This ontology defines basic financial service providers, such as holding companies, financial institutions (both depository and non-depository institutions), and clearing houses at a relatively general level. Nuances specific to the institutions located in a specific country are defined in jurisdiction specific dependent ontologies. Financial Services Entities Ontology the date that the financial service provider was established has date established the date that the financial service provider was first insured for the purposes of protecting client accounts has date insured relates a regulatory agency to something it controls or supervises the availability of in some market by means of rules and regulations regulates supply of a depository institution, usually a corporation, that accepts deposits, makes loans, pays checks, and performs related services, for individual members of the public, businesses or other organizations bank an international financial organization that serves central banks in their pursuit of monetary and financial stability, helping to foster international cooperation in those areas and acting as a bank for central banks bank for international settlements any company that owns and/or has direct or indirect control of one or more banks; BHCs may also own nonbanking subsidiaries such as broker-dealers and asset managers bank holding company a firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction brokerage firm a financial institution that is the monetary authority and major regulatory bank for a country (or group of countries) central bank a clearing house that helps facilitate trading in derivatives and equities markets central counterparty clearing house a commercial bank that facilitates payment and settlement of financial transactions, such as check clearing or facilitating trades between the sellers and buyers of securities or other financial instruments or contracts clearing bank a clearing house that is organized as a corporation clearing corporation a financial service provider that is exchange affiliated and provides clearing services, including the validation, delivery, and settlement of financial transactions, for financial intermediaries clearing house a service provided to financial institutions including the validation, delivery, and settlement of financial transactions clearing service a bank that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit commercial bank a finance company that makes loans to manufacturers and wholesalers, secured by accounts receivable, inventories, and equipment commercial finance company an individual or organization that directly or indirectly advises others as to the value or advisability of buying or selling futures contracts or options commodity trading advisor a finance company that lends to individuals under the small loans laws of the jurisdiction in which they operate consumer finance company any financial institution engaged in the business of receiving deposits from the public or other institutions, other than trust funds depository institution an investment company which is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or which has been engaged in such business and has any such certificate outstanding face amount certificate company a financial service provider identified as either a government agency or privately owned entity that collects funds from the public and from other institutions, and invests those funds in financial assets, such as loans, securities, bank deposits, and income-generating property financial institution a financial intermediary in the business of making loans to individuals or businesses that obtains its financing from banks, institutions, and other money market sources rather than from deposits finance company a non-depository institution whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies, and that provides compensation based on the happening of one or more contingencies insurance company a financial service provider that performs a variety of services. Investment banks specialize in large and complex financial transactions such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations, and acting as a broker and/or financial adviser for institutional clients. investment bank Any issuer which: (a) is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; (b) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or (c) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such issuer's total assets (exclusive of Government securities and cash items) on an unconsolidated basis investment company Any investment company that sells and manages a portfolio of securities other than a face-amount certificate company or unit investment fund. management company a regulatory agency that controls the monetary policy, regulation and supply of money in some country or group of countries monetary authority any financial institution that acts as the middleman between two parties in a financial transaction, and that does not provide traditional depository services, such as brokerage firms, insurance companies, investment companies, etc. non-depository institution Principal underwriter of or for any investment company other than a closed-end company, or of any security issued by such a company, means any underwriter who as principal purchases from such company, or pursuant to contract has the right (whether absolute or conditional) from time to time to purchase from such company, any such security for distribution, or who as agent for such company sells or has the right to sell any such security to a dealer or to the public or both, but does not include a dealer who purchases from such company through a principal underwriter acting as agent for such company. Principal underwriter of or for a closed-end company or any issuer which is not an investment company, or of any security issued by such a company or issuer, means any underwriter who, in connection with a primary distribution of securities, (a) is in privity of