The same institution(s) that is/are in charge of compiling the CPIS

Institution(s) other than the institution(s) in charge of compiling the CPIS

International investment position data are not compiled

Other

1. 6. 2. If the IIP is compiled, will your CPIS results be used to compile the portfolio investment item of the IIP?

Response

Specify

Comments

Not applicable - international investment position data are not compiled

Yes, CPIS and IIP data will be identical

Yes, but they will differ due to differences in coverage/adjustments etc.

No

1. 6. 3. If the IIP data are compiled and differ from the corresponding CPIS results, will the differences be documented and explained for data users?

Response

Specify

Comments

Not applicable - international investment position data are not compiled or are identical to CPIS data.

Yes, differences between CPIS and IIP will be documented and explained

No

The IIP includes an estimate for securities held by households with nonresident custodians for which a breakdown by the country of residence of the issuer cannot be reliably made.

1. 7. 1. If the CPIS results are subject to revision, is there a policy regarding the treatment of revised data?

Response

Specify

Comments

Yes

No

1. 8. 1. Will the CPIS results be published (other than in IMF publications)?

Response

Specify

Comments

Paper publication

Web site

Press releases

Other

No

CPIS results are only published for the IIP.

1. 9. 1. Will CPIS metadata (i.e., information on definitions, methods, etc.) be disseminated (other than in IMF publications)?

Response

Specify

Comments

Paper publication

Web site

Press releases

Other

No

1. 11. Other

1. 11. 1 Are there any other comments that you wish to make that would assist users in the interpretation of the CPIS results?

Total portfolio investment abroad data included in the IIP result from two different sources: reported data and estimated data. A collection system has been established based on the bi-annual survey of domestic banks acting as custodians and on information provided by the National Government and different regulatory agencies (for banks, pension funds and investment funds). This covers everything that can be covered, in particular cross-border holdings of the institutional investors and the government. What is missing from direct reporting and needs to be addressed by means of estimation are the private sector holdings (non-financial private corporations and the household sector) with non-domestic custodians. In order to deal with this issue, reported data were supplemented with estimates based on the results of a survey of international financial experts and on partner country data. However, CPIS results differ from IIP data in terms of coverage. They comprise reported data plus only the geographically allocated component of the estimated data (based on information released by the US). The estimated unallocated component was not included in our results. As a result, the CPIS data are considered to be significantly underestimated.

2. 1. Source data

2. 1. 1. For what were data collected from end-investors?

Response

All holdings

Own custody or nonresident custodian holdings

2. 1. 2. Please give the reason for adopting a collection system based on reporting by end-investors?
Ref.: CPISG2, Chapter 4

Response

Specify

Comments

Investment in foreign securities is mostly carried out by a relatively small number of large domestic institutional investors.

There is a tradition and/or sound legal framework for collecting cross-border financial statistics from end-investors

Resident investors keep securities mostly with nonresident custodians

Reporting preference by respondents

Other

The information is available through the regulatory authority and cross checked against data reported by custodian banks.

2. 1. 3. If your end-investor CPIS collection system covers the household sector, could you describe the main difficulties encountered in approaching this sector? (Otherwise, please go to the next question)

The household sector is covered by the survey of resident custodians and to some extent through partner country sources. A significant part of securities held by households with nonresident custodians is not covered. Data for the household sector based on cumulative flows are included in the IIP.

2. 1. 4. In the framework of your end-investor approach, what steps were taken to ensure that (end-investor) respondents provide the correct identification of the residence of issuers of securities?

Response

Specify

Comments

Respondents were provided with comprehensive explanatory notes for completing the CPIS forms

Respondents were required to check against ISIN or other security identification codes

Respondents were told that the market of issue should not be a proxy for residence of the issuer

Other

This information was provided security by security.

2. 1. 5. What are the sources used to build up registers of resident entities included in the CPIS and to maintain them over time?
Ref.: CPISG2, par. 5.9 to 5.24

Main

Secondary

Occasional

Specify

Comments

Government administrative sources

International Transaction Reporting System

Taxation records, files, or lists.

Information held by foreign investment approval or monitoring boards.

Central bank records

Information held by other regulatory authorities

Statutory company reports and company registration details.

Records held in foreign exchange controls or international transaction reporting systems

Other

Publicly available databases

The stock exchange register.

Commercial equity registers’ information services.

Market research reports or services

Media reports

Trade associations and their associated reports and releases.

Other

2. 1. 6. Could you please indicate (1) the number of CPIS end-investors approached (outside the household sector), (2) the entities actually reporting CPIS data, and (3) the coverage of the reported CPIS holdings as a percentage over the national total? (Careful estimates are acceptable.)
(Careful estimates are acceptable.)

Entities approached

Entities reporting

CPIS coverage as a percentage of the national total value of holdings in foreign securities.

Specify

Comments

Total

302

302

Banks

107

107

This information was collected from banks and the regulatory authority.

Insurance

195

195

This information was collected from banks and the regulatory authority.

