20. For the purpose of the application of the principle of proportionality and in order to ensure …

For the purpose of the application of the principle of proportionality and in order to ensure the appropriate implementation of the regulatory requirements and of these guidelines, the following aspects should be taken into account by investment firms and competent authorities:

• a. the size in terms of the balance sheet of the investment firm and its subsidiaries within the scope of prudential consolidation;
• b. whether the value of the investment firm’s on and off -balance sheet assets is on average equal to or less than EUR 100 million over the four-year period immediately preceding the given financial year in accordance with the criteria set out in point (a) of Article 32(4) of Directive (EU) 2019/2034;
• c. the assets under management;
• d. whether the investment firm is authorised to hold client money or assets;
• e. the assets safeguarded and administered;
• f. the volume of client orders handled;
• g. the volume of daily trading flows;
• h. the geographical presence of the investment firm and the size of its operations in each jurisdiction, including in third-country jurisdictions;
• i. the legal form of the investment firm, including whether the investment firm is part of a group and, if so, the proportionality assessment for the group;
• j. whether it is a listed investment firm;
• k. whether the investment firm is authorised to use internal models for the measurement of capital requirements (e.g. the Internal Ratings Based Approach);
• l. the type of authorised activities, the services performed by the investment firm (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;
• m. the underlying business model and strategy; the nature and complexity of the business activities, and the investment firm ’s organisational structure;
• n. the risk strategy, risk appetite and actual risk profile of the investment firm, also taking into account the result of the SREP capital and SREP liquidity assessments;
• o. the ownership and funding structure of the investment firm;
• p. the type of clients;
• q. the complexity of the financial instruments or contracts;
• r. the outsourced functions and distribution channels; and
• s. the existing information technology (IT) systems, including business continuity systems and outsourced functions in this area.

1. Overview

1.1 References

• Article 32 4.

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/