CRD IV Harmonised reporting - Financial Conduct Authority

CRD IV Harmonised reporting

Last Modified: 16/02/2015
The Capital Requirements Regulations (CRR) brings in a new EU-wide supervisory reporting framework for Financial Reporting (FINREP) and Common Reporting (COREP). Here we summarise the supervisory reporting frameworks and provide you with guidelines and templates.
  • Common Reporting (COREP) covers the capital requirements and own funds reporting based on Directives 2006/48/EC and 2006/49/EC.
  • Financial Reporting (FINREP) covers Financial Reporting for supervisory purposes based on International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS), as endorsed by the European Union.

The first draft of reporting requirements was published in the European Banking Authority (EBA) Consultation Paper, CP50 but this has now become formalised both as a regulation and as a technical standard.

Content of harmonised reporting 

As of 1 January 2014, the Capital Requirements Regulations (CRR) came into force which includes the implementing technical standards for reporting i.e. the guidance, templates, technical standards and validation required for reporting to supervisors.

Firms should also be aware that the regulation contains an act that sets out the scope, frequencies and remittance for CRDIV reporting: The supporting reporting documents have been developed by the European Banking Authority (EBA).

These cover the following CRD IV requirements:

  • Art. 99 CRR: Own Funds Reporting (Annex I, II of the ITS)
  • Art. 99 CRR: Accounting information – FINREP (Annex III, IV, V of the ITS). Please note that currently we are not adopting FINREP for those firms not using IFRS
  • Art. 99 CRR: Counterparty credit risk
  • Art. 99 CRR: Mortgage losses (Annex VI, VII of the ITS)
  • Art. 394 CRR: Large exposures (Annex VIII, IX of the ITS)
  • Part Six: Title II & Title III CRR: Liquidity Coverage and Stable Funding (Annex XII, XIII of the ITS)
  • Art. 430 CRR: Leverage Ratios (Annex X, XI of the ITS)

Harmonised reporting also includes some micro-prudential data for EU-wide financial stability, which will cover the data needs of the European Systemic Risk Board (ESRB) and the EBA.

In addition to the list above, firms should be aware that there are open, pending and closed consultations that will generate additional reporting. The EBA are currently developing reporting frameworks for these items and we advise firms to closely monitor the EBA website.

What are the objectives of the requirements? 

The CRR contains specific mandates for the EBA to develop draft Implementing Technical Standards (ITS) for supervisory reporting. These ITS will help to enhance regulatory harmonisation in Europe, particularly by specifying consistent formats, frequencies and dates of prudential reporting, as well as IT solutions to be applied by firms.

Reporting requirements ensure that there is fair competition between credit institutions and investment firms, which will lead to more efficient working and more joined-up supervisory practices.

Expected changes to GABRIEL reporting under COREP & FINREP (as per Regulation (EU) No 575/2013) 

 

Data items replaced for CRDIV Firms Data items that remain for CRDIV Firms but application differs under CRDIV rules Data items retained for CRDIII Firms Data items unaffected by COREP/FINREP

COREP Own Funds

FSA003 - Capital Adequacy

FSA004 - Credit Risk

FSA005 - Market Risk

FSA007 - Operational Risk

FSA028 - Non EEA Sub groups

FSA045 - IRB Portfolio Data

FSA046 - Securitisation

FSA058 – Securitisation

 

COREP LE

FSA008 - Large Exposures

 

FINREP IFRS 1

FSA001 Balance Sheet

FSA002 Income Statement

 

FSA005 - Market Risk: Only 2 data elements for Capital Add-ons will be completed

FSA006 - Market Risk (supp.): Retained to support RNIV Framework

FSA045 - IRB Portfolio Data: Guidance will change

FSA018 – UKIGs Large exposures: Guidance will change as this will be applied to entities with Core UK Group and Non-Core LE Group Waiver

 

(Applies to PRA Firms Only At Present)

