Content of the submission and balance sheet: a conditional check (SR.01.01, SR.02.01, EIOPA rule BV553_2-1)

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 (BV553_2-1-2 and BV553_2-1-3), 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. 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
3. 03EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark SR.01.01 and SR.02.01 as reported.
5. 05This 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 annual solo (ARS) and annual group (ARG) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual group (ARG), annual solo (ARS) and annual ECB solo (AES) returns, as a blocking check.

EIOPA’s own words and formula

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

The item "Subordinated liabilities" reported in SR.02.01 - Balance sheet [RFF/MP/RM] must be equal to the sum of "Subordinated liabilities not in Basic Own Funds" and "Subordinated liabilities in Basic Own Funds".

Other rules on Content of the submission (SR.01.01)

Every Solvency II rule on SR.01.01

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.