Question ID: 76
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 35
Status: Final
Date of submission: 12 May 2014
Question
A26 Total SII amount is stated as a formula: quantity * unit sii price + accrued interest.
Consider the following, a danish reporting entity, with reporting currency: DKK
The entity holds a equity denominated in USD.
A22: Quantity: 9.970
A23: Equity Price in currency: 52,11 USD
Currency exchange rate USD/DKK: 5,4127
Total SII amount in DKK would be: 9.970 * 52,11 * 5,4127 = 2.812.096,30 DKK
For the stated formula to be true (formula: quantity * unit sii price + accrued interest), we need to multiply either Quantity or unit SII price with the currency rate between the assets currency and the reporting currency, in our reporting. We could also interpret the field A26 to be in quotation currency of the asset (and not in our reporting currency), but then it is not possible to reconcile between the list of assets and lines in the balance sheet.
EIOPA answer
In fact Guideline 38 states that all monetary data is submitted in the undertaking’s and group currency of reporting, which requires converting of other currencies into the currency of reporting, with the exchange rate at the end of the reporting period.
In template S.06.02, the currency of the security needs to be identified in cell A13, however the information on the Unit price and Solvency II value should be reported in the reporting currency.