(4)Different activities of investment firms may affect their liquidity profile in different ways. Changes in the value of asset prices may generate losses and affect investment firms’ balance sheets and liquidity position, despite those firms not holding clients’ assets on own account. Investment firms providing portfolio management services may be sensitive to market fluctuations that can create or sharpen the cash flow mismatches between inflows from payment of fees typically received on a quarterly or semi-annual basis and outflows for the payment of liabilities as they fall due. It is therefore appropriate to specify for each investment service or activity listed in Section A of Annex I to Directive 2014/65/EU the criteria that competent authorities should consider when measuring whether the liquidity risk or elements of liquidity risk of an investment firm are sufficiently covered by the liquidity requirement set out in Part Five of Regulation (EU) 2019/2033. Competent authorities should in particular be required to consider those investment services or activities that are most sensitive to market fluctuations because such fluctuations are unpredictable in both timing and scale, and may affect the liquidity risk in different ways, including higher margin calls, lower profits and reduced fees.