The rule in plain words
The capital requirement for intangible asset risk reported in S.25.01shall be equal to 80% of the amount of intangible assets reported in S.02.01
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.
This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it. It runs only when your filing indicators mark S.02.01 and S.25.01 as reported.
The cells it reads
Balance sheet (S.02.01.01.01)
Row
- R0030Intangible assets
Column
- C0010Solvency II value
Solvency capital requirement - for undertakings on standard formula: basic solvency capital requirement (S.25.01.04.01)
Row
- R0070Intangible asset risk
Column
- C0030Net solvency capital requirement
Which returns it applies to
Line4 Check runs it on annual group (ARG) return on EIOPA taxonomy 2.10.0. EIOPA applies it to annual group (ARG) returns, as a warning.
EIOPA’s own words and formula
The plain words above are EIOPA’s own, word for word, from its list of validations.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
{t: S.25.01.04.01, r: R0070, c: C0030, z: Z0001} = 0.8 * {t: S.02.01.01.01, r: R0030, c: C0010}Other rules on Balance sheet (S.02.01)
- Balance sheet and solvency capital requirement - for undertakings on standard formula: values must agree (BV1497)
- Balance sheet and solvency capital requirement - for undertakings on standard formula: values must agree (BV1499)
- Balance sheet and life and health SLT technical provisions: values must agree (BV1527)
- Balance sheet and life and health SLT technical provisions: values must agree (BV1528)
- Balance sheet and life and health SLT technical provisions: a value must not be more than another (BV1529)
- Balance sheet and life and health SLT technical provisions: a value must not be more than another (BV1530)
- Balance sheet and life and health SLT technical provisions: a total must equal the sum of its parts (BV1535)
- Balance sheet and life and health SLT technical provisions: a total must equal the sum of its parts (BV1536)
Every Solvency II rule on S.02.01
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.
