Guideline for Preparing Own Funds and Liquidity Reports under Art. 54 IFR

Reports for Small Investment Firms

Status: 19.12.2024

Change History

Version	Chapter	Change Note	Date	Name and Reference Number
0.1	All	Created	24.01.2023	Deutsche Bundesbank
1.0	All	New layout and minor corrections	06.03.2023	Deutsche Bundesbank
1.1	Foreword and 1	Change note on "combined values" and insertion of note on line 290	06.07.2023	Deutsche Bundesbank
1.2	3 + 4	Adjustment of capital ratio calculations and fluctuation of fixed overheads	01.03.2024	Deutsche Bundesbank
1.3	Foreword, 4, 5 + 6	Supplements to general explanations and filling instructions for templates	19.12.2024	Deutsche Bundesbank

Table of Contents

• Change History.....................................................................................................2
• Foreword.......................................................................................................................4
• 1 Template I 01.01 - COMPOSITION OF OWN FUNDS...................5
• 2 Template I 02.03 – OWN FUNDS REQUIREMENTS................................8
• 3 Template I 02.04 – CAPITAL RATIOS ..........................................................9
• 4 Template I 03.01 – CALCULATION OF REQUIREMENTS FOR FIXED OVERHEADS..........................................................................................10
• 5 Template I 05.00 – SCOPE OF ACTIVITY – CHECKING THRESHOLDS...................................................................................12
• 6 Template I 09.01 – LIQUIDITY REQUIREMENTS ...............................17

Foreword

This guideline provides small investment firms with assistance regarding the reports under Article 54 IFR and should be seen as a supplement to Annex IV of the Implementing Regulation (EU) 2284/2021 (EUR-Lex - 32021R2284 - EN - EUR-Lex (europa.eu)).

The submission of the annual report is required for all small investment firms – regardless of the balance sheet date – by the reporting deadline of 31.12. until 11.02. of the following year.

We would like to point out that failure to submit or the erroneous submission of reports under Article 54 IFR constitutes an administrative offense under Section 83 (4) No. 4 of the Securities Trading Act (WpIG).

Correction reports are required:

• if at least one "Error" occurs during validation,
• if necessary in the case of a "Warning",
• for correction postings in the context of the audit of the annual financial statements, and
• if necessary upon determination of the annual financial statements.

Note on Form I 05.00 – SCOPE OF ACTIVITY – CHECKING THRESHOLDS (I5) (cf. Art. 12 (2) IFR) "Combined" values are to be reported in lines 0010, 0020, 0030, 0100, and 0110 under the following conditions: The investment firm is part of a group within the meaning of Article 2 No. 11 of Directive 2013/34/EU ("broad" group definition). See also the following relevant definitions of this article: 9. "Parent undertaking" an undertaking which controls one or more subsidiary undertakings; 10. "Subsidiary undertaking" an undertaking controlled by a parent undertaking including any subsidiary undertaking of a parent undertaking which is controlled indirectly; 11. "Group" a parent undertaking and all its subsidiary undertakings.

Furthermore, at least one other investment firm¹ must be located within this group. The reporting of combined values is independent of any possible obligation to submit reports on a consolidated basis pursuant to Article 7 in conjunction with Article 54 IFR. "Combination" means the addition of the values mentioned in Article 12 (2) sentence 1 IFR. The values of all investment firms belonging to the group are to be added. In their individual reports, the investment firms of such a group are to report the combined thresholds of their group in the same amount. When determining the combined annual gross total income, it should be noted that any double counting of gross income generated within the group may be disregarded.

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¹ The investment firms to be taken into account include both investment firms with their seat within the EU and those with their seat in third countries.

