LegalizeCommission Implementing Regulation (EU) 2022/2454 of 14 December 2022 laying down implementing technical standards for the application of Directive 2002/87/EC of the European Parliament and of the Council with regard to supervisory reporting of risk concentrations and intra-group transactions (Text with EEA relevance)
Two or more transactions between entities of the group which, from an economic perspective (i) contribute to the same risk, (ii) serve the same purpose or (iii) are temporally connected in a plan, shall be considered a single economic operation. All transactions which are part of a single economic operation shall be reported whenever they are collectively at or above the corresponding threshold for significant intra-group transactions, even if they individually fall below the threshold.
Any element added to significant intra-group transactions shall be reported as a separate intra-group 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 EUR 10 000 000 transaction between A and B where A records EUR 10 000 000 , but B only receives EUR 9 500 000 because transaction costs of EUR 500 000 have been incurred), the maximum amount shall be reported in the template as the transaction amount (EUR 10 000 000 in this example). Indirect transactions shall be defined as any transaction shifting risk exposures either (i) between entities within the financial conglomerate (including transactions with special purpose vehicles, collective investment undertakings, ancillary entities or unregulated entities) or (ii) between entities outside the financial conglomerate (but where ultimately the risk exposure is brought back or stays within the financial conglomerate). Where there is a chain of related intra-group 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 steps. In the case of a cascade of transactions (e.g. from A to B to C to D sequentially, where both B and C are in the conglomerate but are unregulated entities), those transactions shall also be reported.
| ITEM | INSTRUCTIONS | |
|---|---|---|
| FC0010 | ID of intra-group transaction | Unique internal identification code for each intra-group transaction. It shall be consistent over time. |
| FC0020 | Insured party/cedent name | Legal name of the entity that has transferred the underwriting risk to another insurer or reinsurer within the group. |
| FC0030 | Identification code for insured party/cedent | The unique identification code attached to the investor/buyer/transferee by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA regulated undertakings within the group, insert the identification code used in the local market and allocated by the undertaking’s competent supervisory authority; — for non-EEA undertakings and non-regulated undertakings within the group, the 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. |
| FC0031 | Type of code for insured party/cedent | Type of ID code used for the ‘Identification code for insured party/cedent’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0040 | Sector of the insured party/cedent | Where the insured party or cedent is part of the financial sector within the meaning of Article 2(8) of Directive 2002/87/EC, indicate ‘banking sector’, ‘insurance sector’ or ‘investments services sector’. Where the insured party or cedent is not part of the financial sector within the meaning of Article 2(8) of that Directive, indicate ‘other undertaking of the group’. |
| FC0050 | Insurer/reinsurer name | Legal name of the insurer or reinsurer to whom the underwriting risk has been transferred. |
| FC0060 | Identification code of insurer/reinsurer | The unique identification code attached to the investor/buyer/transferee by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA regulated undertakings within the group, insert the identification code used in the local market and allocated by the undertaking’s competent supervisory authority; — for non-EEA undertakings and non-regulated undertakings within the group, the 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. |
| FC0061 | Type of code of insurer/reinsurer | Type of ID code used for the ‘Identification code of insurer/reinsurer’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0070 | Sector of the insurer/reinsurer | The financial sector of the provider within the meaning of Article 2(8) of Directive 2002/87/EC, i.e. ‘insurance sector’. |
| FC0080 | Indirect transactions | Where the reported intra-group transaction is part of an indirect transaction (see point 2.1 ‘general remarks’ above), report the ‘ID of intra-group transaction’ (FC0010) of the related transaction in this cell. Where the reported intra-group transaction is not part of an indirect transaction, indicate ‘No’. |
| FC0090 | Single economic operation | Where the reported intra-group transaction is part of a single economic operation (see point 2.1 ‘general remarks’ above), report the ‘ID of intra-group transaction’ (FC0010) of the related transaction in this cell. Where the reported intra-group transaction is not part of a single economic operation, indicate ‘No’. |
| FC0100 | Type of transaction | Identify the type of contract/treaty. The following closed list of codes shall be used: 1 - insurance 2 - reinsurance. |
