ICMSA Publication

The ICMSA have submitted a response (drafted by Catriona Lloyd of Dentons UK & Middle East LLP on behalf of the ICMSA) to the European Banking Authority’s draft consultation paper EBA/CP/203/07 on the EBA Guidelines on the Assessment of Adequate Knowledge and Experience of the Management or Administrative Organ of Credit Servicers, as a whole, under the Credit Servicers Directive (the “Directive”).

While the draft consultation paper was concerned with a specific issue as regards credit servicing, the ICMSA response took the opportunity to reiterate its more general concern (which the FMLC and the LMA have also raised on various occasions) in relation to the definitions of “credit servicer” and “credit servicing” being so broad under the Directive as, potentially, to cover activities which a facility agent or security agent could carry out, even though facility agents and security agents would not generally consider themselves as “credit servicers” when applying the ordinary meaning of that term.

The ICMSA response requested that the EBA provide guidance that facility agents and security agents are not “credit servicers” subject to the obligations that apply to credit servicers under the Directive.