172. Competent authorities should identify and analyse in relation to market risk positions and the …

Competent authorities should identify and analyse in relation to market risk positions and the corresponding governance arrangements, any transfer pricing arrangements between institutions established in the Union that are part of a third-country group and other entities of that group established outside of the Union and not consolidated by the EU parent undertaking. The analysis should include:

• a. a quantitative component to identify the materiality of the transfer pricing arrangements relative to the trading book total P&L and the own funds of the institution;
• b. a qualitative component to assess if the effect of these arrangements is transparent to the institution’s management board and appropriately reflected in the risk management governance;
• c. a qualitative component to assess how the transfer pricing arrangement affects the business decisions of the institution, including how the dynamics of the transfer pricing arrangement potentially affect the decisions of front-office desks, and the potential conflicts of interest that the arrangement may create.

1. Prezentare generală

1.1 Referințe

1.2 Cerințe identificate

1.3 Standarde asociate

2. Cerințe identificate

3. Standarde asociate

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