2019-04-10
Added · Updated
Circular CSSF 19/715 amends Circular CSSF 14/593 to update supervisory reporting requirements for credit institutions, specifically introducing a test environment for reporting tables effective 1 January 2019. The amendment requires credit institutions to verify arithmetic and qualitative accuracy, completeness, and compliance with validation rules prior to transmission, and mandates that the management ensure compliance with transmission deadlines. It also specifies that any failure to transmit prudential information by the deadline is subject to administrative penalties under Directive 2013/36 (CRD IV) and requires the retention of prudential information files for at least five years.
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In case of discrepancies between the French and the English text, the French text shall prevail Luxembourg, 10 April 2019 To all credit institutions
CIRCULAR CSSF 19/715
Re: Update of Circular CSSF 14/593, as amended by Circulars CSSF 15/613, CSSF 15/621, CSSF 16/640, CSSF 17/663, CSSF 18/678 and CSSF 18/685 on supervisory reporting requirements applicable to credit institutions Ladies and Gentlemen,
Circular CSSF 19/715 page 1/14
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Annex
Luxembourg, 10 April 2019
To all credit institutions
Circular CSSF 14/593 as amended by Circulars CSSF 15/613, 15/621, 16/640, 17/663, 18/678, 18/685 and 19/715 Re: Supervisory reporting requirements applicable to credit institutions Ladies and Gentlemen,
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The common European reporting, except for the requirements on financial information, shall be drawn up on an individual basis and, where appropriate, on a consolidated basis, as defined in the CRR. Financial information shall be drawn up on a consolidated basis:
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Branches established in Luxembourg by a significant credit institution established in a participating Member State Oversimplified 30/06/2017 Less significant entities (within the meaning of the SSM) Less significant entities Simplified extended 31/12/2016 Less significant branches established in Luxembourg by a credit institution established in a non-participating Member State and whose total value of the assets is equal or higher than EUR 3 billion9 Simplified extended 31/12/2016 Less significant branches established in Luxembourg by a credit institution established in a non-participating Member State and whose total value of the assets is lower than EUR 3 billion9 Oversimplified 30/06/2017 Branches established in Luxembourg by a less significant credit institution established in a participating Member State Oversimplified 30/06/2017 Third-country branches Branches established in Luxembourg by a credit institution established in a third country Simplified extended 31/12/2016 The reporting requirements on financial information above take into account both (i) the CSSF's own needs for the exercise of its functions as national supervisory authority, as well as (ii) the requirements of Regulation (EU) 2015/534 of the ECB of 17 March 2015 on reporting of supervisory financial information (ECB/2015/13), as amended by Regulation (EU) 2017/1538 of the ECB of 25 August 2017 (hereinafter "ECB Regulation"). Banks shall at least report the minimum requirements of the category in which they belong (cf. table above). However, the CSSF shall allow the banks that so wish, to transmit the full version instead of the simplified extended version and the full version or simplified extended version instead of the over-simplified version, respectively. If interested, these banks must contact the CSSF. The accounting standard IAS 39 is replaced by IFRS 9 as from 01.01.2018 according to Commission Regulation (EU) 2016/2067 of 22 November 2016. IFRS 9 brings about, in particular, changes to classification and measurement of financial assets, as well as to impairment of financial assets (the standard provides for the impairment of financial assets for expected losses according to three stages). The
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FINREP reporting framework was amended in order to take into account IFRS 9 (FINREP/IFRS 94 version). The first application date of FINREP/IFRS 9 depends on the closing date of the financial year:
(i) The banks which have closed the financial year as at 31 December 2017 shall report their FINREP/IFRS 9 version for the first time as at 31 March 2018. (ii) The banks which have closed the financial year in 2017 but not on 31 December 2017, shall continue to report the FINREP/IAS 39 until the closing of the financial year in 2018. These banks must report the FINREP/IFRS 9 for the first time on the first reference date in 2018 following the 2018 closing date. The FINREP/IAS 39 is no longer required from the moment where a credit institution reports the FINREP/IFRS 9 version. The FINREP/ITS reporting on an individual basis shall be prepared according to the requirements set out in the ITS Regulation and in compliance with the IFRS as adopted by the European Union. It must be submitted on an individual basis in the N/L/S versions.5 Financial information on an individual basis shall be reported according to the reference dates and transmission dates set out in Articles 2 and 3 of the ITS Regulation, on a quarterly, half-yearly or annual basis (in accordance with the specifications laid down in Annex III of the ITS Regulation regarding the date on which the tables should be established).
