Article 1 Assessment of Advanced Measurement Approaches

  1. (1)

    The assessment under which the competent authorities permit an institution to use Advanced Measurement Approaches (AMA) shall confirm that:

    1. (a)

      the elements in Articles 3 to 6 are fulfilled;

    2. (b)

      Chapters 2 and 3 are fulfilled;

    3. (c)

      Chapter 4 is fulfilled where the institution has adopted the insurance and other risk transfer mechanisms referred to therein.

  2. (2)

    Chapters 1 to 4 shall be taken into account where competent authorities conduct the following:

    1. (a)

      an assessment of the materiality of extensions and changes to the AMA used by an institution;

    2. (b)

      an assessment of the sequential implementation plan to the AMA used by an institution;

    3. (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;

    4. (d)

      the ongoing reviews of an AMA used by an institution.