309. When determining the size of P2G, competent authorities should consider, where relevant, the …

When determining the size of P2G, competent authorities should consider, where relevant, the following factors:

a. where P2G is determined based on stress tests, the time when the maximum stress impact occurs in relation to the starting point and time horizon of the scenarios used in the stress tests;
b. the outcome of a reliable investment firm’s internal stress test or sensitivity analysis of the investment firm, taking into account the specific scenario definitions and assumptions, in particular where they are deemed more relevant for the business model and risk profile of the investment firm or where the internal scenarios are more severe than the supervisory scenarios, where such supervisory scenarios are available;
c. relevant management mitigating actions of the investment firms if sufficiently credible and highly certain following their supervisory assessment;
d. information about and supervisory views on the relevance of supervisory or investment firm’s own stress tests or sensitivity analyses to the investment firm's strategy, financial plans and business model;
e. reduced certainty on the actual sensitivity of the investment firm to adverse scenarios;
f. any potential overlaps with the applicable additional own funds requirement;
g. whether or not the investment firm is under restructuring or resolution.

1. Overview

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Standards
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