K-Helix: Capital+ Reporting | KPMG | UK

K-Helix: Capital+ Reporting

K-Helix: Capital+ Reporting

K-Helix has been built to alleviate as much pain as possible from the Capital+ reporting process

Built to alleviate as much pain as possible from the Capital+ reporting process

What is changing?

Over the past 2 years the Prudential Regulation Authority (PRA) have been conducting a full scale review of the large and diverse data sets it inherited from the Financial Conduct Authority. Part of this review focused on so-called “Capital+” data, which historically aimed to monitor performance through collecting high-level data forecasts on the capital position of banks, building societies and some investment firms.

The review has now been finalised and the PRA have announced that reporting for Capital+ is changing. Currently, firms are asked to complete an Excel return on an ad-hoc basis, with a ‘best endeavours’ approach. Going forward, this will be formalised into a regular submission; either monthly, quarterly, semi-annually or annually depending on the size of the submitting entity.

Who is affected?

All PRA-authorised banks, building societies and designated investment firms. The frequency and level of detail for Capital+ returns will be relative to the size and significance of the entity as detailed below. 

Return Retail deposits Total assets Reporting level How often?   Deadline (business days)1
PRA101    ≥£50bn*
≥£320bn Group, Individual  Monthly  15
  N/A ≥£50bn Individual  Monthly  15
  ≥£50bn** >£5bn,
<£320bn 
Group, Individual  Quarterly  15
  N/A ≥£50bn Individual  Quarterly  15
PRA102 N/A >£5bn Group, Individual  Semi-Annual  30
PRA103 N/A <£5bn Group, Individual  Annual  30

Reproduced from: Regulatory reporting of financial statements, forecast capital data and IFRS 9 requirements, Bank of England, April 2016.

1-Reporting frequency amended in PS32/16. Changed from calendar days to business days, and deadline for

PRA102 extended.

*Consolidated/Individual retail deposits

**Consolidated retail deposits 

 

When does it begin?

The requirement comes in to force for the first accounting period beginning after 1st October 2017. For firms with a year-end of 31st December, therefore, the first report will be for the period to 31st December 2017, to be reported in January or February 2018 (depending on whether you file PRA101 or PRA102/103).

What is being reported? And how?

The new returns re-use COREP returns and definitions almost completely. The returns used are:

  • C01.00 - Capital Adequacy - Own Funds Definition
  • C02.00 - Capital Adequacy - Risk Exposure Amounts
  • C04.00 - Capital Adequacy - Memorandum Items
  • C05.01 - Capital Adequacy - Transitional Provisions: Summary

There is then a ‘PRA supplementary data section’, which collects data which sits outside of the COREP templates.

The only difference between PRA101 and PRA102 is that PRA101 asks for the current period figures as well as forecast data, whereas PRA102 gathers forecast data only. PRA103 is a small sub-set of the data items; only the highest level data.

One key change will be the submission mechanism used. Previously this has been Excel, whereas now this will be required in XBRL format via the GABRIEL portal. In addition to this, a number of validation rules will be in force. These rules will be a subset of the COREP validation rules.

KPMG’s offering

KPMG already has a market-leading XBRL solution software that supports EU wide regulatory reporting regimes for COREP, FINREP as well as Solvency 2 reporting. We have extended the capabilities of this tool to now include the taxonomies, templates and submissions in XBRL required for Capital+ reporting.

Its features include:

  • Embedding all of the XBRL ‘behind the scenes’, removing the need for users to understand XBRL itself.
  • Include all relevant schedules for Capital+
  • Run all rules in real-time, alerting the user to any failed validations.
  • Allow users to export/import templates using spreadsheet software.
  • Give users the ability to compare filings to prior periods to ensure consistency of filing.
  • Allows the users to re-import XBRL files to view them prior to submission.
  • Conforms to Bank of England and PRA’s best practice guidelines. 

If you would like any further information, please email us at capitalplus@kpmg.co.uk, alternatively, you can contact us to book a demo.

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