20 October 2023
The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) on the minimum content of the governance arrangements on the remuneration policy under the Market in crypto-assets Regulation (MiCAR). These draft RTS specify the main governance processes regarding the adoption, implementation and maintenance of the remuneration policy and the main policy elements that should be included in the remuneration policy. The consultation runs until 22 January 2024.
To ensure that remuneration policies promote the sound and effective risk management of issuers of significant asset referenced tokens (ARTs) and of significant e-money tokens (EMT) and do not create incentives to reduce risk standards, remuneration policies should be performance-related, ensure alignment with the risks of the issuer, provide incentives to staff for long term-oriented risk-taking behavior in line with the issuer’s risk appetite and ultimately contribute to the protection of the holders of tokens.
To ensure cross sectoral consistency, these RTS set a framework similar to the remuneration framework for investment firms that aims at achieving the same regulatory objectives.
This publication together with the other consultations papers published today form a second batch of MiCAR policy products. The EBA expects to publish a third batch in November 2023.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 22 January 2024.
The EBA will hold a virtual public hearing on the consultation paper on 11 January 2024 from 09:30 to 13:00 Paris time. The EBA invites interested stakeholders to register using the link by 9 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered for the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The draft RTS have been developed in close cooperation with the ESMA, in accordance with Article 45 Article 45(7)(a) of Regulation (EU) 2023/1114 which requires to develop draft regulatory technical standards specifying the minimum content of the governance arrangements on the remuneration policy.
Article 45(1) of Regulation (EU) 2023/1114 requires issuers of significant asset-referenced tokens to adopt, implement and maintain remuneration policies that promote sound and effective risk management of such issuers and that do not create incentives to relax risk standards.
These requirements also apply to electronic money institutions issuing e-money tokens that are significant by virtue of Article 58(1), point b, of Regulation (EU) 2023/1114 and can be expanded to e-money institutions issuing e-money tokens that are not significant if the competent authority of the home Member State requires it so, following Article 58(2) of that Regulation