EBA_v10862 (Type – Warning validation): Assets under custody ({G01.00,r0060,c0010}) should be equal to the value in FINREP ({F22.02,r0060,c0010}).

Question · verbatim

a) The “Custody assets” referred in FINREP 22.2 is described as “service of safekeeping & administration of financial instruments for the account of clients provided by the institution and services related to custodianship such as cash and collateral management”. How the word “Service” in above definition needs to be interpreted? Does it mean to populate balance only in those cases where some fee is being charged for services provided or record all custody assets irrespective of any fee is charged /revenue being generated?

21.2. Assets involved in the services provided (22.2)

285. Business related to asset management, custody functions, and other

services provided by the institution shall be reported using the following

definitions:

(a) ‘Asset management’ shall refer to assets belonging directly to the

customers, for which the institution is providing management. ‘Asset

management’ shall be reported by type of customer: collective investment

undertakings, pension funds, customer portfolios managed on a

discretionary basis, and other investment vehicles;

(b) ‘Custody assets’ shall refer to the services of safekeeping and

administration of financial instruments for the account of clients provided

by the institution and services related to custodianship such as cash and

collateral management. ‘Custody assets’ shall be reported by type of

customers for which the institution is holding the assets distinguishing

between collective investment undertakings and others. The item ‘of which:

entrusted to other entities’ shall refer to the amount of assets included in

custody assets for which the institution has given the effective custody to

other entities;

b)    As the validation rule “V10862" matches 2 data points (AUM and Custody assets) which in GSIB is reported in one cell under table G01.00 Row 0060 “Assets under Custody” whereas in FINREP table 22.2 there are two different cells representing it “Assets Management(by type of customer) Row 0010” & “Custody assets (by type of customer) Row 0060” , thus making the validation incorrect? Hence, please clarify as to how to interpret the validation and whether it will be updated to include Asset Management and Custody Assets in FINREP 22.2 (i.e. validation will be Asset Management + Custody Assets in FINREP 22.2 to "Assets Under Custody" in GSIB) such that the number then reported will tie back with GSIB "Assets under custody”.