Transcript Use of administrative sources for identification of EGs in Slovenia Aleksandra Lešnjek Mojca Zaletel.

Use of administrative
sources for identification
of EGs in Slovenia
Aleksandra Lešnjek
Mojca Zaletel
Activities of setting up EG register
1. Analysing the available administrative and
statistical sources
2. Setting up a pilot EG register as analytical data
base
3. Upgrade and integrate the pilot EG as
transactional data base within the ISIS – new
project of modernisation of IT infrastructure in
the business statistics domain
Geneva, 18-19 June 2007
Analysing the available administrative and
statistical sources
• Central Securities Clearing Corporation - Register of dematerialised
securities and monetary settelment of securities transactions
• Court register
• Bank of Slovenia - Statistical reports on capital investment among
residents and non-residents
• Data kept by AJPES (Agency for Public Legal Records and Related
Services), consolidated accounts
• Internet data available
Geneva, 18-19 June 2007
Register of dematerialised securities (1)
•
Central Securities Clearing Corporation was established by law regulating
the securities market for performing the services of calculation, equalisation
and providing payment on the basis of securities transactions on organised
sequrities market
•
Is the first and only institution in Slovenia to provide central securities
custody services, clearance and settlement of securities transactions and
maintenance of the central registry of holders of dematerialised securities in
the Republic of Slovenia.
•
Keep the data on securities in the central IT data base (daily updated)
•
It is a potential source of data for identifying parent companies of Slovenian
joint stock companies (based on ownership shares of parent companies in
daughter companies); non-residents legal and natural persons included
Geneva, 18-19 June 2007
Register of dematerialised securities (2)
• Data in e-format yearly:
– Data on Slovenian joint stock companies (jsc)
– Data on the number and types of issued jsc’s shares
– Name, address on holders of the shares (legal units
and natural persons, residents and non-residents)
– Data on the number and types of holder’s shares
– Data on holder’s country of residence (ISO Standard)
– Information if the jsc quoted on the organised
sequrities market
Geneva, 18-19 June 2007
Court Register (1)
• The legislation stipulates that all companies-legal units
with the exception of small and medium-sized sole
proprietors must be registered in the Court Register
• By entry into the court register, companies obtain the
status of legal persons. Beside the ordinary variables, it
comprises the structure of ownership for all legal
persons that are subject of entry in the register
• It is a potential source of data for identifying parent
companies of Slovenian limited liability companies
(based on ownership shares of parent companies in
daughter companies); non-residents legal and natural
persons included
Geneva, 18-19 June 2007
Court register (2)
• Data in e-format yearly:
– data on Slovenian limited liability companies
– structure of ownership for all legal and natural
persons that are subject of entry in the
register in absolute values
– Name, address on holders of the shares
(legal units and natural persons, residents
and non-residents)
– Data on holder’s country of residence (ISO
standard)
Geneva, 18-19 June 2007
Bank of Slovenia (1)
Capital investment report among residents and non-residents:
• data on holdings of Slovene residents abroad (directly affiliated
investments abroad)
• data on holdings of directly affiliated companies abroad in other
companies abroad (indirectly affiliated investments abroad) on
condition that directly and indirectly affiliated investments equal or
are greater than 10%
• data on holdings of non-residents in companies in Slovenia (directly
affiliated investments in Slovenia)
Geneva, 18-19 June 2007
Bank of Slovenia (2)
Entities obliged to report (i.e. reporting units) are:
• residents – legal persons and individual private
entrepreneurs that in the reporting year owned
participating interest or shares of legal persons abroad,
founded an affiliate abroad (performing profit activity) or
owned real estate abroad
• residents in which the reporting year non-residents (legal
and natural persons) are owners of participating interest
or shares of legal persons abroad, founders of an
affiliate (performing profit activity), and (co)founders of
an institution or foundation in the Republic of Slovenia
Geneva, 18-19 June 2007
Agency for Public Legal Records (1)
• was established in July 2002
• e-collection, e-processing of data from different kind of
annual reports
• manages various administrative registers (business
register, register of non possesory liens and seized
movable property)
• collects information of credit standing of individual legal
units operating in SLO, CRO, MK
• it is an authorised producer of some statistical surveys
Geneva, 18-19 June 2007
Agency for Public Legal Records (2)
• Consolidated annual account are not
electronically processed yet (only scanned
format available)
• Discussions between institutions are on
going
– It will increase the potential use of available
data in the EG’s domain
Geneva, 18-19 June 2007
Making a contract
• SORS made a contract with all relevant institutions to
recive the relevant data in e-format.
