(7)Article 255(4) of Regulation (EU) No 575/2013 stipulates that institutions may calculate Kirb in relation to the underlying exposures of a securitisation in accordance with, inter alia, Article 143 of that Regulation. That Article requires institutions, for each rating system, to obtain the permission of the competent authority concerned to use the IRB approach, and to obtain the permission for material changes to the range of application of a rating system that the institution has received permission to use. Commission Delegated Regulation (EU) No 529/2014note lays down the conditions for assessing the materiality of extensions and changes to the IRB approach, including the modalities of the notifications of such extensions and changes. It follows that Delegated Regulation (EU) No 529/2014 also applies where changes occur to an internal model for calculating KIRB for qualifying securitised exposures. Furthermore, Article 143(2) of Regulation (EU) No 575/2013 requires prior permission from the competent authority to use the IRB approach for each rating system. However, in the context of calculating KIRB for the purposes of this Regulation, an institution would be unable to comply with that requirement in relation to the pool of qualifying securitised exposures because such exposures could never be managed homogeneously under an ordinary IRB rating system as similar exposures, either securitised or not securitised, that are serviced and originated by the institution concerned. It is therefore necessary to provide that the permission to use the SEC-IRBA in accordance with an internal model for calculating KIRB should only be subject to the condition that the institution calculating KIRB has received permission to use the IRB approach in relation to at least one rating system within the exposure class to which the qualifying securitised exposures are assigned.
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