{
  "url": "https://openlegislation.uk/eu-regulation-2014-604/article-3",
  "json_url": "https://openlegislation.uk/eu-regulation-2014-604/article-3.json",
  "legislation": "eur/2014/604",
  "legislation_title": "Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards with respect to qualitative and appropriate quantitative criteria to identify categories of staff whose professional activities have a material impact on an institution's risk profile (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2014-604",
  "path": "article/3",
  "kind": "article",
  "number": "3",
  "heading": "Qualitative criteria",
  "text": "Staff shall be deemed to have a material impact on an institution's risk profile where any of the following qualitative criteria are met:\n(1) the staff member is a member of the management body in its management function;\n(2) the staff member is a member of the management body in its supervisory function;\n(3) the staff member is a member of the senior management;\n(4) the staff member is responsible and accountable to the management body for the activities of the independent risk management function, compliance function or internal audit function;\n(5) the staff member has overall responsibility for risk management within a business unit as defined in Article 142(1)(3) of Regulation (EU) No 575/2013 which has had internal capital distributed to it in accordance with Article 73 of Directive 2013/36/EU that represents at least 2 % of the internal capital of the institution (a ‘material business unit’);\n(6) the staff member heads a material business unit;\n(7) the staff member has managerial responsibility in one of the functions referred to in point (4) or in a material business unit and reports directly to a staff member identified pursuant to point (4) or (5);\n(8) the staff member has managerial responsibility in a material business unit and reports directly to the staff member who heads that unit;\n(9) the staff member heads a function responsible for legal affairs, finance including taxation and budgeting, human resources, remuneration policy, information technology, or economic analysis;\n(10) the staff member is responsible for, or is a member of, a committee responsible for the management of a risk category provided for in Articles 79 to 87 of Directive 2013/36/EU other than credit risk and market risk;\n(11) with regard to credit risk exposures of a nominal amount per transaction which represents 0.5 % of the institution's Common Equity Tier 1 capital and is at least EUR 5 million, the staff member:\n(a) is responsible for initiating credit proposals, or structuring credit products, which can result in such credit risk exposures; or\n(b) has authority to take, approve or veto a decision on such credit risk exposures; or\n(c) is a member of a committee which has authority to take the decisions referred to in point (a) or (b);\n(12) in relation to an institution to which the derogation for small trading book business provided for in Article 94 of Regulation (EU) No 575/2013 does not apply, the staff member:\n(a) has authority to take, approve or veto a decision on transactions on the trading book which in aggregate meet one of the following thresholds:\n(i) where the standardised approach is used, an own funds requirement for market risks which represents 0.5 % or more of the institution's Common Equity Tier 1 capital; or\n(ii) where an internal model-based approach is approved for regulatory purposes, 5 % or more of the institution's internal value-at-risk limit for trading book exposures at a 99th percentile (one-tailed confidence interval); or\n(b) is a member of a committee which has authority to take decisions set out in point (a);\n(13) the staff member has managerial responsibility for a group of staff members who have individual authorities to commit the institution to transactions and either of the following conditions is met:\n(a) the sum of those authorities equals or exceeds a threshold set out in point 11(a), point 11(b) or point 12(a)(i);\n(b) where an internal model-based approach is approved for regulatory purposes those authorities amount to 5 % or more of the institution's internal value-at-risk limit for trading book exposures at a 99th percentile (one-tailed confidence interval). Where the institution does not calculate a value-at-risk at the level of that staff member the value-at-risk limits of staff under the management of this staff member shall be added up;\n(14) with regard to decisions to approve or veto the introduction of new products, the staff member:\n(a) has the authority to take such decisions; or\n(b) is a member of a committee which has authority to take such decisions;\n(15) the staff member has managerial responsibility for a staff member who meets one of the criteria set out in points (1) to (14).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2014/604/article/3",
    "retrieved_at": "2026-11-01T14:47:35.638555+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}