The EBA publishes guidance to assess the knowledge and experience of the management or administrative organ of a credit servicer

EBA has released its final Guidelines on the assessment of adequate knowledge and experience of the management or administrative organ of a credit servicer as a whole, under NPLD. These guidelines were open for consultation in April 2023 (eventid=20693) and aim to ensure that the organs of a credit servicer are suitable to carry out their duties in a competent and responsible manner.
The NPLD establishes a Union-wide framework for both purchasers and servicers of non-performing credit agreements issued by credit institutions. Credit servicers should obtain authorization from and be subject to the supervision of competent authorities.
The guidelines outline the criteria for assessing the collective knowledge and experience of the management or administrative organ, based on the individual members‘ assessment. The assessment process should be proportionate to the size, internal organization, and nature, scale, and complexity of the credit servicer’s activities.
The guidelines also cover the assessment of the good repute of the members of the credit servicer’s organs. Credit servicers must ensure that their management or administrative organs meet the suitability requirements at all times, including where the business activities or the composition of the organ change.
Credit servicers should establish appropriate and proportionate policies and procedures to ensure that the requirements are met on an ongoing basis. Competent authorities should have processes in place for the assessment of the adequate collective knowledge and experience of members of the management or administrative organ of credit servicers and should specify the supervisory procedures applicable to this assessment.