4. Guidelines on harmonised definitions and templates for funding plans of credit
institutions under Recommendation A4 of ESRB/2012/2 of 19 June 2014. The CSSF identifies and informs the banks that need to report the information relating to the funding plans of credit institutions via mail.
5. The reporting tables introduced by the CSSF that are not covered by the common
European reporting, shall remain applicable. In brief, the following reporting tables remain applicable:
4 FINREP/IFRS 9 version as adopted by the European Commission in Commission Implementing Regulation (EU) 2017/1443 of 29 June 2017 amending Implementing Regulation (EU) No 680/2014 laying down implementing technical standards with regards to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council. 5 Luxembourg credit institutions with branches abroad must draw up the FINREP/ITS reporting on an individual basis in three different versions, one for the sole head office in Luxembourg (version L), the other for the global institution, including branches (version N). In addition, the head office in Luxembourg shall submit the FINREP/ITS reporting of each branch abroad in a different version (separate figures of the branch) (version S). The L and S versions shall be submitted for the first time as at 31 December 2017. Luxembourg credit institutions with no branches abroad, as well as branches of EU credit institutions and branches of non-EU credit institutions established in Luxembourg shall submit the FINREP/ITS reporting on an individual basis in one single version (version L).
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8. The European Banking Authority (EBA) established the tool "Questions and
Answers" (Q&A) on its website. This tool allows credit institutions to ask the EBA questions relating to European regulations, including questions relating to the common European reporting covered by the ITS regulation. The Q&A tool is available at the following address:
http://www.eba.europa.eu/single-rule-book-qa
The instructions issued by the EBA in its answers within the context of the Q&A shall be complied with when preparing the common European reporting.
9. The CSSF will also publish on its website answers to questions received by the
CSSF on the common European reporting, but of national nature. Answers to questions relating to the reporting introduced by the CSSF will also be published at the same place. These "Questions and Answers" are published by the CSSF at the following address:
https://www.cssf.lu/en/regulatory-framework/?entity_type=480&content_type=1483 IV) EXTENSION OF THE NOTIFICATION THRESHOLD FOR INFORMATION RELATING TO "LARGE EXPOSURES" APPLICABLE ON AN INDIVIDUAL LEVEL
10. In order to obtain a complete overview of the risk profile inherent in the activities
of a credit institution and to assess the systemic risks these institutions pose for the Luxembourg financial sector, the CSSF maintains the minimum notification thresholds as regards large exposures at an individual level as applicable until
31.12.2013 according to which any loan granted/used greater than or equal to the
lowest of the two following amounts: 10% of own funds or EUR 25 million (for “institutions”) and EUR 12.5 million (for “clients other than institutions”). Thus, the information referred to in the tables "Large exposures" (tables7 C28.00 and C29.00, where applicable) are to be provided, on a quarterly basis, according to the following notification threshold: all the exposures whose exposure value8 is greater than or equal to a. 10% of own funds or EUR 25 million for exposures incurred by “institutions”; b. 10% of own funds or EUR 12.5 million for exposures incurred by “clients other than institutions”. This information shall be reported for the first time on 31 December 2014. V) TRANSMISSION OF PRUDENTIAL INFORMATION BY CREDIT INSTITUTIONS TO THE CSSF
11. The common European reporting tables, as described in point 2 of this circular, shall
be transmitted to the CSSF in accordance with:
7 Reporting SLAREX
8 This is the amount of the loan granted/used prior to the credit risk mitigation.
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13. The information transmitted to the CSSF serves as a basis for the analysis of the
developments in the banking risks incurred by credit institutions at national level, but also at European level. Consequently, the information transmitted shall be established most accurately and be of the highest quality within the deadlines set by the regulations. Credit institutions shall verify the arithmetic and qualitative accuracy, the completeness of the data as well as compliance with the European validation rules and compliance with the plausibility rules published by the CSSF prior to the data transmission to the CSSF. The CSSF must receive the reporting tables without validation errors, technical errors or other quality defects at the deadline dates, as provided for in the regulations. The management of the credit institutions must ensure compliance with the transmission deadlines, the accuracy, quality and completeness of the information provided to the CSSF. Any offence in this respect falls within the regime of administrative penalties provided for in Directive 2013/36 (CRD IV) (cf. Article 67(1)(e)). The CSSF released a test environment allowing the credit institutions to submit to the CSSF test reporting files in order to receive feedback on the validation results. Further details on this subject are available in Chapter 5, Section 2, 2.2 of “Reporting requirements for credit institutions”. The use of the test environment is not compulsory. Each credit institution may decide to use it or not. However, on the closing date of the transmission provided for in the regulations, the credit institution must have sent to the CSSF at least one production (production with a code ‘N’ or ‘D’) of each reporting table. Consequently, any absence of production leads to noncompliance with the reporting requirements. In case of challenge to a plausibility rule of the CSSF, the credit institution must inform the CSSF by email at the following address: ReportingBanques@cssf.lu. In case of challenge of a validation rule of the EBA, the credit institution must submit a Q&A to the EBA. A copy of the Q&A submitted to the EBA and the Q&A number assigned by the EBA shall also be submitted to the CSSF at the address ReportingBanques@cssf.lu. However, it should be noted that the CSSF will not suspend the challenged validation rule of the EBA at that moment, but only when the EBA has amended the validation rule in question.
