The US Department of Commerce's Bureau of Economic Analysis (the "BEA") collects information on international trade in services and direct investment. Every five years, the BEA collects the BE-180 Survey of Financial Services Transactions Between US Financial Services Providers and Foreign Persons ("BE-180"). The BE-180 survey is required from all US persons who have engaged in any covered financial services transactions during fiscal year 2024, including US investment managers with non-US clients and non-US investment managers with US-domiciled funds.
BE-180 surveys are due no later than July 31, 2025. Extensions may be requested by contacting the BEA at be-180extension@bea.gov.1Reporting requirements apply regardless of whether a US person has been contacted by the BEA.
US "financial service providers," including US-domiciled fund managers and US-domiciled funds (as well as other US-domiciled financial services providers, such as banks and broker-dealers), are required to submit a BE-180 if they engaged in any financial services transactions with foreign persons in 2024. Of particular note for our private fund manager clients, BE-180 surveys are required where, during fiscal year 2024:
- a US-domiciled investment manager received fees, incentive allocations or carried interest from a non-US fund or managed account (including non-US funds sponsored by the US investment manager or its affiliates); or
- a US-domiciled fund or person paid a non-US investment manager fees, incentive allocations or carried interest (including US funds sponsored by the non-US investment manager or its affiliates).
Payment and/or receipt of fees, incentive allocations or carried interest is determined on an accrual basis and is reportable on BE-180 in connection with discretionary or non-discretionary investment management and/or advisory activities.
The examples of covered financial services mentioned here are of specific interest to our private fund manager clients; however, a range of additional cross-border purchases of, or sales by, US persons of financial services are covered by the BE-180 survey and would trigger reporting. Covered services include, for example: brokerage, underwriting and private placement, credit-related activities, financial custody, proxy advisory, securities lending, electronic funds transfer, and "other" services (e.g., crypto wallet fees, asset pricing, securities or futures clearing and settlement services).
There is no de minimis exemption from the requirement to file the BE-180 survey; however, US reporters may submit a truncated version of BE-180 surveys if they had, during fiscal year 2024:
- combined purchases of covered financial services from non-US persons that were less than or equal to $3 million; and
- combined sales of covered financial services to non-US persons that were less than or equal to $3 million.
Many fund managers currently submit a quarterly companion survey, BE-185, which covers many of the same transactions as BE-180; however, filing BE-185 does not exempt a US reporter from submitting a BE-180 survey, even if the information included is substantially similar.
Information on the BE-180 survey, including copies of the survey, instructions and instructional videos, can be found here.
Footnote
1 Reports can be submitted electronically at www.bea.gov/efile. Reports may also be submitted via fax to (301) 278-9508 or mail to: Bureau of Economic Analysis Balance of Payments Division, BE-50 (SSB) 4600 Silver Hill Rd., Washington, DC 20233.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
