Version in force , Inserted +1,092 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2987 32024R2987 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2795 32024R2795 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
A new Article 494d has been added, allowing an institution to revert to less sophisticated approaches for one or more exposure classes referred to in Article 147(2), as a derogation from Article 149, subject to five listed conditions covering prior authorisation, a one-time-only reversion within the period, absence of regulatory arbitrage intent, six-month prior notification to the competent authority, and the absence of an objection from that authority within three months.
Cited: Art. 494d, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex
Inserted in this version 02013R0575-20250101
Article 494d Reversion to less sophisticated approaches By way of derogation from Article 149, an institution may from 9 July 2024 until 10 July 2027, revert to less sophisticated approaches for one or more of the exposure classes referred to in Article 147(2), where all of the following conditions are met: (a) the institution already existed on 8 July 2024 and was authorised by its competent authority to treat those exposure classes under the IRB Approach; (b) the institution requests a reversion to a less sophisticated approach only once during that three-year period; (c) the request to revert to a less sophisticated approach is not made with a view to engaging in regulatory arbitrage; (d) the institution has formally notified the competent authority that it wishes to revert to a less sophisticated approach for those exposure classes at least six months before it effectively does revert to that approach; (e) the competent authority has not objected to the institution’s request to such reversion within three months of the receipt of the notification referred to in point (d).