Accountancy Europe has published an information paper that aims to raise awareness of the auditor’s involvement regarding the Single Resolution Board’s (SRB) responsibility for the calculation of ex-ante contributions to the Single Resolution Fund (SRF).
The SRF has been established to finance the restructuring of failing financial institutions.
The National Resolution Authorities (NRAs) are responsible for the collection of the data and raising ex-ante contributions from the concerned financial institutions. The NRAs are also the first point of contact for financial institutions in case of need of any clarification. The deadline for financial institutions to submit data to the SRB is 31 January.
In order to get some additional comfort on some of the data received from the financial institutions, the SRB asks financial institutions to provide either a management sign-off or an Agreed upon Procedures (AuPs) Factual Findings report (see Appendix for the templates). The NRAs have a certain level of discretion; therefore, the templates might differ per jurisdiction.
The SRB uses a reporting form to gather the information required for the calculation of the contribution. The form is comprised of six tabs as follows:
1. General information: identifies the financial institution and identifies possible specificities for the calculation of the individual contribution.
2. Basic annual contribution: gathers information to calculate the basic annual contribution and ascertains whether the financial institution qualifies for a simplified calculation method.
3. Deductions: Permits the deduction of qualifying items from the basic annual contribution, if applicable.
4. Risk adjustment: gathers data in relation to the risk profile of the financial institution so as to apply the risk adjustment to the basic annual contribution, if applicable.
5. Definitions and guidance: provides definitions and guidance for each field of the reporting form.
6. Validation rules: provides validation rules and consistency checks.
Full information paper
© Accountancy Europe
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