Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Client money held must equal the sum of its two parts (EBA rule v11120_m)

A warning in the investment firms, class 2 return (IFR class 2), on templates I 04.00, k-factor requirement calculations and I 05.00, level of activity - thresholds review.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Client money held must equal client money held - Segregated plus client money held - non-segregated.

All the values are in the amount column (0010).

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

I_05.00: Client money held = I_04.00: Client money held - Segregated, Factor amount + I_04.00: Client money held - Non-segregated, Factor amount

What to do if your filing fails it

  1. 01Open the templates below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark I 04.00 and I 05.00 as reported.
  6. 06This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.

The cells it reads

K-factor requirement calculations (I 04.00)

Rows

  • 0040Client money held - Segregated
  • 0050Client money held - Non-segregated

Column

  • 0010Factor amount

Level of activity - thresholds review (I 05.00)

Row

  • 0050Client money held

Column

  • 0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values
Client money held - Segregated1,200
Client money held - non-segregated800
Together2,000
What the rule then expects

Client money held must then be 2,000.

2,000Passes
2,100Fails

A file that reports 2,000 passes. One that reports 2,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula. Cells are written as {template, row, column, sheet}.

{I_05.00,r0050,c0010,} = {I_04.00,r0040,c0010,} + {I_04.00,r0050,c0010,}

Every IFR class 2 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.