Article 3 Qualitative criteria

Staff shall be deemed to have a material impact on an institution's risk profile where any of the following qualitative criteria are met:

1. (1)

   the staff member is a member of the management body in its management function;

2. (2)

   the staff member is a member of the management body in its supervisory function;

3. (3)

   the staff member is a member of the senior management;

4. (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;

5. (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 Directive 2013/36/EU UK law which implemented Article 73 of Directive 2013/36/EU that represents at least 2 % of the internal capital of the institution (a "material business unit");

6. (6)

   the staff member heads a material business unit;

7. (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);

8. (8)

   the staff member has managerial responsibility in a material business unit and reports directly to the staff member who heads that unit;

9. (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;

10. (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 Directive 2013/36/EU UK law which implemented Articles 79 to 87 of Directive 2013/36/EU other than credit risk and market risk;

11. (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:

    1. (a)

       is responsible for initiating credit proposals, or structuring credit products, which can result in such credit risk exposures; or

    2. (b)

       has authority to take, approve or veto a decision on such credit risk exposures; or

    3. (c)

       is a member of a committee which has authority to take the decisions referred to in point (a) or (b);

12. (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:

    1. (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:

       1. (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

       2. (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

    2. (b)

       is a member of a committee which has authority to take decisions set out in point (a);

13. (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:

    1. (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);

    2. (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;

14. (14)

    with regard to decisions to approve or veto the introduction of new products, the staff member:

    1. (a)

       has the authority to take such decisions; or

    2. (b)

       is a member of a committee which has authority to take such decisions;

15. (15)

    the staff member has managerial responsibility for a staff member who meets one of the criteria set out in points (1) to (14).