1. Institutions shall categorise non-material changes to their choice of the subset of modellable risk factors as requiring notification with additional information, in accordance with Article 4(2), point (a), where they result in all of the following:
a change equal to or higher than 1 %, in absolute terms, computed for the first business day of the testing of the impact of the change to the institution’s choice of the subset of modellable risk factors, of the risk numberRn1set out in Article 2(4), point (a);
any of the following:(i)an increase equal to or higher than 10 % and lower than 15 %, in absolute terms, of the sumSIMAreferred to in Article 2(2), point (b)(i);(ii)a decrease equal to or higher than 5 % and lower than 10 %, in absolute terms, of the sumSIMAreferred to in Article 2(2), point (b)(i);(iii)an increase equal to or higher than 15 % and lower than 20 %, in absolute terms, of the risk numberRn1referred to in Article 2(4), point (a);(iv)a decrease equal to or higher than 10 % and lower than 15 %, in absolute terms, of the risk numberRn1referred to in Article 2(4), point (a);
an increase equal to or higher than 10 % and lower than 15 %, in absolute terms, of the sumSIMAreferred to in Article 2(2), point (b)(i);
a decrease equal to or higher than 5 % and lower than 10 %, in absolute terms, of the sumSIMAreferred to in Article 2(2), point (b)(i);
an increase equal to or higher than 15 % and lower than 20 %, in absolute terms, of the risk numberRn1referred to in Article 2(4), point (a);
a decrease equal to or higher than 10 % and lower than 15 %, in absolute terms, of the risk numberRn1referred to in Article 2(4), point (a);
Rchangedoes not meet the criterion set out in Article 5(1), point (b)(v).
2. Institutions shall notify their competent authorities in accordance with Article 325az(7), second subparagraph, of Regulation (EU) No 575/2013 4 weeks before they implement a non-material change to their choice of the subset of modellable risk factors. Institutions shall, however, notify any changes to their choice of subset of the modellable risk factors that follow from a failure to meet the requirement set out in Article 325bc(2), point (a), of that Regulation before they implement such a change.
3. To assess whether the conditions referred to in paragraph 1, points (b)(i) or (b)(iii), are fulfilled, institutions shall determine the impact of the change to the their choice of the subset of modellable risk factors by taking the highest increase, in absolute terms over the period referred to in Article 2(9), of the ratios referred to in Article 2(7) or (8), respectively. To assess whether the conditions referred to in paragraph 1, points (b)(ii) or (b)(iv) are fulfilled, institutions shall determine the impact of the change to their choice of subset of modellable risk factors by taking the highest decrease, in absolute terms over the period referred to in Article 2(9), of the ratios referred to in Article 2(7) or (8), respectively.