121. Competent authorities should assess whether investment firms, which are not small and …

Competent authorities should assess whether investment firms, which are not small and non-interconnected investment firms according to Article 12 of Regulation (EU) 2019/2033 or for which competent authorities exercised the discretion envisaged in the second subparagraph of Article 24(2) of Directive (EU) 2019/2034, at individual level, or investment firms groups, at consolidated level, have sound, effective and comprehensive arrangements, strategies and processes in place to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital and liquid assets that they consider adequate to cover the nature and level of risks which they may pose to others and to which the investment firms themselves are or may be exposed to. Such arrangements, strategies and processes should be part of an internal capital adequacy and internal-risk assessment process that may be further split into an internal capital adequacy assessment process (ICAAP) and an internal liquidity adequacy assessment process (ILAAP).

1. Overview

1.1 References

• Article 12 Small and non‐interconnected investment firms
• Article 24 2.

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/