FSA001 Balance sheet on a consolidated and solo basis

FSA002 Income Statement on a consolidated and solo basis

 

FSA003 - Capital Adequacy

FSA004 - Credit Risk

FSA005 - Market Risk

FSA007 - Operational Risk

FSA028 - Non EEA Sub groups

FSA058 – Securitisation

CRD:

FSA001 Balance Sheet 2

FSA002 Income Statement 2

FSA014 - Forecast data

FSA015 - Sectoral analysis

FSA016 - Solo consolidation

FSA017 - Interest rate gap

FSA019 - Pillar 2 Questions

 

LIQUIDITY

FSA011, 047 – 055 3

 

Non CRD:

FSA029 - 042

Payment Services:

FSA056 / 057

MLAR

RMAR

Complaints

 

all other data items not explicitly mentioned are unaffected

1Only for firms reporting on IFRS consolidated group basis and also subject to other CRDIV rules that put them within the scope of FINREP reporting.

2 Solo reporting remains for all but these data items are only reported on a consolidated basis where the firm is not subject to reporting FINREP.

3 Due to be replaced in 2015 subject to EBA producing Liquidity Reporting Templates for Supervisory purposes

Data point model and taxonomy

To ensure the ITS on supervisory reporting requirements are implemented consistently, the templates described in the Annexes have been translated into a data point model (DPM) which in turn is used to generate the taxonomy.

The DPM is a structured representation of the data, identifying all the business concepts and its relationships, as well as validation rules and the taxonomy is the vehicle that enables data to be shared in line with the DPM structure.

These are artefacts that are developed by the EBA and along with the accompanying documentation, contain all the relevant technical specifications necessary for developing an IT reporting solution. Firms should ensure they keep abreast of any changes to these artefacts by the EBA.

The current version (as at January 2014) of these items can be found on the EBA website

For further information see our presentations on the Harmonised Reporting:

You can contact us with any queries about CRD IV Harmonised Reporting 

Please note that the COREP.Queries@fca.org.uk mailbox has now closed but queries will be answered through the firm.queries@fca.org.uk mailbox.

Related information

CRD IV reporting - New validations and data quality

CRD IV reporting test environment

All firms affected by CRD IV can register with us to take part in our firm testing pilot. The purpose of the test pilot is to ensure the technical construction and software you are using is compatible with our system, not to guarantee that your submission is CRD IV compliant. Please refer to the instructions in this communication, and contact firm queries with the requested information to register.

Technical updates

We have issued further help and guidance for firms to assist with their COREP and FINREP submissions. They include:

• updated GABRIEL web pages to help firms understand what is required to submit their report, including an updated e-learning course

• updated technical pack (provides details of XML and XBRL submission mechanisms)

• our filing manual (contains rules and guidance for creating XBRL files) and

• our entry mapping  (tracks the taxonomy entry point mapping to GABRIEL data items).

Previous technical update

CRD IV statements

EMIR reporting advice for Clearing Member firms

Re-activating additional COREP validations

On 17 April we issued a communication regarding EBA update: changes to remittance dates and asset encumbrance

We issued a go-live communication on 17 March to firms on work we are doing to ensure GABRIEL is ready to receive submissions.

The European Banking Authority (EBA) has launched their public consultation on their XBRL Taxonomy, which marks another milestone towards CRDIV implementation. We encourage you to respond to this consultation, which ends on 9 October 2013.

On 26 July 2013 EBA published an implementing technical standard regarding FINREP and COREP which finalises the rules surrounding harmonised reporting and includes templates.

On 16 April 2013 we published a statement when the European Parliament adopted CRD IV.

On 1 August 2012 we published a statement regarding CRD IV implementation. This contains details of the latest timeline for implementing CRD IV, including harmonised reporting.

XBRL statement

On 25 July 2012 we published a statement that we intend to collect regulatory data for CRD IV and Solvency II using a reporting language called XBRL (eXtensible Business Reporting Language).