The EBA consults on draft technical standards specifying the requirements for policies and procedures on conflicts of interest for issuers of ARTs under the Markets in Crypto-Assets Regulation

EBA has issued a Consultation Paper presenting draft RTS defining the requirements for policies and procedures concerning conflicts of interest for issuers of ARTs under MiCA. The objective of these draft RTS is to enhance the governance of conflicts of interest by ART issuers and ensure uniformity in requirements across the EU.
According to Article 32(1) MiCA, issuers of ARTs are obligated to establish and maintain effective policies and procedures that can identify, prevent, manage, and disclose conflicts of interest. The proposed RTS underscore the need for conflicts of interest policies to consider all potential influences on the impartiality and objectivity of decision-making, both for issuers and their connected parties.
The draft RTS places particular emphasis on conflicts related to asset reserves, personal transactions, and remuneration procedures. Issuers‘ management bodies are assigned a pivotal role in defining and adopting these policies and procedures. Furthermore, disclosure of conflicts of interest information is required to be made accessible to the public on issuers‘ websites in relevant languages.
The consultation process invites stakeholders to submit comments until 7 March 2024, and a virtual public hearing is scheduled for 11 January 2024.
Importantly, the draft RTS align with similar standards concurrently being developed by ESMA for CASPs (eventid=22108), ensuring convergence while acknowledging distinctions in their respective activities. The proposed RTS draw on existing frameworks within financial services legislation, such as MiFID and CRD, and integrate principles of proportionality.