7. For the purposes of paragraph 2, point (d)(iii), competent authorities may, on a sample of risk factors for which the approach referred to in Article 10(4), of Delegated Regulation (EU) 2024/397 is used, verify whether the corresponding selected risk factors meet the conditions referred to in paragraph 5 of that Article.
When verifying whether the two risk factors are of the same nature in accordance with Article 10(5), point (b), of Delegated Regulation (EU) 2024/397 and whether those risk factors do not differ for features leading to an underestimation of the volatility in accordance with Article 10(5), point (c), of that Delegated Regulation, competent authorities shall verify whether the risk factors share the main characteristics, and whether the selected risk factor attracts name-related specific risk if the non-modellable risk factor attracts it.