+15. Unless otherwise specified, terms used and defined in Directive (EU) 2019/2034 and Regulation …
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15. Unless otherwise specified, terms used and defined in Directive (EU) 2019/2034 and Regulation …
Unless otherwise specified, terms used and defined in Directive (EU) 2019/2034 and Regulation (EU) No 2033/2019 have the same meaning in the guidelines. In addition, for the purposes of these guidelines, the following definitions apply: | Risk appetite | means the aggregate level and types of risk that an investment firm is willing to assume within its risk capacity, in line with its business model, to achieve its strategic objectives. | | Risk capacity | means the maximum level of risk an investment firm is able to assume given its capital base, its risk management and control capabilities, and its regulatory constraints. | | Risk culture | means an investment firm ’s norms, attitudes and behaviours relating to risk awareness, risk-taking and risk management, and the controls that shape decisions on risks. The risk culture influences the decisions of management and employees during their day-to-day activities and has an impact on the risks they assume. | | Staff | means all employees of an investment firm and its subsidiaries on a consolidated basis and all members of their respective management bodies in their management function and their supervisory function. | | Chief executive officer (CEO) | means the person who is responsible for managing and steering the overall business activities of an investment firm. | | Chief financial officer (CFO) | means the person who has the overall responsibility for managing the following activities: financial resources management, financial planning and financial reporting. | | Heads of internal control functions | means the persons at the highest hierarchical level in charge of effectively managing the day-to-day operation of the independent risk management, compliance and internal audit functions. | | Key function holders | means persons who have significant influence over the direction of the investment firms but who are neither members of the management body nor the CEO. They include the heads of internal control functions and the CFO, where they are not members of the management body, and, where identified on a risk-based approach by investment firms, other key function holders. Other key function holders might include heads of significant business lines, European Economic Area/European Free Trade Association branches, third country subsidiaries and other internal functions. | | Union parent undertaking | means a Union parent investment firm, Union parent investment holding company or Union parent mixed financial holding company that is required to abide by the prudential requirements based on the consolidated situation in accordance with Article 7 of Regulation (EU) 2019/2033. | | Prudential consolidation | means the application of the prudential rules set out in Article 25 of Directive (EU) 2019/2034 and Article 7 of Regulation (EU) 2019/203311 | | Listed investment firms | means investment firms whose financial instruments are admitted to trading on a regulated market or on a multilateral trading facility as defined under points (21) and (22) of Article 4 of Directive 2014/65/EU, in one or more Member States12 . | | Shareholder | means a person who owns shares in an investment firm or, depending on the legal form of an investment firm, other owners or members of the investment firm. | | Directorship | means a position as a member of the management body of an investment firm or another legal entity. |
11 Please refer also to the RTS on the consolidation of investment firms under Directive (EU) 2019/2034 12 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349)
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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