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    S.36.06 — IGT — Off-balance sheet and contingent liabilities Solo

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    S.36.06 — IGT — Off-balance sheet and contingent liabilities PDF · reporting-explanations/EIOPA_Solvency_II/2.8.0/EIOPA_S.36.06_solo.pdf
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    Converted from the official instructions so it can be searched and copied. The PDF above is the document of record.

    S.36.06 — IGT — Off-balance sheet and contingent liabilities

    General comments:

    This template relates to information insurance and reinsurance undertakings shall provide at least annually.

    This template shall report all (significant, very significant and transactions required to be reported in all circumstances) intragroup transactions between entities in scope of group supervision related to off-balance sheet guarantees.

    These include, but not limited to:

    • Off- balance sheet guarantees;
    • undrawn credit facilities
    • assets purchased under outright forward purchase agreements (currency or other)
    • asset sale and repurchase agreements as referred to in Article 12(3) and (5) of Directive 86/635/EEC
    • Contingent liabilities

    This template shall include intragroup transactions that were:

    • in-force at the start of the reporting period.
    • incepted during the reporting period and outstanding at the reporting date.
    • incepted and expired/matured during the reporting period.

    Where two or more transactions between entities of the group which, from an economic perspective, contribute to the same risk, or, serve the same purpose / objective or are temporally connected in a plan, they shall be considered as a single economic operation.

    As such each transaction which is part of a single economic operation shall be reported whenever collectively they are at or above the corresponding threshold for significant intragroup transactions, even though individually the transactions fall below the threshold.

    Any element added to significant intragroup transactions shall be reported as a separate intragroup transaction, even if the element in its own right falls below the significant threshold limit. For example, if an undertaking increases the initial loan amount to another related undertaking the addition to the loan shall be recorded as a separate item with its issue date as the date of the addition.

    Where the transaction value is different for two transacting parties (e.g. a €10m transaction between A and B where A records €10m but B only receive €9.5m because of transactions costs, of say €0.5m has been expensed) the template shall record the maximum amount as the transaction amount, in this case €10m.

    Indirect transactions shall be defined as any transaction shifting risk exposures between entities within the group including but not limited to transactions with special purpose vehicle, collective investment undertakings, ancillary entities or unregulated entities; or entities outside of the group but ultimately risk exposure is brought back or stays within the group. Where there is a chain of related intragroup transactions (e.g. A invests in B and B invests in C), this transaction shall be reported as an indirect transaction. Therefore A to C transaction shall be reported and the comments shall mention the intermediary step. In the case of a waterfall of transactions, e. g. if “A”-> “B” -> “C”-> “D” where both “B” and “C” are both in the group but unregulated entities, this transaction shall also be reported.

