Annex 2 to circular NBB_2017_20

Transcription

1 boulevard de Berlaimont 14 BE-1000 Bruxelles tél fax numéro d entreprise: RPM Bruxelles Brussel, 09 th June 2017 Annex 2 to circular NBB_2017_20 List of the periodic statements about which the accredited statutory auditor must report NBB_2017_20 09 th June 2017 Annex 2 pg. 1/8

2 The reporting obligations and associated guidelines are available on the Bank s website: These obligations and guidelines may be amended. Accredited statutory auditors must therefore also verify that the reporting institution uses the correct version. 1. Credit institutions The periodic statements about which the accredited statutory auditor must report in accordance with Article 225, first paragraph, 2 of the Banking Law are, more specifically, the periodic statements that must be provided to the supervisory authority by or pursuant to the following legislative provisions and texts: a) At a European level and at an SSM level: o Articles 99, 101, 394, 415, and 430 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (the CRR ). o Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council established for the implementation of the aforementioned provisions; this Regulation has been amended on several occasions and refers to the following reporting: own funds and own funds requirements (COREP sensu stricto - Annexes I and II), financial information (FINREP in accordance with IFRS or GAAP - Annexes III to V), losses stemming from lending collateralized by real-estate property (Annexes VI and VII), major exposures and concentration risk (Annexes VIII and IX), leverage ratio (Annexes X and XI), liquidity (Annexes XII and XIII), data point model (DPM - Annex XIV), validation formulas (Annex XV), asset encumbrance (Annexes XVI and XVII), asset liability management model (ALMM - Annexes XVIII to XXI) and the liquidity coverage ratio requirement (LCR - Annexes XXII and XXIII). o Regulation (EU) 2015/534 of the European Central Bank of 17 March 2015 on reporting of supervisory financial information (ECB/2015/13) (primarily refers to FINREP on a solo basis) o Questions and answers on supervisory reporting published by the EBA on its website, under the heading single rulebook Q&A ( b) At a national level: Articles 106, 1 and 2 (credit institutions governed by Belgian law), 317 and 318 (branches in Belgium of credit institutions governed by the law of another Member State), 335 (branches in Belgium of third country credit institutions) of the Banking Law, which, in addition to the reporting referred to in point a) hereinabove, imposes the following reporting (depending on the type of institution): o Format A, Book I o Circular NBB_2015_14/Periodic qualitative and quantitative reporting requirements with respect to trading for own account o Circular NBB_2015_24/Guidelines on sound management practices and reporting concerning interest rate risk arising from non-trading activities (reporting table 90.30) o Circular NBB_2015_02/EBA guidelines regarding harmonized definitions and templates for the financing plans of credit institutions with respect to recommendation A4 of ECSR/2012/2 (EBA/GL/2014/04 of 19 June 2014). Annex 2 pg. 2/8 NBB_2017_20 09 th June 2017

3 2. Stockbrocking firms The periodic statements about which the accredited statutory auditor must report in accordance with Article 225, first paragraph, 2 of the Banking Law are, more specifically, the periodic statements that must be provided to the supervisory authority by or pursuant to the following legislative provisions and texts: a) at a European level and at an SSM level: o Articles 99, 101, 394, 415, and 430 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (the CRR ). o Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council established for the implementation of the aforementioned provisions; this Regulation has been amended on several occasions and refers to the following reporting (the same as for credit institutions, except for liquidity): own funds and own funds requirements (COREP sensu stricto - Annexes I and II), financial information (FINREP in accordance with IFRS or GAAP - Annexes III to V - only for listed stockbroking firms), losses stemming from lending collateralized by real-estate property (Annexes VI and VII), major exposures and concentration risk (Annexes VIII and IX), leverage ratio (Annexes X and XI), liquidity (Annexes XII and XIII), data point model (DPM - Annex XIV), validation formulas (Annex XV), and asset encumbrance (Annexes XVI and XVII). o the questions and answers on supervisory reporting published by the EBA on its website, under the heading single rulebook Q&A ( b) At a national level - Article 556 juncto 106, 2 of the Banking Law. o Circular NBB_2014_14 of 18 November 2014 on the overall solvency coefficient (gearing ratio) o Circular NBB_2012_01 of 3 April 2012 on the periodic statements of stockbroking firms o Circular PPB CPB-CPA to credit institutions and stockbroking firms (tables Financial instrument balance sheet and Segregation of client funds ). For branches in Belgium of investment firms governed by the law of another EEA Member State, insofar as the institution may receive funds from investors in Belgium or may provide the service referred to in Article 2, 2, 1 of the Law of 25 October 2016 on access to the business of investment services and on the legal status and supervision of portfolio management and investment advice companies, the periodic provision of information means the following statements as provided for in Circular D4/EB/3 of 3 January 2000: periodic statement (exclusively composed of a balance sheet and a profit and loss account); additional information on the investment services and ancillary services provided in Belgium. 3. Payment institutions Periodic statements mean detailed financial statements and other figures referred to in Article 24, first paragraph of the Law of 21 December 2009, including certain statements that payment institutions provide to the NBB with a view to complying with the regulatory standards and obligations implementing Article 17 of the Law of 21 December Circular CBFA_2010_13 of 5 July 2010 on the format of periodic reporting by payment institutions lists the periodic statements that must be communicated to the Bank and determines the method of communication of these statements. NBB_2017_20 09 th June 2017 Annex 2 pg. 3/8

