Response to consultation on draft Guidelines on internal governance arrangements for issuers of ARTs under MiCAR

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Question 7 Are the provisions in Title V – Internal control framework and mechanisms appropriate and sufficiently clear?

It is not. It is neither consistent with the principle of proportionality nor with the nature of business of issuers that there is no obligation to establish a risk management function, especially for significant issuers.
Issuers face primarily financial risks but they are given with extreme flexibility when it comes to decide whether or not to establish a risk management function. Event of recent years have demonstrated that large crypto-asset issuers (eg Terra Luna) failed because of financial risk mismanagement. With this RTS you are going to permit that it happens again.

Name of the organization

Association of Risk Managers