We welcome the institutions' right to choose to carry out the due diligence upon conclusion of a contract or quarterly. As correctly described in the draft RTS, the frequency of trading with NFCs is an important aspect. For institutions with a low volume of trading with non-EU NFCs, it is disproportionate to carry out the due diligence on a quarterly basis. Moreover, there is no risk if the due diligence is carried out upon conclusion of a contract, as the contract will remain exempt until maturity. If an NFC+ becomes NFC- during a trade, then all contracts are to be exempted from the CVA risk charge. If the contracts are not exempt, the institution's course of action is hence more conservative than required by the supervisory authorities. Nevertheless, it is disproportionate for banks with a high volume of trading with non-EU NFCs to carry out a due diligence and provide documentation each time a contract is concluded.