4 As regards the periodic financial reporting, the following information must be communicated on a solo basis: balance after profit distribution (statement Nº 1.1); profit and loss account (statement Nº 1.2); appropriation of profit (statement Nº 1.3); identification of the borrowed funds held and included in the balance (statement Nº 1.4); figures relating to the payment services (Statement Nº 1.5), including the amount of the transactions (1.5.1), the volume of the transactions (1.5.2) and the turnover (1.5.3). The explanatory notes to the statutory annual accounts, and where applicable, the consolidated annual accounts of the payment institutions, must also be communicated on an annual basis to the NBB. The periodic information on solvency is provided based on Table Nº 2.1. For branches established in Belgium of payment institutions that are governed by the law of another EEA Member State, it is yet to be determined which periodic statements must be communicated. 4. Electronic money institutions Periodic statements mean detailed financial statements and other figures referred to in Article 80, first paragraph of the Law of 21 December 2009, including certain statements that electronic money institutions provide to the NBB with a view to complying with the regulatory standards and obligations implementing Article 72 of the Law of 21 December Circular NBB_2013_12 of 7 October 2013 on the format of periodic reporting by electronic money institutions lists the periodic statements that must be communicated to the Bank and determines the method of communication of these statements. As regards the periodic financial reporting, the following information must be communicated on a solo basis: balance after profit distribution (statement Nº 1.1); profit and loss account (statement Nº 1.2); appropriation of profit (statement Nº 1.3); identification of the borrowed funds held and included in the balance (statement Nº 1.4); additional tables with statistical information (statement Nº 1.5). The explanatory notes of the statutory annual accounts, and where applicable, the consolidated annual accounts of electronic money institutions, must also be communicated on an annual basis to the NBB. The periodic information on solvency is provided based on Table Nºs 2.1 and 2.2. For branches established in Belgium of electronic money institutions that are governed by the law of another EEA Member State, it is yet to be determined which periodic statements must be communicated. Annex 2 pg. 4/8 NBB_2017_20 09 th June 2017

5 5. Settlement institutions and institutions equivalent to settlement institutions Article 38 of the Royal Decree of 26 September 2005 provides that settlement institutions and institutions equivalent to settlement institutions must provide to the NBB an accounting position on a consolidated and unconsolidated basis every month and in the form and by the deadline that the NBB determines, until the entry into force of the implementing provisions of Articles 24 and 25, 3 of the aforementioned Royal Decree. Periodic statements means the statements and figures that the settlement institution and institutions equivalent to settlement institutions must currently provide to the NBB by convention. For the tables regarding compliance with the regulatory standards and obligations implementing Article 13 of the Royal Decree of 26 September 2005 (own funds tables), and until the entry into force of the implementing provisions of this Article, the rules referred to in the implementing decree of Article 98 of the Banking Law apply to settlement institutions and institutions equivalent to settlement institutions on a consolidated and unconsolidated basis 1. These tables also include the COREP tables laid down by the NBB (tables for monitoring compliance with the own funds regulation) and Pillar II tables, both on a solo and consolidated basis. 6. Financial holding companies governed by Belgian law Periodic statements mean detailed financial statements and other figures referred to in European legislation and regulations and in Article 205, 4 of the Banking Law. The reporting obligations are identical to those imposed on credit institutions, but only on a consolidated basis. In general, this concerns the following information on a consolidated basis: o Consolidated FINREP; o the COREP tables (all tables for monitoring compliance with the own funds regulation, although excluding the requirement as regards the general solvency coefficient, the requirement for covering fixed assets and the requirement for covering fixed costs) and the Pillar 2 table (table 90.30: interest risk in the banking book) Mixed financial holding companies governed by Belgian law Periodic statements mean the financial statements referred to in Article 193, 1 of the Banking Law [Article 463, 1 of the Supervision Law]: o accounting statements relating to the financial situation of the financial conglomerate containing at least the balance sheet and the profit and loss account; o a statement demonstrating compliance with the standards laid down in or in implementation of Article 190, 1, first paragraph, 1 [Article 457, first paragraph, 1 ] (compliance with the requirement that own funds be at least equal to the solvency requirements), Article 191, 3 [Article 460, 2] (restrictions or other equivalent supervisory measures to control risk concentrations at a financial conglomerate level), and Article 192, 3 [Article 462, 2] (restrictions or other equivalent supervisory measures for achieving the objectives of the supplementary group supervision of intra-group transactions) and a statement showing the significant risk concentrations and significant intra-group transactions referred to in Article 191, 1, second paragraph, 1 [Article 459, first paragraph, 1 ] (identifying and reporting significant risk 1 See Article 37 of the Royal Decree of 26 September The following reporting is therefore not required: COREP solo, Table A, activity of trading for own account, financing plans. NBB_2017_20 09 th June 2017 Annex 2 pg. 5/8

