Fees on Securities Lending and
Reversible Gold Transactions
http://unstats.un.org/unsd/nationalaccount/AEG/papers/m3FeesSecuritiesLending.pdf
Securities Lending
Not covered in 1993 SNA
Delivery of securities, to be returned after a given time period.
 A type of reversible transaction.
 Provider of securities receives a fee.
 Often used by pension funds etc. to boost returns.
 Receiver of securities is typically a dealer who has a short position;
so the securities are on-sold.
 Receiver of securities often will provide other securities as collateral.
Same can be done with gold:
•
way of increasing returns on gold reserves.
Concerns
Payment for securities dealers is clear (financial service).
This is payment to securities owner (not a service).
Seems to be property income because financial asset put at
the disposal of another entity.
• It is the legal title to the security, rather than funds,
that is provided.
Concerns
Does not fit into existing property income categories:
Property incomes accrue when the owners of financial
assets put financial resources at the disposal of other
institutional units, but:
• interest is the return of the creditor from the debtor;
and
• dividends is the return from the share issuer to the
party that supplies equity funds.
Could create new property income category.
but minor.
Could classify by lent instrument (dividends for shares;
interest for debt instrument)
but different to interest and dividends.
Could treat as all interest:
but different to interest; simple to implement.
AEG adopted this solution.
Reversible Gold Transactions
Similar arrangement involving gold.
Gold can be financial asset (monetary gold) or
nonfinancial asset.
AEG decided that was interest in all cases.