contract with the issuer or an affiliated person of the issuer; (b) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or (c) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution. principal underwriter a finance company that purchases retail and wholesale paper from automobile and other consumer and commercial goods dealers sales finance company A savings association is defined as: (a) any Federal savings association, where a Federal savings association means any Federal savings association or Federal savings bank which is chartered under section 1464 of the Federal Deposit Insurance Act; (b) any State savings association, where a State savings association means any building and loan association, savings and loan association, or homestead association; or any cooperative bank (other than a cooperative bank which is a State bank as defined in subsection (a)(2)) of the Federal Deposit Insurance Act, which is organized and operating according to the laws of the State (as defined in subsection (a)(3)) in which it is chartered or organized; and (c) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association. savings association a non-governmental organization that has the power to create and exercise some degree of regulatory authority over an industry or profession in some country or group of countries self-regulating organization any person who has purchased from an issuer with a view to, or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking; but such term shall not include a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributor's or seller's commission underwriter an investment company which (a) is organized under a trust indenture, contract of custodianship or agency, or similar instrument, (b) does not have a board of directors, and (c) issues only redeemable securities, each of which represents an undivided interest in a unit of specified securities; but does not include a voting trust unit investment trust 1 1 1 Copyright (c) 2015-2016 EDM Council, Inc. Copyright (c) 2015-2016 Object Management Group, Inc. http://www.omg.org/techprocess/ab/SpecificationMetadata/MITLicense FinancialServicesEntities.rdf fibo-fbc-fct-fse This ontology defines basic financial service providers, such as holding companies, financial institutions (both depository and non-depository institutions), and clearing houses at a relatively general level. Nuances specific to the institutions located in a specific country are defined in jurisdiction specific dependent ontologies. The http://www.omg.org/spec/EDMC-FIBO/FBC/20150801/FunctionalEntities/FinancialServicesEntities.rdf version of this ontology was modified per the issue resolutions identified in the FIBO FBC 1.0 FTF report. http://www.omg.org/spec/EDMC-FIBO/FND/ http://www.omg.org/spec/EDMC-FIBO/BE/ http://www.omg.org/spec/EDMC-FIBO/FBC/ProductsAndServices/FinancialProductsAndServices/ http://www.omg.org/spec/EDMC-FIBO/FBC/FunctionalEntities/RegulatoryAgencies/ http://www.omg.org/spec/ODM/ http://www.w3.org/standards/techs/owl#w3c_all the date that the financial service provider was established the date that the financial service provider was first insured for the purposes of protecting client accounts relates a regulatory agency to something it controls or supervises the availability of in some market by means of rules and regulations The Federal Reserve System, whose banks together comprise the central bank of the United States, supervises banking system and regulates the money supply in the US. a depository institution, usually a corporation, that accepts deposits, makes loans, pays checks, and performs related services, for individual members of the public, businesses or other organizations Barron's Dictionary of Banking Terms, Sixth Edition, 2012 an international financial organization that serves central banks in their pursuit of monetary and financial stability, helping to foster international cooperation in those areas and acting as a bank for central banks Office of Financial Research (OFR) Annual Report, 2012, Glossary any company that owns and/or has direct or indirect control of one or more banks; BHCs may also own nonbanking subsidiaries such as broker-dealers and asset managers A bank holding company may also own another bank holding company, which in turn owns or controls a bank; the company at the top of the ownership chain is called the top holder. Office of Financial Research (OFR) Annual Report, 2012, Glossary a firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction Office of Financial Research (OFR) Annual Report, 2012, Glossary The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages, because most of them act as both agents and principals. A brokerage acts as a broker (or agent) when it executes orders on behalf of clients, whereas it acts as a dealer (or principal) when it trades for its own account. a financial institution that is the monetary authority and major regulatory bank for a country (or group of countries) Its functions include issuing and managing the country's currency, controlling monetary policy and supervising money market operations, managing exchange and gold reserves, acting as lender of last resort to commercial banks, and providing banking services to the government. Central banks are state-controlled but are increasingly being given an independent status to insulate them from partisan politics. http://www.investopedia.com/terms/c/centralbank.asp http://lexicon.ft.com/Term?term=central-bank CCP a clearing house that helps facilitate trading in derivatives and equities markets These clearing houses are often operated by the major banks in the country. The house's prime responsibility is to provide efficiency and stability to the financial markets that they operate in. There are two main processes that are carried out by CCPs: clearing and settlement of market transactions. Clearing relates to identifying the obligations of both parties on either side of a transaction. Settlement occurs when the final transfer of securities