Instruction (Historical) No. 8/2019

Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 .................................................................................................................................................................................................. Topics Supervision :: Information Elements Mod. 99999911/T – 01/14 Index Text of the Instruction Annex to the Instruction Text of the Instruction Subject: Reporting of information for supervisory purposes

The Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 establishes implementing technical standards regarding reporting for supervisory purposes by credit institutions and investment firms.

Bank of Portugal Instruction No. 5/2017 of 3 April regulates the reporting of financial information for supervisory purposes of other entities that, although subject to the supervision of the Bank of Portugal, are not covered by the aforementioned Regulation.

Among these entities are payment institutions and e-money institutions, whose new legal regime was approved by Decree-Law No. 91/2018 of 12 November, which transposed Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 and repealed Decree-Law No. 317/2009 of 30 October. Similar to what was established in point (c) of paragraph 1 of Article 6 of Decree-Law No. 317/2009 of 30 October, point (c) of paragraph 1 of Article 7 and paragraph 1 of Article 53 of Decree-Law No. 91/2018 of 12 November also provide for the possibility of the Bank of Portugal issuing regulatory standards that prove necessary for the application of the provisions contained in the aforementioned legal regime, namely with regard to the reporting of financial information for supervisory purposes.

In this context, this Instruction reorganizes and renames certain models contained in Annexes I to V of Bank of Portugal Instruction No. 5/2017 of 3 April, also establishing that reports must henceforth be sent to the Bank of Portugal through the BPnet system and in XBRL format, in line with European best practices.

However, and considering both the different typologies and sizes of institutions subject to this Instruction, and the adaptation effort anticipated as necessary for them to adapt to the models now established, it is provided that certain reports may be carried out in formats alternative to XBRL and of lower technical complexity, provided that certain specifications fixed by the Bank of Portugal are observed. In the same way, and also as a consequence of the principle of proportionality, the changes introduced herein are not applicable to investment fund management companies and securitization fund management companies, which may therefore continue to use in their reports the models previously approved in XLS (Excel) format.

Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Thus, the Bank of Portugal determines, in the exercise of the competence attributed to it by Article 17 of its Organic Law, approved by Law No. 5/98 of 31 January, in its current wording, and under the provisions of Article 120 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92 of 31 December (RGICSF), in its current wording, in point (c) of paragraph 1 of Article 7 and in paragraph 1 of Article 53 of Decree-Law No. 91/2018 of 12 November, in Article 6 of Bank of Portugal Notice No. 5/2015 of 7 December, in Article 10 of Bank of Portugal Notice No. 4/2016 of 12 May, and in Article 11 of Bank of Portugal Notice No. 11/2014 of 22 December, the following:

Article 1. Object and scope

1. This Instruction amends Bank of Portugal Instruction No. 5/2017, which regulates the reporting of financial information for supervisory purposes of some of the entities subject to the supervision of the Bank of Portugal.
2. This Instruction applies to all entities mentioned in paragraph 1 of Article 1 of Bank of Portugal Instruction No. 5/2017, with the exception of those referred to in the following paragraph.
3. The provisions of Bank of Portugal Instruction No. 5/2017 in its current wording continue to apply to investment fund management companies and securitization fund management companies.

Article 2. Amendment of Bank of Portugal Instruction No. 5/2017 Article 8 of Bank of Portugal Instruction No. 5/2017 shall have the following wording:

«Article 8. Filling in, communication and submission format

1. Annexes I to V define the structure and characteristics of the information to be communicated to the Bank of Portugal, and must be filled in: a) In accordance with the instructions contained in the respective annex, and; b) In compliance with the technical specifications available on the Bank of Portugal website at Obligations of supervised institutions to report, and in the BPnet system.
2. The communication referred to in the preceding paragraph must be carried out through the BPnet system and in one of the XBRL, XML or CSV formats.»

Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Article 3. Amendment to Annexes I, II and V of Bank of Portugal Instruction No. 5/2017 Annexes I, II and V of Bank of Portugal Instruction No. 5/2017 are amended according to the wording contained in the annex to this Instruction, which forms an integral part thereof.

Article 4. Entry into force This Instruction enters into force on the day following its publication.

Annex to Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Annex to the Instruction Annex (as referred to in Article 3) Annex I – Financial information 1 – [...] 2 – [...] 3 – The information prepared by exchange offices must additionally include the elements provided for in model SFPREP 01.00: SFPREP 01.00: Financial information of exchange offices Volume of purchases and sales of foreign currency (equivalent in euros) Purchases Sales Sector Financial Clients Sector Financial Clients 010 020 030 040 050 060 USD 010 GDP 020 CHF 030 JPY 040 Others 050 By "financial sector" should be understood credit institutions and financial companies. 4 – [...]

Annex to Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Annex II – Information on own funds and own funds requirements 1 – [...] 2 – [...] 3 – The information prepared by payment institutions and e-money institutions takes into account the provisions of the annex to Decree-Law No. 91/2018 of 12 November and must additionally include the elements provided for in models SFPREP 02.01, SFPREP 02.02 and SFPREP 02.03: SFPREP 02.01: Own funds requirements of payment institutions and e-money institutions Fixed overheads method Amount 010 Fixed overheads of the previous year 010 Risk exposure factor 020 Minimum own funds requirements 030 SFPREP 02.02: Own funds requirements of payment institutions and e-money institutions Payment volume method Breakdown amount Amount 010 020 Payment volume 010 up to 5 million euros 020 above 5 and up to 10 million euros 030 above 10 and up to 100 million euros 040 above 100 and up to 250 million euros 050 above 250 million euros 060 Weighted payment volume 070 Scaling factor k 080 Own funds requirements after scaling factor k 090 Risk exposure factor 100 Own funds requirements 110

Annex to Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 SFPREP 02.03: Own funds requirements of payment institutions and e-money institutions Relevant indicator method Breakdown amount Amount 010 020 Relevant indicator at the end of the previous financial year 010 Interest income 020 Interest expenses 030 Fees received 040 Other operating income 050 Fees paid for services provided by third parties (outsourcing) 060 Average of the relevant indicator for the last three financial years 070 Relevant indicator for determining own funds requirements 080 up to 2.5 million euros 090 above 2.5 and up to 5 million euros 100 above 5 and up to 25 million euros 110 above 25 and up to 50 million euros 120 above 50 million euros 130 Weighted relevant indicator 140 Scaling factor k 150 Own funds requirements after scaling factor k 160 Risk exposure factor 170 Own funds requirements 180

Annex to Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 4 – The information prepared by e-money institutions must additionally include the elements provided for in model SFPREP 03.00: SFPREP 03.00: Own funds requirements of e-money institutions E-money issuance activity Amount 010 Average value of e-money in circulation 010 Risk exposure factor 020 Minimum own funds requirements 030 SFPREP 03.00,r010,c010: Average value of e-money in circulation according to point (fff) of Article 2 of Decree-Law No. 91/2018 of 12 November. 5 – [...] 6 – [...] 7 – [...]

Annex to Instruction No. 8/2019 BO No. 5/2019 2nd Supplement • 2019/06/03 Topics Supervision :: Information Elements .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Annex V – Liquidity information The information prepared must include the elements provided for in model SFPREP 04.00: SFPREP 04.00: Liquidity requirements of attached savings banks Amount 010 Resources obtained from clients 010 Liquidity requirements 020 Eligible and unencumbered assets held 030 Notes and coins 040 Funds and placements in other credit institutions with a residual maturity of less than 30 days or mobilizable without penalty within a maximum period of 30 days 050 Debt securities issued by EU Member States in the euro area 060 Excess/shortfall of liquidity requirements 070