1993 SNA Update Information - AEG recommendations for issue:
Fees payable on securities lending and gold loans
|Issue description in [English] | [French] | [Russian] | [Spanish]|
|Neither the 1993 SNA nor the Balance of Payments Manual discusses the issue of fees payable on securities lending and gold loans. The fee for securities lending is for putting a financial instrument at the disposal of another unit, but it does not fit with the definition of interest when the legal ownership is transferred but the economic risks and rewards of the ownership remain with the
original owner. The fee payable on gold loans appears to be a payment for services as gold in this
instance is non-monetary gold.|
|Number of AEG recommendations for selected issue:||1|
| Corresponding meeting||Date posted||Recommendation|
| July 2005||12/09/2005||The AEG agreed that fees associated with securities lending and reversible gold transactions should be treated as property income. The AEG also noted the value of the fees involved is likely to be very small compared with other property income items.|
The AEG agreed that fees on securities lending and reversible gold transactions should be recorded entirely as interest, including amounts paid on loans of allocated [non-financial] gold.
The AEG noted that there is no FISIM associated with the interest recorded for these fees.