92. In particular, competent authorities may assess the sustainability of the investment firm’s …

In particular, competent authorities may assess the sustainability of the investment firm’s strategy based on:

a. the plausibility of the investment firm’s assumptions and projected financial performance compared to the supervisory view of the current and future business environment;
b. the impact on the projected financial performance of the supervisory view of the business environment (where this differs from the investment firm’s assumptions); and
c. the risk level of the strategy (i.e. the complexity and ambition of the strategy compared to the current business model), and the consequent likelihood of success based on the investment firm’s likely execution capabilities (measured by the investment firm’s success in executing previous strategies of a similar scale or the performance against the strategic plan so far).

1. Overview

Summary	Regulation

Requirements
Source	Requirement

Standards
Source	Requirement

EBA -
EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.