| FC0110 | Transaction | If C100 = reinsurance, then identify the type of reinsurance contract/treaty. The following closed list of codes shall be used: 1 - quota share 2 - variable quota share 3 - surplus 4 - excess of loss (per event and per risk) 5 - excess of loss (per risk) 6 - excess of loss (per event) 7 - excess of loss ‘back-up’ (protection against follow-on events which certain catastrophes can cause such as flooding or fire) 8 - excess of loss with basis risk 9 - reinstatement cover 10 - aggregate excess of loss 11 - unlimited excess of loss 12 - stop loss 13 - other proportional treaties 14 - other non-proportional treaties 15 - financial reinsurance 16 - facultative proportional 17 - facultative non-proportional. Other proportional treaties (code 13) and other non-proportional treaties (code 14) can be used for hybrid types of reinsurance treaties. |
| FC0120 | Starting date | Identify the ISO 8601 (yyyy-mm-dd) code of the date of commencement of the reinsurance contract/treaty in question. |
| FC0130 | Expiry date | Identify the ISO 8601 (yyyy-mm-dd) code of the expiry date of the reinsurance contract/treaty in question (i.e. the last date that the reinsurance contract/treaty in question is in force). This item is not reported if there is no expiry date (for example, the contract is open-ended and only ends when one of the parties gives notice to that effect). |
| FC0140 | Currency of transaction | Identify the ISO 4217 alphabetic code of the currency of payments for the specific reinsurance contract/treaty. |
| FC0150 | Maximum cover by transaction | For quota share or a surplus treaty, 100% of the maximum amount that has been set for the entire contract/treaty is stated here (e.g. EUR 10 000 000 ). In the case of unlimited cover, insert ‘-1’ here. This item has to be reported in the currency of the transaction. |
| FC0160 | Net receivables | The amount resulting from the sum of (i) claims paid by the (re)insurer but not yet reimbursed by the (re)insurer; (ii) commission to be paid by the (re)insurer; and (iii) other receivables minus debts to the (re)insurer. Cash deposits are excluded and are to be considered as guarantees received. This item has to be reported in the reporting currency of the group. |
| FC0170 | Total reinsurance recoverables | The total amount due from the reinsurer at the reporting date. This includes: — any premium provision for that part of the future reinsurance premium which has already been paid to the reinsurer; — any claims provision for claims outstanding for insurer which have to be paid by the reinsurer; — technical provisions for the amount reflecting the share of the reinsurer in the gross technical provisions. This item has to be reported in the reporting currency of the group. |
| FC0180 | Reinsurance technical result (for reinsurance) | Reinsurance result (for reinsured entity). This is the total reinsurance commission received by the reinsured entity less the gross reinsurance premiums paid by reinsured entity plus the claims paid by the reinsurer during the reporting period plus the total reinsurance recoverables at the end of the reporting period less the total reinsurance recoverables at the start of the reporting period. This item has to be reported in the reporting currency of the group. |
| FC0190 | Premiums (for insurance) | Total amount of gross written premiums as defined in Article 1(11) of Delegated Regulation (EU) 2015/35. For annuities stemming from non-life insurance this cell is not applicable. |
| FC0200 | Claims (for insurance) | Total amount of gross claims paid during the year (including claims management expenses). |
| FC0210 | Line of business | Identify the line of business, as defined in Annex I to Delegated Regulation (EU) 2015/35, being reinsured. The following closed list of codes shall be used: 1 - medical expense insurance 2 - income protection insurance 3 - workers’ compensation insurance 4 - motor vehicle liability insurance 5 - other motor insurance 6 - marine, aviation and transport insurance 7 - fire and other damage to property insurance 8 - general liability insurance 9 - credit and suretyship insurance 10 - legal expenses insurance 11 - assistance 12 - miscellaneous financial loss 13 - proportional medical expense reinsurance 14 - proportional income protection reinsurance 15 - proportional workers’ compensation reinsurance 16 - proportional motor vehicle liability reinsurance 17 - proportional other motor reinsurance 18 - proportional marine, aviation and transport reinsurance 19 - proportional fire and other damage to property reinsurance 20 - proportional general liability reinsurance 21 - proportional credit and suretyship reinsurance 22 - proportional legal expenses reinsurance 23 - proportional assistance reinsurance 24 - proportional miscellaneous financial loss reinsurance 25 - non-proportional health reinsurance 26 - non-proportional casualty reinsurance 27 - non-proportional marine, aviation and transport reinsurance 28 - non-proportional property reinsurance 29 - insurance with profit participation 30 - index-linked and unit-linked insurance 31 - other life insurance 32 - annuities stemming from non-life insurance contracts and relating to health insurance obligations 33 - annuities stemming from non-life insurance contracts and relating to insurance obligations other than health insurance obligations 34 - life reinsurance 35 - health insurance 36 - health reinsurance If a reinsurance arrangement covers more than one line of business, then select the most significant line of business from the list above. |
| FC0220 | Comments | Comments 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. |
6. FC.05 - IGT - P & L
This annex sets out additional instructions in relation to the templates provided in Annex I to this Regulation. The first column of the next table identifies the items to be reported by identifying the columns and lines as shown in the template in that Annex.
