Balance sheet and 3 other templates: a value must not be less than another (IR.02.01, IR.02.02, IR.06.02 and others, Bank of England rule IR_bv0848_01)

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 tables below and find the cells the rule reads.
2. 02Compare the values in your return. If the first is smaller 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.02.01, IR.06.02 and IR.08.01 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 annual solo (ARS) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to 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 sum of the "Index/Unit Linked Assets" from template IR.06.02 - template IR.06.02 - List of assets and "Index/Unit Linked Derivatives" from template IR.08.01 - Open derivatives, should be equal or less than the value of the item "Assets held for index-linked and unit-linked contracts" reported on the template IR.02.01 - Balance sheet. Please note, however, that also liabilities, other than derivatives, may exist and if material, could lead to the balance-sheet figure being less than the sum of IR.06.02 and IR.08.01.

Other rules on Balance sheet (IR.02.01)

Every Solvency UK rule on IR.02.01

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.