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BPM6 changes Overview of the paper and electronic survey Recent survey changes required for BPM6 Evolution of the survey 2

Current operating performance Change to the framework: – Extended directional principal – Asset/liability Including/excluding resident SPE’s Provide split by fellows Debt between affiliated financial intermediaries is excluded 3

4 The BPM5 regulation for collecting profit and loss information gave the choice of all inclusive option or current operating performance ONS adopted the current operating performance method and the Bank of England adopted the all inclusive method BPM6 has now made current operating performance mandatory

NL Parent Company (A) UK Company (B) £23m equity £50m equity US Subsidiary (C) £8m loan Outward Position £23m equity in C Total = £23m Directional principle: Inward Position 50m equity from A -£8m loan to A Total = £42m 5

NL Parent Company (A) UK Company (B) £23m equity £50m equity US Subsidiary (C) £8m loan Outward Position £23m equity in C Total = £23m Directional principle: Inward position £50m equity from A -£8m loan to A Total = £42m DE Fellow (D) £5m loan Extended Directional principle: Outward Position £23m equity in C Total = £23m Inward position £50m equity from A -£8m loan to A -£5m loan to fellow D Total = £37m 6

Outward Position £23m equity in C Total = £23m NL Parent Company (A) UK Company (B) £25m equity £50m equity US Subsidiary (C) £8m loan Outward Position £23m equity in C Total = £23m Directional principle: Inward position £50m equity from A -£8m loan to A Total = £42m DE Fellow (D) £5m loan Extended Directional principle: Inward position £50m equity from A -£8m loan to A -£5m loan to fellow D Total = £37m Asset/liability principle: Assets £25m equity in C £8m loan to A £5m loan to fellow D Total = £38m Liabilities £50m equity from A £2m rev. equity from C Total = £52m £2m reverse equity 7 £25m

Annual and quarterly surveys (Inwards/Outwards) Long and short forms dispatched Population size (approx) Inward: Outward: 6400 Sample size – Annual 2013: Inward, 062: 3482 (1514 long form) Outward, 063: 2089 (906 long form) – Quarterly 2014: Inward, 064: 963 (514 long form) Outward, 065: 683 (376 long form) 8

Began in 2007 Reasons behind this – Number of forms per company (paper reduction) SEFT (Secure Electronic File Transfer) – Allows respondents to report their figures electronically – Queries can be raised/answered via SEFT. – Current SEFT users: – Annual Inwards 261 – Annual Outwards 577 – Quarterly Inwards 118 – Quarterly Outwards 267 9

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Accounting reporting period of the company (calendar year, accounting year etc) Establish whether the company is quoted on the London Stock Exchange 11

Focus on Business structure details – Where the global ultimate parent is based – It’s industry and country of origin – Percentage ownership of the UK reporting unit The same applies for immediate parent details – Immediate parent – Fellow enterprise question (11) 12

For subsidiaries - Profit and Loss Tax Ordinary/Exceptional Dividends Quoted figures 13

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For subsidiaries - Preference shares Opening and closing period balances Acquisition and disposals of shares Increase or decrease in value of shares 15

For subsidiaries – Intercompany loans and current account – Opening and closing debtor balance – Opening and closing creditor balances – Gross interest charges 16

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We currently publish the annual datasets in December/February. We have begun a project looking into whether publishing the quarterly datasets alongside the annual is possible/beneficial to stakeholders. User engagement Improving asymmetries with other countries - FDI network Financial havens 18

19 Questions?