The European Banking Authority (EBA) published today its final Guidelines on passport notifications for mortgage credit intermediaries in support of the transposition of the Mortgage Credit Directive (MCD). The Guidelines will ensure that information about credit intermediaries carrying out business in more than one Member State is exchanged consistently between national authorities.
The MCD, which will have to be transposed into national law across the EU by March 2016, provides that passport notifications will need to be exchanged between national authorities competent for the registration and/or supervision of mortgage credit intermediaries across the EU Member States. The EBA Guidelines formalise the notification process between the national authorities in the home and host Member States.
They will ensure that information on the provision of services and the establishment of branches, as well as on the transmission of notifications, the registrations, and the notifications of changes is shared consistently across the EU. The Guidelines also include template notification forms for exercising the freedom to provide services and freedom of establishment, as foreseen in Article 32 of the MCD.
Background and legal basis
Article 32 of the Mortgage Credit Directive provides that an admitted 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 national authority of its home Member State.
The EBA Guidelines will apply from the transposition date of the MCD, i.e. 21 March 2016. Following the publication of the English version, the EBA will make available, in due course, the translations of these Guidelines in all EU languages. Within two months from the publication of the translated Guidelines, or within two months of the date on which they are designated in their Member State as competent for the relevant provisions of MCD, whichever is the later date, competent authorities across the EU shall confirm to the EBA their compliance status, which will be disclosed on the EBA website.