Guidance Note: Validation and verification of the '3.6 OTC - Precious Metals' Sheet (Revised February 2019)

Summary

This is a technical guidance note from the JFSC explaining the validation and verification checks applied to the '3.6 OTC - Precious Metals' sheet of the JIB (Jersey Income and Balance sheet, or similar prudential return) template, used under the standardised approach to credit risk. It documents the input restrictions and calculation formulas built into the Excel template so that Jersey International Bank licensees (JIBs) can understand and pre-check their submissions before filing.

• Input validation: Monetary amount cells (Amount, Positive Mark-to-Market, Amount After CRM) across rows N.4.1 to N.4.15 must be whole numbers between -1,000,000,000 and +1,000,000,000, reflecting values in units of £1,000.
• Locked/blank cells: Certain Risk Weighted Amount cells (e.g. rows N.4.1, N.4.6, N.4.11) must be left blank, as they are not applicable to those exposure categories.
• Calculated fields: Total rows and columns (Amount, Positive Mark-to-Market, Add-on Amount, Credit Equivalent Amount, Amount After CRM, Risk Weighted Amount) are auto-calculated via SUM and ROUND formulas, including add-on amounts at 7% or 8% of Amount and risk weightings of 20%, 50%, 100% or 150% applied to Amount After CRM depending on the row.
• Submission process: On submission of the template to the JFSC, these checks run automatically; if passed, the JIB is notified of acceptance together with any warnings, while Excel-level validation alone is not considered a failsafe.

The document is purely technical/explanatory reference material for completing a specific prudential reporting template correctly; it does not itself create new substantive reporting obligations beyond the existing requirement to submit the JIB return with accurate, correctly formatted data.

Key obligations

• JIBs should check their own data for accuracy before submission, as Excel validation alone is not a failsafe.
• Data entered in Amount, Positive Mark-to-Market and Amount After CRM cells for each row (N.4.1 to N.4.15) must be whole numbers within the range -1,000,000,000 to +1,000,000,000.
• Risk Weighted Amount cells designated as 'Must be blank' (rows N.4.1, N.4.6 and N.4.11) must not contain data.

Applies to

Jersey International Banks (JIBs)