+Guidelines on recovery plans under MiCAR (EBA/GL/2024/07)
---+1. Compliance and reporting obligations
------+Status of these guidelines
---------+1. This document contains guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/2010 …
---------+2. Guidelines set the EBA view of appropriate supervisory practices within the European System of …
------+Reporting requirements
---------+3. According to Article 16(3) of Regulation (EU) No 1093/2010, competent authorities must notify …
---------+4. Notifications will be published on the EBA website, in line with Article 16(3).
---+2. Subject matter, scope and definitions
------+Subject matter
---------+5. These guidelines specify the format and the information that should be contained in the recovery …
------+Scope of application
---------+6. These guidelines apply in relation to issuers of asset-referenced tokens and e-money tokens as …
---------+7. Any provision of these guidelines relating to the content of the recovery plan as regards the …
------+Addressees
---------+8. These guidelines are addressed to competent authorities as defined in Article 3(1) point (35) of …
---------+9. These guidelines are also addressed to the issuers, as defined in point 10 of Article 3(1) of …
------+Definitions
---------+10. Unless otherwise specified, terms used and defined in Regulation (EU) 2023/1114 have the same …
---+3. Implementation
------+Date of application
---------+11. These guidelines apply from 13/11/2024.
---+4. Recovery plans for issuers of asset-referenced tokens and issuers of e-money tokens
------+4.1 Proportionality consideration
---------+12. To ensure that the information to be provided in a recovery plan, its format and its review by …
---------+13. To apply the previous paragraph, issuers and competent authorities should take into account all …
---------+14. For the application of the principle of proportionality, issuers of tokens that are classified …
------+4.2 Content of the recovery plan
---------+15. The recovery plan should be made up of all the following elements: a) The summary of the key …
------+4.3 Summary of the key elements of the recovery plan
---------+16. Issuers should include in their recovery plan a summary of the key elements of the recovery …
---------+17. In the summary of the key elements of the recovery plan, issuers should also list and highlight …
------+4.4 Information on governance
---------+18. Issuers should include in their recovery plan a clear and detailed description of the …
---------+19. The information on governance referred to in the previous paragraph should cover at least the …
---------+20. Where the issuers have entered into an arrangement with third party entities for operating the …
---------+21. In addition, issuers should ensure that actions foreseen in their recovery plan are consistent …
---------+22. Issuers should lay down in the recovery plan an adequate framework of recovery plan indicators …
---------+23. Recovery plan indicators should reflect both the token’s and the issuer’s specific risk profile …
---------+24. When assessing what type of indicators will be included in the recovery plans, each issuer …
---------+25. In addition, issuers should not limit their set of recovery plan indicators to the list …
---------+26. Issuers should ensure that the list of recovery plan indicators and the calibration of their …
---------+27. Issuers should include in the recovery plan that they will monitor the recovery plan indicators …
---------+28. Issuers should include recovery plan indicators of both quantitative and qualitative nature. …
---------+29. Issuers should include in the recovery plan at least the following categories of recovery plan …
---------+30. Issuers should also include in the recovery plan the following categories of recovery plan …
---------+31. By way of derogation, issuers of non-significant tokens are exempted from including the …
---------+32. Among the referenced asset(s)-related indicators, issuers should always incorporate at least a …
---------+33. Issuers should clearly describe in the recovery plan to the satisfaction of the competent …
---------+34. Issuers should describe in the recovery plan how they will regularly monitor and update the …
---------+35. The content of the recovery plan should be drawn by issuers considering that there should be no …
---------+36. Issuers should set out in the recovery plan their internal decision-making process. Issuers …
---------+37. For breaches of recovery plan indicator thresholds to effectively fulfil their warning …
---------+38. To account for the probability that the timeframes set under the previous paragraph may not …
---------+39. Issuers should specify in the recovery plan that where a recovery plan indicator threshold has …
---------+40. Issuers should also specify in the recovery plan that the decision referred to in the previous …
---------+41. Issuers should describe in the recovery plan that where they decide to take action in …
------+4.5 Recovery options
---------+42. Issuers should lay down in their recovery plan a range of recovery options that are tailored on …
---------+43. As regards the recovery options laid down in Article 46 of the Regulation (EU) 2023/1114 …
---------+44. In addition to the recovery options listed in Article 46 of the Regulation (EU) 2023/1114 …
---------+45. The recovery plan should also include details of any preparatory measure that the issuer should …
---------+46. For every recovery option, issuers should include in the recovery plan a feasibility …
