Own funds and impact of long term guarantees measures and transitionals: values must agree (IR.23.01, IR.22.01, Bank of England rule IR_bv0676)

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.

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 IR.23.01 as reported.

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 "Tier 3" value of "Available and eligible own funds/Total eligible own funds to meet the SCR" reported into the template IR.23.01.01.01 - Own funds should be the minimum between 0 and the lowest between 50% of "SCR/Total" less "Total eligible own funds to meet the SCR/Tier 2", 15% of "SCR/Total", "Total available own funds to meet the SCR/Tier 3" and 50% of the sum of "Total eligible own funds to meet the SCR" for "Tier 1 - unrestricted", "Tier 1 - restricted" and "Tier 2" when "Tier 2" value of "Available and eligible own funds/Total eligible own funds to meet the SCR" and "Tier 1 - unrestricted", "Tier 1 - restricted", "Tier 2" and "Tier 3" value of "Available and eligible own funds/Total available own funds to meet the SCR" are all greater then 0.

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.