6 concentrations) and in Article 192, 1, second paragraph, 1 [Article 461, first paragraph, 1 ] (identifying and reporting significant intra-group transactions). This pertains to the declarations that must be provided to the supervisory authority at least twice a year. 8. Financial holding companies governed by foreign law - mixed financial holding companies governed by foreign law Cf. circular. 9. Insurance and reinsurance companies The periodic statements about which the accredited statutory auditor must report in accordance with Article 332 and 333 of the Supervision Law are, more specifically, the periodic statements that must be provided by or pursuant to the following regulatory provisions and texts: a) At a European level, in general: i. Commission Implementing Regulation (EU) 2015/2450 laying down implementing technical standards with regard to the templates for the submission of information to the supervisory authorities in accordance with Directive 2009/138/EC of the European Parliament and of the Council. ii. Commission Implementing Regulation (EU) 2015/2452 of 2 December 2015 laying down implementing technical standards with regard to the procedures, formats, and templates of the solvency and financial condition report in accordance with Directive 2009/138/EC of the European Parliament and of the Council. iii. The qualitative reports referred to in Articles 291 and 304 of Delegated Regulation 2015/35. The following templates from Implementing Regulation (EU) 2015/2450 do not, however, form part of the periodic statements for insurance companies: - S Basic Information - RFF and matching adjustment portfolios - S Assets and liabilities by currency - S Activity by country - S Information on class 10 in Part A of Annex I of Solvency II Directive, excluding carrier's liability - S Premiums, claims and expenses by country - S Summary of assets - S Life and Health SLT Technical Provisions - by country - S Projection of future gross cash flows - S Description of the guarantees of variable annuities - S Hedging of guarantees of variable annuities - S Information on annuities stemming from Non-Life Insurance obligations - S Non-Life Technical Provisions - By country - S Non-life insurance claims - S Development of the distribution of the claims incurred - S Loss distribution risk profile - S Underwriting risks non-life Annex 2 pg. 6/8 NBB_2017_20 09 th June 2017

7 - S Non-life distribution of underwriting risks - by sum insured - S Information on the transitional on interest rates calculation - S Overall calculation of the transitional on technical provisions - S Best estimate subject to volatility adjustment by country and currency - S Excess of Assets over Liabilities - explained by investments and financial liabilities - S Excess of Assets over Liabilities - explained by technical provisions - S Detailed analysis per period - Technical flows versus Technical provisions - S Facultative covers for non-life and life business basic data - S Facultative covers for non-life and life business shares data - S Outgoing Reinsurance Program basic data - S Outgoing Reinsurance Program shares data - S Share of reinsurers [including Finite Reinsurance and SPVs] - S Information on Special Purpose Vehicles As regards the qualitative reports referred to in point 2.a) iii hereinabove, the auditor does not need to conduct a full review, but rather submit only the following supplementary declaration: After analysis of the qualitative reports, no inconsistencies were found between the qualitative reports and the components of the quantitative reporting. The content of qualitative report B. System of Governance is deemed to form part of the reporting regarding internal control specified in point C.IX.B hereinafter. b) At a national level: i. Circular NBB_2016_02: Complementary reporting of standard formula figures for undertakings with an approved full or partial internal model ii. iii. iv. Circular NBB_2016_03: Reporting liquidity risk Circular NBB_2017_02: Reporting interest risk Circular NBB_2017_10: Reporting pertaining to the perpetual inventory. 10. Belgian insurance or reinsurance groups In accordance with Articles 430 (juncto 332 and 333), 433 and 434 of the Law of 13 March 2016, the accredited statutory auditor reports to the Bank on: - the periodic financial information at the end of the first half-year, and at the end of the financial year of the insurance holding company governed by Belgian law or of the mixed financial holding company governed by Belgian law; and - the periodic financial information which is consolidated at the end of the first half-year and at the end of the financial year at the level of the insurance or reinsurance group. The following templates from Implementing Regulation (EU) 2015/2450 do not, however, form part of the periodic statements for insurance groups: - S Basic Information - RFF and matching adjustment portfolios - S Assets and liabilities by currency - S Premiums, claims and expenses by country NBB_2017_20 09 th June 2017 Annex 2 pg. 7/8

8 - S Summary of assets - S Description of the guarantees of variable annuities - S Hedging of guarantees of variable annuities - S Share of reinsurers [including Finite Reinsurance and SPVs] - S Information on Special Purpose Vehicles Annex 2 pg. 8/8 NBB_2017_20 09 th June 2017