Assessment of Advanced Measurement Approaches
Article 1
1. The assessment under which the competent authorities permit an institution to use Advanced Measurement Approaches (AMA) shall confirm that: (a) the elements in Articles 3 to 6 are fulfilled; (b) Chapters 2 and 3 are fulfilled; (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: (a) an assessment of the materiality of extensions and changes to the AMA used by an institution; (b) an assessment of the sequential implementation plan to the AMA used by an institution; (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; (d) the ongoing reviews of an AMA used by an institution.