Date of application

9. These guidelines apply from 1 January 2021. Institutions should incorporate the requirements of these guidelines in their rating systems by that time, but competent authorities may accelerate the timeline of this transition at their discretion.

First application of these Guidelines

10. The internal validation function of institution should verify the changes which are applied to the rating systems as a result of the application of these guidelines, consistently with EBA final draft regulatory technical standards on the IRB assessment methodology EBA/RTS/2016/03 [RTS on IRB assessment methodology] of 21 July 2016 and the classification of the changes in accordance with Commission Delegated Regulation (EU) No 529/201411.