    ITEMINSTRUCTIONS
    C0010ID
    of
    intragroup
    transaction    		Unique
    internal
    identification
    code
    for
    each
    intragroup
    transaction. It shall be consistent over time.
    C0020Provider nameName of the entity that is providing the off-balance guarantee.
    C0030Identification code
    of the provider    		The unique identification code attached to the provider by this
    order of priority:
    -
    Legal Entity Identifier (LEI) mandatory if existing;
    -
    Specific code in case of absence of LEI code.
    Specific code:
    -
    For EEA regulated undertakings other than insurance and
    reinsurance undertakings within the group: identification code
    used in the local market, attributed by the undertaking’s
    competent supervisory authority;
    -
    For non-EEA undertakings and non-regulated
    undertakings
    within the group, identification code will be provided by the
    financial conglomerate. When allocating an identification code
    to each non-EEA or non-regulated undertaking, the group shall
    comply with the following format in a consistent manner:
    identification code of the parent undertaking +
    ISO 3166-1
    alpha-2 code of the country of the undertaking + 5 digits
    C0031Type of code of the
    provider    		Type of ID Code used for the “Identification code of the
    provider” item. One of the options in the following closed list
    shall be used:
    1 – LEI
    2 – Specific code
    C0040Financial sector of
    the provider    		If the provider is part of financial sector within the meaning of
    Article 2 (8) of Directive 2002/87/EC, indicate: “banking
    sector”, “insurance and reinsurance sector” “investments
    services sector”.
    If the provider is not part of financial sector within the meaning
    of Article 2 (8) indicate: “other undertaking of the group”.
    C0050Beneficiary nameName of the entity that is benefiting from the off-balance sheet
    guarantee.
    C0060Identification code
    of the beneficiary    		The unique identification code attached to the beneficiary by
    this order of priority:
    -
    Legal Entity Identifier (LEI) mandatory if existing;
    -
    Specific code in case of absence of LEI code.
    Specific code:
    -
    For EEA regulated undertakings other than insurance and
    reinsurance undertakings within the group: identification code
    used in the local market, attributed by the undertaking’s
    competent supervisory authority;
    -
    For non-EEA undertakings and non-regulated undertakings
    within the group, identification code shall be provided by the
    group. When allocating an identification code to each non-EEA
    or non-regulated undertaking, the group shall comply with the
    following format in a consistent manner: identification code of
    the parent undertaking +
    ISO 3166-1 alpha-2 code of the
    country of the undertaking + 5 digits
    C0061Type of code of the
    beneficiary    		Type of ID Code used for the “Identification code of the
    beneficiary” item. One of the options in the following closed
    list shall be used:
    1 – LEI
    2 – Specific code
    C0070Financial sector of
    the beneficiary    		If the beneficiary is part of financial sector within the meaning
    of Article 2 (8) of Directive 2002/87/EC, indicate: “banking
    sector”, “insurance and reinsurance sector” “investments
    services sector”.
    If the beneficiary is not part of financial sector within the
    meaning of Article 2 (8) indicate: “other undertaking of the
    group”.
    C0080Indirect
    transactions    		If reported intragroup transaction is part of an indirect
    transaction (cf. General comments supra), report the “ID of
    intragroup transaction” (C0010) of the related transaction in
    this cell. If more than two transactions are related, the ID code
    of the first related transaction needs to be reported as a
    reference to link all interconnected transactions.
    If the reported intragroup transaction is not part of an indirect
    transaction, indicate No.
    C0090Single
    economic
    operation    		If the reported intragroup transaction is part of single economic
    operation (cf. General comments supra), report the “ID of
    intragroup transaction” (C0010) of the related transaction in
    this cell.
    If more than two transactions are related, the ID code of the first
    related transaction needs to be reported as a reference to link all
    interconnected transactions.
    If the reported intragroup transaction is not part of single
    economic operation, indicate No
    C0100Transaction typeIdentify the type of transaction. The following close list shall
    be used:
    1 -
    guarantees
    2 -
    commitment
    3 -
    letter of credit
    4 -
    undrawn credit facilities
    5
    -
    assets
    purchased
    under
    outright
    forward
    purchase
    agreements (currency or other);
    6 -
    asset sale and repurchase agreements as referred to in Article
    12(3) and (5) of Directive 86/635/EEC;
    7 -
    Contingent liabilities
    8 -
    other;
    C0110Transaction
    issue
    date    		Identify the ISO 8601 (yyyy-mm-dd) code of the date when the
    transaction/issue takes effect.
    C0120Expiry
    date
    of
    agreement
    /
    contract underlying
    transaction    		Where applicable, identify the ISO 8601 (yyyy-mm-dd) code
    of the date when the agreement/contract ceases. If the expiry
    date is perpetual use “9999-12-31”.
    C0130Currency
    of
    transaction    		Identify the ISO 4217 alphabetic code of the currency in which
    the transaction took place. If there are two currencies involved,
    please identify both in cell
    Comments C0200
    C0140Trigger eventWhere applicable, brief description of event that would trigger
    the transaction/payment/liability/none e.g. event that would
    result in a contingent liability occurring.
    C0150Value
    of
    transaction
    at
    starting date    		Value of the transaction or collateral pledged at the starting
    date, recognised on the Solvency II balance sheet.
    C0160Value
    of
    transaction
    at
    reporting date    		Value of the transaction, collateral pledged
    recognised on the
    Solvency II balance sheet at the reporting date.
    C0170Maximum possible
    value of contingent
    liabilities    		Maximum possible value, if possible, regardless of their
    probability (i.e. future cash flows required to settle the
    contingent liability over the lifetime of that contingent liability,
    discounted at the relevant risk-free interest rate term structure)
    of contingent liabilities included in SII
    balance sheet. Sum of
    all possible cash flows if events triggering guarantees were all
    to happen in relation to guarantees provided by the “provider”
    (cell C0020) to the “beneficiary” (Cell C0050) to guarantee the
    payment of the liabilities due by the undertaking (includes letter
    of credit, undrawn committed borrowing facilities). This item
    shall not include amounts already reported under C0150 and
    C0160.
    C0180Value
    of
    guaranteed assets    		Value of the guaranteed asset for which the guarantees are
    received.
    Sectoral valuation principles may be relevant in this case.
    C0190Revenues
    stemming from the
    off-balance
    sheet
    items    		Revenues associated to the provisions of the off-balance sheet
    transaction.
    C0200CommentsComments shall contain:
    a notification if the transaction has not been performed
    -
    at arm’s length
    any other relevant information regarding the economic
    -
    nature of the operation