The competent authorities may authorise the limits laid down in Articles 111 to 117 of Directive 2006/48/EC to be exceeded if the following conditions are met:
(a)the exposure on the non-trading book to the client or group of clients in question does not exceed the limitslimit laid down in ArticlesArticle 111 to 117111(1) of Directive 2006/48/EC, thosethis limitslimit being calculated with reference to own funds as specified in that Directive, so that the excess arises entirely on the trading book;
(b)the institution meets an additional capital requirement on the excess in respect of the limitslimit laid down in Article 111(1) and (2) of Directive 2006/48/EC, that additional capital requirement being calculated in accordance with Annex VI to thatthis Directive;
(c)where 10 days or less has elapsed since the excess occurred, the trading-book exposure to the client or group of connected clients in question shall not exceed 500 % of the institution's own funds;
(d)any excesses that have persisted for more than 10 days must not, in aggregate, exceed 600 % of the institution's own funds; and
(e)institutions shall report to the competent authorities every three months all cases where the limitslimit laid down in Article 111(1) and (2) of Directive 2006/48/EC havehas been exceeded during the preceding three months.
In relation to point (e), in each case in which the limitslimit havehas been exceededexceeded, the amount of the excess and the name of the client concerned shall be reported.