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).