Question ID: 175
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 35
Status: Final
Date of submission: 10 Aug 2015
Question
CIC Codes – Regional Government Bonds v Municipal Government Bonds
Should Canadian provinces be classified as CIC 14 for ‘Municipal Government Bonds’? The description for municipal government bonds specifically states this classification should included provinces, whereas our information provider which is the source for our CIC codes believes that only US municipal government bonds should be classified as ‘##14’ due to this being the market ‘norm’, and Canadian provinces should be classified as CIC ‘##13’ for ‘Regional Government Bonds’.
It can be argued that the Canadian provinces are regional government as they are considered to be co-sovereign divisions and hence regional government.
EIOPA answer
Canadian Provinces are to be considered regions and classified with CIC category “##13”.
Please note that the description of the CIC14 have been amended to “Local authorities bonds”.