The rule in plain words
The item "Total Solvency II amount" in List of assets (IR.06.02.01.01) should not be negative for assets with a the CIC code equal to '##7#' unless there was an offset in the balance sheet and if both the legal right of offset and demonstrable intention to settle net exist
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
- 01Open the tables below and find the cells the rule reads.
- 02Look for a value below zero in these cells, such as an amount entered as a negative number.
- 03It runs only when your filing indicators mark IR.06.02 as reported.
- 04This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.
The cells it reads
List of assets - information on positions held (IR.06.02.01.01)
Column
- C0170Total Solvency II amount
List of assets - information on assets (IR.06.02.01.02)
Column
- C0290CIC
Which returns it applies to
Line4 Check runs it on quarterly solo (QRS) and annual solo (ARS) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to quarterly solo (QRS) and annual solo (ARS) returns, as a warning.
The Bank’s own words and formula
In the Bank of England’s list of validations, word for word:
The item "Total Solvency II amount" in IR.06.02.01.01 - List of assets should not be negative for assets with a the CIC code equal to '##7#' unless there was an offset in the balance sheet and if both the legal right of offset and demonstrable intention to settle net exist.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: IR.06.02.01.01, c: C0170, z: Z0001} >= 0Other rules on List of assets (IR.06.02)
- List of assets: a value must not be negative (IR_bv0513_02)
- Items “Unit Solvency II price” and “Unit percentage of par amount Solvency II price” in List of assets should not be reported simultaneously (IR_bv0519_02)Blocking
- Items “Unit Solvency II price” and “Unit percentage of par amount Solvency II price” in List of assets should not be reported simultaneously (IR_bv0519_03)Blocking
- The item "Item title" in List of assets should be reported for assets with CIC different from' ##71', '##75' or '##95' (IR_bv0521_01)Blocking
- The item "Item title" in List of assets should be reported for assets with CIC different from' ##71', '##75' or '##95' (IR_bv0521_02)Blocking
- The item "Par amount" in List of assets, should be positive (IR_bv0524_01)
- The item "Par amount" in List of assets, should be positive (IR_bv0524_02)
- The item "Duration" in List of assets should be reported for assets with CIC ##1#, ##2#, ##5#, ##6# or when applicable CIC##4# (IR_bv0525_01)
Every Solvency UK rule on IR.06.02
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.