104. Criteria to be taken into account for the application of the principle of proportionality such …

Criteria to be taken into account for the application of the principle of proportionality such as the following should be considered for assessing the internal governance, in accordance with the EBA Guidelines on internal governance:

• a. the size in terms of the balance-sheet of the investment firm and its subsidiaries within the scope of prudential consolidation;
• b. the assets under management;
• c. whether the investment firm is authorized to hold client money or assets;
• d. the assets safeguarded and administered;
• e. the volume of client orders handled;
• f. the volume of daily trading flow;
• g. the geographical presence of the investment firms and the size of its operations in each jurisdiction, including in third countries jurisdictions;
• h. 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;
• i. whether the investment firm is authorised to use internal models for the measurement of capital requirements, as referred to in Article 22 of Regulation (EU) 2019/2033;
• j. the type of authorised activities, the services performed by the investment firm as defined in Sections A and B of Annex I to Directive 2014/65/EU and other services performed by the investment firm;
• k. the underlying business model and strategy; the nature and complexity of the business activities, and the investment firm’s organisational structure
• l. the risk strategy, risk appetite and actual risk profile of the investment firm, taking into account also the result of the SREP capital and SREP liquidity assessments;
• m. the ownership and funding structure of the investment firm;
• n. the type of clients;
• o. the complexity of the financial instruments or contracts;
• p. the outsourced functions and distribution channels;
• q. the existing information and communication systems and technology (ICT), including continuity systems and outsourcing functions in this area;

1. Overview

1.1 References

• Article 22 Calculating K‐NPR

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/