SCR excluding capital add-on (PIM and IM firms) = sum of IR.25.05 components + diversification between risk modules (IR.01.02, IR.25.04, IR.25.05, Bank of England rule IR_bv2048_02)

The rule in plain words

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
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.01.02, IR.25.04 and IR.25.05 as reported.
5. 05This 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 annual group (ARG) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual group (ARG) returns, as a blocking check.

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.

Other rules on Basic information - general (IR.01.02)

Every Solvency UK rule on IR.01.02

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.