---
kind: "section"
citation: "12 C.F.R. § 217.123"
title: "12"
number: "217.123"
heading: "Ongoing qualification."
url: "https://uscodex.org/cfr/12/217.123"
---

# §217.123. Ongoing qualification.

- (a) **Changes to advanced systems.** A Board-regulated institution must meet all the qualification requirements in [§ 217.122](/cfr/12/217.122.md) 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](/cfr/12/217.122.md), 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.

## Notes

### Authority

Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116-136, 134 Stat. 281.

### Source

Source: Reg. Q, 78 FR 62157, 62285, Oct. 11, 2013, unless otherwise noted.