Regulatory Alerts2021-09-22
Added · Updated
Commission Delegated Regulation (EU) 2022/25 specifying methods for measuring K-factors under Regulation (EU) 2019/2033
The European Commission adopted Delegated Regulation (EU) 2022/25 to establish regulatory technical standards specifying the methods for measuring K-factors for investment firms under Regulation (EU) 2019/2033. The regulation mandates that investment firms include tied agent activities in Assets Under Management (AUM), Client Money Held (CMH), Assets Safeguarded and Administered (ASA), and Client Orders Handled (COH) calculations. It further defines valuation methods, such as using fair value for AUM and ASA, and specifies exclusion rules for ancillary services and double-counting prevention in COH and DTF metrics. This regulation entered into force on the twentieth day following its publication in the Official Journal of the European Union.