Regulatory Alerts2016-01-01
Added · Updated
Methodology for Supervisory Examination and Assessment for Investment Firms
The Office of the Financial Supervision Authority (KNF) issued this Methodology for Supervisory Examination and Assessment (BION) in April 2016 for investment firms, outlining the process for identifying threats to stability, assessing management quality, capital adequacy, and liquidity resources, and ensuring compliance with legal regulations. It details the BION process phases, basic principles, and specific criteria for evaluating four main areas: Business Model Analysis, Management, Capital Adequacy, and Adequacy of Liquidity and Funding Resources, in line with CRD IV/CRR and SREP Guidelines. The methodology establishes a 4-grade supervisory assessment scale, with assessments assigned based on aggregated evaluations of these areas and subject to verification by additional corrective factors.