93. Competent authorities should assess whether the institution has an appropriate and transparent corporate structure that is ‘fit for purpose’ and a sound corporate and risk culture that is comprehensive and proportionate to the nature, scale and complexity of the risks inherent within the business model and the institution's activities and consistent with the institution’s risk appetite.
94. In line with the EBA Guidelines on internal governance, competent authorities should assess whether:
a. the management body knows and understands the legal, organisational and operational structure of the institution (‘know your structure’) and ensures that it is consistent with its approved business and risk strategies and risk appetite;
b. institutions have not set up opaque or unnecessarily complex structures that have no clear economic rationale or legal purpose, and when setting up structures the management body understands them, their purpose and the particular risks associated w
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