Overview of CRD IV Validation and Filing Rules
The Capital Requirements Directive (2013/36/EU) and the Capital Requirements Regulation (575/2013) (CRD IV), have introduced new (COREP) and (FINREP) reporting frameworks for banks, building societies, and investment firms (Firms) throughout the European Union (EU). Firms must now report regulatory data by converting the data into an eXtensible Business Reporting Language (XBRL) report that is validated and filed with the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) against the European Banking Authority (EBA) taxonomy. In the United Kingdom (UK) this is filed using the GABRIEL system. Web-based forms and Adobe PDF forms are not available for filing, and only direction communication or web uploads are available.
Validation is essentially a process that verifies that data that is entered into a record meets the standards specified under the EBA taxonomy. The data that is submitted by Firms to the FCA and other national level regulators will then be submitted to the EBA in an XBRL format. Firms are therefore required to comply with XBRL technical standards, comply with the EBA’s data quality rules, and comply with any additional validation rules stipulated by national level regulators. FCA rules include Filing Syntax Rules, Instance Syntax Rules, Context Related Rules, Fact Related Rules, and Unit Related Rules. A failure against any of the validation rules in the relevant taxonomy will result in a rejected submission. Validation is carried out in stages.
| Stage 1 | Header Inspection |
Header inspection checking for the return expected on the schedule, and the correct taxonomy version has been used for that specific reporting period.
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| Stage 2 | Positive Acknowledgement |
GABRIEL positive acknowledgement.
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| Stage 3 | Filing Indicators |
Correct filing indicators for the required templates for that specific reporting period are completed by the Firm. GABRIEL will reject submission if the submission is incomplete or incorrect.
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| Stage 4 | EBA Validation |
GABRIEL validates each instance against the EBA taxonomy asynchronously.
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| Stage 5 |
Firm Notification
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GABRIEL notifies Firms as to the outcome of the taxonomy validation via email (Web Uploads) or Firm system polling (Direct Communications).
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The validation rule severity settings are the same as the filing rule severity settings and are as follows.
The EBA severity setting configuration sets EBA Blocking Rules as ‘ERROR’ (reject), EBA Non-blocking rules as ‘WARNING’, and EBA Deactivated rules as ‘DISABLED’ (ignore).The FCA’s filing rules are based on the EBA filing rules, and list all the rules that will be applied, what each rule verifies, and what error message will be received in the event that a rule is not passed. It should also be noted that PRA groups are in scope for CRD IV reporting and if a FCA regulated Firm is within a group then the group will be in scope for CRD IV reporting at a consolidated level.
DataTracks is able to take a Firm’s CSV and Excel data, convert it into XBRL, and validate it against the specific configured regulatory taxonomy required. If you would like to discuss any of the implications of CRD IV on your business, or for more information on our CRD IV reporting solutions and prices, please email DataTracks at: enquiry@datatracks.eu.