Cap. 645 Art. 13Outsourcing by a credit servicer.

(1) When a credit servicer uses a credit service provider to perform any of the credit servicing activities, the credit servicer shall remain fully responsible for complying with all the obligations emanating from this Act, or any regulations made thereunder, or Credit Servicing Rules or Conduct of Business Rules issued thereunder.

(2) The outsourcing of any credit servicing activities as referred to in sub-article (1) shall be subject to all of the following conditions:

(a) the conclusion of a written outsourcing agreement between the credit servicer and the credit service provider under which the credit service provider shall be required to comply with the applicable legal provisions, including the provisions of this Act or any regulations made thereunder, Credit Servicing Rules and Conduct of Business Rules issued thereunder, and the relevant national and European Union law applicable to a creditor’s rights under a credit agreement, or to the credit agreement itself;

(b) the outsourcing to a credit service provider of all credit servicing activities at the same time is prohibited;

(c) the contractual relationship between the credit servicer and the credit purchaser and the obligations of the credit servicer towards the credit purchaser or towards borrowers is not altered by the outsourcing agreement with the credit service provider;

(d) the compliance of a credit servicer with the authorisation requirements set out in article 8 is not affected by the outsourcing of some of its credit servicing activities;

(e) the outsourcing to the credit service provider does not prevent the supervision of the credit servicer by the competent authority and, where applicable, the European regulatory authority of the host Member State and the Member State where the credit was granted, when the latter is different from the home Member State and the host Member State, in accordance with Article 5 and Article 14 of the NPL Directive, as applicable;

(f) the credit servicer has direct access to all relevant information concerning the credit servicing activities outsourced to the credit service provider;

(g) after the outsourcing agreement is terminated, the credit servicer has the expertise and resources to be able to provide the outsourced credit servicing activities; and

(h) the outsourcing of credit servicing activities shall not be undertaken in such a way as to impair the quality of the credit servicer’s internal control, or the soundness or continuity of its credit servicing activities.

(3) Credit servicers shall inform the competent authority of the home Member State and, where applicable, of the host Member State, prior to outsourcing their credit servicing activities in accordance with this article.

(4) Credit servicers shall keep and maintain records of relevant instructions provided to the credit service provider, in accordance with the conditions provided for under applicable national law, and of the outsourcing agreement referred to in this article, for a period of at least five (5) years, but not more than ten (10) years, from the date on which the outsourcing agreement is terminated.

(5) Credit servicers and the credit service providers shall make the information referred to in sub-article (4) available to the competent authority upon request.