Response to consultation on Guidelines on redemption plans under MiCAR
Q1. Do you consider that the scope of the GL on redemption plans is sufficiently clear and takes into account the differences regarding the obligation to hold a reserve of assets set out in Regulation (EU) 2023/1114 applicable to the different types of ART or EMT issuers?
Yes, that seems clear enough and takes into account the differences regarding the obligation to hold a reserve of assets set out in Regulation (EU) 2023/1114 applicable to the different types of ART or EMT issuers.
Q2. Do you consider that the GL on redemption plans are sufficiently clear and comprehensive and that they cover all aspects of the mandate?
Yes, we consider that is sufficiently clear and comprehensive, and covers all aspects of the mandate.
Q3. Do you consider that the redemption process as described herein provides adequate operational guidance to token holders about the actions and steps relating to the redemption claim?
Yes, the redemption procedure provides adequate operational guidance to token holders concerning the actions and steps involved in requesting a redemption. However, certain points could be detailed to avoid too great a disparity in conditions between the various European laws.
This could be the case, for example, for the time limits for processing redemption requests.
Q.4 Do you consider that the information to be contained in the draft public notice is adequate and covers the necessary information to be conveyed to the token holders and for a sound redemption process?
Yes
Q5.1 Do you consider that the aspects to be assessed by the competent authority for purposes of assessing whether the issuer is unable or likely to be unable to fulfil its obligations under Regulation (EU) 2023/1114 envisaged in the Guidelines appropriately complement those set out in Article 47(1) of Regulation (EU) 2023/1114?
Yes, it seems that the aspects to be assessed by the competent authority for the purposes of determining whether the issuer is unable, or is likely to be unable, to meet its obligations under Regulation (EU) No 2023/1114, as contemplated in the Guidelines, appropriately complement Article 47(1) of that regulation.
Q5.2 Do you agree that in case of credit institutions and the other entities subject to Directive 2014/59/EU or of central counterparties subject to Regulation (EU) 2021/23, the competent authority should not trigger the redemption plan without prior consultation and coordination with the relevant prudential or resolution competent authorities under that Directive or Regulation, in case of commencement of crisis prevention measures or crisis management measures under such sectoral acts?
This seems relevant and will secure the redemption plans of credit institutions and other entities covered by Directive 2014/59/EU or CCPs covered by Regulation (EU) 2021/23.
However, it has the disadvantage of making redemption plans more cumbersome, particularly the redemption periods for token holders. This could be negative for the market.