Balance sheet and own funds: a value must not be more than another (S.02.01, S.23.01, EIOPA rule BV395)

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 two of them (BV395-2 and BV395-4), 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. 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
3. 03It runs only when your filing indicators mark S.02.01 and S.23.01 as reported.
4. 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

Which returns it applies to

Line4 Check runs it on quarterly solo (QRS) and quarterly group (QRG) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly solo (QRS) and quarterly group (QRG) returns, as a blocking check.

EIOPA’s own words and formula

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

The item "Own shares (held directly)" reported in template S.02.01 - Balance sheet must be equal or lower than the amount reported in template S.23.01 - Own funds as "Own shares (held directly and indirectly)".

Other rules on Balance sheet (S.02.01)

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.