06 July 2015

EBA publishes technical standards on independent valuers

The European Banking Authority’s RTS sets out the general criteria against which valuers should be assessed to determine whether they comply with the legal requirement of independence for the purposes of performing valuation tasks under the Bank Recovery and Resolution Directive (BRRD).

The BRRD specifies, among other things, that independent valuers shall be appointed to determine whether the conditions for resolution are met as well as the scope of resolution measures to be taken. In this respect, these final draft RTS aim to ensure that eligibility to be an independent valuer is assessed in a consistent manner across the Union, thereby increasing legal certainty, enhancing confidence in the valuation process and ensuring a level playing field. In particular, the draft RTS set out general criteria under which a person can be deemed independent from both the resolution authority and the institution or entity subject to the valuation.

Besides possessing the qualifications, experience, ability, knowledge and resources required to carry out the valuation effectively, the valuer must be legally separated from the relevant public authorities and the entity subject to the valuation and have no actual or potential material interests in common or in conflict with any relevant authority or the entity concered which could influence the valuer's judgement in carrying out the valuation.

Only two specific situations are identified by the final draft RTS as situations which preclude per se a person from being the independent valuer: where the person is not separate from the any relevant public authority or the entity subject to valuation and where the person, in the year preceding the date on which that person's eligibility to act as independent valuer is assessed, has completed a statutory audit of the entity concerned.

Further to consultation feedback, the draft RTS have been refined to ensure an appropriate balance between the need for harmonisation of the process for assessing independence whilst at the same time ensuring that all matters relevant to the appointment of an independent valuer in a particular case (e.g. in terms of the expertise and experience needed) can be taken into account.

Press release

RTS on independent valuers

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