Escali Blog

Fund look-through – Tripartite format

Apr 15, 2021 10:41:46 AM / by Andrew Sweetmore

Stress testing and reporting fund content are two of the main challenges with Solvency II and EIOPA/ECB reporting. Many fund managers use their own format when supplying fund content information. Data quality varies, which makes the process even more challenging. The standard format Tripartite (TPT) can help address these issues.

What is the TPT format?

TPT is a European standard Excel format which fund managers can use to distribute fund content to their customers. The format is tailored for Solvency II reporting, but also includes all the necessary information for EIOPA/ECB reporting for pension schemes. The TPT format consists of an Excel file containing 141 columns. Each column has a reference number, and the template is maintained by FinDatEx which is a joint structure established by representatives of the European financial services sector industry. The latest version of the template together with field descriptions can be downloaded here.

Benefits

The benefits of the TPT format are threefold:

  1. The template includes all the necessary information for complete Solvency II stress testing for the SCR calculation as well as QRT reporting. This is rarely the case for fund managers’ own format, especially when it comes to currency hedging instruments and other derivatives. Better data leads to better Siolvecy II/EIOPA reporting.
  2. A standard format makes it easier to automate data gathering and reporting. Receiving raw data in the same format for all funds and every reporting period makes it easier and more cost-efficient to develop reusable solutions for processing the data.
  3. The TPT format assists fund managers who want to include solvency capital requirements for their fund content.

Disadvantages

Although the funds’ own formats often lack the necessary data quality, they are generally easy to interpret. At first glance, the TPT format can appear somewhat daunting due to the high volume of data. The use of the TPT format among fund managers is also not as widespread as one might hope.

Why should you use the TPT format?

As the only standard format for investment data for Solvency II, there are several reasons to use the TPT format when available.

To improve the process for stress testing and reporting

Using a standard format gives you the opportunity to automate data import to your software for SCR calculations and reporting. Such automation saves time and reduces errors due to manual data editing.

Access to industry expertise

The template is designed by experts from insurance, asset management, service providers and professional institutions across Europe. TPT guidelines and Q&A’s are also available, which will help ensure better consistency between data from different sources.

Free and regular updates

The TPT template is free to use and is regularly updated with improvements. The current version is the fifth issue of the template.

Tags: EIOPA Reporting, QRT, Investeringer, SCR, Markedsrisiko, EIOPA

Andrew Sweetmore

Written by Andrew Sweetmore

Head of Business Development for pensions and insurance, Andrew has over 20 years experience within this sector. Having previously worked as a pension Scheme Actuary in the UK, Andrew now leads our pensions and insurance team.