Commission Implementing Regulation (EU) 2018/1624 of 23 October 2018 laying down implementing technical standards with regard to procedures and standard forms and templates for the provision of information for the purposes of resolution plans for credit institutions and investment firms pursuant to Directive 2014/59/EU of the European Parliament and of the Council, and repealing Commission Implementing Regulation (EU) 2016/1066 (Text with EEA relevance) (c. 1624)

ANNEX II U.K. Instructions

II. Template-related instructions U.K.

II.2 Z 02.00 — Liability Structure (LIAB) U.K.

II.2.1 General remarks U.K.

15. This template requires granular information on the liability structure of the entity or group. Liabilities are broken down by liabilities excluded from bail-in and liabilities not excluded from bail-in. Further breakdowns by liability classes, counterparty classes and maturity are provided. U.K.

16. Where a maturity breakdown is set out in this template, the residual maturity shall be the time until the contractual maturity or, when there is an explicit or implicit, contractual or statutory, right for the holder of an instrument to early reimbursement, until the first date where such a right arises. Interim payments of principal shall be split into the corresponding maturity buckets. Where applicable, the maturity shall be considered separately for both the principal amount and accrued interest. U.K.

17. By default, amounts reported in this template shall be outstanding amounts. The outstanding amount of a claim or instrument is the sum of the principal amount of, and accrued interest on, the claim or instrument. The outstanding amount due is equal to the value of the claim which the creditor could file under insolvency proceedings. U.K.

18. By way of derogation from the previous paragraph, balance sheet liabilities arising from derivatives (reported in row 0330) shall be reported in the form of carrying amounts. The carrying amount shall be the carrying amount as defined for FINREP purposes, either under IFRS or nGAAP, as applicable. Otherwise, figures under nGAAP reporting schemes shall be used. U.K.

II.2.2 Instructions concerning specific positions U.K.

a Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) (OJ L 124, 20.5.2003, p. 36).
b Regulation (EU) No 1071/2013 of the European Central Bank concerning the balance sheet of the monetary financial institutions sector (OJ L 297, 7.11.2013, p. 1).
c Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).
Columns	Instructions
0010	Households FINREP, Annex V. Part 1, paragraph 42, point (f) Individuals or groups of individuals as consumers, and producers of goods and non-financial services exclusively for their own final consumption, and as producers of market goods and non-financial and financial services provided that their activities are not those of quasi-corporations. Non-profit institutions which serve households and which are principally engaged in the production of non-market goods and services intended for particular groups of households shall be included.
0020	Non-financial corporations (SMEs) Annex, Title I, Article 2.1 of Commission Recommendation of 6 May 2003a; FINREP, Annex V Part 1, paragraph 5(i). Enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
0030	Non-financial corporations (non-SMEs) FINREP, Annex V. Part 1, paragraph 42, point (e) Corporations and quasi-corporations not engaged in financial intermediation but principally in the production of market goods and non-financial services according to Regulation (EU) No 1071/2013 of the European Central Bankb. Excludes ‘SMEs’ reported in column 0020.
0040	Credit institutions FINREP, Annex V. Part 1, paragraph 42, point (c) Credit institutions within the meaning of Article 4(1) point (1) of Regulation (EU) No 575/2013 and multilateral development banks.
0050	Other financial corporations FINREP, Annex V. Part 1, paragraph 42, point (d) All financial corporations and quasi-corporations other than credit institutions such as investment firms, investment funds, insurance companies, pension funds, collective investment undertakings, and clearing houses as well as remaining financial intermediaries, financial auxiliaries and captive financial institutions and money lenders.
0060	General governments & Central banks FINREP, Annex V. Part 1, paragraph 42, points (a) and (b) Central banks and central governments, state or regional governments, and local governments, including administrative bodies and non-commercial undertakings, but excluding public companies and private companies held by these administrations that have a commercial activity (which shall be reported under ‘credit institutions’, ‘other financial corporations’ or ‘non-financial corporations’ depending on their activity); social security funds; and international organisations, such as the European Union, the International Monetary Fund and the Bank for International Settlements.
0070	Non-identified, listed on a trading venue Where the identity of the holder of a security is not known due to the instruments being listed on a trading venue, as defined under Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, the amounts shall be attributed to this column.
0080	Non-identified, not listed on a trading venue Where the identity of the holder of a security is not known, without the instruments being listed on a trading venue, the amounts shall be attributed to this column and no further counterparty breakdown is required. Entities shall dedicate their best efforts to identify counterparties and limit the use of this column to a minimum.
0090	Total
0100	Of which: intragroup Liabilities towards entities included in the consolidated financial statements of the ultimate parent entity (as opposed to the regulatory scope of consolidation).
0110	Of which: liabilities governed by the law of a third country, excluding intragroup These shall include the gross amounts of liabilities governed by the law of a third-country and/or issued by group entities established in third-countries. Intragroup liabilities shall be excluded. Where the resolution authority has confirmed that it is satisfied, pursuant to Article 45(5) of Directive 2014/59/EU of the European Parliament and of the Councilc, that any decision of a resolution authority to write down or convert a liability would be effective under the law of that third country, that liability shall not be reported under this heading.

a Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).
b Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).
c Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).
d Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).
e Commission Delegated Regulation (EU) 2016/1401 of 23 May 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms with regard to regulatory technical standards for methodologies and principles on the valuation of liabilities arising from derivatives (OJ L 228, 23.8.2016, p. 7).
Rows	Instructions
0100	Liabilities excluded from bail-in Article 44(2) of the Directive 2014/59/EU states that ‘Resolution authorities shall not exercise the write down or conversion powers in relation to the following liabilities whether they are governed by the law of a Member State or of a third country’.
0110	Covered deposits The amount of covered deposits as defined in point (5) of Article 2(1) of Directive 2014/49/EU of the European Parliament and of the Councila, with the exclusion of temporary high balances as defined in Article 6(2) of that Directive.
0120	Secured liabilities – collateralized part Article 44(2) point b of Directive 2014/59/EU Secured liabilities including repurchase agreements (repos), covered bonds and liabilities in the form of financial instruments which form an integral part of the cover pool and which according to national law are secured in a way similar to covered bonds. Neither the requirement to ensure that all secured assets relating to a covered bond cover pool remain unaffected, segregated and with enough funding, nor the exclusion of Article 44(2) point b of Directive 2014/59/EU shall prevent resolution authorities, where appropriate, from exercising those powers in relation to any part of a secured liability or a liability for which collateral has been pledged that exceeds the value of the assets, pledge, lien or collateral against which it is secured. Such an uncovered amount of these secured liabilities shall not be reported in this row, but reported in row 0340, subject to additional breakdown. Central Bank liabilities which are covered by a collateral pool (for example main refinancing operations, long term refinancing operation, target longer-term refinancing operations, etc.) shall be regarded as secured liabilities. A specific type of liabilities are collateral positions (e.g. cash collateral) received and recorded on the balance sheet. Where such collateral positions are legally bound with an asset position, these shall be treated as secured liabilities for the purpose of this report.
0130	Client liabilities, if protected in insolvency Article 44(2) point c of Directive 2014/59/EU Any liability that arises by virtue of the holding by the institution or entity referred to in point (b), (c) or (d) of Article 1(1) of the Directive 2014/59/EU of client assets or client money including client assets or client money held on behalf of UCITS as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Councilb, or of AIFs as defined in point (a) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Councilc, provided that such a client is protected under the applicable insolvency law.
0140	Fiduciary liabilities, if protected in insolvency Article 44(2) point d of Directive 2014/59/EU Any liability that arises by virtue of a fiduciary relationship between the institution or entity referred to in point (b), (c) or (d) of Article 1(1) of Directive 2014/59/EU (as fiduciary) and another person (as beneficiary) provided that such a beneficiary is protected under the applicable insolvency or civil law.
0150	Credit institution liabilities < 7 days Article 44(2) point e of Directive 2014/59/EU Liabilities to credit institutions, excluding entities that are part of the same accounting group, with an original maturity of less than seven days.
0160	System (operator) liabilities < 7 days Article 44(2) point f of Directive 2014/59/EU Liabilities with a remaining maturity of less than seven days, owed to systems or operators of systems designated according to Directive 98/26/EC of the European Parliament and of the Councild or their participants and arising from the participation in such a system.
0170	Employee liabilities Article 44(2) point g (i) of Directive 2014/59/EU Liabilities to an employee, in relation to accrued salary, pension benefits or other fixed remuneration, except for the variable component of remuneration that is not regulated by a collective bargaining agreement. This shall however not apply to the variable component of the remuneration of material risk takers as identified in Article 92(2) of Directive 2013/36/EU.
