The EBA Consults On The Handbook On Independent Valuers For Resolution Purposes

The European Banking Authority (EBA) today launched a public consultation on the draft Handbook on independent valuers for resolution purposes. The draft Handbook aims at enhancing convergence by providing best practices, high-quality methodologies and processes for the selection and appointment of independent valuers for resolution purposes, as well as examples on the application of these methodologies under some scenarios. The consultation runs until 19 September 2024. 

The EBA has developed this Handbook with the view of improving the process of selecting independent valuers and facilitating its implementation by resolution authorities. 

The Handbook also identifies some types of safeguards or measures which could be set in place to mitigate the effects of the potential conflict of interest or circumstances hampering the independence of the valuer.

The Handbook is structured in a chronological order, covering actions before, during and after the appointment of the independent valuer. The preparatory arrangements include actions, such as market research, framework contracts and internal procedures. The Handbook includes specific sections dealing with the assessment of the valuer's independence and the application of safeguards. Finally, after the appointment of the independent valuer, the Handbook includes aspects such as the maintenance of policies and procedures to identify and manage conflicts of interest.

Consultation process

Comments to the consultation paper can be sent by clicking on the "send your comments" on the EBA's consultation page. The deadline for the submission of comments is 19 September 2024. The EBA will consider the feedback received to this consultation when finalising the Handbook.

All contributions received will be published following the end of the consultation, unless requested otherwise.

Legal basis and background

The EBA is tasked, pursuant to article 8(1)(ab) of Regulation 1093/2010 of the European Parliament and the Council, establishing the EBA, with developing and maintaining “an up-to-date Union resolution handbook on the resolution of financial institutions in the Union which is to set out best practices and high-quality methodologies and processes for resolution, taking into account the work of the Single Resolution Board, and changing business practices and business models and the size of financial institutions and of markets". This Resolution Handbook Chapter (‘Handbook’) provides best practices and high-quality methodologies and processes for the selection and appointment of independent valuers for resolution purposes in accordance with article 36 and 74 of Directive 2014/59/EU of the European Parliament and the Council.