1.   Where the institutions established in a Member State, including the EU parent undertaking, no longer meet the requirements for applying an internal approach in accordance with Article 143(1), Article 151(4) or (9), Article 283, Article 312(2), or Article 363 of Regulation (EU) No 575/2013, or where any relevant member of the college of supervisors referred to in Article 11(1) of Delegated Regulation (EU) 2025/791 (‘relevant member’) identifies material deficiencies in accordance with Article 101 of Directive 2013/36/EU, the consolidating supervisor and the relevant member shall work together, in full consultation, to agree on any of the following:

(a)	the revocation of the permission to use the internal model as referred to in Article 11(2), point (c), of Delegated Regulation (EU) 2025/791;

(b)	the restriction of the use of the internal model as referred to in Article 11(2), point (c), of that Delegated Regulation;

(c)	the imposition of additional own funds requirements as referred to in Article 11(2), point (d), of that Delegated Regulation.

2.   The consolidating supervisor and the relevant members of the college of supervisors that supervise entities that use the approved internal model and are affected by the deficiencies referred to in paragraph 1 shall jointly take the decision on the revocation of the permission to use an internal model or on the restriction of the use of the internal model. The cooperation between the consolidating supervisor and those members shall follow the procedure set out in Articles 3 to 9 of Commission Implementing Regulation (EU) 2016/100 (8).

3.   A decision on the imposition of additional own funds requirement referred to in paragraph 1, point (c), of this Article shall be taken in accordance with the capital joint decision procedure set out in Article 113(1), point (a), of Directive 2013/36/EU.

4.   The consolidating supervisor shall inform all other members of the college of supervisors on the decisions taken pursuant to paragraph 1, where it considers that such information is likely to affect other activities of the college or is essential for the exercise of the tasks of other members of the college.