3.Institutions may use the prudential boundary approach in combination with the accounting approach.For the purposes of the first subparagraph, institutions may apply the prudential boundary approach to certain entities within the same group or certain types of operations. In that case, institutions shall demonstrate that the selection of the scope of the prudential boundary approach is not made to engage in regulatory arbitrage. Institutions shall apply the accounting approach to the remaining part of the balance sheet. Institutions shall notify competent authorities of any material change to the scope of the prudential boundary approach in accordance with Article 13.