Discussion paper on draft requirements on passport notifications for credit intermediaries under the Mortgage Credit Directive

The European Banking Authority (EBA) published today a discussion paper on the draft requirements for passport notifications for mortgage credit intermediaries across the EU. The requirements will ensure that information about credit intermediaries that carry out business in one or more Member States is exchanged consistently between the competent authorities of the home Member State and of the host Member State. The paper issued today contains the EBA’s preliminary considerations on the issue. It aims at promoting discussion and gathering preliminary stakeholders’ views at an early stage of the process, so as to inform the upcoming work on the topic. The consultation runs until 12 March 2015.

 

The Mortgage Credit Directive (MCD) requires coordination, cooperation and information exchanges between competent authorities of different Member States. Under the freedom to provide services and freedom of establishment, the MCD provides that, when a credit intermediary intends to carry out business for the first time in one or more Member States, it shall notify the competent authority of its home Member State. The latter shall then communicate the notification to the competent authorities of the host Member States and advise the credit intermediary concerned that this has been done. 

 

In order to ensure that the provisions in the Directive are applied consistently across the European Union, the EBA is hereby proposing to formalise the passport notifications for credit intermediaries that competent authorities will be responsible for from the transposition of the MCD on 21 March 2016. 

 

The EBA has developed draft requirements for passport notifications, as well as template notification forms for exercising the freedom to provide services and freedom of establishment as provided for in the MCD. These requirements aim to ensure that there is a consistent approach to the information shared on the provision of services and the establishment of branches, as well as the transmission of notifications, the registrations and the notifications of changes. 

 

The views expressed in this discussion paper are preliminary. The EBA is publishing this discussion paper in order to give early indications to market participants about future requirements and to gather stakeholders’ views at an early stage of the process, so as to inform its upcoming work on passporting requirements for mortgage credit intermediaries. The EBA expects to publish the final requirements in the course of 2015.

Comments to this discussion paper can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 12 March 2015.

The Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property (Mortgage Credit Directive - MCD) was published in the Official Journal of the Commission on 28 February 2014, with a transposition date of 21 March 2016.