Capital Adequacy Requirements

According to Chapter 9, Section 1.2.2, what is the minimum Common Equity Tier 1 (CET1) capital ratio that a firm must maintain at all times?

What is the primary purpose of the Internal Capital Adequacy Assessment Process (ICAAP) as described in Chapter 9, Section 5?

What is the large exposure limit for a CIF to a client that is an institution, if EUR 150 million is lower than 25 percent of the CIF's eligible capital?

Which of the following risk types is NOT considered a Pillar 1 risk under the Capital Requirements Directive (CRD)?

What is the maximum ratio of the variable remuneration component to the fixed component that shareholders of a CIF may approve?

Under the transitional provisions from 1 January 2014 to 31 December 2018, by what factor was the amount for defined benefit pension plans multiplied before being added to CET1 capital?

Which of the following best describes 'Residual Risk' as defined in Chapter 9, Section 2.6.2?

For CIFs that are significant in size, which body must be established to advise the board on risk appetite and oversee the risk strategy?

What is the minimum frequency for the review and evaluation of a CIF's arrangements, strategies, and processes by the CBC?

Which stress testing method starts with the outcome of a business failure and identifies the circumstances under which it might occur?

In the five stages of SREP, which phase includes the desk-based review of the ICAAP and potentially an on-site assessment of its implementation?

What is the risk weight that needs to be applied to the greater of certain qualifying holdings in financial sector entities when calculating capital requirements, according to Cyprus Own Fund Requirements?

Which of the following items is NOT listed as a component of Common Equity Tier 1 (CET1) capital?

According to the principles for ICAAP implementation, who holds the ultimate responsibility for the ICAAP process, even if parts of it are outsourced?

What is Reputational Risk defined as in Chapter 9?

What is the minimum percentage of a variable remuneration component that must be deferred in the case of a particularly high amount?

What information does a CIF need to disclose annually on a country-by-country basis?

Under what condition can a CIF that is not considered significant be permitted to combine its risk committee with its audit committee?

What is the maximum period that a recovery plan for a CIF should cover in its forward capital plan?

Which of the following is an example of a risk type NOT fully covered under Pillar 1?

In the context of the SREP, what does CySEC formally evaluate regarding a CIF's business?

What does a capital conservation buffer (CCB) require from a CIF?

Which risk is defined as the risk of loss of principal or financial reward caused by a borrower’s failure to repay a loan or meet a financial obligation?

What is the consequence for a CIF that fails to meet the capital conservation buffer requirement?

For a variable remuneration component of a standard amount, what is the minimum percentage that must be deferred?

What is Strategic Risk?

The SREP outcome defines the level of capital a CIF should hold. How does this level of capital relate to the CIF's own assessment (ICAAP)?

Which principle of ICAAP implementation emphasizes that the process should capture all material risks, including Pillar 1, risks not fully captured by Pillar 1, and Pillar 2 risks?

What is the minimum deferral period for variable remuneration according to the remuneration principles?

Under what circumstances can guaranteed variable remuneration be paid to staff?

Which body is responsible for approving and periodically reviewing a CIF's risk strategies and policies?

What is the key feature of a 'look-through' approach for determining the risk weight of an equivalent third country CIU?

What type of risk arises from potential changes in interest rates that affect a CIF’s non-trading activities?

What is the purpose of a risk register as described in Chapter 9, Section 5.6.1?

What is the maximum amount of a CIF's large exposures to a group of connected clients that are not institutions?

Which principle must a CIF's remuneration policy be consistent with and promote?

A CIF's internal capital must be adequate to cover all material market risks that are NOT subject to what?

How often must CIFs submit the results of their internal approaches for benchmark portfolios to CySEC?

Which type of risk includes contingencies and business continuity plans to ensure a CIF’s ability to operate on an on-going basis?

Under the principle of 'Regular review' for ICAAP, the review process should be subject to independent assessment by a function such as:

What is the maximum percentage of a CIF's total risk exposure amount that can be required as a capital conservation buffer (CCB)?

Which of the following exposures are exempted by CySEC from the large exposure limits?

What is the primary advantage of sensitivity analysis as a stress testing method?

What type of risk arises from an unmanaged concentration in a subsidiary that may appear immaterial at the consolidated level but can threaten the subsidiary's viability?

Up to what percentage of the total variable remuneration can CIFs apply a discount rate, provided it is paid in instruments deferred for not less than five years?

Which of the following is an indicator of excessive leverage that CIFs must monitor?

If a CIF has a parent company in a third country that does not apply Basel II rules, this is considered as which type of risk?

In the context of prudential consolidation, CySEC may waive capital requirements on a consolidated basis if all investment firms in a group are NOT authorised to provide which service?

What is the key difference between sensitivity analysis and scenario analysis in stress testing?

If a CIF’s remuneration policy includes discretionary pension benefits, when must these benefits be paid to an employee who leaves before retirement?