1 Template I 01.01 - COMPOSITION OF OWN FUNDS

Lines	Position	Amount	Notes
0010	OWN FUNDS = I 01.01	Line 0020 + I 01.01	Line 420
0020	CORE CAPITAL (T1) = I 01.01	Line 0030 + I 01.01	Line 0300
0030	COMMON EQUITY TIER 1 CAPITAL (CET1) = I 01.01	Line 0040 to 0060 + Line 0090 to 0140 + Line 0290
0040	Fully paid-up capital instruments
0050	Share premium
0060	Retained earnings = I 01.01	Line 0070 + I 01.01	Line 0080
0070	Retained earnings of prior years	Corresponds to the brought forward profit from the last approved annual financial statement (after profit distribution).
0080	Creditable profit	Only profits recognized by an audited interim statement (requirements pursuant to Article 26 (2) CRR must be met).
0090	Cumulative other comprehensive income
0100	Other reserves
0110	Minority interests included in Common Equity Tier 1 Capital
0120	Deduction and adjustment items due to adjustments of Common Equity Tier 1 Capital (Prudential Filters)
0130	Other funds	For sole proprietors, this includes paid-in capital (fixed capital).
0140	(-) TOTAL DEDUCTIONS FROM COMMON EQUITY TIER 1 CAPITAL (pay attention to sign!) = I 01.01	Line 0190 to 0285	Lines 0140 to 0285 require a negative sign.
0190	(-) Losses of the current financial year
0200	(-) Goodwill
0210	(-) Other intangible assets
0220	(-) Deferred tax assets dependent on future profitability not arising from temporary differences, net of related tax liabilities
0230	(-) Qualified holdings outside the financial sector, the amount of which exceeds 15% of own funds
0240	(-) Total amount of qualified holdings in undertakings other than financial sector undertakings, exceeding 60% of own funds
0285	(-) Other deductions
0290	Common Equity Tier 1 Capital: Other components of capital, deductions and adjustments	A negative balance of the variable capital account of a sole proprietor must also be shown here.
0300	ADDITIONAL CORE CAPITAL = I 01.01	Line 0310 to 0410
0310	Fully paid-up, immediately issued capital instruments
0320	Share premium
0330	(-) TOTAL DEDUCTIONS FROM ADDITIONAL CORE CAPITAL (pay attention to sign!)
0410	Additional Core Capital: Other components of capital, deductions and adjustments
0420	ADDITIONAL CAPITAL = I 01.01	Line 0430 to 0520
0430	Fully paid-up, immediately issued capital instruments
0440	Share premium
0450	(-) TOTAL DEDUCTIONS FROM ADDITIONAL CAPITAL (pay attention to sign!)	A negative sign is mandatory here.
0520	Additional Capital: Other components of capital, deductions and adjustments

2 Template I 02.03 – OWN FUNDS REQUIREMENTS

Lines	Position	Amount	Notes
0010	Own funds requirement = higher sum from I 02.03	Line 0020 or I 02.03	Line 0030
0020	Permanent minimum capital requirement	75,000.00, 150,000.00 or 750,000.00	Depending on the scope of permission of the institution at the reporting date (Art. 17 WpIG)
0030	Requirement for fixed overheads = I 03.01	Line 0010
Transitional own funds requirements			Lines 0050 to 0090 are only to be filled out if at least one transitional provision is actually utilized.
0050	Transitional requirement based on own funds requirements of the CRR
0060	Transitional requirement based on requirements for fixed overheads
0070	Transitional requirements for investment firms that previously fell only under a initial capital requirement
0080	Transitional requirements based on initial capital requirements upon admission
0090	Transitional requirements for investment firms not authorized to provide certain services
Additional information
0110	Additional own funds requirement
0130	Total own funds requirements = I 02.03	Line 0010 + I 02.03	Line 0110

3 Template I 02.04 – CAPITAL RATIOS

Lines	Position	Amount
0010	Common Equity Tier 1 ratio = I 01.01	Line 0030 / I 02.03
0020	Surplus (+) or deficit (-) of Common Equity Tier 1 capital = I 01.01	Line 0030 – (I 02.03
0030	Core capital ratio = I 01.01	Line 0020 / I 02.03
0040	Surplus (+) or deficit (-) of core capital = I 01.01	Line 0020 - (I 02.03
0050	Own funds ratio = I 01.01	Line 0010 / I 02.03
0060	Surplus (+) or deficit (-) of total own funds = I 01.01	Line 0010 - I 02.03

4 Template I 03.01 – CALCULATION OF REQUIREMENTS FOR FIXED OVERHEADS

Lines	Position	Amount	Notes
0010	Requirement for fixed overheads = ¼ * I 03.01	Line 0020
0020	Annual fixed overheads of the prior year after profit distribution = I 03.01	Line 0030 + I 03.01	Line 0050
0030	Total costs of the prior year after profit distribution	Sum of ALL expenses from the most recent audited prior year financial statement at the reporting date (for short financial years, extrapolated to 12 months) or the planned values pursuant to Art. 13 (3) IFR for newly licensed institutions. Expenses each after profit distribution, WITHOUT deductions. Negative interest expenses and tax refunds do NOT reduce the costs.
0040	Of which: Fixed expenses by third parties on behalf of the investment firm
0050	(-) Total deductions (pay attention to sign!) = I 03.01	Line 0060 to 0190	Lines 0050 to 0190 require a negative sign.
0060	(-) Premiums for employees and other remuneration	No claim to these payments may exist.
0070	(-) Employee, management, and shareholder participations in net profits
0080	(-) Other discretionary profit distributions and other variable remuneration
0090	(-) Shared commissions and fees to be paid
0100	(-) Fees, brokerage fees, and other fees paid to central counterparties that are billed to customers
0110	(-) Fees to contractually bound intermediaries
0130	(-) One-off expenses from unusual activities
0140	(-) Expenses from taxes
0150	(-) Losses from proprietary trading with financial instruments
0160	(-) Contractual profit transfer and loss absorption agreements
0170	(-) Raw material expenses
0180	(-) Payments into a general banking risk fund
0190	(-) Expenses related to items already deducted from own funds
0200	Anticipated fixed overheads of the current year	Extrapolation for the year in which the reporting date falls.
0210	Fluctuation of fixed overheads (%) = (I 03.01	Line 0200 – I 03.01	Line 0020) / I 03.01

