170. Through the assessment of inherent Risk-to-Client, competent authorities should determine the …

Through the assessment of inherent Risk-to-Client, competent authorities should determine the main drivers of the investment firm’s Risk-to-Client K-factor amounts and evaluate the significance of the prudential impact of this risk for the investment firm. The assessment of inherent Risk-to-Client should therefore be structured around the following main steps:

• a. preliminary assessment;
• b. assessment of the nature and scale of services and activities for managing client assets, holding client money, safeguarding client assets and handling client orders; and
• c. assessment of the systems and processes regarding these activities.

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/