ELABORATION OF A MORE
PRECISE NOMENCLATURE OF
HOUSEHOLDS’ FINANCIAL ASSETS
Working Party on Financial Statistics
11-12 October 2004
by Michèle Chavoix-Mannato, OECD/NAFS
Backgrounds

Discussions at the OECD October 2003 WPFS
Meeting on the importance of knowing and
understanding the financial risks borne by
households

Decision to undertake a pilot-exercice with two
countries, FRANCE and ITALY

Conclusions presented at an experts meeting on 5
July 2004
Conclusions of the Pilot-Project
Meeting of 5 July 2004

RULE:
no change in the SNA 1993/ESA 1995

Restrictions:




sector S14 only
stocks only
assets only
Coverage:


instrument F.52
instrument F.611
 instrument F.612
 At
a first stage
it is proposed to add a yearly table on
households’ financial assets, as a satellite
account
At a later stage

it could be envisaged


to extend the detailed nomenclature to flows
to extend the scope to liabilities
F.52

In SNA 1993, there is no explicit breakdown of F.5
(Shares and other equities) between F.51 and F.52,
while it exists in ESA 1995

Proposals:
 Renaming
F.52 as Investment Funds Shares
 Listing the various sub-instruments according to
the increasing risk borne by households
 Defining F.52 and its sub-components
Definition for F.52

The instrument F.52 (Investment Funds
Shares) consists of all transactions in
investment shares, i.e. shares issued
by Investment Funds
Investment Fund: an investment company which
pools the capital paid in by many individual investors
and invests it in specific markets and assets.
Investment funds can take different legal structures.
Investment funds include open-end funds and closedend funds
Proposal for a breakdown of F.52
Financial instruments
level 1
Investment funds shares
F.52
Money market funds
Real estate funds
Bond funds
Balanced/mixed funds
Equity funds
Other funds
level 2
F.521
F.522
F.523
F.524
F.525
F.526
1. Do you agree upon the proposed renaming and
definition for F.52?
2. Could the proposed classification of
investment funds be used to distinguish
between the different types of investment funds
held by households in your country?
3. Should thresholds be specified to define bond
funds and equity funds. If so, what are your
suggestions?
F.611

Not to deviate from SNA 1993, it has been finally
decided to maintain ‘contracts of retirement
managed by an insurance corporation’ in F.611

Proposals:
of ‘Net equity of households in life
insurance reserves (F.611) into the two
types of contracts: standard life insurance
contracts and contracts of retirement
managed by insurers
 further split of these two types of contracts
according to the increasing risk
 breakdown
Proposal for a breakdown of F.611
Financial instruments
level 1
Net equity of households in life
insurance reserves
F.611
Life insurance contracts
level 2
level 3
F.6111
other than in unit-linked
F61111
in unit-linked
F61112
Contracts of retirement
F.6112
other than in unit-linked
F61121
in unit-linked
F61122
Proposal for a breakdown of F.611
Financial instruments
Net equity of households in life
insurance reserves
Life insurance contracts
level 1
level 2
level 3
F.611
F.6111
other than in unit-linked
F61111
In unit-linked
F61112
Contracts of retirement
Traditional defined benefit schemes
F.6112
Hybrid defined benefit schemes
F61121
F61122
Defined contribution schemes
F61123
1. Is it preferable to maintain ‘contracts of
retirement managed by an insurance
corporation’ in F.611 to better correspond to
SNA?
2. Do you agree with the split of multi-vehicle life
insurance contracts between F.61111 and
F.61112 according to the contents?
3. Do you accept the new classification
according to the risk? If so, which alternative
do you prefer?
F.612
 Proposals:
Introduction of additional distinctions
of pension funds between autonomous
and non-autonomous pension funds

further split of these two types of funds
according to the bearer of the risk

Proposal for a breakdown of F.612
Financial instruments
Net equity of households in pension funds
reserves
Pension schemes managed by an
autonomous pension fund
Defined benefit schemes
Hybrid defined benefit schemes
Defined contribution schemes
Pension schemes managed by a
non-autonomous pension fund
Defined benefit schemes
Hybrid defined benefit schemes
Defined contribution schemes
Other
level 1 level 2 level 3
F.612
F6121
F61211
F61212
F61213
F6122
F61221
F61222
F61223
F6123
1. Could the proposed breakdown of each type of
pension schemes into three categories,
traditional defined benefit funds, hybrid defined
benefit funds, and defined contribution funds
be used in your country?
2. Is the introduction of a memo item F.6123,
including unfunded pension schemes, useful?
3. Do you agree with the proposed new
classification?
WPFS delegates have to decide

On the the addition to the questionnaire on financial
accounts of a yearly table requesting detailed
additional information on three assets held by
households, F.52, F.611 and F.612

On the definition and clarification on the items to be
added

On the collection of data (back to 1995) and metadata,
in spring 2005 and their dissemination

On a possible ad hoc session of the WPFS with
Regulatory Authorities, to address the issue relating to
definitions and to data themselves.
16
Conclusions



The Secretariat thanks the pilot-countries
who have contributed to this exercice
If a sufficient number of countries are in
favour of this additional yearly table, it will
be implemented in 2005
The WPFS should seize the opportunity of
the SNA review to propose a clarification
of the instrument F.5