Recital 3

(3)The level of the additional own funds requirement is deemed adequate when it reduces the likelihood of investment firm failure and limits the risk of disorderly wind-down that would pose threats to the investment firm’s clients and to the wider market, including other financial institutions, market infrastructures, or the market as a whole. Due to this dual objective of the additional own funds requirement and in keeping with the structure of the own funds requirements as set out in Parts Three and Four of Regulation (EU) 2019/2033 of the European Parliament and of the Council ² , competent authorities should consider separately the risks related to ongoing investment firm activities and the risk of disorderly wind-down of the investment firm’s business.