This part of the annex relates to information that financial conglomerates are to provide at least once a year.
This template shall report the P&L related to all significant intra-group transactions between entities falling within the scope of financial conglomerate supervision according to Article 8(2) of Directive 2002/87/EC or P&L transaction related to or considered as significant intra-group transactions. These include but are not limited to:
(a) fees;
(b) commissions;
(c) interest;
(d) dividends.
Intra-group outsourcing or internal cost-sharing leading to significant intra-group transactions shall be reported.
Although interest and dividends are reported in FC.01 and FC.04, they also have to be reported in FC.05 P&L. Financial conglomerates shall complete this template for all significant intra-group transactions required to be reported, i.e. (i) between regulated entities of different sectors belonging to the same group; (ii) between regulated entities of the same sector belonging to the same group; (iii) between a regulated entity and a non-regulated entity belonging to the same group; and (iv) between a regulated entity and any natural or legal person linked to the undertakings of the group by close links.
This template shall include intra-group transactions that were:
— in force at the start of the reporting period;
— initiated during the reporting period and outstanding at the reporting date;
— initiated and expired/matured during the reporting period.
Two or more transactions between entities of the group which, from an economic perspective, (i) contribute to the same risk, (ii) serve the same purpose or (iii) are temporally connected in a plan, shall be considered a single economic operation.
All transactions which are part of a single economic operation shall be reported whenever they are collectively at or above the corresponding threshold for significant intra-group transactions, even if they individually fall below the threshold.
Any element added to significant intra-group transactions shall be reported as a separate intra-group 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 EUR 10 000 000 transaction between A and B where A records EUR 10 000 000 , but B only receives EUR 9 500 000 because transaction costs of EUR 500 000 have been incurred), the maximum amount shall be reported in the template as the transaction amount (EUR 10 000 000 in this example). Indirect transactions shall be defined as any transaction shifting risk exposures either (i) between entities within the financial conglomerate (including transactions with special purpose vehicles, collective investment undertakings, ancillary entities or unregulated entities) or (ii) between entities outside the financial conglomerate (but where ultimately the risk exposure is brought back or stays within the financial conglomerate). Where there is a chain of related intra-group 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 steps. In the case of a cascade of transactions (e.g. from A to B to C to D sequentially, where both B and C are in the conglomerate but are unregulated entities), those transactions shall also be reported.
