79. Competent authorities should use this preliminary assessment to: a. determine the materiality …

Competent authorities should use this preliminary assessment to:

• a. determine the materiality of business activities: competent authorities should determine which geographies, subsidiaries/branches, activities, and where relevant business lines or product lines are the most material based on profit contribution (notably based on P&L), risk (including K-factors or other measures of risk) and/or organisational priorities. Competent authorities should use this information as a basis for identifying what the BMA should focus on (as covered further in Section 4.3;
• b. identify the peer group: competent authorities may determine (i) the relevant peer group for the investment firm on the basis of its structure and activities; (ii) to conduct a BMA, the peer group on the basis of the rival product/business lines targeting the same source of profits/customers;
• c. support the application of the principle of proportionality: competent authorities may use the outcomes of the preliminary assessment to help determine the appropriate granularity of assessment.

1. Overview

1.1 References

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/