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

EBA has launched a public consultation on its draft guidelines regarding the assessment of adequate knowledge and experience of the management or administrative organ of credit servicers under the NPLD.
The NPLD establishes a Union-wide framework for both purchasers and servicers of non-performing credit agreements issued by credit institutions. Credit servicers must obtain authorization from, and be subject to the supervision of, competent authorities. They must ensure that they meet suitability requirements at all times, including where the business activities or the composition of the management or administrative organ change.
The purpose of the present guidelines open for consulation is to ensure that credit servicers conduct their business in a competent and responsible manner. To ensure the integrity of the market and promote trust, it is important to have credit servicers with a suitable management or administrative organ. The EBA’s guidelines specify the criteria for assessing the organs‘ collective knowledge and experience. This assessment will be conducted based on the individual member’s assessment by credit servicers, taking into account the principle of proportionality.
The guidelines also specify the requirements of the credit servicer’s assessment process, including good reputation, and specify when such an assessment should be conducted. If shortcomings are identified, the credit servicer must take appropriate corrective measures, such as providing induction and training or replacing members of the management body.
EBA will also hold a public hearing via conference call on 12 June 2023, to discuss the draft guidelines. Interested parties can submit comments through the consultation page until 17 July 2023.