The rule in plain words
Amount of the assets involved in the services provided cannot be negative.
EBA checks it for 16 rows, from asset management [by type of customer] (0010) to other (0160). That makes 16 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.
Other >= 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 F 22.02 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
Assets involved in the services provided (F 22.02)
Rows
- 0010Asset management [by type of customer]
- 0020Collective investment
- 0030Pension funds
- 0040Customer portfolios managed on a discretionary basis
- 0050Other investment vehicles
- 0060Custody assets [by type of customer]
- 0070Collective investment
- 0080Other
- 0090Of which: entrusted to other entities
- 0100Central administrative services for collective investment
- 0110Fiduciary transactions
- 0120Payment services
- 0130Customer resources distributed but not managed [by type of product]
- 0140Collective investment
- 0150Insurance products
- 0160Other
Column
- 0010Amount of the assets involved in the services provided
A worked example
The first of its checks, with simple numbers.
Other 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}.
{F_22.02,r0080,c0010,} >= 0The next five:
{F_22.02,r0100,c0010,} >= 0{F_22.02,r0160,c0010,} >= 0{F_22.02,r0120,c0010,} >= 0{F_22.02,r0140,c0010,} >= 0{F_22.02,r0010,c0010,} >= 0And 10 more, the same formula for the other cells it covers.
Other rules on F 22.02
- The absolute value of custody assets [by type of customer] cannot be less than the absolute value of custody assets [by type of customer] entrusted to other entities (v23826_h)Warning
- Custody assets [by type of customer] must equal collective investment plus other (v903593_h)Warning
- Customer resources distributed but not managed [by type of product] must equal the sum of its three parts (v903594_h)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.