Question ID: 3232
Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision, Other
Topic: Validations
Template: E.04.01, S.29.02
Status: Rejected
Date of submission: 28 Jan 2025
Question
EV63_3 and EV63_4 seem to be improperly implemented. The rule EV92 states that the Investment Expenses should be equal or lower to the investment expenses reported in S.29.02 (C0010 / R0050). The investment expenses in S.29.02 are reported negative too comply with the calculations in force on the S.29 in general. If, there is no activity outside the home country, the rules EV63_3 and EV63_4 will result in 0 <= 0.1 x "negative amount". The check will never be valid, but it makes no sense that they are not valid, since there is no activity outside the home country. We believe that instead, the absolute values of the templates should be compared. This would result in abs(0) <= 0.1 x abs("negative amount") <--> 0 <= 0.1 x "positive value".
EIOPA answer
The explanatory notes on the variation analyses templates states that the expenses reported in S.29.02/C0010/R0050 are reported as positive values. Furthermore, after the analysis no specific validation was found, referring to S.29.02 R0050, which would indicate otherwise.
Therefore, the assumption that values reported in E.04.01.16.01, for the purposes of EV63, are to be reported as negative values is flawed. With the positive values, EV63 holds, even for undertakings with no activity outside of the home country.