EBA issued a revised list of validation rules in its implementing technical standards on supervisory reporting. The updated Excel workbook includes a separate sheet applicable to each reporting requirement/Data Point Model/Taxonomy set release; it highlights rules that have been deactivated either for incorrectness or for triggering IT problems. Competent authorities throughout the EU are being informed that data submitted in accordance with these implementing technical standards should not be formally validated against the set of deactivated rules.
From time to time, EBA publishes information about validation rules that should be disregarded (primarily due to being identified as potentially incorrect). All validation rules are applicable and equally binding. Not meeting "Error" validation rules when submitting data to EBA will cause the file being submitted to be rejected. Where reporting entities are of the opinion that they can only comply with the reporting requirements set out in the applicable reporting standard if they breach a validation rule of the type "error," they should contact their relevant competent authority (and likely submit a Q&A to the EBA Q&A tool). Validation rules with the severity status "Warning" are equally binding in the sense that they shall also be considered and closely monitored by reporters. Explanations about failure should be provided to the competent authority where needed—that is, reporters are expected to analyze the results of "Warning" validation rules and verify and revise the data, if necessary. Some warnings may not be applicable to all reporters, in all circumstances, or to all reference dates. As such, not meeting them will not necessarily prevent the successful submission of data. Warnings may become “Error” validation rules in the future. Where feasible and prudent, new validation rules will likely be introduced as warnings initially.
Keywords: Europe, EU, Banking, Reporting, Validation Rules, EBA
Previous ArticleBCBS Sets Out Expectations for External Bank Audits of ECL Estimates
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.