Pillar 1 — Capital Requirements

NoteThis guide assumes you know how to sign in, navigate the Solutions menu, complete Settings and work with sessions. Those are covered in the Getting Started guide and are not repeated here.

What this module does

Pillar 1 calculates the own funds requirement for an investment firm under the IFR/IFD regime. It takes your trial balance, trading book and K-Factor data, works out the three candidate requirements — permanent minimum capital, the fixed overhead requirement and the K-Factor requirement — and reports capital adequacy against the highest of them.

The module also produces the regulatory submission files: EBA and CySEC formats, COREP, and XBRL-CSV packages for framework versions 4.0 and 4.2.

Before you start

ImportantComplete Settings → Prudential Reporting Variables before creating a session. A session copies the permanent minimum capital, fixed overhead baseline, currency, thresholds and adjustments as they stand at the moment it is created. Changing Settings afterwards does not update an existing session.

You will also need the source data files for the reporting period:

File	Contents	Format
Trial Balance	The general ledger for the reporting date, on and off balance sheet.	.xlsx
Trading Book	Trading portfolio positions and asset data.	.xlsx
KFR	K-Factor volume data where it is not derived from the trial balance.	.xlsx

Opening the module

Solutions → Regulatory Reporting → Prudential Reporting Engine → Pillar 1 — Capital Requirements.

Creating a session

The session list opens first. Select the + button to create a new one.

Field	What to enter
Name of Session	A descriptive title. A convention such as "Q1 2026 — Solo — Reporting" makes the list readable once you have a year's worth of sessions.
Reporting Date	The date the figures are struck at. This drives which data is expected and appears on every export.
Audited Status	Whether the underlying financial figures have been audited. Audited and unaudited sessions for the same date are normal — the first for monitoring, the second once the audit completes.
Scope	Solo or Consolidated. Only the scopes ticked in Settings are offered.
Session Type	Monitoring for internal use, or Reporting for a session intended to produce a regulatory submission.

Select SAVE. REGREP creates the session and opens it.

The session workspace

Every page of a session is reached from the sidebar on the left, which also shows the session's parameters so you can confirm which cycle you are in.

Figure 2 — Session Home for a session that has been calculated.

1Session parameters, carried from the Add Session dialog. Read-only.
2K-Factor composition and total own funds, shown as proportions.
3The headline figures: the three candidate requirements, total capital and the resulting ratio.

NoteA session you have just created shows this page with empty charts and blank metric cards. That is expected — nothing has been calculated because no data has been imported yet. Work through Data first.

The pages in a session

Page	Purpose
Session Home	Headline capital position and ratios.
Session Details	A read-only view of the parameters and Settings values this session inherited. Use it to confirm what the calculations are based on.
Data	Import source files, review the trial balance and trading book, and configure counterparties.
FOR	The Fixed Overhead Requirement calculation, step by step.
Own Funds	Capital composition — CET1, Additional Tier 1, Tier 2.
KFR	K-Factor requirements, in summary and by individual factor.
K-CON	Concentration risk on trading book exposures exceeding regulatory limits.
Reports	The consolidated regulatory view, and all export formats.
Analytics	Limit monitoring and capital utilisation for internal risk management.

Importing data

Open Data. The page has three tabs: Import Files, Trial Balance and Trading Book.

1The three Data tabs.
2Attach a file using the paperclip, or type the path.
3IMPORT processes and validates the attached file. Import each card separately.

Attach the file to the matching card — trial balance to Trial Balance, and so on.
Select IMPORT on that card.
Wait for the import to confirm before moving to the next card.
Move to the Trial Balance and Trading Book tabs to review what was loaded.

Checking the trial balance

The Trial Balance tab has three sub-tabs — ON Balance Sheet, OFF Balance Sheet and Counterparty — and shows a balance check beside the tab row.

ImportantThe balance check shows the difference between debits and credits in the imported trial balance. A non-zero figure, shown in red, means the file does not balance. Correct the source file and re-import before relying on any calculation downstream — the engine will still produce numbers, but they will be built on an unbalanced ledger.

Configuring counterparties

ImportantThis step is mandatory and easily missed. Until counterparties are classified, the concentration risk tables in Reports fall back to placeholder identifiers, and K-CON cannot calculate correctly.