| ITEM | INSTRUCTIONS | |
|---|---|---|
| FC0010 | ID of intra-group transaction | Unique internal identification code for each intra-group transaction. It shall be consistent over time. If related to transactions already mentioned, use the same ID. |
| FC0020 | Revenue side name | Legal name of the entity that received the revenue from another entity within the group. |
| FC0030 | Identification code for revenue side | The unique identification code attached to the entity that received the revenue by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA regulated undertakings within the group, insert the identification code used in the local market and allocated by the undertaking's competent supervisory authority; — for non-EEA undertakings and non-regulated undertakings within the group, the 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. |
| FC0031 | Type of code for revenue side | Type of ID code used for the ‘Identification code for revenue side’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0040 | Sector of the revenue side | Where the entity that received the revenue from another entity within the group is part of the financial sector within the meaning of Article 2(8) of Directive 2002/87/EC, indicate ‘banking sector’, ‘insurance sector’ or ‘investments services sector’. Where the entity that received the revenue from another entity within the group is not part of the financial sector within the meaning of Article 2(8) of that Directive, indicate ‘other undertaking of the group’. |
| FC0050 | Expense side name | Legal name of the entity that provided the revenue to another entity within the group. |
| FC0060 | Identification code for expense side | The unique identification code attached to the entity that provided the revenue by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA regulated undertakings within the group, insert the identification code used in the local market and allocated by the undertaking's competent supervisory authority; — for non-EEA undertakings and non-regulated undertakings within the group, the 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. |
| FC0061 | Type of code for expense side | Type of ID code used for the ‘Identification code for expense side’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0070 | Sector of the expense side | Where the entity that provided the revenue to another entity within the group is part of the financial sector within the meaning of Article 2(8) of Directive 2002/87/EC, indicate ‘banking sector’, ‘insurance sector’ or ‘investments services sector’. Where the entity that provided the revenue to another entity within the group is not part of the financial sector within the meaning of Article 2(8) of that Directive, indicate ‘other undertaking of the group’. |
| FC0080 | Indirect transactions | Where the reported intra-group transaction is part of an indirect transaction (see point 2.1 ‘general remarks’ above), report the ‘ID of intra-group transaction’ (FC0010) of the related transaction in this cell. Where the reported intra-group transaction is not part of an indirect transaction, indicate ‘No’. |
| FC0090 | Single economic operation | Where the reported intra-group transaction is part of a single economic operation (see point 2.1 ‘general remarks’ above), report the ‘ID of intra-group transaction’ (FC0010) of the related transaction in this cell. Where the reported intra-group transaction is not part of a single economic operation, indicate ‘No’. |
| FC0100 | Type of transaction | Identify the type of the P&L transaction. The following closed list of codes shall be used: 1 – fees 2 – commission 3 – interest 4 – dividends 5 – costs or revenues 6 – premiums for insurance 7 – claims for insurance 8 – technical result for reinsurance 9 - others. |
| FC0110 | Transaction | When applicable, instrument to which the revenue or the expense are linked. The following closed list of codes shall be used: 1 - bonds/debt 2 - equity type 3 - other assets transfer 4 - derivative 5 - off-balance-sheet item 6 - intra-group outsourcing, internal cost sharing or rental agreement 7 - insurance/reinsurance 8 - other. |
| FC0120 | Currency of transaction | Identify the ISO 4217 alphabetic code of the currency of payments for the specific P&L transaction. |
| FC0130 | Transaction date | Identify the ISO 8601 (yyyy-mm-dd) code of the date of commencement of the P&L transaction. |
| FC0140 | Amount | Amount of the transaction or price as per agreement/contract, reported in the reporting currency of the financial conglomerate. |
| FC0150 | Comments | Comments 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. |
7. FC.06 Risk Concentration - Exposure by counterparties
This annex sets out additional instructions in relation to the templates provided in Annex I to this Regulation. The first column of the next table identifies the items that shall be reported by identifying the columns and lines as shown in the template in that Annex.
This template shall include all significant risk concentrations between entities falling within the scope of group supervision and third parties, and which can arise from the risk exposures mentioned in the template.
The aim is to list the significant exposures (value of the exposures in each kind of instrument listed in the template) by individual counterparty outside the scope of the financial conglomerate. If more than one entity of the financial conglomerate is involved, a separate line is necessary for each entity.
The exposure can be understood as the maximum possible exposure on a contractual basis. It is necessarily the exposure reflected on the balance sheet, on both gross basis and net basis taking into account any risk mitigation instruments or techniques. Thresholds are fixed by the coordinator after consulting the group itself.
