On 19 April 2023, the European Banking Authority issued a consultation on 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.
According to Article 5(1) (c) of the Non-Performing Loans Directive, the credit servicer’s management or administrative organ, should have adequate knowledge and experience, as a whole, to conduct the business in a competent and responsible manner. Article 5(1)(b) requires that the members of the applicant’s management or administrative organ are of sufficiently good repute and specifies further the assessment.
The guidelines seek to ensure that the organs are suitable to conduct the business of the credit servicer in a competent and responsible manner.
The deadline for comments on the consultation is 19 July 2023.