Activities of holding companies, i.e. units that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose Institutional units and sectors principal activity is owning the group, are treated as captive financial institutions. The holding companies in this class do not provide any other service to the enterprises in which the equity is held, i.e. they do not administer or manage other units. Other units that are also treated as captive financial institutions are units with the characteristics of special purpose entities (SPEs) including investment and pension funds and units used for holding and managing wealth for individuals or families, holding assets for securitization, issuing debt securities on behalf of related companies (such a company may be called a conduit), securitization vehicles and carry out other financial functions. The degree of independence from its parent may be demonstrated by exercising some substantive control over its assets and liabilities to the extent of carrying the risks and reaping the rewards associated with the assets and liabilities.