For reporting purposes the terms ‘group of connected counterparties’ and ‘group of counterparties’ are deemed to be equivalent to ‘group of connected clients’ according to Article 4(1), point (39), of Regulation (EU) No 575/2013.
Data are to be reported by legal entity.
Data are to be provided in accordance with the sectoral rules.
| ITEM | INSTRUCTIONS | |
|---|---|---|
| FC0010 | Name of the external counterparty | This is the name of the external counterparty of the financial conglomerate. |
| FC0020 | Identification code of the external counterparty | The unique identification code attached to the investor/buyer/transferee by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA external counterparties: the identification code used in the local market (if the external counterparty is regulated, the identification code allocated by the external counterparty’s competent supervisory authority); — for non-EEA external counterparties: the identification code shall be provided by the conglomerate. When allocating an identification code to each non-EEA or non-regulated counterparty, the conglomerate shall comply with the following format in a consistent manner: identification code of the group of the external counterparty + ISO 3166-1 alpha-2 code of the country of the external counterparty + 5 digits. |
| FC0030 | ID code type of the external counterparty | Type of ID code used for the ‘Identification code of the external counterparty’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0040 | Name of the group (in case of group of counterparties) | Name of the group (if more than one of the external counterparties belong to the same group). |
| FC0050 | Rating | Rating of the counterparty at the reporting reference date issued by the nominated credit assessment institution (ECAI). Where two or more credit assessments are available from nominated ECAIs and they correspond to different parameters for a rated item, the assessment generating the higher capital requirement shall be used. |
| FC0051 | Nominated ECAI | Identify the credit assessment institution (ECAI), giving the external rating in FC0050. |
| FC0060 | Sector | Identify the economic sector of the external counterparty on the basis of the latest version of the NACE code (the first level of hierarchy - the letter). |
| FC0070 | Country | Identify the ISO Code (3166-1 alpha-2) of the country from which the exposure comes from. If there is an issuer issuing an instrument for an entity, this is the country where the headquarters of the entity’s issuer is located. |
| FC0080 | Entity of the financial conglomerate | The name of the entity of the conglomerate related to the exposures. This concerns all entities and a separate entry has to be reported for each entity. If more than one entity of the conglomerate is involved, a separate line is necessary for each entity. |
| FC0090 | ID code of the entity of the financial conglomerate | The unique identification code attached to the entity of the conglomerate by this order of priority if available: — legal entity identifier (LEI); — specific code. Specific code: — for EEA entity of the conglomerate: identification code used in the local market. If entity of the conglomerate is regulated, the one allocated by the entity’s competent supervisory authority; — for non-EEA entity of the conglomerate, the identification code shall be provided by the conglomerate. When allocating an identification code to each non-EEA or non-regulated entity of the conglomerate, the conglomerate shall comply with the following format in a consistent manner: identification code of the conglomerate + ISO 3166-1 alpha-2 code of the country of the entity of the conglomerate + 5 digits. |
| FC0100 | ID code type of the entity of the financial conglomerate | Type of ID code used for the ‘Identification code of the entity of the financial conglomerate’ item. Use either the legal entity identifier (LEI) or the specific code. |
| FC0110 | Equity | The total amount of the exposures in equity instruments toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. |
| FC0120 | Bonds | The total amount of the exposures in bond instruments toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. The exposures for which the exemptions are applicable (FC0260) shall be included in this cell. |
| FC0130 | Assets whose risks are mainly borne by the policyholders | The total amount of exposures in assets whose risks are mainly borne by the policyholders toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. Look-through approach shall be used when available. |
| FC0140 | Derivatives | The total amount of the exposures in derivatives toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. The derivatives shall be reported at their replacement cost. The replacement cost shall be consistent with the one used under sectoral rules. If different exposures can be offset against each other, the data may be provided in net values (i.e. long exposure + short exposure). |
| FC0150 | Other investments | The total amount of the exposures in other investments toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. |
| FC0160 | Loans and mortgages | The total amount of the exposures in loans and mortgages toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. |
