Scope of application

These guidelines apply with regard to requests for permission by institutions applying the requirements of Regulation (EU) No 575/2013 on an individual basis as well as to requests for permission by institutions applying the requirements of Regulation (EU) No 575/2013 on a consolidated basis. Where institutions request a permission at both these levels these guidelines apply separately at each level, even if the request for that permission is made at the same time.

These guidelines apply to all institutions, irrespective of whether they calculate the own funds requirements for foreign exchange risk in accordance with the standardised approach referred to in Title IV, Chapter 3 of Regulation (EU) No 575/2013 for all of their positions, or in accordance with the internal model approach referred to in Title IV, Chapter 5 of that Regulation for all of their positions, or based on one of these approaches for some of their positions and the other approach for the remaining positions.