(1) Where an investment firm does not meet the conditions, set out in Article 12(1) of Regulation (EU) 2019/2033, to qualify as a small and non-interconnected investment firm, it shall have in place sound, effective and comprehensive arrangements, strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital and liquid assets that the investment firm considers adequate to cover the nature and level of risks which the firm may pose to others and to which the firm itself is, or might be, exposed.

(2) The arrangements, strategies and processes referred to in paragraph (1) shall be -

(a) appropriate and proportionate to the nature, scale and complexity of the activities of the investment firm concerned, and

(b) subject to regular internal review.

(3) Where an investment firm meets the conditions, set out in Article 12(1) of Regulation (EU) 2019/2033, to qualify as a small and non-interconnected investment firm, the Bank may request the firm to apply the requirements provided for in this Regulation to the extent that the Bank deems it to be appropriate.