83. For the above purposes, investment firms and competent authorities should take into account at …

For the above purposes, investment firms and competent authorities should take into account at least the following criteria:

• a. the on and off-balance-sheet assets of the investment firm and whether the investment firm meets the criteria and the thresholds set out in paragraphs 4 of Article 32 of Directive (EU) 2019/2034;
• b. if the investment firm is authorised to hold clients’ money or assets;
• c. the type of authorised activities and services (e.g. Sections A and B of Annex I to Directive 2014/65/EU) and other services (e.g. clearing services) performed by the investment firm;
• d. the amount of assets under management;
• e. the assets safeguarded and administered;
• f. the volume of client orders handled;
• g. the volume of daily trading flow;
• h. the geographical presence of the investment firm and the size of the operations in each jurisdiction, including in third countries;
• i. the legal form and the available equity and debt instruments;
• j. the methods used to determine the capital requirements;
• k. whether the investment firm is part of a group and, if so, the proportionality assessment done for the group and the characteristics of the group to which the investment firm belongs;
• l. the underlying business strategy;
• m. the structure of the business activities and the time horizon, measurability and predictability of the risks of the business activities;
• n. the funding structure of the investment firm;
• o. the internal organisation of the investment firm, including the level of variable remuneration that can be paid to identified staff;
• p. the main sources and structure of profits and losses of the investment firm;
• q. the type of clients (e.g. retail, corporate, small businesses, public entity);
• r. the complexity of financial instruments or contracts;
• s. the outsourced functions and distribution channels;
• t. the existing information technology (IT) systems, including continuity systems and outsourcing functions in this area.

1. Overview

1.1 References

• Article 32 Variable remuneration

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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