Benchmarks Regulation

Notice to our customers about the Benchmarks Regulation
Application of the Benchmarks Regulation

Notice to our customers about the Benchmarks Regulation

This Notice is to customers of EBS d.a.c. and EBS Mortgage Finance. Each of these entities is referred to as the “Lender” in this Notice, which is binding on each of them.

What is the Benchmarks Regulation?

The Benchmarks Regulation 2016/1011 is a new EU regulation on indices used as benchmarks. Among other things, it covers any index which is used to determine the amount payable under the types of credit agreements set out below. The Benchmarks Regulation will apply from 1 January 2018.

Under the Benchmarks Regulation, the Lender must put in place a written plan (the “Plan”) setting out how it will respond if a benchmark used in certain types of credit agreements materially changes or ceases to be provided. The Lender is required to reflect this Plan in the contractual relationship with its customers. These requirements are set out in Article 28(2) of the Benchmarks Regulation.

What type of credit agreements using benchmarks does the Benchmarks Regulation cover?

The Benchmark Regulation applies to consumer credit agreements as defined in the Consumer Credit Directive 2008/48 and the Mortgage Credit Directive 2014/17.

The above Directives were transposed into Irish law by the European Communities (Consumer Credit Agreements) Regulations 2010 and the European Union (Consumer Mortgage Credit Agreements) Regulations 2016.

A person is considered to be a consumer if he or she enters into a credit agreement when acting outside his or her business, trade or profession.

What is the purpose of this Notice?

The purpose of this Notice is to inform customers whose credit agreements fall within the scope of the Benchmarks Regulation of the Plan, and to reflect the Plan in the Lender’s contractual relationship with those customers.

If you are a party to a credit agreement to which the Benchmarks Regulation applies, the Lender must comply with the Plan in its engagement with you. You may also rely on this Notice if you suffer any loss or detriment arising from the Lender’s failure to comply with the Plan unless the Lender has a good reason (such as a legislative change or other binding legal obligation).

While this Notice is part of the contractual relationship between you and the Lender, it does not create any new rights that the Lender may rely upon.

What does the Plan say?

If a benchmark used in a credit agreement between you and the Lender materially changes or ceases to be provided, the Lender will substitute an alternative benchmark if this is both feasible and appropriate. Otherwise, the Lender will look to find a solution that is transparent and that fairly balances your best interests with those of the Lender.

You will be informed by the Lender if a benchmark used in a credit agreement between you and the Lender materially changes or ceases to be provided. The Lender will also tell you what it has done to address this and the effect that this will have on your loan.

The Lender may vary the Plan from time to time.

What you need to do:

You do not need to do anything, but if you have any questions, please contact your local EBS Office.

Application of the Benchmarks Regulation to Consumer Credit Agreements regulated by the Mortgage Credit Directive 2014

The Benchmarks Regulation 2016/1011 came into force in January 2018. It is an EU regulation on indices used as benchmarks. Among other things, it covers an index which is used to determine the applicable interest rate and the amount payable under consumer credit agreements as defined in the Consumer Credit Directive 2008/48 and Mortgage Credit Directive 2014.

The Benchmarks Regulation applies to mortgage credit agreements issued by EBS which reference an interest rate which is based on a benchmark. Details of the interest rate provided by EBS which use a benchmark and its administrator are set out in the table below;

Interest Rate	ECB Tracker Rate
Benchmark	European Central Bank Base Rate
Administrator of Benchmark	The Governing Council of the European Central Bank

Interest Rate	Euribor
Benchmark	The Euro Interbank Offered Rate
Administrator of Benchmark	European Money Markets Institute

Potential implications for you where your credit agreement references a benchmark

The Benchmarks Regulation requires us to have a written plan in place and to implement that plan should the benchmark referenced in your mortgage credit agreement materially change or cease to be provided. We will comply with the plan in our engagement with you under your mortgage credit agreement, unless we have a good reason for not implementing the plan (such as a legislative change or other binding legal obligation).

Should the benchmark used in your mortgage credit agreement materially change or cease to be provided, we will substitute an alternative benchmark if this is both feasible and appropriate at that time. Otherwise, we will look to find a solution that is transparent and that fairly balances your best interests with ours.

We will then write to you to inform you what we have done to address the issue and the effect this will have on your credit agreement, including changes (if any) to:

the interest rate applicable to your mortgage credit agreement;
your repayment amounts; or
the term of your mortgage credit agreement.

EBS d.a.c. is regulated by the Central Bank of Ireland.

EBS Mortgage Finance is regulated by the Central Bank of Ireland.