Last month, the Prudential Regulation Authority (PRA) issued a consultation paper which proposes changes to the file type and reporting format of National Specific Templates. It also presents a number of reporting clarifications and technical corrections relating to the accompanying NST LOG files.
The consultation paper is relevant to all UK Solvency II firms required to submit NSTs and to Lloyd’s.
The current regime is set out in Policy Statement (PS) 2/15 (Solvency II: a new regime for insurers) which requires the templates to be published in Excel format.
The NSTs and accompanying LOG files are published on the Regulatory reporting for Solvency II firms page of the Bank of England website and are in addition to the Solvency II annual and quarterly reporting.
The PRA proposes the following:
- Reporting for financial year-end 2017 onwards whereby firms submit NSTs in standard XBRL (eXtensible Business Reporting Language) format.
- Transitional arrangements for financial year-end 2016 whereby firms submit NSTs in XBRL-enabled format or standard XBRL. To enable firms to submit in XBRL or XBRL-enabled Excel format, on 25 October 2016 the PRA published a modification by consent to enable firms with a financial year ending on or after 30 June 2016, but before 19 December 2016, to have time to implement the proposed changes to the reporting format.
- Updates to the NST LOG files to reflect changes in cell references, reporting clarifications and technical corrections.
The rationale behind the proposed changes is to standardise the delivery of supervisory data using international data standards for the reporting of financial risk and supervisory information. This is with a view to improving the data quality, consistency and transparency of information submitted to the PRA.
The PRA has invited feedback on these proposals. The consultation closes on Tuesday 6 December 2016. Any comments or enquiries should be addressed to CP37_16@bankofengland.co.uk.
A copy of the consultation paper can be found here: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2016/cp3716.pdf.