Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Tier 2 capital must equal the sum of its six parts (EBA rule v11130_m)

A warning in the investment firms, class 2 return (IFR class 2), on template I 01.00, own funds composition.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Tier 2 capital must equal these six added up:

  • Fully paid up, directly issued capital instruments
  • Share premium
  • (-) own T2 instruments
  • (-) T2 instruments of financial sector entities where the investment firm does not have a significant investment
  • (-) T2 instruments of financial sector entities where the investment firm has a significant investment
  • Tier 2: other capital elements, deductions and adjustments

All the values are in the amount column (0010) of I 01.00.

How the Line4 Check report words itShow

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

Tier 2 Capital = Fully paid up, directly issued capital instruments + Share premium + (-) Own T2 instruments + (-) T2 instruments of financial sector entities where the investment firm does not have a significant investment + (-) T2 instruments of financial sector entities where the investment firm has a significant investment + Tier 2: Other capital elements, deductions and adjustments

What to do if your filing fails it

  1. 01Open the template 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  3. 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 01.00 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

Own funds composition (I 01.00)

Rows

  • 0420Tier 2 Capital
  • 0430Fully paid up, directly issued capital instruments
  • 0440Share premium
  • 0460(-) Own T2 instruments
  • 0500(-) T2 instruments of financial sector entities where the investment firm does not have a significant investment
  • 0510(-) T2 instruments of financial sector entities where the investment firm has a significant investment
  • 0520Tier 2: Other capital elements, deductions and adjustments

Column

  • 0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values
Fully paid up, directly issued capital instruments1,200
Share premium800
(-) own T2 instruments450
(-) T2 instruments of financial sector entities where the investment firm does not have a significant investment300
(-) T2 instruments of financial sector entities where the investment firm has a significant investment150
Tier 2: other capital elements, deductions and adjustments100
Together3,000
What the rule then expects

Tier 2 capital must then be 3,000.

3,000Passes
3,100Fails

A file that reports 3,000 passes. One that reports 3,100 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_01.00,r0420,c0010,} = {I_01.00,r0430,c0010,} + {I_01.00,r0440,c0010,} + {I_01.00,r0460,c0010,} + {I_01.00,r0500,c0010,} + {I_01.00,r0510,c0010,} + {I_01.00,r0520,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.