14. Moreover, the prudential information files provided to the CSSF shall be kept for a
period of at least five years in order to meet any request aiming at the subsequent reconstitution of the provided information.
15. The persons responsible for the credit institutions shall establish internal control
procedures in order to ensure the implementation of these provisions.
16. The CSSF wishes to stress that the mandate the credit institutions shall entrust to
their réviseur d'entreprises (statutory auditor) for the audit of annual accounts shall Deleted: When a credit institution is not able to verify inhouse the accuracy of the European and/or national validation rules and compliance with the plausibility rules laid down by the CSSF, the credit institution shall provide the CSSF with the reporting no later than 10 working days before the transmission date provided for in the regulation10. Thus, in case of errors, the institution has 10 days to make the required correction.
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Deleted: 18/678 include the task of verifying the appropriateness and proper implementation of the provisions regarding the data transmission. These controls by the réviseurs d’entreprises must cover the common European reporting as well as the national reporting such as presented in paragraphs 2, 3 and 5 of this circular. VIII) REPEAL OF REPORTING TABLES AND CIRCULARS RELATING THERETO
17. Following the introduction of the common European reporting, the following
prudential reporting tables are no longer applicable:
Since 1 January 2014
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Annex 1 FINREP/IAS 39 (until 31 December 2017 except for banks not closing the
financial year on 31 December 2017)
NAME OF THE TEMPLATE OR OF THE GROUP OF TEMPLATES Over simplified Simplified extended Full
PART 1 [QUARTERLY FREQUENCY]
Balance Sheet Statement [Statement of Financial Position]
1.1 Balance Sheet Statement: assets
1.2 Balance Sheet Statement: liabilities
1.3 Balance Sheet Statement: equity
2 Statement of profit or loss
3 Statement of comprehensive income
Breakdown of financial assets by instrument and by counterparty sector
4.1 Breakdown of financial assets by instrument and by counterparty sector: financial assets held for trading
4.2 Breakdown of financial assets by instrument and by counterparty sector: financial assets designated at
fair value through profit or loss
4.3 Breakdown of financial assets by instrument and by counterparty sector: available-for-sale financial
assets
4.4 Breakdown of financial assets by instrument and by counterparty sector: loans and receivables and heldto-maturity investments
4.5 Subordinated financial assets
5 Breakdown of loans and advances by product
6 6 Breakdown of loans and advances to non-financial corporations by NACE codes 7 7 Financial assets subject to impairment that are past due or impaired Breakdown of financial liabilities
8.1 Breakdown of financial liabilities by product and by counterparty sector
8.2 Subordinated financial liabilities
Loan commitments, financial guarantees and other commitments
9.1 Off-balance sheet exposures: loan commitments, financial guarantees and other commitments given
9.2 9.2 Loan commitments, financial guarantees and other commitments received
10 Derivatives - Trading
Derivatives - Hedge accounting
11.1 Derivatives - Hedge accounting: Breakdown by type of risk and type of hedge
12 Movements in allowances for credit losses and impairment of equity instruments Collateral and guarantees received
13.1 13.1 Breakdown of loans and advances by collateral and guarantees
13.2 13.2 Collateral obtained by taking possession during the period [held at the reporting date]
13.3 13.3 Collateral obtained by taking possession [tangible assets] accumulated
14 Fair value hierarchy: financial instruments at fair value 15 Derecognition and financial liabilities associated with transferred financial assets Breakdown of selected statement of profit or loss items
16.1 16.1 Interest income and expenses by instrument and counterparty sector
16.2 16.2 Gains or losses on derecognition of financial assets and liabilities not measured at fair value through
profit or loss by instrument
16.3 16.3 Gains or losses on financial assets and liabilities held for trading by instrument
16.4 16.4 Gains or losses on financial assets and liabilities held for trading by risk
16.5 Gains or losses on financial assets and liabilities designated at fair value through profit or loss by
instrument
16.6 Gains or losses from hedge accounting
16.7 16.7 Impairment on financial and non-financial assets
Reconciliation between accounting and CRR scope of consolidation: Balance Sheet
17.1 17.1 Reconciliation between accounting and CRR scope of consolidation: Assets
17.2 17.2 Reconciliation between accounting and CRR scope of consolidation: Off-balance sheet exposures - loan
