Own funds: a value must not be more than another (IR.23.01, Bank of England rule IR_bv0613)

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.

What to do if your return fails it

1. 01Open the table below and find the cells the rule reads.
2. 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
3. 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark IR.23.01 as reported.
5. 05This 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

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 eligible own funds to meet the SCR Tier 1 - restricted" reported in IR.23.01.01.01 - Own funds should be equal or lower than 20% * (R0540/C0030 Total eligible own funds to meet the SCR Tier 1 - restricted + R0540/C0020 Total eligible own funds to meet the SCR Tier 1 - unrestricted).

Other rules on Own funds (IR.23.01)

Every Solvency UK rule on IR.23.01

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.