+4. Redemption plans
---+4.1 Proportionality considerations
------+12. For the sake of proportionality, to determine the level of detail of the content and the …
------+13. Redemption plans developed by issuers of a significant ART or EMT, or by multiple issuers in …
------+14. Issuers that do not meet the criteria set out in paragraph 13 should revise and update the …
---+4.2 General principles and objectives of the redemption plan
------+15. Where the issuer has more than one outstanding issuance of ARTs or EMTs, the redemption plan of …
------+16. The redemption plan, drafted in accordance with these Guidelines, could contain personal data …
------+17. Issuers should draw up the redemption plan by laying down the actions and process with a view …
------+18. For this purpose, the redemption plan should lay down the actions and related processes to …
------+19. Unless otherwise disclosed in the crypto-asset white paper or envisaged in the applicable …
------+20. In order to ensure equitable treatment of all token holders as stated in the crypto-asset white …
------+21. Issuers of ARTs and of EMTs subject to the requirement to hold a reserve of assets should …
------+22. Taking into account that token holders have a right of redemption at all times and that the …
------+23. In order to ensure the effectiveness of the right of redemption and that undue economic harm …
------+24. Issuers should also clarify in the redemption plan how such costs do not amount, even …
------+25. Costs indicated in the redemption plan should be identified via transparent processes, be …
------+26. Paragraphs 22-25 should apply mutatis mutandis to issuers which are not subject to the …
------+27. In order to meet the token holders’ claims in a n equitable manner and to avoid undue economic …
------+28. For this purpose, the issuer should develop redemption scenarios under ordinary and stressed …
------+29. Having regard to the requirement that the execution of the redemption plan has not to affect …
------+30. When developing such scenarios, issuers subject to the requirement to hold a reserve of assets …
------+31. Redemption scenarios should reflect redemption in going concern, in the case of normal …
------+32. For the purpose of developing liquidation strategies, issuers may consider that transactions …
------+33. Paragraphs 31 and 32 should apply mutatis mutandis to issuers which are not subject to the …
------+34. Issuers should ensure that the redemption plan lays down in a pragmatic and operational manner …
------+35. The redemption plan should also include comprehensive and organised planning of the phases and …
------+36. The phases for the orderly implementation of the plan should include: i. immediate follow-up …
------+37. The redemption plan should indicate each phase and step where the obligations to fight …
------+38. In order to meet the requirement that the redemption plan be implemented in a timely manner …
------+39. The issuer should indicate in the redemption plan the envisaged arrangements to ensure the safe …
---+4.3 Content of the redemption plan
------+40. The issuer should make sure that the redemption plan contains a clear and detailed description …
------+41. The redemption plan should duly reflect the impact of the designation of a temporary …
------+42. The redemption plan should include a mapping of the critical activities that are necessary for …
------+43. Such mapping of the critical activities should include, where relevant, the issuer’s risk …
------+44. Issuers of ARTs which are not obliged entities under Directive 2015/849/EU should always …
------+45. With regard to the critical activities within the issuer’s organisation, t he issuer should …
------+46. With regard to the critical activities provided by third parties, the redemption plan should …
------+47. The redemption plan should also provide an overview of the content of the contractual …
------+48. With specific regard to the custodians of the reserve of assets and to the financial …
------+49. The list of third-party providers of critical activities and the contractual terms should be …
------+50. The overview of the contractual arrangements in place with third-party providers of critical …
------+51. For that purpose, the redemption plan should at least clearly and operationally illustrate the …
------+52. The issuer should make sure that the redemption plan lays down an orderly process for the …
------+53. Such a process should be articulated in an operational manner and ensure that the token holders …
------+54. For this purpose, the redemption plan should describe the processes, the measures to identify …
------+55. The description of the process should include reference to the compliance with applicable …
------+56. The redemption plan should clearly indicate the requirements and the minimum content of the …
------+57. The information listed above and included in the redemption claim should also permit the issuer …
------+58. The redemption plan should also clarify the relevant sources of information, and the envisaged …
------+59. The redemption plan should include all relevant steps, actions and processes to develop the …
------+60. The redemption plan should include a communication plan to be activated without delay upon the …
------+61. The communication plan should include at least the following: a) the draft public notice to be …
------+62. The draft public notice should be developed in order to inform the token holders of the …
------+63. With a view to reaching the general public and the maximum number of token holders, the …
------+64. The draft public notice should describe in clear and non-technical language the main steps of …
------+65. For these purposes the draft public notice should include at least: a) the exact date and time …
------+66. When an ART is issued by multiple issuers, or when a significant EMT is issued by multiple …
------+67. In the light of this, the redemption plan should be articulated in two sections: the first …
------+68. Issuers should coordinate to develop and agree on the common section of the redemption plan …
------+69. To ensure proper coordination, the issuers in the redemption plan should appoint one of them as …
------+70. The second section of the redemption plan should be specifically tailored to the internal …
------+71. Competent authorities of each issuer participating in the issuance should in timely fashion …
------+72. Competent authorities should consult each other and cooperate to assess whether any grounds for …
------+73. The issuer should take into account that, whilst the recovery plan, developed in accordance …
------+74. When the issuer is a credit institution or an entity within the scope of application of …
------+75. In the event that the actions, contractual arrangements, procedures and systems envisaged by …
------+76. Considering that the resolution plan is developed by the resolution authority and that the …
---+4.4 Periodicity of the review and update
------+77. In order to ensure that redemption plans are maintained operational and effective at all times …
------+78. The frequency of the review should take into account the principle of proportionality as …
------+79. The redemption plan should also be promptly reviewed and updated by the issuer upon the …
---+4.5 Triggers
------+80. In accordance with Article 47(1) of Regulation (EU) 2023/1114, the implementation of the …
------+81. In addition to the situations expressly mentioned in Article 47(1) of Regulation (EU) …
------+82. In the case of commencement of crisis prevention measures or crisis management measures as …
------+83. For purposes of assessing whether the issuer is ‘ unable or likely to be unable to fulfil its …
------+84. The aspects that the competent authority should inter alia have regard to when assessing …
------+85. When assessing the issuer’s inability or likely inability in the near future to comply with the …
------+86. The factors and elements listed in these Guidelines, respectively in paragraphs 84 and 85 …
------+87. When determining the issuer ’s inability or likely inability in the near future to fulfil its …
------+88. In most cases it is expected that several factors, rather than merely one, set out in this …
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4. Redemption plans
4. Redemption plans
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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