and funds occur. CCPs benefit both parties in a transaction because they bear most of the credit risk. If two individuals deal with one another, the buyer bears the credit risk of the seller, and vice versa. When a CCP is used the credit risk that is held against both buyer and seller is coming from the CCP, which in all likelihood is much less than in the previous situation. http://www.investopedia.com/terms/c/ccph.asp a commercial bank that facilitates payment and settlement of financial transactions, such as check clearing or facilitating trades between the sellers and buyers of securities or other financial instruments or contracts Office of Financial Research (OFR) Annual Report, 2012, Glossary a clearing house that is organized as a corporation Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 a financial service provider that is exchange affiliated and provides clearing services, including the validation, delivery, and settlement of financial transactions, for financial intermediaries Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 a service provided to financial institutions including the validation, delivery, and settlement of financial transactions Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 a bank that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit A commercial bank is a financial institution that is owned by stockholders, operates for a profit, and engages in various lending activities. The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees. http://www.investopedia.com/terms/c/commercialbank.asp commercial credit company a finance company that makes loans to manufacturers and wholesalers, secured by accounts receivable, inventories, and equipment Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 CTA an individual or organization that directly or indirectly advises others as to the value or advisability of buying or selling futures contracts or options Indirect advice includes exercising trading authority over a customer's account. In the U.S., registered CTAs are registered with the Commodities Futures Trading Commission (CFTC) and are generally required to be members of the National Futures Association (NFA). Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 direct loan company small loan company a finance company that lends to individuals under the small loans laws of the jurisdiction in which they operate Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 any financial institution engaged in the business of receiving deposits from the public or other institutions, other than trust funds 12 U.S. Code Section 1813 - Definitions, see, for example, http://www.law.cornell.edu/uscode/text/12/1813 https://www.fdic.gov/regulations/laws/rules/1000-400.html#fdic1000sec.3a an investment company which is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or which has been engaged in such business and has any such certificate outstanding An investor may enter into a contract with an issuer of a face amount certificate to contract to receive a stated or fixed amount of money (the face amount) at a stated date in the future. In exchange for this future sum, the investor must deposit an agreed lump sum or make scheduled installment payments over time. Face amount certificates are rarely issued these days, as most of the tax advantages that the investment once offered have been lost through changes in the tax laws. Section 4, definition of investment companies, Investment Company Act of 1940 as amended and approved as of 3 January 2012, see https://www.sec.gov/about/laws/ica40.pdf financial institution financial intermediary a financial service provider identified as either a government agency or privately owned entity that collects funds from the public and from other institutions, and invests those funds in financial assets, such as loans, securities, bank deposits, and income-generating property Financial institutions are differentiated by the way they obtain and invest funds. Depository institutions accept public deposits, which are insured by the government against loss, and channel those deposits into lending activities. Non-depository institutions, such as brokerage firms, life insurance companies, pension funds, and investment companies, fund their investment activities directly from financial markets by selling securities to the public or by selling insurance policies, in the case of insurance companies. Barron's Dictionary of Banking Terms, Sixth Edition, 2012 a financial intermediary in the business of making loans to individuals or businesses that obtains its financing from banks, institutions, and other money market sources rather than from deposits Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 a non-depository institution whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies, and that provides compensation based on the happening of one or more contingencies In the US, insurance companies are subject to supervision by the insurance commissioner or a similar official or agency of a State; or any receiver or similar official or any liquidating agent for such a company, in his capacity as such. Common forms of insurance include life, property and casualty, and health insurance. In addition to insuring against hazards, many insurance companies also sell investments or investment-like products. The most prevalent investment products offered by insurers are annuities and life insurance policies that also feature investment elements. A number of insurance companies operate brokerage arms that trade securities on behalf of clients. http://www.ffiec.gov/nicpubweb/Content/HELP/Institution%20Type%20Description.htm https://www.sec.gov/about/laws/ica40.pdf a financial service provider that performs a variety of services. Investment banks specialize in large and complex financial transactions such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations, and acting as a broker and/or financial adviser for institutional clients. Major investment banks include