Question ID:
2021_6307
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - Leverage ratio
Article:
Annexes X & XI, COREP C42.00 (LR3)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
Article/Paragraph:
Annexes X & XI, COREP C42.00 (LR3)
Disclose name of institution / entity:
No
Type of submitter:
Credit institution
Subject Matter:
Warning in COREP C42.00 (LR3) template validation regarding column 010, row 010 and row 020
Question:

Does COREP C42.00 template expect “Common Equity Tier 1 capital – fully phased-in definition” in row 010 column 010 should match with “Common Equity Tier 1 capital – transitional definition” row 020 column 010?

Background on the question:

We submit COREP reports to Prudential Regulation Authority (PRA) on Financial Conduct Authority (FCA)’s Regdata portal. The portal has inbuilt validation checks based on applicable COREP Taxonomy provided by EBA.

While submitting the COREP C42.00 template, we received validation warnings on Regdata Portal which don’t specify a validation rule reference. However, the warning description implicates that “Common Equity Tier 1 capital - fully phased-in definition” in row 010 column 010 should match with “Common Equity Tier 1 capital - transitional definition” row 020 column 010. In that case, the validation warnings seems to ignore the transitional relief derogation laid down in Chapters 1 and 2 of Part Ten of the CRR. Due to application of above derogation, CET1 capital value under fully phased-in definition will be different compared to CET1 capital value under transitional definition.

Please refer below the sample of exact warning message populated on Regdata portal:

The rounded value of fact 'Name: eba_met:mi81 Value: 266,800,472.00 Context: 9/30/2021 - Own funds, Regulatory capital items, T1 Capital (c-99) Unit: USD (Id: uUSD) Decimals: -3 Id: ' doesn't match the calculated value of 266,568,000.00 defined by calculation linkbase hierarchy ' (http://www.eba.europa.eu/xbrl/crr/role/dict/met/AT107)'.

Date of submission:
07/12/2021
Published as Rejected Q&A
28/02/2022
Rationale for rejection:

The question has been rejected because the legal basis it refers to has been amended and the issue it raises is no longer relevant in the light of Annex XV to Regulation (EU) No 2021/451 (ITS on Supervisory Reporting).

The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status:
Rejected question
Image CAPTCHA