commitments, financial guarantees and other commitments given
17.3 17.3 Reconciliation between accounting and CRR scope of consolidation: Liabilities
18 Performing and non-performing exposures
19 Forborne exposures
PART 2 [QUARTERLY WITH THRESHOLD: QUARTERLY FREQUENCY OR NOT REPORTING]
Geographical breakdown
20.1 Geographical breakdown of assets by location of the activities
20.2 Geographical breakdown of liabilities by location of the activities
20.3 Geographical breakdown of main statement of profit or loss items by location of the activities
20.4 20.4 Geographical breakdown of assets by residence of the counterparty
20.5 20.5 Geographical breakdown of off-balance sheet exposures by residence of the counterparty
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20.6 20.6 Geographical breakdown of liabilities by residence of the counterparty
20.7 Geographical breakdown by residence of the counterparty of loans and advances to non-financial
corporations by NACE codes
21 Tangible and intangible assets: assets subject to operating lease Asset management, custody and other service functions
22.1 22.1 Fee and commission income and expenses by activity
22.2 22.2 Assets involved in the services provided
PART 3 [SEMI-ANNUAL]
Off-balance sheet activities: interests in unconsolidated structured entities
30.1 Interests in unconsolidated structured entities
30.2 Breakdown of interests in unconsolidated structured entities by nature of the activities
Related parties
31.1 31.1 Related parties: amounts payable to and amounts receivable from
31.2 Related parties: expenses and income generated by transactions with
PART 4 [ANNUAL]
Group structure
40.1 40.1 Group structure: "entity-by-entity"
40.2 Group structure: "instrument-by-instrument"
Fair value
41.1 Fair value hierarchy: financial instruments at amortised cost
41.2 Use of the Fair Value Option
41.3 Hybrid financial instruments not designated at fair value through profit or loss
42 42 Tangible and intangible assets: carrying amount by measurement method 43 43 Provisions Defined benefit plans and employee benefits
44.1 Components of net defined benefit plan assets and liabilities
44.2 Movements in defined benefit plan obligations
44.3 Memo items [related to staff expenses]
Breakdown of selected items of statement of profit or loss
45.1 Gains or losses on financial assets and liabilities designated at fair value through profit or loss by
accounting portfolio
45.2 Gains or losses on derecognition of non-financial assets other than held for sale
45.3 Other operating income and expenses
46 Statement of changes in equity
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Annex 2 FINREP/IFRS 9 (as from 1 January 2018, except for banks not closing the
financial year on 31 December 2017)
NAME OF THE TEMPLATE OR OF THE GROUP OF TEMPLATES Over simplified Simplified extended Simplified11 Full
PART 1 [QUARTERLY FREQUENCY]
Balance Sheet Statement [Statement of Financial Position]
1.1 Balance Sheet Statement: assets
1.2 Balance Sheet Statement: liabilities
1.3 Balance Sheet Statement: equity
2 Statement of profit or loss
3 Statement of comprehensive income
Breakdown of financial assets by instrument and by counterparty sector
4.1 Breakdown of financial assets by instrument and by counterparty sector: financial assets held for
trading
4.2.1 Breakdown of financial assets by instrument and by counterparty sector: non-trading financial
assets mandatorily at fair value through profit or loss
4.2.2 Breakdown of financial assets by instrument and by counterparty sector: financial assets
designated at fair value through profit or loss
4.3.1 Breakdown of financial assets by instrument and by counterparty sector: financial assets at fair
value through other comprehensive income
4.4.1 Breakdown of financial assets by instrument and by counterparty sector: financial assets at
amortised cost
4.5 Subordinated financial assets
5.1 Breakdown of non-trading Loans and advances by product
6.1 Breakdown of loans and advances other than held for trading to non-financial
corporations by NACE codes
7.1 7.1 Financial assets subject to impairment that are past due
Breakdown of financial liabilities
8.1 Breakdown of financial liabilities by product and by counterparty sector
8.2 Subordinated financial liabilities
Loan commitments, financial guarantees and other commitments
9.1.1 Off-balance sheet exposures: loan commitments, financial guarantees and other commitments
given
9.2 Loan commitments, financial guarantees and other commitments received
10 Derivatives – Trading and economic hedges
Derivatives - Hedge accounting
11.1 Derivatives - Hedge accounting: Breakdown by type of risk and type of hedge
11.3 Non-derivative hedging instruments: Breakdowns by accounting portfolio and type of hedge
11.4 Hedged items in fair value hedges