An imported trial balance brings counterparty names but none of the regulatory classification the calculation needs. Open Data → Trial Balance → Counterparty to supply it.

Figure 4 — Data → Trial Balance → Counterparty. Rows outlined here still need classifying.

1Edit and delete actions for each counterparty.

Select the edit icon on a row to open the classification dialog.

Figure 5 — The Edit Counterparty dialog.

Field	What to enter
Counterparty Name	Carried from the import. Correct it here if the ledger name is not the legal name.
Code and Type of Code	The identifier and what kind it is — an LEI where one exists.
Group / Individual	Whether the counterparty is part of a corporate group or stands alone. This determines how exposures are aggregated for concentration purposes.
Counterparty Type	The regulatory category — credit institution, investment firm, corporate, and so on.
Country of Exposure	The jurisdiction the exposure sits in.
Industrial Sector	Sector classification, used in concentration analysis.
Asset Class	The asset class of the exposure.

Select UPDATE. The classification flows straight into the concentration tables in Reports and into K-CON. Repeat for every counterparty carrying an exposure.

Fixed Overhead Requirement

The FOR page shows how the requirement was derived, line by line, from the prior-year figures held in Settings.

1Shaded rows are calculated by the platform. Unshaded rows come from Settings → Prudential Reporting Variables → Fixed Overheads.

Reading down the page: total prior-year expenses, less the permitted deductions, gives the annual fixed overheads. One quarter of that figure is the Fixed Overhead Requirement. Projected overheads for the current year and the percentage variation are shown beneath, so a material change in the firm's cost base is visible.

NoteSome screens and export files abbreviate the Fixed Overhead Requirement as FOH rather than FOR. They are the same figure.

To change any input, go back to Settings, amend the Fixed Overheads section, save, and create a new session. Values already inherited by an existing session do not change retrospectively.

Own Funds

The Own Funds page shows the firm's capital composition.

1Capital totals across the four headline categories.
2SAVE — needed only when you have edited a figure by hand.
3EXPORT — downloads the own funds schedule for offline review or audit evidence.

The table below the cards itemises Common Equity Tier 1, Additional Tier 1, Tier 2 and the total. The Tier 1 and Tier 2 fields are editable where your capital structure requires an adjustment the engine cannot derive from the ledger.

NoteIf the figures are correct as calculated, you do not need to save. Save only after making a manual edit, and note that a saved manual figure overrides the calculated one until you clear it.

K-Factor Requirement

The KFR page reports the K-Factor requirement in summary and factor by factor. The sub-tabs across the top move between the summary and the individual factors: AUM, CMH, ASA, COH, NPR, CMG, TCD and DTF.

1Sub-tabs for each K-Factor.
2The calculated requirement for each factor. These sum to the total KFR.

The two charts show where the requirement comes from. KFR Values breaks down the total by factor; NPR Values breaks the net position risk component down further by risk type — foreign exchange, equity, commodity, collective investment undertakings and traded debt instruments.

Open an individual factor tab to see the underlying exposures and the coefficient applied.

K-CON — concentration risk

K-CON is the own funds requirement arising from trading book exposures that exceed the limits set in Article 37(1) of the IFR.

Figure 9 — K-CON where no exposure exceeds the limits.

1"No data available" means no counterparty exposure breaches the concentration limits — which is the expected result for most firms.

Where limits are exceeded, three sections populate:

K-CON Requirement — the breaching counterparties, with exposure value, exposure as a percentage of own funds, own funds requirement, excess and the resulting K-CON charge.
Trading Counterparty Concentrations — final exposure and concentration percentage per trading counterparty.
Trading Book Concentrations — sector and asset-class concentrations across the trading book.

ImportantThe Excess Duration (days) field is not derived automatically. Where an exposure has exceeded the limit for more than ten business days, enter the duration yourself and select SAVE — the charge escalates with duration, so leaving it blank understates the requirement.

Reports

Reports brings the whole session together. The sub-tabs are Summary, K-Factor Details, Concentration Risk, Liquidity and Threshold Review.

1The export menu.
2The binding requirement is highlighted. Here PMC exceeds both FOR and KFR, so PMC sets the firm's own funds requirement.

