Public consultation: Regulating the NPL regime

The Bank of Portugal has launched a public consultation, open until 29 October 2025, on the draft notice that will regulate key aspects of the Regime for the Assignment and Servicing of Bank Credits (“RCGCB”), approved by Decree-Law no. 103/2025 of 11 September. (For more information about this Decree-law, see our Legal Update Transposition of NPL Credit Servicers and Credit Purchasers Directive.)

Authorization procedure for credit servicers

It establishes the requirements and procedures for obtaining authorization as a credit servicer, including the relevant form, required documentation, and elements that must accompany the authorization application.

The process will be centralized through SIRES - Relevant Information System for Supervised Entities, although the notice allows applications and communications to be submitted by email on an exceptional basis.

Public and internal registers of credit servicers

The notice sets out the elements to be included in the public register of credit servicers, accessible to all interested parties, as well as in the internal register kept by the Bank of Portugal for supervisory purposes.

Requirements for members of the management bodies of credit servicers

Directors, individually and collectively, must have the necessary knowledge and experience and provide assurances of sound and prudent management as well as fair and diligent protection and treatment of debtors. The notice also sets out criteria and internal policies for assessing suitability.

Credit servicers are responsible for assessing these requirements in line with the principle of proportionality, taking into account the criteria set out in the notice.

 Governance systems and internal control mechanisms

It regulates the general requirements for governance systems (organizational structure with clearly defined reporting lines, competence of each body, unity of structure and functions and cooperation, established in an organizational structure manual), and internal control mechanisms.

Cross-border activities

It regulates the procedures for credit servicers authorized in Portugal that wish to operate in other European Union Member States, as well as the register of credit servicers authorized in other European Union Member States that wish to operate in Portugal.

The notice specifies the information to be reported to the Bank of Portugal, in line with European cooperation and transparency requirements.

 Outsourcing credit servicing activities

It details the form and content of the mandatory report to be submitted to the Bank of Portugal regarding the outsourcing of credit servicing activities, including the identification of the service providers and outsourced activities.

The draft notice incorporates the guidelines of the European Banking Authority (“EBA”), both with regard to assessing the suitability of the administrative or management bodies of credit servicers (EBA/GL/2023/09) and to creating and keeping national lists or registers of credit servicers (EBA/GL/2024/02). Regarding the EBA Guidelines, see our post ‘The Evolution of the NPL Directive’.

This public consultation is especially relevant for credit servicers and entities wishing to carry out this activity; it is vital that these entities are prepared to comply with the new obligations.

Contrary to expectations, the notice does not establish a transitional or special regime for authorizing credit servicers that already carry out the activity.

Considering that the RCGCB enters into force on 10 December 2025 (from which date authorisation will be required), we recommend that credit servicers in advance of the entering into force of the notice:

(i)           Start gathering and preparing the documentation and information established in the draft notice for the authorization application (including information and documentation on owners of qualifying holdings);

(ii)         Conduct the procedures for assessing the knowledge and experience (adopting any corrective measures) and suitability of their directors - this must be done before submitting the authorization application.