Question ID: 1107
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.25.01
Status: Final
Date of submission: 07 Sep 2017
Question
With respect to templates S.26.06.01 and S.26.06.04, the calculation of the Total capital requirement for operational risk (R0340/C0020) based on the components gives a different result to the Operational risk calculated as the sum of the ring-fenced funds (RFF) and the remaining part calculated separately.
This causes a validation error between S.25.01.01 and S.25.01.04 (R0130/C0100) which calculates the operational risk capital requirement as the sum of RFF and the remaining part and S.26.06.
Please confirm the following
1. Should the operational risk in S25.01.01/.04 (R0130/C0100) be equal the sum of the RFF and remaining part?
2. If this is the case then do you agree that Total capital requirement for operational risk (R0340/C0020) in S.26.06.01 and S.26.06.04 may not equal S25.01.01/.04 (R0130/C0100) because the most onerous component between premiums and technical provisions may differ when calculated in aggregate compared to calculating then separately for the RFF and remaining part separately?
EIOPA answer
Please note that when an undertaking calculates and reports the SCR by RFF/MAP the template S.26s (including S.26.06) is not requested for the entity as a whole. Therefore there is no validation error.
We confirm that the operational risk in S.25.01.01/.04 (R0130/C0100) is equal to the sum of the RFF/MAP and remaining part and should not be recalculated for the entity as a whole.