L 166/22 Official Journal of the European Union 5.6.2014 COMMISSION IMPLEMENTING REGULATION (EU) No 602/2014 of 4 June 2014 laying down implementing technical standards for facilitating the convergence of supervisory prac- tices with regard to the implementation of additional risk weights according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2013 ('), and in particular Article 410(3) thereof, Whereas: (1) It is appropriate to provide for implementing technical standards to facilitate the convergence of supervisory prac- tices with regard to the implementation of a uniform approach to assess institutions’ material non-compliance with the requirements by reason of negligence or omission, and to the application of the additional risk weights. In order to facilitate the convergence of supervisory practices when applying additional risk weights, an appro- priate formula should be defined. That formula should impose a proportionate additional risk weight of no less than 250 % which progressively increases with subsequent infringements of Articles 405, 406 or 409 of Regu- lation (EU) No 575/2013. An appropriate factor should be introduced in the formula to allow for a lower addi- tional risk weight to apply in the cases of exposures exempted pursuant to Article 405(3) of Regulation (EU) No 575/2013. (2)  This Regulation is based on the draft regulatory technical standards submitted by the European Banking Authority to the Commission. (3)  The European Banking Authority has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council (3, HAS ADOPTED THIS REGULATION: Article 1 General considerations 1. Competent authorities shall ensure that any additional risk weight imposed pursuant to Article 407 of Regulation (EU) No 575/2013 is applied to all relevant securitisation positions, held by an institution, which are affected by the material infringement of Article 405, 406 or 409 of Regulation (EU) No 575/2013. 2. Where an institution rectifies its infringement of the requirements provided in Article 405, 406 or 409 of Regu- lation (EU) No 575/2013, the additional risk weight shall cease to apply as soon as the rectification is notified to the competent authority. () OJL176,27.6.2013,p. 1 () Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervi- sory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJL 331,15.12.2010, p. 12).