| FC0170 | Guarantees and commitments | The total amount of the exposures (i.e. the maximum actual exposure depending on the liability of the entity) in guarantees and commitments (including unpaid tranches of loans) toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. Guarantees issued by the entities of conglomerate shall be reported in this column, while guarantees where the financial conglomerate entities are beneficiaries shall be reported as credit or insurance risk mitigation deduction (FC0260) and in the indirect exposures cell (FC0220). |
| FC0180 | Insurance policies | The total amount of the exposure in the insurance policies (liability limit or sum insured depending on which one represents the maximum possible exposure). |
| FC0190 | External reinsurance | The total amount of the exposures in external reinsurance toward the external counterparty. In accordance with sectoral rules, the amount reported is to be reinsurance recoverable. If more than one entity of the group is involved, a separate line is necessary for each entity. |
| FC0200 | Other direct exposures | The total amount of the exposures in other instruments toward the external counterparty. If more than one entity of the group is involved, a separate line is necessary for each entity. If compensation is a possibility, the net value may be presented. |
| FC0210 | Description of others | Description of the other instruments that are reported in FC0200. |
| FC0220 | Indirect exposures | Total amount of the exposures allocated to the guarantor or to the issuer of the collateral rather than to the immediate borrower. The protected reference original exposure (direct exposure) shall be deducted from the exposure to the original borrower in the columns of ‘Eligible credit or insurance risk mitigation techniques’. The indirect exposure shall increase the exposure to the guarantor or issuer of collateral using the substitution effect. |
| FC0230 | Transactions where there is an exposure to underlying assets | Total amount of exposure through transactions such as securitisation positions or exposures in the form of units or shares in collective investment undertakings (‘CIUs’) or through other transactions where there is an exposure to underlying assets. |
| FC0240 | Currency | Identify the ISO 4217 alphabetic code of the currency of the exposure. |
| FC0250 | Total amount of the exposure | Total exposure towards a single counterparty, where the asset and liabilities due from and to a single counterparty are netted off to define the total net maximum exposure (where possible). The total exposure measures the exposure towards a single counterparty and is defined as: long exposure + short exposure (contrary to a gross maximum exposure which is not requested here (i.e. long exposure + absolute value of short exposure)). No account shall be taken of any risk mitigation instruments or techniques when determining this item. |
| FC0260 | Credit or insurance risk mitigation technique | Any deductions that come from the application of credit or insurance risk mitigation techniques allowed by the sectoral rules (e.g. reinsurance, the use of derivatives, or those risk mitigation techniques detailed by Chapter 4 of Regulation EU No 575/2013). |
| FC0270 | Exemptions | Any deductions that come from the application of exemptions according to the sectoral rules (e.g. Article 400 of Regulation (EU) No 575/2013 or Article 187 of Commission Delegated Regulation (EU) 2015/35). |
| FC0280 | Amount of the exposures after credit or insurance risk mitigation technique and exemptions | Amount of the exposures after credit or insurance risk mitigation technique and exemptions (net amount). |
8. FC.07 Risk Concentration - Exposure by currency, sector, country
The tables shall include the risk concentration between entities in the scope of group supervision and third parties. Exposures are to be represented by currency, sector and country, starting from the maximum exposure to the minimum one. If the country, sector or currency is not relevant, the figures may be reported under an ‘Other’ category.
The ‘sector’ shall present the split between the following sectors:
— public sector
— financial sector
— corporate sector divided by the NACE code (the first level of hierarchy - the letter).
The tables shall be based on all the exposures (full balance sheet) after credit or insurance risk mitigation technique and exemptions (net amount).
9. FC.08 Risk Concentration - Exposure by asset class and rating
The tables shall include the risk concentration between entities in the scope of group supervision and third parties represented by the combination of the main asset classes and rating. For bonds the tables are presented by the combination of asset class and rating. For equity exposure, the total exposure amount and the equity exposures’ share of total assets (full balance sheet) shall be reported.
The table shall be based on all the exposures within the specified asset classes, after credit or insurance risk mitigation technique and exemptions (net amount).
Where two or more credit assessments are available from nominated ECAIs and they correspond to different parameters for a rated item, the assessment generating the higher capital requirement shall be used.
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