0180	Liabilities critical to operational daily functioning Article 44(2) point g (ii) of Directive 2014/59/EU Liabilities to a commercial or trade creditor arising from the provision to the institution or entity referred to in point (b), (c) or (d) of Article 1(1) of Directive 2014/59/EU of goods or services that are critical to the daily functioning of its operations, including IT services, utilities and the rental, servicing and upkeep of premises.
0190	Tax and social security authorities liabilities, if preferred Article 44(2) point g (iii) of Directive 2014/59/EU Liabilities to tax and social security authorities provided that those liabilities are preferred under the applicable law.
0200	DGS liabilities Article 44(2) point g (iv) of Directive 2014/59/EU Liabilities to deposit guarantee schemes arising from contributions due in accordance with Directive 2014/49/EU.
0300	Liabilities not excluded from bail-in This is the sum of rows 0310, 0320, 0334, 0340, 0350, 0360, 0365, 0370, 0380, 0390 and 0400.
0310	Deposits, not covered but preferential Article 108 of Directive 2014/59/EU Deposits as defined in Article 2(1) point 3 of Directive 2014/49/EU that do not qualify for exclusion from bail-in (Article 44(2) point (a) of Directive 2014/59/EU), yet for which a preferential treatment is foreseen in line with article 108 of Directive 2014/59/EU.
0320	Deposits, not covered and not preferential Deposits as defined in Article 2(1) point 3 of Directive 2014/49/EU that do not qualify for exclusion from bail-in or preferential treatment in application of Articles 44(2) point a or 108 of Directive 2014/59/EU.
0330	Balance sheet liabilities arising from derivatives Accounting value of liabilities arising from derivatives, for the total amount corresponding to FINREP: {F 01.02;020;010) + {F 01.02;150;010}.
0331	Sum of net liability positions taking into account contractual netting sets, after mark-to-market adjustments, prior to collateral offset By default the sum of all net market values of derivative liabilities per contractual netting set. Only where the net market value of a netting set is a liability, the netting set shall be reported. To this end, derivatives which are not subject to netting arrangements shall be treated as a single contract, i.e. as if it were a netting set with only one derivative.
0332	Sum of net liability positions taking into account contractual netting sets, after mark-to-market adjustments, post collateral offset The valuation in row 0331 is subject to an adjustment for collateral posted to secure this exposure, which results in the sum of these net market values after offsetting collateral at its market value.
0333	Sum of net liability positions taking into account contractual netting sets, after mark-to-market adjustments, post collateral offset, incorporating estimated close-out amounts In line with Commission Delegated Regulation (EC) No 2016/1401e on the valuation of liabilities arising from derivatives, an additional close-out amount covering the amount of losses or costs incurred by derivative counterparties, or gains realised by them, in replacing or obtaining the economic equivalent on material terms of the contracts and the option rights of the parties in respect of the terminated contracts. The estimations required to determine a close-out amount in line with the abovementioned Regulation can prove quite difficult on an individual basis. Therefore, proxy values, which may be based on available data such as the prudential requirements for market risk, can be used instead. If it proves impossible to calculate the close-out amount for the derivative liabilities, the amount reported shall be equal to the amount reported in row 0332.
0334	Sum of net liability positions taking into account prudential netting rules The net liability positions for derivatives taking into account the prudential netting rules of Article 429 of Regulation (EU) No 575/2013 (related to the calculation of the leverage ratio total exposure measure) shall be reported.
0340	Uncollateralised secured liabilities The amount of secured liabilities or liabilities for which collateral has been pledged that exceeds the value of the assets, pledge, lien or collateral against which it is secured. This shall capture the ‘undercollateralized’ part of any collateralized liability, for example the undercollateralised part of covered bonds or repurchase operations.
