Variant of NAICS 2012 - Labour Force

8.2.3 - Finance, insurance, real estate, rental and leasing

This classification variant comprises establishments coded to 'Finance and insurance' (NAICS 52) and to 'Real estate and rental and leasing' (NAICS 53)

Finance and insurance comprises establishments primarily engaged in financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions. Included are:

* establishments that are primarily engaged in financial intermediation. They raise funds by taking deposits and/or issuing securities, and, in the process, incur liabilities, which they use to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale and risk.

* establishments that are primarily engaged in the pooling of risk by underwriting annuities and insurance. They collect fees (insurance premiums or annuity considerations), build up reserves, invest those reserves and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.

Real estate, and rental and leasing comprises establishments primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets. Establishments primarily engaged in managing real estate for others; selling, renting and/or buying of real estate for others; and appraising real estate, are also included.

53 - Real estate and rental and leasing

This sector comprises establishments primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets. Establishments primarily engaged in managing real estate for others; selling, renting and/or buying of real estate for others; and appraising real estate, are also included.

531 - Real estate

This subsector comprises establishments primarily engaged in renting and leasing real estate, managing real estate for others, acting as intermediaries in the sale and/or rental of real estate, and appraising real estate.

• Exclusion(s)

  • construction and development of buildings (See 23 Construction)
  • acquisition, assembly, subdivision into lots and servicing of raw land for subsequent sale to builders (See 237210 Land subdivision)
  • providing short-term lodging for travellers, vacationers and others (See 721 Accommodation services)

532 - Rental and leasing services

This subsector comprises establishments primarily engaged in renting or leasing tangible goods, such as automobiles, computers, consumer goods, and industrial machinery and equipment, to customers in return for a periodic payment.

The subsector includes two main types of establishments:

* those that are engaged in renting consumer goods and equipment; and
* those that are engaged in leasing machinery and equipment of the kind often used for business operations.

The first type typically operates from a retail-like or store-front facility and maintains inventories of goods that are rented for short periods of time.

The latter type typically does not operate from retail-like locations or maintain inventories, and offers longer-term leases. These establishments work directly with clients by providing or arranging financing to enable them to acquire the use of equipment on a lease basis; or they work with equipment vendors or dealers to support the marketing of equipment to their customers under lease arrangements. Equipment lessors generally structure lease contracts to meet the specialized needs of their clients and use their remarketing expertise to find other users for previously leased equipment. Establishments that provide operating and financial leases are included in this subsector.

• Exclusion(s)

  • leasing and providing loans to buyers of goods and equipment, or to vendors and dealers to finance their inventories (See 522220 Sales financing)
  • leasing real property (See 531 Real estate)
  • renting or leasing equipment with operators (classified in various subsectors of NAICS depending on the nature of the service provided)

533 - Lessors of non-financial intangible assets (except copyrighted works)

This subsector comprises establishments primarily engaged in holding non-financial intangible assets such as patents, trademarks, brand names, and/or franchise agreements, and allowing others to use or reproduce those assets for a fee.