Scope of application

These guidelines apply in relation to the supervisory review and evaluation process (SREP) of the investment firms as defined in Articles 36 to 45 of Directive (EU) 2019/2034.

Competent authorities should apply these guidelines at the highest level of consolidation in accordance with the level of application of the requirements of Part One, Title II of Regulation (EU) 2019/2033. For parent undertakings and subsidiaries included in the consolidation, competent authorities should adjust the depth and the level of granularity of their assessments to correspond to the level of application.

Where an investment firm has a subsidiary in the same Member State a proportionate approach for the assessment of capital and liquidity adequacy may be applied by focusing on the assessment of allocation of capital and liquidity across the entities and potential impediments to the transferability of capital or liquidity within the group.

For investment firm groups, including groups with undertakings established in third countries, procedural requirements should be applied in a coordinated manner within the framework of colleges of supervisors established pursuant to Article 48 of Directive (EU) 2019/2034. Title 11 explains the details of how these guidelines apply to cross-border groups and their entities.