Circular PPB-2006-12-CPB - New Solvency Reporting Scheme

12-14 Congress Street | 1000 Brussels
+32 2 220 52 43 | f +32 2 220 54 96 | www.cbfa.be Prudential Policy Brussels, October 5, 2006

CIRCULAR PPB-2006-12-CPB to financial companies, credit institutions, stockbroking companies, wealth management companies, order execution companies in financial instruments, liquidation bodies and entities assimilated to liquidation bodies.

SUBJECT: new solvency reporting scheme

Madam, Sir,

The CBFA has published on its website (www.cbfa.be) the draft decree relating to the periodic information to be communicated in matters of solvency in execution of the so-called Basel II Agreement. The draft decree incorporates the reporting requirements provided for under Pillar 1 and is based on the format of the "COmmon REPorting (COREP)" developed by the "Committee of European Banking Supervisors (CEBS)". For credit institutions, these new periodic statements to be communicated are inserted into the overall "Scheme A" reporting.

Aware of the time necessary for institutions to prepare for the introduction of the new reporting statements, the CBFA has decided to make the annex to the draft decree, primarily drafted in Dutch, available to them as soon as possible. The CBFA will make the official version of the decree available in both national languages as soon as possible.

The provisions and tables of the CBFA decree of April 28, 1992 (Scheme A applicable to credit institutions), last modified by the CBFA decree of April 25, 2006, and the provisions and tables mentioned in Article 3, § 1, of the CBFA decree of June 24, 1997 (for stockbroking companies), last modified by the CBFA decree of March 21, 2006, which concern the existing solvency tables, are no longer applicable as soon as your institution applies Basel II, and no later than January 1, 2008. For other types of institutions (other than credit institutions and stockbroking companies), the new capital adequacy regulation in preparation and the draft decree relating to the information reporting scheme constitute the basis for the introduction of a solvency reporting scheme.

Institutions that, during 2007, will simultaneously apply the Commission decree of December 5, 1995 concerning the capital adequacy regulation (Basel I) and the new capital adequacy regulation (Basel II), are invited to contact their case manager at the CBFA to determine the precise use of existing and new tables based on the institution's rollout plan for this transitional year.

12-14 Congress Street | 1000 Brussels
+32 2 220 52 43 | f +32 2 220 54 96 | www.cbfa.be PPB-2006-12-CPB - 2

As previously agreed with the sector, the new reporting tables will be transmitted to the NBB in XBRL format. The final taxonomy, necessary for the use of XBRL, will be sent to you as soon as possible.

We are transmitting a copy of this circular to the commissioner(s), approved auditor(s) of your institution.

We ask you to accept, Madam, Sir, the expression of our distinguished sentiments.

The Vice-President,
J-P SERVAIS.

Annexes: - Draft Decree

• Solvency Reporting Scheme