• On the basis of the National Statistics Act, for the
purpose of rational implementation of the activities of the
national statistics, SORS makes use of identifiable
individual data from various official and other
administrative data collections of the public and private
sectors (records, registers, databases, etc.) which are
kept on the basis of law or written consent of the
individual.
• In compliance with the Statististical Act, register holders
must, free of charge, submit to SORS all the requested
information.
Geneva, 18-19 June 2007
Preparation of a common database of shares and
control based on the combination of 3 main sources
1.
Preparation of guidelines for creating the common
database of shares and control relationships between
economic operators
2.
Programming the common database of financial
relationships and control
3.
Filling the common database
4.
Control of data in the common database of financial
relationships and control
Geneva, 18-19 June 2007
Programming the algorithm for identification of
enterprise groups (1)
• The algorithm was programmed on the basis of
direct or indirect relationship of the parent unit
over the daughter unit
• The algorithm operates by combining the topdown and the bottom-down approach, so that in
an efficient way in addition to the group head
also the identification of all its units is provided.
Geneva, 18-19 June 2007
Programming the algorithm for identification of
enterprise groups (2)
• In the first stage every unit that appears in the
common table of relationships represents the
starting group of enterprises. Further on the
program operates according to the bottom-up
principle, taking into account direct and indirect
control
• The unit is evaluated by searching for the
appropriate parent unit which controls it, so that
the unit is moved to the group which controls it.
Geneva, 18-19 June 2007
Programming the algorithm for identification of
enterprise groups (3)
• Then the algorithm follows a top-down approach
identifying all daughter units in a group by the
direct control method.
• This cycle is repeated as many times as
necessary to appropriately classify all units into
groups.
• Units that no one controls are eliminated.
Geneva, 18-19 June 2007
Linking the data from the algorithm with the
Statistical Business Register
• Data as results of the algorithm are in the next
stage linked with the data from the Statistical
Business Register in order to obtain and
recalculate some general data for enterprise
group (number of employees, main activity code,
etc.).
• With this approach the pilot national register was
set out. The next step is planned for 2008 to
upgrade it as a transactional database.
Geneva, 18-19 June 2007
Graphic presentation of groups
• Graphic presentation of the group include some
general data on its component parts (name of
the unit, country of the unit, ownership share)
• We selected between Visio and GoDiagrams
Win Professional
• The main advantage of GoDiagrams is good
presentation of both small and large groups and
in contrast to Visio is a manage.net library.
Geneva, 18-19 June 2007
Problems encountered and solutions found or
proposed (1)
• Technically unparalleled content of sources
– We have used three main sources which are
maintained by different institutions. They are not
linked and their data are used for different purposes,
so we had to transform the data into a technically and
methodologically comparable form.
– The data were transformed so that the relationship
“legal unit–holder–share of the holder in the legal unit”
was determined
Geneva, 18-19 June 2007
Problems encountered and solutions found or
proposed (2)
• Individual records concerning legal units can appear in
several sources at the same time
– rules of priority have to be settled out that
enable us to make the data editing as
efficiently as possible and to check and
process the data on the couples
simultaneously
Geneva, 18-19 June 2007
Problems encountered and solutions found or
proposed (3)
• The identifier of non-residents
– The data for non-residents do not have unique
identifier and they appear in different sources at the
same time
– We could identify them only considering name,
address and state. However, names and addresses in
different sources are not written down uniformly, so
we used matching (matching rules) by certain criteria
for selection and finally checked the entries manually
which could increase the mistakes.
Geneva, 18-19 June 2007
Main conclusion and questions
• No need to use commercial sources for resident and
truncated EGs, but strong need to link the data with the
Euro Group Register for multinational groups
• How to define the countinuity rules for EGs?
• Natural persons – to identify them as group heads or
not?
• Republic of Slovenia - to identify it as group head or
not?
Geneva, 18-19 June 2007
Continuity rules for Slovenian register
(practical criteria )
• The enterprise group is changed if at least
one of below conditions is complied
• Small EG ( up to 5 units ):
– Change of group head
– Change of enterprises belonging to the group except
group head
• Large EG ( more than 5 units )
– Change of group head
– Change of the share of old units in a new group is less
than 50% ( share= number of old units in a new group/
number all units in a new group )
Geneva, 18-19 June 2007