The classification of changes in the IRB approach shall be carried out in accordance with this Article and Articles 4 and 5.
The classification of extensions and changes in the AMA shall be carried out in accordance with this Article and Articles 6 and 7.
The classification of extensions and changes in the IMA shall be carried out in accordance with this Article and Articles 7a and 7b.
Where institutions are required to calculate the quantitative impact of any extension or change on own funds requirements or, where applicable, on risk-weighted exposure amounts, they shall apply the following methodology:
for the purpose of the assessment of the quantitative impact institutions shall use the most recent data available;
where a precise assessment of the quantitative impact is not feasible, institutions shall instead perform an assessment of the impact based on a representative sample or other reliable inference methodologies;
for changes having no direct quantitative impact, no quantitative impact as laid down in Article 4(1)(c) for IRB approach or Article 6(1)(c) for AMA or Article 7a(1)(c) for IMA needs to be calculated.
One material extension or change shall not be split into several changes or extensions of lower materiality.
In case of doubt, institutions shall assign extensions and changes to the category of the highest potential materiality.
Where competent authorities have provided their permission in relation to a material extension or change, institutions shall calculate the own funds requirements based on the approved extension or change from the date specified in the new permission which shall replace the prior one. The non-implementation on the date specified in the new permission of an extension or change for which permission from competent authorities has been given, shall require a new permission from competent authorities which shall be applied for without undue delay.
In case of delay of the implementation of an extension or change for which permission from the competent authority has been granted, the institution shall notify the competent authority and present to the competent authority a plan for a timely implementation of the approved extension or change, which it shall apply within a period to be agreed with the competent authority.
Where an extension or change is classified as one requiring prior notification to competent authorities, and where, subsequently to the notification, institutions decide not to implement the extension or change, institutions shall notify without undue delay the competent authorities of this decision.