This Regulation outlines key definitions critical for understanding compliance within the financial sector. A "financial institution" encompasses any entity under regulation as per the specified legislative acts, while "competent authorities" refer to designated bodies tasked with enforcement and compliance oversight across various Directives and Regulations.

Authorities include those defined in established EU Regulations, such as the European Central Bank, resolution authorities, and bodies overseeing specific compliance aspects like consumer credit and investment firm prudential requirements. This framework ensures that financial institutions adhere to rigorous standards, enhancing accountability and safeguarding public interest.