21. For the purpose of applying the principle of proportionality and in order to ensure the …

For the purpose of applying the principle of proportionality and in order to ensure the appropriate implementation of the governance requirements of Directive 2013/36/EU and Directive 2014/65/EU which the Guidelines further specify, the following criteria should be taken into account by institutions and competent authorities:

• a. the size of the institution in terms of the balance sheet total, the client assets held or managed, and/or the volume of transactions processed by the institution or its subsidiaries within the scope of prudential consolidation;
• b. the legal form of the institution, including whether or not the institution is part of a group and, if so, the proportionality assessment for the group;
• c. whether the institution is listed or not;
• d. the type of authorised activities and services performed by the institution (see also Annex 1 of Directive 2013/36/EU and Annex 1 of Directive 2014/65/EU);
• e. the geographical presence of the institution and the size of the operations in each jurisdiction;
• f. the underlying business model and strategy, the nature and complexity of the business activities, and the institution’s organisational structure;
• g. the risk strategy, risk appetite and actual risk profile of the institution, also taking into account the result of the annual capital adequacy assessment;
• h. the authorisation for institutions to use internal models for the measurement of capital requirements, where relevant;
• i. the type of clients¹⁷ ; and
• j. the nature and complexity of the products, contracts or instruments offered by the institution.

¹⁷ Directive 2014/65/EU defines a client in Article 4(1)(9), a professional client in Article 4(1)(10) and a retail client in Article 4(1)(11). Recital 103 of Directive 2014/65/EU also specifies that an eligible counterparty should be considered to be acting as a client, as described in Article 30 of that Directive.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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