Clarification on whether non resident / cross border clients must be included in CFR reporting under the new ITS.

In line with paragraph 21 of the Annex for IT solutions (instructions on RESOL1 and RESOL2 reports), template Z07.01 covers economic functions performed in a given Member state or region by any group entity. As such, unless it is explicitly requested otherwise in the instructions, entities are expected to report only values related to residents or counterparties in the relevant Member State or region. Values related to non-resident counterparties should be excluded and reported separately in the dedicated cross-border fields, where applicable. Otherwise, the value reported would not only reflect the economic function performed to counterparties in one state or region but also functions provided to any other state or region in which an institution is active. References to FINREP across the instructions for Z07.01 intend to enhance the consistency of the definition and the underlying accounting aggregates across regulatory reports. Those references are not meant to determine the geographical perimeter of the amounts to be reported in each country or regional sheet. Where a referenced FINREP aggregate covers more than one country, it should therefore be broken down by the residence of the client or counterparty so that the value reported in the quantitative field relates only to the relevant Member State or region, unless otherwise stated.