GN JIBs 5.4 Settlement Risk - Capital: Validation and verification (Revised February 2019)

Summary

This is a technical guidance note issued by the JFSC explaining the automated validation and verification checks applied to the '5.4 Settlement Risk - Capital' sheet within the JIBs (Jersey international banks) prudential reporting template. It sets out how Excel-based data validation works, what checks the JFSC runs on submission, and how calculated fields (such as capital risk amounts) are derived from input data.

• Input restrictions: Monetary and trade-count cells only accept whole numbers between -1,000,000,000 and +1,000,000,000 (representing up to +/- GBP 1 trillion given the GBP 1,000 unit), unless otherwise noted.
• Excel limitations: Excel's built-in validation only checks direct manual input and is not a failsafe, so JIBs must check their own data independently of the spreadsheet.
• Submission checks: Submitting the template to the JFSC triggers validation checks; if all checks pass, the JFSC confirms acceptance and communicates any warnings to the JIB.
• Error identification: Each validation test has a unique 'Check' number that appears in any failure message so the JIB can match it to the relevant guidance.
• Calculation checks: Capital Risk figures for each item (A.1 to C.2) are automatically calculated using fixed percentages (8%, 50%, 75%) or direct pass-through of the at-risk amount, and totals (D.0 row) are summed across the sheet.

The note is purely explanatory: it does not itself impose new capital or reporting requirements but clarifies how existing prudential return data will be checked, so JIBs can pre-empt validation failures before submitting the JIBs return.

Key obligations

• JIBs must ensure that data entered into the '5.4 Settlement Risk - Capital' sheet consists of whole numbers within the range -1,000,000,000 to +1,000,000,000 before submission.
• JIBs should independently check their own data rather than relying solely on Excel's built-in validation, as it only checks direct manual input.
• JIBs must review and address any warnings communicated by the JFSC following submission of the template.

Applies to

JIBs (Jersey international banks subject to JFSC prudential reporting requirements)