Article 32 of the Mortgage Credit Directive (MCD) provides that an admitted mortgage credit intermediary intending to carry out business for the first time in one or more Member States under the freedom to provide services or when establishing a branch shall inform the competent authorities of its home Member State. Within a period of one month after being informed, the home Member State competent authority shall notify the competent authorities of the host Member States concerned of the intention of the mortgage credit intermediary and shall at the same time inform the mortgage credit intermediary concerned of that notification.
To ensure that the provisions of the MCD on passport notifications are applied consistently across the EU, the European Banking Authority (EBA) is proposing to formalise the passport notifications that are to be made by Member State competent authorities from the transposition date of the MCD (21 March 2016) onwards.
In December 2014 the EBA published a Discussion Paper setting out draft requirements on passport notifications and draft template notification forms. Following analysis of the responses to the Discussion Paper the EBA has now issued a Consultation Paper concerning draft guidelines for passport notifications for mortgage credit intermediaries under the MCD.
The deadline for comments on the Consultation Paper is 4 July 2015.