On 12 June 2023, the draft legislative proposal for the implementation of the Non-Performing Loans Directive (Directive (EU) 2021/2167, the NPL Directive) has been published for public consultation (the Legislative Proposal). The NPL Directive sets out a common EU framework and requirements for credit (loan) servicers and purchasers, including NPL investors.
The Legislative Proposal introduces a licence obligation for parties engaged in servicing NPLs, credit servicers. Such credit servicers will be required to obtain a licence from the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM). These credit services will become subject to ongoing requirements with regard to the suitability and integrity of their directors, sound and ethical business operations and further specific requirements for credit servicers. It also establishes requirements for credit purchasers and amends the rules on consumer credit and mortgage credit in the Dutch Civil Code (Burgerlijk Wetboek).
The Legislative Proposal provides that when implementing the NPL Directive into Dutch law, it is decided to implement the Member State option to allow credit servicers to hold funds for credit purchasers. According to the Legislative Proposal, this is in line with current market practice.
The competent authority responsible for monitoring compliance with the national rules implementing the NPL Directive will be the AFM.
Market parties are invited to respond to the Legislative Proposal. The deadline for responding 11 July 2023. The Legislative Proposal is available here.