1.   A credit institution shall notify the competent authority that it intends to apply one or both of the derogations provided for in Article 419(2) of Regulation (EU) No 575/2013. The notification shall be provided in writing 30 days prior to the date of the first application of the derogation.

Where an institution intends to make any material change in its application of the derogation(s) as notified in accordance with the first subparagraph, it shall notify the competent authority thereof 30 days prior to the date of the first application of such change.

In exceptional circumstances where, due to sudden market developments, idiosyncratic events or other factors outside the control of the institution, it is not possible to notify the competent authorities of a material change 30 days prior to its first application, institutions shall provide a preliminary notification to competent authorities prior to the application of a material change. The preliminary notification shall provide a description of the nature of the material change together with an indication of the extent to which the intended derogation may be applied, expressed as a percentage of the liquid assets required to be held by an institution to meet its liquidity coverage requirement. The preliminary notification shall be completed by a notification in accordance with the second subparagraph within 30 days of the first application of any derogation.

Institutions shall notify competent authorities annually whether they intend to continue applying the derogation notified in accordance with the first subparagraph.

2.   The notification referred to in the first subparagraph of paragraph 1 shall specify the following information:

(a)	whether the notification relates to the derogation provided for in Article 419(2)(a) of Regulation (EU) No 575/2013 or the derogation provided for in Article 419(2)(b) of that Regulation, or both;

(b)	confirmation of compliance with the conditions set out in Article 419(3) of Regulation (EU) No 575/2013 and the requirements of Article 3 of this Regulation;

(c)	if the notification relates to the derogation provided for in Article 419(2)(a) of Regulation (EU) No 575/2013, confirmation of compliance with the requirements of Article 4 of this Regulation;

(d)	if the notification relates to the derogation provided for in Article 419(2)(b) of Regulation (EU) No 575/2013, confirmation of compliance with the requirements of Articles 5 and 6 of this Regulation;

(e)

an estimate of the institution's future application of the derogation(s) in terms of the derogation to be applied, expressed as a percentage, and its variation over time together with a comparison between the institution's liquidity position if it applies the derogation(s) provided for in Article 419(2) of Regulation (EU) No 575/2013 and its liquidity position if it does not apply the derogation(s) provided for in that Article.