Question ID: 56
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 304
Status: Final
Date of submission: 24 Apr 2014
Question
Please let me ask you question regarding cells for equity risk - when duration based approach is used.
I am wondering if cell A7 is meant only for type 1 equities according to article 304 of SII Framework directive, and cells A5 and A6 are used for other type 1 equities (strategic and other)? Or, when company is using duration-based approach, all type 1 equities (article 304 of Directive, strategic participations and other) should be reported in cell A7 and therefore A5 and A6 left blank?
EIOPA answer
Cells A5, A6 and A7 should not include duplicate values. Therefore, A7 should include the absolute value of the assets subject to the equity risk for type 1 equities, duration based. If this is the case cells A5 and A6 should not include these values.