10.4 Likviditātes pasākumu piemērošana

Competent authorities should monitor whether the amount of own funds expected according to P2G is established and maintained by the investment firm over time.

When the investment firm’s own funds drop, or are likely to drop, below the level determined by P2G, the competent authority should expect the investment firm to notify it and prepare a revised capital plan. Competent authorities should ascertain that in its notification, the investment firm explains what adverse consequences are likely to force it to do so and what actions are envisaged for the eventual restoration of compliance with P2G as part of an enhanced supervisory dialogue.

There are generally three situations to be considered by a competent authority in which an investment firm could fail to meet its P2G.

• a. Where the level of own funds falls below the level of P2G in investment firm-specific or external circumstances in which risks that P2G was aimed at covering have materialised, the competent authority may allow the investment firm to temporarily operate below the level of P2G provided that the revised capital plan is considered credible in accordance with the criteria set out in Section 7.7.3. The competent authority may also consider adjusting the level of P2G where appropriate.
• b. Where the level of own funds falls below the level of P2G in investment firm-specific or external circumstances as a result of the materialisation of risks that P2G was not aimed at covering, competent authorities should expect the investment firm to increase the level of own funds to the level of P2G within an appropriate timeline.
• c. Where the investment firm disregards P2G, does not incorporate it into it risk management framework or does not establish own funds to meet P2G within the time limits set in accordance with paragraph 294, this may lead to competent authorities applying additional supervisory measures as set out in Sections 10.3 and 10.5.

Where the permission to operate below the level of P2G as referred to in point (a) has not been granted and the investment firm’s own funds are repeatedly below the level of P2G, the competent authority should impose additional own funds requirement in accordance with Title 7.

Notwithstanding particular supervisory responses in accordance with the previous paragraph, competent authorities may also consider the application of the capital and additional supervisory measures set out in Sections 10.3 and 10.5, where these are deemed more appropriate to address the reasons for the own funds falling below the level determined by P2G.