2. Scope and level of application

Competent authorities should require institutions to comply with the provisions laid down in these Guidelines on Stressed VaR.

These guidelines should apply to institutions using an Internal Model Approach (IMA) for the purpose of calculating the capital requirement for market risk in the trading book.

The guidelines apply to institutions at the level (solo and/or consolidated) on which the model is authorised to be used by the relevant competent authority, unless stated otherwise in these Guidelines.