The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) requires certain U.S. persons to file the Benchmark Survey of U.S. Direct Investment Abroad (BE-10) in the near future. This quinquennial survey, due between May and June 2025, has significant implications for U.S. asset managers with direct investments abroad.
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Key Filing Deadlines
Filing deadlines vary depending on the number of foreign affiliates to be reported:
- May 30, 2025: For filers required to complete fewer than 50 foreign affiliate forms
- June 30, 2025: For filers required to complete 50 or more forms
The information reported must reflect ownership interests as of December 31, 2024. Entities that ordinarily file the annual BE-11 survey must instead submit the BE-10 this year.
Filing Obligation
Any U.S. person who, directly or indirectly, owns or controls at least 10% of the voting interest in a foreign business enterprise is required to file this report. Unlike other BEA surveys, the BE-10 is mandatory for all U.S. reporters, regardless of whether they have been contacted by the BEA.
Filings must be made on a U.S. domestic consolidated basis, beginning with the highest-level U.S. business enterprise and including all U.S. entities in ownership chains where more than 50% ownership exists.
Required Information
The BE-10 survey collects information on:
- The organization and operations of the U.S. business enterprise
- Transactions between the U.S. reporter and its foreign affiliates
- Financial and operational data for each foreign affiliate
- Digital economy activities, such as services provided remotely
- Foreign real estate holdings, which generally constitute foreign affiliates
Common Scenarios for Asset Managers
U.S. asset managers should assess their filing obligations in several common scenarios:
- Managers with Foreign Subsidiaries: Foreign operating subsidiaries are reportable affiliates if the manager owns at least 10% of the voting interest.
- U.S. Investment Funds with Direct Foreign Investments: A U.S.-based fund that owns at least 10% of the voting interest in a non-U.S. entity may have a reportable foreign affiliate.
- U.S. Managers of Foreign Private Funds: A U.S. manager acting as the general partner of a foreign private fund may be required to report if the fund owns at least 10% of the voting interest in a non-U.S. operating company.
There is an exemption for foreign “private funds” that do not hold more than 10% of an “operating company.” The BEA defines an operating company as any business enterprise other than a private fund or a holding company.
Sub-Threshold Investments
Investments involving ownership interests below 10% are not reportable on Form BE-10, but they may be reportable under the Treasury International Capital (TIC) system. Asset managers should consider how BE-10 interacts with other BEA surveys and reporting regimes, including the TIC system.
Extensions and Penalties
The BE-10 instructions provide a mechanism to request reasonable extensions, which must be submitted through the BEA’s electronic filing system prior to the applicable deadline.
Failure to comply may result in:
- Civil penalties of up to $59,114
- Injunctive relief compelling compliance
- Criminal penalties for willful noncompliance, including up to one year of imprisonment and a fine of $10,000
Purpose of the Data
The U.S. government uses the data to prepare macroeconomic statistics and to inform economic and trade policy. The survey is not a market oversight tool. Reported data is published only in aggregated, anonymous form to provide insights into the scale and effects of U.S. business activities abroad.
U.S. asset managers are strongly encouraged to carefully assess their obligations under this survey to ensure compliance and avoid the severe penalties associated with noncompliance.
