Updated 15/10/2025
Coming into force on 03/11/2025

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CRR ToolDelegated Regulation 2025/1311
Article 3

Article 3 - Delegated Regulation 2025/1311

Article 3

Non-material changes to, and non-material extensions of, the use of the alternative internal models requiring notification with additional information

1.   Institutions shall categorise non-material changes to the use of their alternative internal models as requiring notification with additional information, as referred to in Article 1(2), point (a), where those changes fulfil any of the following conditions:

(a)

they meet any of the qualitative criteria set out in the Part II of the Annex;

(b)

they result in a change equal to or higher than 1 %, in absolute terms, calculated for the first business day of the testing of the impact of the change of any of the risk numbers Rn i set out in Article 2(4) which are considered as relevant pursuant to Article 2(5), and result in any of the following:

(i)

an increase equal to or higher than 10 % and lower than 15 %, in absolute terms, of the sum S IMA referred to in Article 2(1), point (b)(i);

(ii)

a decrease equal to or higher than 5 % and lower than 10 %, in absolute terms, of the sum S IMA referred to in Article 2(1), point (b)(i);

(iii)

an increase equal to or higher than 15 % and lower than 20 %, in absolute terms, of any of the risk numbers Rn i referred to in Article 2(4) which are considered relevant pursuant to Article 2(5);

(iv)

a decrease equal to or higher than 10 % and lower than 15 %, in absolute terms, of any of the risk numbers Rn i referred to in Article 2(4) which are considered relevant pursuant to Article 2(5).

2.   Institutions shall categorise non-material extensions to the use of their alternative internal models as requiring notification with additional information, as referred to in Article 1(2), point (a), where those extensions fulfil any of the following conditions:

(a)

they meet any of the qualitative criteria set out in Part II of the Annex;

(b)

they result in a change equal to or higher than 1 %, in absolute terms, calculated for the first business day of the testing of the impact of the extension of any of the risk numbers Rn i referred to in Article 2(4) which are considered relevant pursuant to Article 2(5), and result in any of the following:

(i)

a change equal to or higher than 5 % and lower than 10 %, in absolute terms, of the sum S IMA referred to in Article 2(2), point (b)(i);

(ii)

a change equal to or higher than 10 % and lower than 15 %, in absolute terms, of any of the risk numbers Rn i referred to in Article 2(4) which are considered relevant pursuant to Article 2(5).

3.   Institutions shall notify their competent authorities in accordance with Article 325az(7), second subparagraph, of Regulation (EU) No 575/2013, 4 weeks before they implement a non-material extension or change to the use of their alternative internal models.

4.   To assess whether the conditions referred to in paragraph 1, points (b)(i) or (b)(iii) are fulfilled, institutions shall determine the impact of the change to the use of their alternative internal models by taking the highest increase, in absolute terms over the period referred to in Article 2(9), of the ratios referred to in Article 2(7) or (8), respectively.

To assess whether the conditions referred to in paragraph 1, points (b)(ii) or (b)(iv) are fulfilled, institutions shall determine the impact of the change to the use of their alternative internal models by taking the highest decrease, in absolute terms over the period referred to in Article 2(9), of the ratios referred to in Article 2(7) or (8), respectively.

To assess whether the conditions referred to in paragraph 2, points (b)(i) or (b)(ii) are fulfilled, institutions shall determine the impact of the extension to the use of their alternative internal models by taking the highest change, in absolute terms over the period referred to in Article 2(9) of the ratios referred to in Article 2(7) or (8), respectively.