The rule in plain words
The value of the item for column "Total" reported in S.23.01.05.01 Own funds should be equal to the sum of the same item of "Tier 1 - unrestricted", "Tier 1 - restricted", "Tier 2" and "Tier 3"
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.
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark S.23.01 as reported.
- 06This 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
Own funds (S.23.01.05.01)
Row
- R0230Deductions for participations in other financial undertakings, including non-regulated undertakings carrying out financial activities
Columns
- C0010Total
- C0020Tier 1 - unrestricted
- C0030Tier 1 - restricted
- C0040Tier 2
- C0050Tier 3
A worked example
With simple numbers.
Total must then be 2,750.
A file that reports 2,750 passes. One that reports 2,850 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Which returns it applies to
Line4 Check runs it on quarterly group (QRG) return on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly group (QRG) 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.23.01.05.01, r: R0230, c: C0010, z: Z0001} = {t: S.23.01.05.01, r: R0230, c: C0020, z: Z0001} + {t: S.23.01.05.01, r: R0230, c: C0030, z: Z0001} + {t: S.23.01.05.01, r: R0230, c: C0040, z: Z0001} + {t: S.23.01.05.01, r: R0230, c: C0050, z: Z0001}Other rules on Own funds (S.23.01)
- Own funds: two values must match (BV2017)
- Total eligible own funds to meet the SCR should not be negative (BV2077)
- Total eligible own funds to meet the MCR should not be negative (BV2078)
- Ratio of Eligible own funds to SCR should not be negative (BV2079)
- Ratio of Eligible own funds to MCR should not be negative (BV2080)
- Total eligible own funds to meet the consolidated group SCR should not be negative (BV2081)
- Own funds: a total must equal the sum of its parts (BV1770)
- Own funds: a total must equal the sum of its parts (BV1769_1)
Every Solvency II rule on S.23.01
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.