255. Competent authorities should form a view on the degree of conduct risk related to investment …

Competent authorities should form a view on the degree of conduct risk related to investment and market activities of the investment firm, to the extent that it is not captured by Pillar 1 own funds requirements. Conduct risk should be understood as the current or prospective risk incurred by clients, markets or the firm itself due to an inappropriate behaviour of the firm or its staff. This risk may arise from cases of wilful or negligent misconduct (including inappropriate supply of financial services), to the extent that they might lead to negative financial or reputational impacts. This reputational risk may in turn cause a loss in market shares or key clients, and an increase of clients’ complaints.

1. Pārskats

1.1 Atsauces

1.2 Identificētās prasības

1.3 Saistītie standarti

2. Identificētās prasības

3. Saistītie standarti

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