EIOPA · 2464

Minimum Capital Requirement (MCR)

Regulation
Guidelines on group solvency
Article
N/A
Topic
Minimum Capital Requirement (MCR)
Submitted
2022-07-14
Answered
2022-10-07

Question

We would like to enquire about the newly introduced rows (R0120 and R0130) SCR and MCR Ratios in S.22.01.04 as part of Taxonomy 2.8.0 PWD2. We saw from the 2450_ITS_reporting_consolidated_AnnexIII_Group instructions_S.22.01_to_S.26.01.docs (page19) that MCR Ratio should be equal to: "Total amount of eligible own funds to meet MCR (R0100) divided by the total amount of MCR (R0110) of each column". However, both R0100 and R0110 are not part of the S.22.01.04. R0100 and R0110 correspond to (1) Eligible own funds to meet Minimum Capital Requirement and (2) Minimum Capital Requirement in S.22.01.01, respectively. These two elements are not part of group reporting. In addition, MCR is not part of the group own funds S.23.01.04. This makes us think that it could be a mistake that MCR Ratio (R0130) was added to S.22.01.04.

Answer

EIOPA confirms that there is a mistake and the MCR ratio (R0130) shall not be reported in S.22.01.04. The mistake will be corrected in the future ITS amendments.

This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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