First application of the Guidelines
The internal validation function should verify the changes which are applied to the rating systems as a result of the application of these guidelines and the regulatory technical standards to be developed in accordance with Article 144(2) of Regulation (EU) No 575/2013, and the classification of the changes in accordance with Commission Delegated Regulation (EU) No 529/2014(11).
Institutions that need to obtain prior permission from competent authorities in accordance with Article 143(3) of Regulation (EU) No 575/2013 and Regulation (EU) No 529/2014 for the changes in the rating systems required to incorporate these guidelines for the first time by the deadline referred to in paragraph 9 should agree with their competent authorities the final deadline for submitting the application for such prior permission.