The rule in plain words
The capital requirement after the cap reported in S.26.06 -Solvency Capital Requirement - Operational risk must be equal to the lowest between the capital requirement before the cap and the cap (percentage of BSCR)
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 (BV651_1-1 and BV651_1-2), and a failure names the one that failed.
This is a blocking check. A return that fails it is normally rejected, so fix it before you submit. It runs only when your filing indicators mark S.26.06 as reported.
The cells it reads
Solvency capital requirement - operational risk: operational risk - basic information (S.26.06.01.01)
Rows
- R0300Capital requirement for operational risk charge before capping
- R0310Percentage of Basic Solvency Capital Requirement
- R0320Capital requirement for operational risk charge after capping
Column
- C0020Capital requirement
Solvency capital requirement - operational risk: operational risk - basic information (S.26.06.04.01)
Rows
- R0300Capital requirement for operational risk charge before capping
- R0310Percentage of Basic Solvency Capital Requirement
- R0320Capital requirement for operational risk charge after capping
Column
- C0020Capital requirement
Which returns it applies to
Line4 Check runs it on annual solo (ARS), annual group (ARG) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual branch (ARB), annual solo (ARS), annual ECB solo (AES), annual ECB branch (AEB) and annual group (ARG) returns, as a blocking check.
EIOPA’s own words and formula
The plain words above are EIOPA’s own, word for word, from its list of validations.
Show the formulaShowHide
EIOPA's formula, for BV651_1-1. Cells are written as {t: table, r: row, c: column}.
{t: S.26.06.01.01, r: R0320, z: Z0001} = min({t: S.26.06.01.01, r: R0300, z: Z0001}, {t: S.26.06.01.01, r: R0310, z: Z0001})BV651_1-2:
{t: S.26.06.04.01, r: R0320, z: Z0001} = min({t: S.26.06.04.01, r: R0300, z: Z0001}, {t: S.26.06.04.01, r: R0310, z: Z0001})Other rules on Solvency capital requirement - operational risk (S.26.06)
Every Solvency II rule on S.26.06
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.
