Own funds: a total must equal the sum of its parts (S.23.01, EIOPA rule BV506)

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.

What to do if your return fails it

1. 01Open the table below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark S.23.01 as reported.
6. 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

A worked example

With simple numbers.

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 blocking check.

EIOPA’s own words and formula

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

The amount of "Total eligible own funds to meet the group SCR (including own funds from other financial sector and from the undertakings included via D&A )" reported in S.23.01 - Own funds must be equal to the sum of "Total own funds of other financial sectors", "Own funds aggregated when using the D&A and a combination of method net of IGT" and "Total eligible own funds to meet the consolidated group SCR (excluding own funds from other financial sector and from the undertakings included via D&A )".

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.