Article 1, Point (2) · Directive (EU) 2024/1619

Contents

(2)in Article 3, paragraph 1 is amended as follows:

(a)the following point is inserted:

(8a)“management body in its management function” means the management body acting in its role of directing an institution and includes the persons who effectively direct the business of the institution;’

;

(b)point (9) is replaced by the following:

(9)“senior management” means those natural persons who exercise executive functions within an institution and are directly accountable to the management body but are not members of that body, and who are responsible for the day-to-day management of the institution under the direction of the management body;’

;

(c)the following points are inserted:

(9a)“key function holders” means the persons who have significant influence over the direction of an institution but are not members of the management body, including the heads of internal control functions and the chief financial officer, where those heads or that officer are not members of the management body;

(9b)“internal control functions” means risk management, compliance and internal audit functions;

(9c)“heads of internal control functions” means the persons at the highest hierarchical level responsible for effectively managing the day-to-day operation of the internal control functions of an institution;

(9d)“chief financial officer” means the person with overall responsibility for the financial resources management, financial planning and financial reporting of an institution;’

;

(d)point (11) is replaced by the following:

(11)“model risk” means model risk as defined in Article 4(1), point (52b), of Regulation (EU) No 575/2013;’

;

(e)the following point is inserted:

(29a)“stand-alone institution in the Union” means an institution that is not subject to prudential consolidation in the Union pursuant to Part One, Title II, Chapter 2, of Regulation (EU) No 575/2013, and that has no EU parent undertaking subject to such prudential consolidation;’

;

(f)the following point is inserted:

(47a)“eligible capital” means eligible capital as defined in Article 4(1), point (71), of Regulation (EU) No 575/2013;’

;

(g)point (59) is replaced by the following:

(59)“internal approaches” means the internal ratings based approach referred to in Article 143(1), the internal model approach referred to in Article 221, the internal model method referred to in Article 283, the alternative internal model approach referred to in Article 325az, and the internal assessment approach referred to in Article 265(2), of Regulation (EU) No 575/2013’

;

(h)the following points are added:

(66)“large institution” means large institution as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013;

(67)“periodic penalty payment” means a periodic pecuniary enforcement measure aimed at ending ongoing breaches of national provisions transposing this Directive, breaches of Regulation (EU) No 575/2013 or breaches of decisions taken by a competent authority on the basis of those provisions or that Regulation and compelling the natural or legal person to return to compliance with the infringed provisions or decisions;

(68)“environmental, social and governance risk” or “ESG risk” means environmental, social and governance risk as defined in Article 4(1), point (52d), of Regulation (EU) No 575/2013;

(69)“climate neutrality” means the overall objective of achieving climate neutrality by 2050 as set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council^note;

(70)“crypto-asset” means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council^note that is not a central bank digital currency.