5 Template I 05.00 – SCOPE OF ACTIVITY – CHECKING THRESHOLDS

Lines	Position	Thresholds per Art. 12 IFR	Amount	Notes
0010	(Combined) Assets Under Management (AUM)	AUM < 1.2 bn € (End-of-day value)		AUM = Assets Under Management ("assets under management")<br>WP Services:<br>- Portfolio management<br>- Ongoing investment advice<br>For definition "combined" see Foreword.
0020	(Combined) Client Orders Handled – Cash transactions	COH < 100 mn €/Day (End-of-day value)		COH = Client Orders Handled ("processed client orders")<br>WP Services:<br>- Investment intermediation<br>- Insurance intermediation<br>- Financial commission business<br>- Placement business<br>For definition "combined" see Foreword.
0030	(Combined) Client Orders Handled – Derivatives transactions	COH < 1 bn €/Day (End-of-day value)		COH = Client Orders Handled ("processed client orders")<br>WP Services:<br>- Investment intermediation<br>- Insurance intermediation<br>- Financial commission business<br>- Placement business<br>For definition "combined" see Foreword.
0040	Custodied and administered assets	ASA = 0 € (End-of-day value)		ASA = Assets Safeguarded and Administered ("custodied and administered assets")<br>WP Services:<br>- Custody and administration of financial instruments, including depot custody
0050	Client money held	CMH = 0 €		CMH = Client Money Held ("held client funds")
0060	Daily trading flow – Cash and derivatives transactions	DTF = 0 € (End-of-day value)		DTF = Daily Trading Flow ("daily trading flow")<br>WP Services:<br>- Insurance intermediation<br>- Proprietary trading<br>- Financial commission business
0070	Net position risk	NPR = 0 € (End-of-day value)		NPR = Net Position Risk ("net position risk")<br>WP Services:<br>- Proprietary trading<br>- Underwriting
0080	Clearing margin given	CMG = 0 € (End-of-day value)		CMG = Clearing Margin Given ("paid clearing margin")<br>WP Services:<br>- Proprietary trading
0090	Trading counterparty default	TCD = 0 € (End-of-day value)		TCD = Trading Counterparty Default ("trading counterparty default risk")<br>WP Services:<br>- Proprietary trading<br>- Underwriting
0100	(Combined) total balance sheet and off-balance sheet sum	Balance sheet total < 100 mn €		Balance sheet total (and possibly additional off-balance sheet balance sheet positions) of the last approved annual financial statement².<br>For definition "combined" see Foreword.
0110	Combined annual gross total income	< 30 mn € = I 05.00	Line 0140 to 0290	Corresponds to the average of the gross total income (exclusively from securities services and investment activities) from the last approved¹ and the preceding financial year. For individual institutions, this position corresponds to the value stated in line 0120.<br>For definition "combined" see Foreword.
0120	Annual gross total income = I 05.00	Line 0110 + I 05.00	Line 0130
0130	(-) Group-internal portion of annual gross income (pay attention to sign!)			A negative sign is required here.
0140	Of which: Income from acceptance and transmission of orders			These and the following positions refer to I 05.00 Line 0110. These are positive values. Line 0110 must at least correspond to the sum of lines 0140 to 0290.

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² If the financial statement has not been created and approved after six months from the end of the last financial year, the investment firm uses a provisional financial statement (Art. 12 (1) IFR).

Lines	Position	Threshold per Art. 12 IFR	Amount	Notes
0150	Of which: Income from execution of orders
0160	Of which: Income from proprietary trading
0170	Of which: Income from portfolio management
0180	Of which: Income from investment advice
0190	Of which: Income from underwriting of financial instruments/placement with firm commitment
0200	Of which: Income from placement without firm commitment
0210	Of which: Income from operation of MTF
0220	Of which: Income from operation of OTF
0230	Of which: Income from custody and administration of financial instruments
0240	Of which: Income from granting loans or advances to investors
0250	Of which: Income from advising companies on capital structuring, industry-specific strategy and related questions as well as advice and services in connection with corporate mergers and acquisitions
0260	Of which: Income from foreign exchange transactions
0270	Of which: Securities and financial analysis
0280	Of which: Income from services in connection with the underwriting of emissions
0290	Of which: Securities services and ancillary services in connection with underlying derivatives transactions

6 Template I 09.01 – LIQUIDITY REQUIREMENTS

Lines	Position	Amount	Notes
0010	Liquidity requirement = I 03.01	Line 0010 / 3 1/3 of the requirement for fixed overheads.
0020	Client guarantees	Max. 1.6% of client guarantees per Art. 45 IFR
0030	Total value of liquid assets	Liquidity stock at the respective reporting date. Liquid assets are calculated in accordance with Article 43 (1) of the IFR, where short-term deposits at a credit institution are understood as demand deposits and time deposits with a maturity of up to one month.

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