The rule in plain words
{r0090, c0050} (shareholder transfer accruing) = {r0060, c0040} * {r0080, c0050} / (1 - {r0080, c0050})
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 IRR.12.05 as reported.
The cells it reads
With-profits value of bonus (IRR.12.05.01.01)
Rows
- R0060Total distribution of profits as discretionary benefits to policyholders
- R0080Shareholder proportion
- R0090Shareholder transfer accruing during the financial year
Columns
- C0040Value of bonus (shareholder participation)
- C0050Total
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
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: IRR.12.05.01.01, r: R0090, c: C0050, z: Z0001} * (1 - {t: IRR.12.05.01.01, r: R0080, c: C0050, z: Z0001}) = {t: IRR.12.05.01.01, r: R0060, c: C0040, z: Z0001} * {t: IRR.12.05.01.01, r: R0080, c: C0050, z: Z0001}Other rules on With-profits value of bonus (IRR.12.05)
- With-profits value of bonus: R0020 c0030 (clawback of past bonuses) <= 0 (IR_bv1817)
- With-profits value of bonus: {r0110, c0050} (amount transferred) <= {r0090, c0050} (accruing during year) + {r0100, c0050} (brought forward) (IR_bv1812)
- With-profits value of bonus: C0050 (total) = c0030+c0040 (IR_bv1821)Blocking
- IR.12.06 should not have data if there is data in IRR.12.06 (IR_bv1822)
- With-profits value of bonus: C0050 (total) = c0030+c0040 (IR_bv1823)Blocking
- With-profits value of bonus: R0020 c0040 (clawback of past bonuses) <= 0 (IR_bv1824)
- With-profits value of bonus: R0120 (carried forward) = r0090 (accruing) + r0100 (brought forward) - r0110 (transferred) (IR_bv1826)Blocking
- With-profits value of bonus: C0050 (total) = c0030+c0040 (IR_bv1827)Blocking
Every Solvency UK rule on IRR.12.05
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.