Article 1
Assessment of Advanced Measurement Approaches
1. The assessment under which the competent authorities permit an institution to use Advanced Measurement Approaches (AMA) shall confirm that:
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(a) |
the elements in Articles 3 to 6 are fulfilled; |
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(b) |
Chapters 2 and 3 are fulfilled; |
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(c) |
Chapter 4 is fulfilled where the institution has adopted the insurance and other risk transfer mechanisms referred to therein. |
2. Chapters 1 to 4 shall be taken into account where competent authorities conduct the following:
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(a) |
an assessment of the materiality of extensions and changes to the AMA used by an institution; |
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(b) |
an assessment of the sequential implementation plan to the AMA used by an institution; |
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(c) |
an assessment of an institution's return to the use of less sophisticated approaches in accordance with Article 313 of Regulation (EU) No 575/2013; |
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(d) |
the ongoing reviews of an AMA used by an institution. |