Collective investment undertakings - look-through approach: a value must not be negative (S.06.03, EIOPA rule BV797)

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 (BV797-1 and BV797-2), 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. 02Look for a value below zero in these cells, such as an amount entered as a negative number.
3. 03It runs only when your filing indicators mark S.06.03 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), quarterly group (QRG) and quarterly branch (QRB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly group (QRG), annual group (ARG), quarterly ECB branch (QEB), quarterly ECB solo (QES), quarterly branch (QRB), quarterly solo (QRS), annual branch (ARB), annual solo (ARS), annual ECB solo (AES) and annual ECB branch (AEB) returns, as a blocking check.

EIOPA’s own words and formula

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

When an item is a liability, excluding derivatives, then it is classified as "L" and must be reported positive in template S.06.03 - Collective investment undertakings - look-through approach.

Other rules on Collective investment undertakings - look-through approach (S.06.03)

Every Solvency II rule on S.06.03

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.