The rule in plain words
Value cannot be negative.
EBA checks it for six rows: total number of staff (end of the financial year), total number of identified staff (outcome of the yearly identification process), balance sheet total (end of the financial year), approved higher ratio (i.e. ratio of variable to fixed remuneration which is above 100%), total number of identified staff potentially benefitting from an approved ratio above 100% and total number of identified staff that has been in fact awarded a remuneration that leads to a ratio of variable to fixed remuneration above. That makes six checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Total number of identified staff (outcome of the yearly identification process) >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark R 07.00 as reported.
- 05This 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
Approved higher ratios between variable and fixed remuneration – institutions (R 07.00)
Rows
- 0010Total number of staff (end of the financial year)
- 0020Total number of identified staff (outcome of the yearly identification process)
- 0030Balance sheet total (end of the financial year)
- 0040Approved higher ratio (i.e. ratio of variable to fixed remuneration which is above 100%)
- 0060Total number of identified staff potentially benefitting from an approved ratio above 100%
- 0070Total number of identified staff that has been in fact awarded a remuneration that leads to a ratio of variable to fixed remuneration above
Column
- 0010Value
A worked example
The first of its checks, with simple numbers.
Total number of identified staff (outcome of the yearly identification process) must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{R_07.00,r0020,c0010,} >= 0The next five:
{R_07.00,r0040,c0010,} >= 0{R_07.00,r0030,c0010,} >= 0{R_07.00,r0070,c0010,} >= 0{R_07.00,r0010,c0010,} >= 0{R_07.00,r0060,c0010,} >= 0Other rules on R 07.00
- Approved higher ratio (i.e. ratio of variable to fixed remuneration which is above 100%) must be at least 1 (v12537_m)Warning
- Total number of identified staff (outcome of the yearly identification process) cannot be more than total number of staff (end of the financial year) (v12540_m)Warning
- Value must be reported (v12543_e)Warning
- An upper-limit check on approved higher ratios between variable and fixed remuneration (v12544_m)Warning
- Total number of identified staff potentially benefitting from an approved ratio above 100% cannot be more than total number of identified staff (outcome of the yearly identification process) (v12678_m)Warning
- An upper-limit check on approved higher ratios between variable and fixed remuneration (v12679_m)Warning
Every REM higher ratios rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.