1. Institutional sub-sectors and the delineation of head offices, holding companies and special purpose entities
Item 5.2 of the agenda 9th Meeting of the AEG Washington, 8-10 September 2014 Eurostat C1

2. Delineation of Head offices and holding companies
New issue of 2008 SNA :Distinction between head offices and holding companies.
Implementation problems
OECD/ECB/Eurostat Task Force
Consultation of the AEG – 8th meeting in Luxembourg
Draft note for SNA News and Notes

3. 8th AEG meeting: Conclusions on head offices and holding companies
Standard SNA criteria for an institutional unit should always be applied.
Non-residents are always to be considered as institutional units; no “downstream consolidation” of a holding with its subsidiary/-ies.
“no employees and no compensation of employees” is not a sufficient criterion to determine the lack of institutional independence
Having multiple parents/shareholders is a sufficient qualification for a unit to be considered an institutional unit.

4. 8th AEG meeting: Conclusions on head offices and holding companies
Head offices are always to be considered as separate institutional units.
Having at least 50% of its assets consisting of equity vis-à-vis its subsidiaries can be considered as a practical indicator for identifying entities as being either HOs or HCs.
In general, employment of three or more persons could be considered as a first indicator for a unit being a head office.

5. Next steps
Work on SPEs, in particular on the treatment of IPPs is ongoing
Another SNA News and Notes on SPEs
Please comment on the draft note on holding companies and head offices.
Thank you for your kind attention