Supervisory Regulation on the Use of Business Projections for K-Factor Calculations

Supervisory Regulation

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With this regulation
, DNB implements five supervisory discretions under the Investment Firms Regulation (IFR). These discretions allow DNB, for the calculation of K-factors, to replace missing historical data with business forecasts submitted by investment firms as part of their licence application.

Published: 10 March 2026

Such a situation may arise when the firm has not yet provided the relevant investment service or carried out the relevant investment activity, or when it previously qualified as a small and non-interconnected investment firm and was therefore not subject to the K-factor calculation for determining its capital requirements.

The use of business projections will be phased out gradually as historical data become available and will no longer be permitted once the investment firm can calculate the K-factor on the basis of historical data.

By applying these supervisory discretions in a general manner and incorporating them into the Supervisory Regulation on Specific Provisions IFR and IFD, DNB aims to enhance transparency regarding supervisory practice and improve the efficiency of the process.

This supervisory regulation was consulted under the name:
Supervisory Regulation usage business projections .

Prudential supervision

How to calculate K-AUM, K-CMH, K-ASA, K-COH and K-DTF

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