NoteThe highlighted card is the one that matters: an investment firm must hold own funds at least equal to the highest of permanent minimum capital, the fixed overhead requirement and the K-Factor requirement. REGREP highlights whichever of the three is binding for this session.

The grids to the right set out the K-Factor requirements grouped by Risk to Client, Risk to Market and Risk to Firm, each with the factor amount and the resulting capital charge, followed by the liquidity requirement and total liquid assets.

Exporting

Select the ⋯ button in the top-right corner of the Reports page.

Export	Use it for
Export Report	The full report for internal review and audit files.
Export Summary	The headline capital position on its own.
Export Trial Balance	The trial balance as the engine read it — useful for reconciling back to the ledger.
Export Balance Sheet	The balance sheet view derived from the trial balance.
Export Profit/Loss	The profit and loss view derived from the trial balance.
Export COREP	The Common Reporting framework return.
Export EBA	The standard EBA submission format.
Export EBA CySEC	The EBA format with the variations CySEC requires.
Export XBRL CSV Package (4.0)	XBRL-CSV against EBA framework version 4.0.
Export XBRL CSV Package (4.2)	XBRL-CSV against EBA framework version 4.2.

ImportantCheck with your competent authority which framework version applies to the reporting period before submitting an XBRL package. Submitting against the wrong version is a common cause of rejection.

Analytics

Analytics is for internal risk management rather than regulatory submission. It answers the question a compliance officer asks first: is anything close to a limit?

1Regulatory Limits — each ratio and capital measure against its limit, with a breach indicator.
2Trading Limits — the internal limits you defined in Settings. Empty if none are configured.

Further down the page: uncovered position value by asset class, own funds utilisation split between utilised and unutilised capital with a breakdown by risk category, and the top five market risk and trading counterparty concentrations.

A complete reporting cycle

The order below is the one that avoids rework.

Check Settings → Prudential Reporting Variables is current, and save it.
Create the session with the correct reporting date, scope, audited status and type.
Data → Import Files: import the trial balance, trading book and KFR files.
Data → Trial Balance: confirm the balance check reads zero.
Data → Trial Balance → Counterparty: classify every counterparty carrying an exposure.
FOR: confirm the fixed overhead requirement matches your expectation.
Own Funds: review the capital composition and adjust only where necessary.
KFR: review the factor requirements and drill into anything that looks wrong.
K-CON: enter excess duration where an exposure has breached a limit, and save.
Reports → Summary: check the binding requirement and the ratios.
Analytics: confirm no limit is breached.
Export the formats your regulator requires, and file the report alongside the export in your own records.

Troubleshooting

Symptom	Likely cause and fix
Session Home is blank after creating a session	No data has been imported yet. Go to Data → Import Files.
The balance check shows a non-zero figure in red	The imported trial balance does not balance. Correct the source file and re-import — do not proceed on an unbalanced ledger.
Concentration tables show placeholder identifiers instead of counterparty names	Counterparties have not been classified. Complete Data → Trial Balance → Counterparty.
K-CON shows "No data available"	Normal — no exposure breaches the Article 37(1) limits. If you expect a breach, check that counterparties are classified and the trading book imported.
The fixed overhead requirement is not what you expect	The session inherited the Settings values in force when it was created. Amend Settings, save, and create a new session.
A K-Factor shows zero when you expect a value	Either the underlying volume data was not in the imported files, or the relevant threshold in Settings is unset. Check Settings → Threshold Requirements.
An export is rejected by the regulator	Check the framework version, the reporting scope and whether the corporate profile in Settings carries a valid LEI.

Document control

Version	Date	Change
2.0	January 2026	Rewritten to start at the module. The navigation and Settings chapters move to the Getting Started guide. Export list corrected from six entries to the ten the platform offers, adding Trial Balance, Balance Sheet, Profit/Loss and COREP. Archiving clarified against the Archived Sessions tab. Terminology standardised on FOR, with a note where the interface shows FOH. Adds the trial balance check, the binding-requirement highlight, a full reporting cycle and troubleshooting. Screenshots refreshed using fictional firm data.
1.0	—	Original Pillar 1 manual.

REGREP is an independent software provider. This manual describes how to operate the platform and is not legal, tax or regulatory advice. Confirm scope, thresholds and submission dates with your competent authority before you file.

Pillar 1 — Capital Requirements.