General criteria and methodologies for supervisory review and evaluation process

Competent authorities are required to disclose general criteria and methodologies that are used in the Supervisory Review and Evaluation Process set out in Article 97 of Directive 2013/36/EU.

The Supervisory Review and Evaluation Process (SREP) of investment firms is conducted by the competent authorities. It is a comprehensive process by which competent authorities assess and evaluate risk exposure of each investment firm. This procedure also includes the Internal Capital Adequacy Assessment Process (ICAAP). Investment firms conduct ICAAPs, which allow them to retain the appropriate level of internal capital in relation to the risk profile of the investment firm itself.