Julie Kramer, Financial & Compliance Product Director
Melissa Monaghan, a Statutory Accountant working with our eFreedom Annual Statement product, recently attended the 2012 Annual North American Securities Valuation Association (NASVA) Conference held May 15 - 17 in Louisville, Kentucky. As an Annual Statement software vendor, we feel that it is important to keep up with what is happening within the investment arena.
The topics on the agenda to discuss included: VOS Task Force Update, Emerging Market Investments, AVS Update, SVO Update, Reporting schedules, Annual Statement and Blanks Updates, Understanding RBC, Industry Panels, Vendor Panels and One-On-One Opportunities with various topic experts.
VOS Task Force Update
A new group reporting to the VOS Task Force is the C1 Factor Review Subgroup. This group is looking at updating the RBC (investment risk) factors, which have not been updated since they were created 20+ years ago. The group is meeting by conference call every two weeks. As part of the discussion, the subgroup is also looking at making the NAIC 1-6 designations more granular. Assigning a “+” or “-“ to each of the NAIC 1-5 designations is under consideration. The group’s work will not be completed prior to 2013. It is important to note that any NAIC designation changes will not be limited to RBC, but will affect statement reporting, and for the LAH companies, their AVR calculation.
The VOS Task Force has also resurrected the Schedule DB Subgroup. This Subgroup will be reviewing current reporting on Schedule DB in an effort to locate problems areas. The group has been charged with revising instructions where needed and revising the reporting format if they feel it is appropriate. Nothing will be completed in time for 2012 reporting, but the goal is to have the Schedule DB revisions in place for 2013.
Most Common Schedule D Validation Errors
During the Conference, Becky Fuller of the NAIC highlighted the most commonly made errors the NAIC sees in the completion of Schedule D. Those errors are:
- SCDPT1A not including short-term securities from SCDAPT1 and SCEPT2.
- Zero CUSIPs – Where SCA’s and foreign securities do not have a CUSIP number, the CUSIP column should be zero-filled. Ms. Fuller also recommended that companies add an explanation to those validations as to WHY the column is zero filled. The explanation could eliminate some NAIC letters being sent.
- Electronic-only columns in Schedule D not being completed.
The next NASVA meeting will be the quarterly meeting in the fall. Check back for future updates!