Total eligible own funds to meet the MCR should not be negative (S.23.01, EIOPA rule BV2078)

The rule in plain words

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV2078-2 and BV2078-4), 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. 02Look for a value below zero in these cells, such as an amount entered as a negative number.
3. 03It runs only when your filing indicators mark S.23.01 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 quarterly solo (QRS) and quarterly branch (QRB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly ECB solo (QES), quarterly solo (QRS), quarterly ECB branch (QEB) and quarterly branch (QRB) 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.

Other rules on Own funds (S.23.01)

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.