Article 4 Qualitative conditions

Competent authorities may only grant the data waiver permission to an institution that provides well-documented evidence that all the following conditions are met in respect of every type of exposure:

  1. (a)

    longer time series data are unavailable or unsuitable due to lack of accuracy, completeness or appropriateness;

  2. (b)

    an appropriate margin of conservatism is applied, in accordance with point (a) of Article 179(1) of Regulation (EU) No 575/2013 to adequately compensate for the expected range of estimation errors arising from the use of shorter historic data series;

  3. (c)

    the data input vetting process referred to in point (b) of Article 174 of Regulation (EU) No 575/2013 is enhanced for the shorter time series.