Barclays, BofA Merrill Lynch, Warburgs, Goldman Sachs, Deutsche Bank, JP Morgan, Morgan Stanley, Salomon Brothers, UBS, Credit Suisse, Citibank and Lazard. Some investment banks specialize in particular industry sectors. Many investment banks also have retail operations that serve small, individual customers. http://www.investopedia.com/terms/i/investmentbank.asp Any issuer which: (a) is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; (b) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or (c) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such issuer's total assets (exclusive of Government securities and cash items) on an unconsolidated basis An investment company is organized as either a corporation or as a trust. Individual investors' money is then pooled together in a single account and used to purchase securities that will have the greatest chance of helping the investment company reach its objectives. All investors jointly own the portfolio that is created through these pooled funds, and each investor has an undivided interest in the securities. In the US, all investment company offerings are subject to the Securities Act of 1933, which requires the investment company to register with the Securities Exchange Commission (SEC) and to give all purchasers a prospectus. Investment companies are also subject to the Investment Company Act of 1940, which sets forth guidelines on how investment companies must operate. Section 3a of the Investment Company Act of 1940 as amended in January, 2012, https://www.sec.gov/about/laws/ica40.pdf Any investment company that sells and manages a portfolio of securities other than a face-amount certificate company or unit investment fund. Management companies allow investors to pool their capital with that of other investors in order to purchase professionally-managed groups of diversified securities. Section 4, definition of investment companies, Investment Company Act of 1940 as amended and approved as of 3 January 2012, see https://www.sec.gov/about/laws/ica40.pdf a regulatory agency that controls the monetary policy, regulation and supply of money in some country or group of countries a central bank, the executive branch of a government, a central bank for several nations, a currency board http://lexicon.ft.com/Term?term=monetary-authority http://www.investordictionary.com/definition/monetary-authority any financial institution that acts as the middleman between two parties in a financial transaction, and that does not provide traditional depository services, such as brokerage firms, insurance companies, investment companies, etc. Barron's Dictionary of Banking Terms, Sixth Edition, 2012 Principal underwriter of or for any investment company other than a closed-end company, or of any security issued by such a company, means any underwriter who as principal purchases from such company, or pursuant to contract has the right (whether absolute or conditional) from time to time to purchase from such company, any such security for distribution, or who as agent for such company sells or has the right to sell any such security to a dealer or to the public or both, but does not include a dealer who purchases from such company through a principal underwriter acting as agent for such company. Principal underwriter of or for a closed-end company or any issuer which is not an investment company, or of any security issued by such a company or issuer, means any underwriter who, in connection with a primary distribution of securities, (a) is in privity of contract with the issuer or an affiliated person of the issuer; (b) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or (c) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution. Section 3a of the Investment Company Act of 1940 as amended in January, 2012, https://www.sec.gov/about/laws/ica40.pdf acceptance company a finance company that purchases retail and wholesale paper from automobile and other consumer and commercial goods dealers Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014 A savings association is defined as: (a) any Federal savings association, where a Federal savings association means any Federal savings association or Federal savings bank which is chartered under section 1464 of the Federal Deposit Insurance Act; (b) any State savings association, where a State savings association means any building and loan association, savings and loan association, or homestead association; or any cooperative bank (other than a cooperative bank which is a State bank as defined in subsection (a)(2)) of the Federal Deposit Insurance Act, which is organized and operating according to the laws of the State (as defined in subsection (a)(3)) in which it is chartered or organized; and (c) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association. https://www.fdic.gov/regulations/laws/rules/1000-400.html#fdic1000sec.3a SRO a non-governmental organization that has the power to create and exercise some degree of regulatory authority over an industry or profession in some country or group of countries http://www.investopedia.com/terms/s/sro.asp any person who has purchased from an issuer with a view to, or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking; but such term shall not include a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributor's or seller's commission Section 3a of the Investment Company Act of 1940 as amended in January, 2012, https://www.sec.gov/about/laws/ica40.pdf unit investment trust unit investment company an investment company which (a) is organized under a trust indenture, contract of custodianship or agency, or similar instrument, (b) does not have a board of directors, and (c) issues only redeemable securities, each of which represents an undivided interest in a unit of specified securities; but does not include a voting trust Section 4, definition of investment companies, Investment Company Act of 1940 as amended and approved as of 3 January 2012, see https://www.sec.gov/about/laws/ica40.pdf