8 Assessment by competent authorities

Competent authorities should specify the supervisory procedures applicable to the assessment of adequate knowledge and experience of the management or administrative organ, as a whole, of credit servicers and the good repute of its members. Competent authorities should ensure that a description of supervisory procedures is publicly available.

Supervisory procedures should ensure that information made available to competent authorities by the credit servicer during the course of the authorisation process is used as appropriate, where possible, for the purpose of the assessment of adequate knowledge and experience. In particular, the supervisory procedures should take into account situations where credit servicers are also authorised or supervised by non-financial authorities in order to ensure efficient coordination.

Competent authorities should require from the credit servicer a list of the names of the members of the management or administrative organ and their respective roles and functions in brief, and a statement of the credit servicer regarding the result of its overall assessment of the collective suitability of the management or administrative organ, as a whole. This should include a description of how the overall composition of the management body reflects an adequately broad range of knowledge and experience, and the identification of any gaps or weaknesses and the measures imposed to address these.

For the assessment of knowledge and experience, the competent authority should at least require for all members of the management or administrative organ a curriculum vitae containing details of education and professional experience including academic qualifications and other relevant training, the name and nature of all organisations for which the individual has worked and the nature and duration of the functions performed, highlighting in particular any activities within the scope of the position sought, including but not limited to banking and management experience.

For the assessment of the good repute of members, the competent authority should require information concerning the following:

• a. police records or other national equivalent in relation to relevant criminal offences in accordance with Article 5 (b)(i) of Directive (EU) 2021/2167;
• b. investigations, enforcement proceedings, or sanctions by a supervisory authority in which the individual has been directly or indirectly involved;
• c. refusal of registration, authorisation, membership or a licence to carry out a trade, business or profession; or the withdrawal, revocation or termination of registration, authorisation, membership or a licence; or expulsion by a regulatory or government body or by a professional body or association;
• d. dismissal from employment or a position of trust, fiduciary relationship, or similar situation, or having been asked to resign from employment in such a position (excluding redundancies); and
• e. whether or not an assessment of the good repute of the individual has already been conducted by another competent authority (including the identity of that authority, the date of the assessment and evidence of the outcome of this assessment).

Without prejudice to Article 5(1)(c) of Directive (EU) 2021/2167 specifying the assessment of the suitability of members of the management or administrative organ in the context of the authorisation of a credit servicer, competent authorities should set out a maximum period for their assessment of adequate knowledge and experience of the management or administrative organ, as a whole, of credit servicers and the good repute of its members where such assessments take place after the authorisation of the credit servicer. Where a competent authority establishes that additional documentation and information are needed to complete the assessment, that period may be suspended from the time when the competent authority requests additional documentation and information necessary to complete the assessment, until the receipt of that documentation and information.

Competent authorities should inform credit servicers of at least a negative decision on the assessment of suitability as soon as possible. Where provided by national law or defined by the competent authority as part of their supervisory processes, a positive decision may be deemed to be taken by silence, when the maximum period for the assessment, as referred to in paragraph 54, is completed and the competent authority has not taken a negative decision.

Competent authorities should ensure that their supervisory procedures allow them to address cases of non-compliance with the requirement that the management or administrative organ, as a whole, has adequate knowledge and experience.