4.1 Proportionality considerations

For the sake of proportionality, to determine the level of detail of the content and the frequency of the periodical review of the redemption plan the issuers and the competent authority should take into account the following criteria:

• i. classification of the ARTs or EMTs as significant in accordance with Articles 43 and 44, and 56 and 57 of Regulation (EU) 2023/1114;
• ii. for issuers of an ART and for issuers of an EMT which are subject to the requirement to hold a reserve of assets under Regulation (EU) 2023/1114, the size, volatility, composition, concentration and nature of the reserve assets and of the ART or EMT itself;
• iii. multiple outstanding issuances of ARTs or EMTs by the same issuer;
• iv. issuance of the same ART or EMT by multiple issuers;
• v. the complexity and risk profile of the issuer’s business model , taking into account any other financial or non-financial activity.

Redemption plans developed by issuers of a significant ART or EMT, or by multiple issuers in the case of pooled issuance of an ART or an EMT, or by issuers with multiple outstanding issuances or with complex business models and an increased risk profile, as determined, justified and notified by competent authorities, should:

• i. have an increased level of detail and comprehensiveness to demonstrate their credibility, feasibility and timely implementation; and
• ii. be revised and updated at least on an annual basis.

Issuers that do not meet the criteria set out in paragraph 13 should revise and update the redemption plan whenever a change materially impacts the content of the redemption plan. This is without prejudice to the possibility of the competent authority to require institutions to update their redemption plans more frequently.