On 19 July 2024, the European Banking Authority (EBA) issued a consultation paper on a handbook chapter on independent valuers for resolution.
The EBA has already issued regulatory technical standards (RTS) on independent valuers under Article 36(14) of the Bank Recovery and Resolution Directive. These RTS determine the circumstances under which a person is to be considered independent from any public authority, including the resolution authority, and the relevant entity and can therefore act as an independent valuer.
In line with the RTS the proposed handbook chapter identifies best practices for the three elements of independence that the resolution authority should assess for the valuer:
- The resolution authority should ensure that the valuer possesses the necessary qualifications, experience, ability, knowledge and resources.
- That the valuer is legally separated from the relevant public authority and the relevant entity.
- That the valuer has no material common or conflicting interest with the relevant public authority or the relevant entity.
The deadline for comments on the consultation paper is 19 September 2024.
Depending on the feedback received the EBA intends to publish a final report and version of the handbook before the end of this year.