0350	Structured notes Structured notes are defined for this purpose as debt obligations that contain an embedded derivative component, with returns linked to an underlying security or index (public or bespoke, such as equities or bonds, fixed income rates or credit, FX, commodities etc.). Structured notes do not include debt instruments that include call or put options only, i.e. the value of the instrument does not depend on any embedded derivative component.
0360	Senior unsecured liabilities This includes all senior, unsecured instruments that are not included in the structured notes category.
0365	Senior non-preferred liabilities Amount of any of the following liabilities: Unsecured claims resulting from debt instruments that meet the conditions laid down in points (a), (b) and (c) of paragraph 2 and of paragraph 3 of Article 108 of Directive 2014/59/EU; Unsecured claims resulting from debt instruments referred to in point (b) of the first subparagraph of Article 108(5) of Directive 2014/59/EU; or Debt instruments with the lowest priority ranking among the ordinary unsecured claims resulting from debt instruments referred to in Article 108(7) of Directive 2014/59/EU, for which a Member State has provided, in accordance with that paragraph, that they have the same ranking as that of claims that meet the conditions of points (a), (b) and (c) of paragraph 2 and of paragraph 3 of Article 108 of Directive 2014/59/EU.
0370	Subordinated liabilities Liabilities which will only be repaid under national insolvency law after all classes of ordinary creditors and senior non-preferred creditors have been repaid in full. This includes both contractually and statutorily subordinated liabilities. In the case of holding companies, unsubordinated debt securities may also be reported in this category (i.e. structural subordination). Only subordinated instruments that are not recognized as own funds shall be included in this category. This row shall also include that part of subordinated liabilities that qualifies in principle as own funds, but is not included in own funds due to phase-out provisions such as Article 64 of Regulation (EU) No 575/2013 (remaining maturity) or Part 10 of the Regulation (EU) No 575/2013 (grandfathering impact).
0380	Other MREL eligible liabilities Any instrument that is eligible to MREL but is not captured in rows 0320 and 0340 to 0370.
0390	Non-financial liabilities This row captures non-financial liabilities that do not relate to debt instruments of which the holders can be bailed in due to practical reasons, such as provisions related to litigations to which the entity is subject.
0400	Residual liabilities Any liability not reported in rows 0100 to 0390.
0500	Own funds Articles 4(1)(118) and 72 of Regulation (EU) No 575/2013 Same definition as COREP (OF): {C 01.00;010;010}
0510	Common Equity Tier 1 Capital Article 50 of Regulation (EU) No 575/2013 Same definition as COREP (OF): {C 01.00;020;010}
0511	Of which: capital instruments/share capital Legal instruments that constitute (part of) CET1 capital in the form of capital instruments/share capital
0512	Of which: instruments ranking pari passu with ordinary shares Legal instruments that constitute (part of) CET1 own funds in the form of instruments other than capital instruments/share capital, but ranking pari passu with this category
0520	Additional Tier 1 capital Article 61 of Regulation (EU) No 575/2013 Same definition as COREP (OF): {C 01.00;530;010}
0521	Of which: (part of) subordinated liabilities recognised as own funds Legal instruments that constitute (part of) Additional Tier 1.
0530	Tier 2 Capital Article 71 of Regulation (EU) No 575/2013 Same definition as COREP (OF): {C 01.00;750;010}
0531	Of which: (part of) subordinated liabilities recognised as own funds This breakdown identifies the legal instruments that constitute (part of) Tier 2 own funds.
0600	Total liabilities and own funds including derivative liabilities Sum of all the liabilities reported in this template and the amount of regulatory own funds. To this end, all the amounts from the above lines shall be added. With respect to derivatives, the value to be used shall be row 0334 ‘Sum of net liability positions taking into account prudential netting rules’.