Pension funds

12

12

This information was collected from custodian banks and the regulatory authority.

Mutual funds, unit trusts, etc

182

182

This information was collected from custodian banks and the Chamber of Mutual Funds.

IBCs / SPEs

General government

1

1

Cross border holdings of the National Goverment.

Nonfinancial corporations

Other

3. 1. Source data

3. 1. 1. Could you please explain the reason for adopting a collection system centered around resident custodians and other indirect sources?

Response

Specify

Comments

There is a tradition and/or sound legal framework for collecting cross-border financial statistics from custodians.

Domestic investors by large keep their securities with resident custodians.

Ability to reduce reporting burden on respondents

Other

The collection system used is not centered on custodians, but custodian reporting provided information on the household sector.

3. 1. 2. Are custodian services provided by resident entities other than banks? (e.g. investment managers, brokers, dealers, etc)

Response

Comments

Yes

Partly

No

3. 1. 3. If "yes" or "partly" to question 3. 1. 3., are investment managers likely to use the services of resident custodians? (If "no" to question 3. 1. 3., go to the question 3. 1. 5.)

Response

Comments

Yes

Partly

No

3. 1. 4. If "yes" or "partly" to question 3. 1. 3., are resident brokers/dealers likely to use the services of resident custodians? (If "no" to question 3. 1. 3., go to the question 3. 1. 5.)

Response

Comments

Yes

Partly

No

3. 1. 5. What are the main difficulties that resident custodians encounter in identifying the residence of beneficial holder?

If the first link in a custodian chain is with a nonresident custodian, but otherwise involves resident custodians, it may be difficult for the resident custodian to identify the resident beneficial holder.

3. 1. 6. How did you organize your survey in order to avoid double-counting between custodians (resulting from chains of custodians responsible for the same security)?

Custodians were required to identify whether a client is another custodian or the resident beneficial holder. In addition, the CPIS compiler maintained a full matrix of holders and issuers which was used to check for doublecounting.

3. 1. 7. How did you organize your survey in order to avoid inclusion of securities held on behalf of direct investors?

The information was provided security by security and analyzed to detect whether there was a direct Investment relationship.

3. 1. 8. If your survey includes custodians, investment managers and brokers/dealers, how did you organize your survey to avoid the double counting between custodians, investment managers and brokers/dealers? (otherwise, go to next question)

Only custodians were surveyed.

3. 1. 9. How did you organize your survey to cover holdings of residents with nonresident custodians?

This is one of the most important problems of our CPIS results. We use partner country data and estimates to cover the holdings of residents with nonresident custodians. For households an attempt was made to approach nonresident custodians and other intermediaries but this proved unsuccessful. Some attempt was made to estimate households cross-border portfolio investment through the use of partner country sources (such as the United States).

3. 1. 10. Could you please indicate (1) the number of custodians/investment managers/brokers/dealers approached (as relevant), (2) the entities actually reporting CPIS data, and (3) the coverage of the reported CPIS holdings as a percentage over the national total? (Careful estimates are acceptable.)

Entities approached

Entities reporting

CPIS coverage as a percentage of the notional total value of holdings in foreign securities.

Total

107

70

Custodians

107

70

Investment managers/ brokers/ dealers

4. 1. Source data

4. 1. 1. For what reasons do you prefer security-by-security reporting to aggregate reporting?
Ref.: CPISG2, Chapter 4

Response

Specify

Comments

Ability to cross-check data on the country of residence of the issuer.

Ability to cross-check data on the market value of the security.

Ability to cross-check data to avoid double counting.

Ability to cross-check other information for verification/quality control

Ability to draw on the securities database for information on the issue and issuer

Ability to reduce reporting burden on respondents

Other

4. 1. 2. What are the sources of data on individual securities and issues used in your CPIS?
Rate on scale of importance: 1 -main; 2 - secondary; 3 - occasional; 4 - not at all.

Eq. sec.

Gov. L-T debt sec.

L-T debt sec. banks

L-T debt sec. nonbanks

Gov. MMI

Banks MMI

Nonbanks MMI

Specify

Comments

Securities issued in foreign financial markets by non-residents

Commercial security database

National numbering agency/ies

Stock exchange

Security-by-security data reported by end-investors

1

1

1

1

1

1

1

Security-by-security data reported by custodians

2

2

2

2

Banking records

2

2

2

2

Securities registers

3

Business registers

UIC database

BIS database for international debt securities

Other

Securities issued in domestic financial markets by non-residents

Commercial security database

National numbering agency/ies

Stock exchange

Security-by-security data reported by end-investors

Security-by-security data reported by custodians

Banking records

1

Securities registers

3

Business registers

UIC database

BIS database for international debt securities

Other

4. 1. 3. If you collected security-by-security data primarily or exclusively from custodians, did you also ask end-investors to identify their custodians and the amount entrusted to them? If “yes” how useful did you find these data to be?

Yes, and we use the security by security information from end investors to cross check information for verification and quality control.