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Question

Please, could you verify the formulae in cells C50 (OF-B1Q LOG-S.23.01.a.b) and C50A (OF-B1Q-L-S.23.01.f.g) ?
Cell C50 (or mutatis mutandis C50A) refers to "Total eligible own funds to meet the SCR – tier 1 restricted items". The formulae stated in that cell is:C50=MAX(0,(MIN(B50*0.25, C46)))
However, as prescribed in paragraph 3 of Article 72 EOF1 from the Draft Delegated Acts as at 10 January 2014 (or any other previous version) [see background information], these basic own-fund items shall make up less than 20 %.
If my review is right, the formulae for cell C50 should be MAX(0,(MIN(B50*0.20, C46))).Please, Would you mind reviewing my interpretation and, if I am right, amend the typo in cells C50 and C50A?

European Insurance and Occupational Pensions Authority · Accepted Answer

The formula in in fact correct.C50=MAX(0,(MIN(B50*0.25, C46)))
The objective is to define the amount of eligible restricted Tier 1 to cover the SCR.
The relevant cells are:C50 - Total eligible own funds to meet the SCR – tier 1 restricted itemsB50 - Total eligible own funds to meet the SCR – tier 1 unrestricted  itemsC46 - Total available own funds to meet the SCR – tier 1 restricted items
Article 72 of the draft delegated acts defines how certain Tier 1 items are restricted in relation to the total amount of eligible Tier 1 own funds, (up to a maximum of 20%).  
The formula for C50 is derived from B50 and not from total amount of eligible Tier 1 items, which is why it is not 20%. 
So to define the amount of restricted eligible Tier 1 items we need to assess the relationship between the restricted and unrestricted Tier 1 items. This lead us to the formula C50

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