---------+47. In addition, issuers should outline for every recovery option how the continuity of operations …
---------+48. To prove the credibility of recovery options, issuers should provide quantitative and …
---------+49. Issuers also operating businesses other than the issuance of asset-referenced tokens and/or …
---------+50. Issuers should include in their recovery plan how they plan to monitor the implementation of …
---------+51. Issuers should include in the recovery plan the process envisaged for the implementation phase …
---------+52. Issuers should ensure to lay down in their recovery plans an adequate number of scenarios whose …
---------+53. When developing their recovery plans, issuers should use financial system-wide distress …
---------+54. Issuers should lay down in the recovery plan how they intend to recover operations in a timely …
---------+55. Issuers that operate payment arrangements in euro – as defined by the Eurosystem oversight …
---------+56. In addition, issuers should ensure that actions foreseen in their recovery plan do not unduly …
------+4.6 Communication and disclosure plan
---------+57. Issuers should include in the recovery plan a communication and disclosure plan outlining how …
---------+58. The communication and disclosure plan should clarify how the issuer intends to communicate: a) …
---------+59. In the communication and disclosure plan issuers should also include how they will ensure the …
---------+60. The communication and disclosure plan should clarify the (mix of) communication channels and …
------+4.7 Format and maintenance of the recovery plan
---------+61. Issuers should draft their recovery plan in a clear and understandable language. The recovery …
---------+62. Issuers should include in their recovery plan that the information provided therein will be …
------+4.8 Interaction between different recovery planning obligations
---------+63. When an asset-referenced token or an e-money token is issued by multiple issuers, all issuers …
---------+64. As regards the format, issuers that offer two or more tokens to the public should draft a …
---------+65. Competent authorities should consider whether issuers that offer two or more tokens to the …
---------+66. Issuers offering two or more tokens to the public should at least ensure that: a) …
---------+67. Where the issuer is a credit institution or an investment firm required to draw a recovery plan …
---------+68. The previous paragraph does not apply to credit institutions and investment firms that are …
---+Annex I – List of minimum categories of recovery plan indicators and illustrative list of recovery plan indicators
------+A. Minimum categories for all issuers of ARTs and EMTs
------+Category 1. Liquidity risk indicators
------+Category 2. Operational risk indicators
------+Category 3. Credit risk/asset-quality indicators
------+Category 4. Referenced asset(s) related indicators
------+Category 5. Capital adequacy indicators
------+that do not provide appropriate justification for the non-inclusion to the competent authority
------+Category 6. Market risk indicators
------+Category 7. Concentration risk indicators
------+Category 8. Market confidence indicators
---+Annex II – List of items to be included in the description of each recovery option
------+1. Items for the description of the recovery options: a) A summary of the essential elements. b) A …
---+Annex III – Non-exhaustive list of possible recovery options that issuers could use in their recovery plans
------+1. Capital raising.
------+2. Injection of additional funds.
------+3. Access to standard central bank facilities, where eligible.
------+4. Change of composition and/or reduction of the riskiness of the reserve of assets.
------+5. Change of the third-party provider (e.g. Crypto Asset Service Provider).
------+6. Purchase of financial guarantees from a credit institution or an insurance company covering the …
------+7. Sale of business.
------+8. Merger with another issuer.
------+9. Merger of one issuance of asset-referenced tokens with another one.
------+10. Commercial measures.
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Guidelines on recovery plans under MiCAR (EBA/GL/2024/07)

Guidelines on recovery plans under MiCAR (EBA/GL/2024/07)

https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/asset-referenced-and-e-money-tokens-micar/guidelines-recovery-plans-under-micar – PDF

1. Overview

,
1. Compliance and reporting obligations

1. Compliance and reporting obligations
2. Subject matter, scope and definitions

2. Subject matter, scope and definitions
3. Implementation

3. Implementation
4. Recovery plans for issuers of asset-referenced tokens and issuers of e-money tokens

4. Recovery plans for issuers of asset-referenced tokens and issuers of e-money tokens
Annex I – List of minimum categories of recovery plan indicators and illustrative list of recovery plan indicators

List of minimum categories and non-exhaustive list of recovery plan indicators
Annex II – List of items to be included in the description of each recovery option

Annex II – List of items to be included in the description of each recovery option
Annex III – Non-exhaustive list of possible recovery options that issuers could use in their recovery plans

Annex III – Non-exhaustive list of possible recovery options that issuers could use in their recovery plans

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
  • EBA - Published by the European Banking Authority at https://www.eba.europa.eu/