The rule in plain words
The amount of the mismatch in template Projection of future cash flows (Best Estimate - Matching portfolios) (SR.22.02) [RFF/MP/RM] should be equal to the difference between in-flows and out-flows
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.
This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it. It runs only when your filing indicators mark SR.22.02 as reported.
The cells it reads
Projection of future cash flows (Best estimate - matching portfolios) (SR.22.02.01.01)
Rows
- R00101
- R00202
- R00303
- R00404
- R00505
- R00606
- R00707
- R00808
- R00909
- R010010
- R011011
- R012012
- R013013
- R014014
- R015015
- R016016
- R017017
- R018018
- R019019
- R020020
- R021021
- R022022
- R023023
- R024024
- R025025
- R026026
- R027027
- R028028
- R029029
- R030030
- R031031
- R032032
- R033033
- R034034
- R035035
- R036036
- R037037
- R038038
- R039039
- R040040
And 5 more.
Columns
- C0020Longevity, mortality and revision obligations cash outflows
- C0030Expenses cash outflows
- C0040De-risked Assets cash-flows
- C0050Positive undiscounted mismatch (inflows > outflows)
- C0060Negative undiscounted mismatch (inflows < outflows )
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual ECB solo (AES), annual ECB branch (AEB), annual solo (ARS) and annual branch (ARB) returns, as a warning.
EIOPA’s own words and formula
In EIOPA’s list of validations, word for word:
The amount of the mismatch in template SR.22.02 - Projection of future cash flows (Best Estimate - Matching portfolios) [RFF/MP/RM] should be equal to the difference between in-flows and out-flows.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
{t: SR.22.02.01.01, c: C0040, z: Z0001} - {t: SR.22.02.01.01, c: C0020, z: Z0001} - {t: SR.22.02.01.01, c: C0030, z: Z0001} = {t: SR.22.02.01.01, c: C0050, z: Z0001} - {t: SR.22.02.01.01, c: C0060, z: Z0001}Other rules on Projection of future cash flows (Best estimate - matching portfolios) (SR.22.02)
Every Solvency II rule on SR.22.02
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.