Today, FinDatex published the release of TPT V7 for Solvency II reporting. This new version brings several key enhancements that further align it with recent industry and upcoming regulatory changes, including the new NACE code classification updates.
Key Enhancements in TPT V7
- Enhanced SCR Calculations:
- TPT V7 introduces support for bonds with optional redemption dates, such as step-up callable bonds. This allows for a more accurate calculation of the Solvency Capital Requirement (SCR) for these specific bond types.
- The new version also offers improved handling of bonds or loans with payment-in-kind (PIK) features, allowing for more flexible reporting and better reflection of these complex financial instruments.
- In addition, the update facilitates the SCR calculation and QRT production for infrastructure investments, ensuring that these long-term investments are accurately represented in your Solvency II reports.
- Dual NACE Codification:
- One of the most impactful changes in TPT V7 is the incorporation of both NACE V2.0 (required by EIOPA until new Solvency II Implementing Technical Standards are published) and NACE V2.1 (mandatory from January 2025 under EU requirements). This dual codification ensures that financial institutions can comply with both current and upcoming regulatory requirements, ensuring a smoother transition as the classification changes take effect.
- The new NACE V2.1 code classification reflects the evolving economy with a focus on digital technology and sustainability. New or modified codes can impact (SCR) calculations and capital requirements for insurers.
- Data Description Refinements:
- TPT V7 also includes several miscellaneous clarifications aimed at enhancing data accuracy and usability. These refinements will improve the quality of your data inputs, helping ensure compliance and reducing the risk of errors in reporting.
Important Implementation Timeline
- The TPT V7 template will be available for use starting April 2025, with an effective date of 31 March 2025.
- During Q2 2025, both V6 and V7 templates can be used in parallel, but FinDatex recommends full adoption of V7 by July 2025 for a smoother transition and to stay ahead of regulatory changes.
PIK Guidelines Published
Along with the TPT V7 release, FinDatex has also published updated guidelines for handling Payment-in-Kind (PIK) instruments. These guidelines are designed to help institutions manage the complexities of PIK features in their reporting, ensuring consistency and clarity when dealing with this unique financial instrument.
The release of TPT V7 is a significant update that will help organizations enhance their Solvency II reporting, with improved SCR calculations, support for infrastructure investments, and a smoother transition to the new NACE classification system. These changes are crucial for staying compliant and accurate as the industry adapts to new regulations.
To learn more about these updates and how we can support your transition, contact us today. We can help you strengthen your reporting process and stay ahead of regulatory changes.
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Source: FinDatEx
