4.4 Periodicity of the review and update

In order to ensure that redemption plans are maintained operational and effective at all times, issuers should regularly review and update such plans, including in cases of material changes affecting the issuer or its business environment as further described in paragraph 79, and submit the revised redemption plan to the competent authority for its assessment. Any change to the recovery plan should lead to a prompt and timely review of the redemption plan to assess whether it remains consistent with the new version of the recovery plan.

The frequency of the review should take into account the principle of proportionality as articulated in paragraph 12 and the guidance on the frequency of the review of the redemption plan as per paragraphs 13 and 14.

The redemption plan should also be promptly reviewed and updated by the issuer upon the occurrence of material changes, in particular relating to:

• i. the issuer’s business model or organisational structure;
• ii. the nature of the token, including rights and obligations attached to the token;
• iii. market conditions affecting the issuer or the reserve of assets or the use of the token;
• iv. emergence of any unknown vulnerability, especially in relation to ICT risk or cyber attack, which would result in ineffectiveness of the plan; and
• v. legal, regulatory or supervisory aspects.