Regulatory Alerts2024-07-04
Added · Updated
Clarification on calculating K-factors for investment firms under the IFR
De Nederlandsche Bank clarifies that investment firms must determine the three most recent months to exclude from K-factor calculations by counting from the first working day of the reporting month, rather than the calendar months preceding the reference date. For a fourth-quarter report with a December 31 reference date, the excluded months are November, October, and September, leaving August through June in scope for K-COH and August through March for K-DTF. The document specifies that the average daily transaction flow or client orders must be calculated by dividing the sum of the relevant period by the number of working or trading days within that period.
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