S.L. 345.27 Art. 10Cover pool monitor.

(1) Credit institutions issuing covered bonds shall appoint a cover pool monitor to perform ongoing monitoring of the cover pool with regard to the requirements set out in regulations 3 to 9, both inclusive, and 11 to 14, both inclusive.

(2) For the purposes of sub-regulation (1), the competent authority shall issue Covered Bonds Rules which shall lay down requirements in relation to at least the following matters:

(a) the appointment and dismissal of the cover pool monitor;

(b) any eligibility criteria for the cover pool monitor;

(c) the role and duties of the cover pool monitor, including in the case of the insolvency or resolution of the credit institution issuing the covered bonds;

(d) the obligation to report to the competent authority;

(e) the right of access to information necessary for the performance of the cover pool monitor"s duties.

(3) The cover pool monitor shall be separate and independent from the credit institution issuing the covered bonds and from that credit institution"s auditor:

Provided that, it shall be permissible for a cover pool monitor not to be separate from the credit institution (hereinafter referred to in these regulations as an "internal cover pool monitor") where:

(a) the internal cover pool monitor is independent from the credit decision process of the credit institution issuing the covered bonds;

(b) without prejudice to sub-regulation (2)(a), the internal cover pool monitor cannot be removed from that function as cover pool monitor without the prior approval of the board of directors of the credit institution issuing the covered bonds; and

(c) where necessary, the internal cover pool monitor has direct access to the board of directors.

(4) The competent authority shall inform the EBA about the requirement set out in sub-regulation (1).