(1) The Bank shall only impose the additional own funds requirement referred to in Regulation 35(1)(a) where, on the basis of the reviews carried out in accordance with Regulations 32 and 33, it ascertains that any of the following apply to an investment firm:

(a) the investment firm is exposed to risks or elements of risks, or poses risks to others that are material and are not covered or not sufficiently covered by the own funds requirement, and especially K-factor requirements, set out in Part Three or Four of Regulation (EU) 2019/2033;

(b) the investment firm does not meet the requirements set out in Regulations 21 and 23 and other supervisory measures are unlikely to sufficiently improve the arrangements, processes, mechanisms and strategies within an appropriate timeframe;

(c) the adjustments in relation to the prudent valuation of the trading book are insufficient to enable the investment firm to sell or hedge out its positions within a short period without incurring material losses under normal market conditions;

(d) the review carried out in accordance with Regulation 33 shows that non-compliance with the requirements for the application of the permitted internal models will likely lead to inadequate levels of capital;