19 April 2023

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

EBA launched a public consultation on its draft Guidelines on the assessment of adequate knowledge and experience of the management or administrative organ of credit servicers, as a whole, under the Non-Performing Loans Directive.

The Guidelines aim at ensuring that the organs are suitable to conduct the business of the credit servicer in a competent and responsible manner.

In order to protect the integrity of the market and to promote trust, it is important to ensure that the management or administrative organ of a credit servicer, as a whole, has sufficiently good repute and adequate knowledge and experience to conduct the business in a competent and responsible manner.

The Guidelines specify the criteria for the assessment of the organs’ collective knowledge and experience, which will be performed based on the individual members assessment by credit servicers, taking into account the principle of proportionality.

The Guidelines set out the main requirements of the credit servicers assessment process, including the good repute, and specify when such an assessment has to be performed.

Where short comings are identified, the credit servicer must take appropriate corrective measures, including e.g. to provide induction and training or to replace members of the management body.

EBA

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