Basic information and impact of long-term guarantees measures and transitionals: a conditional check (S.01.02, S.22.01, EIOPA rule BV1038)

The rule in plain words

The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs six of them (BV1038-1 to BV1038-6), and a failure names the one that failed.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
3. 03It runs only when your filing indicators mark S.01.02 and S.22.01 as reported.
4. 04This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

Which returns it applies to

Line4 Check runs it on annual solo (ARS), annual group (ARG) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual ECB branch (AEB), annual branch (ARB), annual ECB solo (AES), annual solo (ARS) and annual group (ARG) returns, as a warning.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

If "Use of transitional measure on the risk-free interest rate" is reported in template S.01.02 - Basic information, the item "Impact of transitional on interest rate" in template S.22.01 - The impact of removal of the measure is expected to be negative (i.e. removing the measure would decrease the amount of "Basic own funds" or "Eligible own funds to meet Solvency Capital Requirement").

Other rules on Basic information (S.01.02)

Every Solvency II rule on S.01.02

Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.