Article 6, Paragraph 2. · Commission Delegated Regulation (EU) 2023/1668

Contents

2.For the purposes of Article 2, with regard to the measurement of the RtC, the indicative qualitative metrics shall be the following:

(a)the amount of client money held over the preceding 5 years;

(b)the amount of assets under management over the preceding 5 years;

(c)the amount of assets safeguarded and administered for clients over the preceding 5 years;

(d)the amount of losses or damages incurred by the investment firm due to breaches of its legal or contractual obligations over at least the preceding 5 years, including losses arising from the following:

(i)unsuitable advice given to investors and related investors’ compensation;

(ii)failure to establish, implement and maintain appropriate procedures to prevent breaches;

(iii)trading or valuation errors;

(iv)business disruption, system failures, failure of transaction processing or process management;

(v)an action of the investment firm’s tied agents or appointed representatives for which the investment firm is liable;

(e)specifically for investment firms holding client money, any inability of the investment firm to timely return client money when required and associated financial consequences over the past 5 years.