Article 4 — Annual validation fees

1.For each pro forma model that is validated as of 1 January of a year and that a counterparty uses or applies for validation in accordance with Article 11(3), fourth subparagraph, of Regulation (EU) No 648/2012 in that year, the counterparty shall pay to the EBA a fee of:

where:

— n = the index denoting the counterparty using, or applying for validation to use, as applicable, pro forma model p;

— y = the index denoting the reference year;

— p = the index denoting the pro forma model validated by the EBA as of 1 January of year y;

— EBA costs _y = the amount estimated in accordance with Article 2 for the year y for pro forma models validated by the EBA as of 1 January of that year;

— Number of models _y = the number of pro forma models validated by the EBA as of 1 January of year y, floored at 1;

— Average Notional Amount _n,p the amount calculated by counterparty n, for the pro forma model p, in accordance with Article 3;

—.

2.Pro forma models that despite being validated are subject to the fee referred to in Article 6 shall not be considered in the calculation set out in paragraph 1.

3.By way of derogation from paragraph 1, a counterparty that becomes subject to the requirement to apply for validation of a pro forma model after 31 March of a given year shall not pay any fee for that year for that pro forma model.