(a) Changes to advanced systems. A Board-regulated institution must meet all the qualification requirements in §217.122 on an ongoing basis. A Board-regulated institution must notify the Board when the Board-regulated institution makes any change to an advanced system that would result in a material change in the Board-regulated institution's advanced approaches total risk-weighted asset amount for an exposure type or when the Board-regulated institution makes any significant change to its modeling assumptions.

(b) Failure to comply with qualification requirements.

(1) If the Board determines that a Board-regulated institution that uses this subpart and that has conducted a satisfactory parallel run fails to comply with the qualification requirements in §217.122, the Board will notify the Board-regulated institution in writing of the Board-regulated institution's failure to comply.

(2) The Board-regulated institution must establish and submit a plan satisfactory to the Board to return to compliance with the qualification requirements.

(3) In addition, if the Board determines that the Board-regulated institution's advanced approaches total risk-weighted assets are not commensurate with the Board-regulated institution's credit, market, operational, or other risks, the Board may require such a Board-regulated institution to calculate its advanced approaches total risk-weighted assets with any modifications provided by the Board.