Movements in allowances and provisions for credit losses
12.1 Movements in allowances and provisions for credit losses
12.2 Transfers between impairment stages (gross basis presentation)
Collateral and guarantees received
13.1 Breakdown of collateral and guarantees by loans and advances other than held for trading
13.2 Collateral obtained by taking possession during the period [held at the reporting date]
13.3 Collateral obtained by taking possession [tangible assets] accumulated
14 Fair value hierarchy: financial instruments at fair value 15 Derecognition and financial liabilities associated with transferred financial assets Breakdown of selected statement of profit or loss items
16.1 Interest income and expenses by instrument and counterparty sector
16.2 16.2 Gains or losses on derecognition of financial assets and liabilities not measured at fair value
through profit or loss by instrument
16.3 Gains or losses on financial assets and liabilities held for trading and trading financial assets and
trading financial liabilities by instrument
16.4 16.4 Gains or losses on financial assets and liabilities held for trading and trading financial assets and
trading financial liabilities by risk
16.4.1
Gains and losses on non-trading financial assets mandatorily at fair value through profit or loss by instrument 11 The simplified version corresponds to the simplified version of the ECB Regulation. It is not a version to be transmitted to the CSSF. This column is only included for information purposes.
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16.5 Gains or losses on financial assets and liabilities designated at fair value through profit or loss by
instrument
16.6 Gains or losses from hedge accounting
16.7 16.7 Impairment on financial and non-financial assets
Reconciliation between accounting and CRR scope of consolidation: Balance Sheet
17.1 Reconciliation between accounting and CRR scope of consolidation: Assets
17.2 Reconciliation between accounting and CRR scope of consolidation: Off-balance sheet exposures -
loan commitments, financial guarantees and other commitments given
17.3 Reconciliation between accounting and CRR scope of consolidation: Liabilities
18 Performing and non-performing exposures
19 Forborne exposures
PART 2 [QUARTERLY WITH THRESHOLD: QUARTERLY FREQUENCY OR NOT REPORTING]
Geographical breakdown
20.1 Geographical breakdown of assets by location of the activities
20.2 Geographical breakdown of liabilities by location of the activities
20.3 Geographical breakdown of main statement of profit or loss items by location of the activities
20.4 Geographical breakdown of assets by residence of the counterparty
20.5 Geographical breakdown of off-balance sheet exposures by residence of the counterparty
20.6 Geographical breakdown of liabilities by residence of the counterparty
20.7.1 Geographical breakdown by residence of the counterparty of loans and advances other than held
for trading to non-financial corporations by NACE codes 21 Tangible and intangible assets: assets subject to operating lease Asset management, custody and other service functions
22.1 22.1 Fee and commission income and expenses by activity
22.2 22.2 Assets involved in the services provided
PART 3 [SEMI-ANNUAL]
Off-balance sheet activities: interests in unconsolidated structured entities
30.1 Interests in unconsolidated structured entities
30.2 Breakdown of interests in unconsolidated structured entities by nature of the activities
Related parties
31.1 31.1 Related parties: amounts payable to and amounts receivable from
31.2 Related parties: expenses and income generated by transactions with
PART 4 [ANNUAL]
Group structure
40.1 Group structure: "entity-by-entity"
40.2 Group structure: "instrument-by-instrument"
Fair value
41.1 Fair value hierarchy: financial instruments at amortised cost
41.2 Use of the Fair Value Option
42 42 Tangible and intangible assets: carrying amount by measurement method 43 43 Provisions Defined benefit plans and employee benefits
44.1 Components of net defined benefit plan assets and liabilities
44.2 Movements in defined benefit plan obligations
44.3 Memo items [related to staff expenses]
Breakdown of selected items of statement of profit or loss
45.1 Gains or losses on financial assets and liabilities designated at fair value through profit or loss by
accounting portfolio
45.2 Gains or losses on derecognition of non-financial assets other than held for sale and investments
in subsidiaries, joint ventures and associates
45.3 Other operating income and expenses
46 Statement of changes in equity
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Amended 3 times · last 2022-12-06
Source: Commission de Surveillance du Secteur Financier — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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