Own funds: a total must equal the sum of its parts (IR.23.01, Bank of England rule IR_bv0846)

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. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark IR.23.01 as reported.
6. 06This 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 group (QRG) and annual group (ARG) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to quarterly group (QRG) and annual group (ARG) returns, as a blocking check.

The Bank’s own words and formula

In the Bank of England’s list of validations, word for word:

The value of the "Total ancillary own funds" reported in IR.23.01.04.01 - Own funds should be equal to the sum of unpaid and uncalled ordinary share capital callable on demand, unpaid and uncalled initial funds, members' contributions or the equivalent basic own fund item for mutual and mutual - type undertakings, callable on demand, unpaid and uncalled preference shares callable on demand, legally binding commitment to subscribe and pay for subordinated liabilities on demand, letters of credit and guarantees, letters of credit and guarantees other, supplementary members calls, supplementary members calls - other and other ancillary own fund less non available ancillary own funds at group level.

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.