Question ID: 870
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 20 Oct 2016
Question
We have a question regarding cash collaterals that are held in other institutions as open position (on derivatives/loans) collaterals.
In general, should they be treated in Solvency II as cash and cash equivalents (balance sheet pos. R0410) or other receivables (R0380)?
Cash collaterals, by definition, cannot be freely disposed over (are not directly usable), this is why we think that receivables position (R0380) is more appropriate than R0410 for cash collaterals.
EIOPA answer
Considering the information provided the classification under Receivables seems the correct approach.