Own funds: a total must equal the sum of its parts (S.23.01, EIOPA rule BV549)

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 tables 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3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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

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 "Total" value of "Reconciliation Reserve/Other basic own fund items" figure reported into the template S.23.01 - Own funds must be equal to the sum of item "Ordinary share capital (gross of own shares)", "Share premium account related to ordinary share capital"," Initial funds, members' contributions or the equivalent basic own funds item for mutual and mutual type undertakings", "Subordinated mutual members accounts", "Surplus funds", "Preference shares", "Share premium account related to preference shares", "An amount equal to the value of net deferred tax assets", "Other own fund items approved by the supervisory authority as basic own funds not specified above" and "Minority interests".

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.