Global Trustee and Fiduciary Services Bite-Sized Issue 8 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2023 4 QUICK LINKS ANTI-MONEY LAUNDERING CBDC COSTS & CHARGES CRYPTOASSETS CULTURE & CONDUCT CYBERSECURITY EMIR FINTECH FSB FUND LIQUIDITY MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA IRELAND NORTH AMERICA UNITED KINGDOM EBA Consults on Draft Technical Standards on Complaints Handling Procedures Under MiCAR On 12 July 2023 the European Banking Authority (EBA) published a Consultation Paper on draft regulatory technical standards (RTS) on complaints handling procedures for issuers of asset- referenced tokens (ARTs) under the Markets in Crypto-Assets Regulation (MiCAR). These draft RTS aim at ensuring prompt, fair and consistent handling of complaints by holders of ARTs and other interested parties. The EBA is mandated to develop, in close cooperation with the European Securities and Markets Authority (ESMA), draft RTS on the complaints handling procedures of issuers of ARTs. The RTS must further specify the requirements, templates and procedures for handling complaints received from holders of ARTs and other interested parties, (including consumer associations that represent those holders), and procedures to facilitate the handling of complaints between holders of ARTs and third-party entities, where applicable. The draft RTS proposed in this consultation paper set out definitions of complaints and complainants, requirements related to the complaints management policy and function, provision of information to holders of ARTs and on templates and recording. They then proceed with requirements about the procedure to investigate complaints and to communicate the outcome of the investigations to complainants and specific provisions for complaints handling involving third-party entities. The requirements proposed in the consultation paper have been strongly informed by the existing Joint Committee (JC) Guidelines on complaints handling which apply uniformly to all financial institutions across the banking, insurance and investments sector since 2014 and assessed as fit for purpose during a recent review of the JC in 2021. Where the MiCAR RTS mandate requires the EBA to include additional requirements going beyond the JC Guidelines, these have also been informed by the approach proposed by ESMA in relation to the MiCAR RTS on complaints handling procedures for crypto-asset service providers (CASPs) in Article 71 to bring about a desirable degree of consistency. The consultation period ends on 12 October 2023. The EBA will hold a virtual public hearing on the consultation paper on 21 September 2023. Link to Consultation here EBA Consults on Draft Technical Standards on EUMarket Access of Issuers of Asset-referenced Tokens Under the MiCAR On 12 July 2023 the EBA consulted on two sets of draft RTS and one set of implementing technical standards (ITS) relating to the authorisation as issuer of ARTs and the assessment of acquisition of qualifying holdings in issuers of ARTs under the MiCAR. With these technical standards, the EBA aims to regulate access to the EUmarket of ARTs by applicant issuers and persons intending to exercise significant influence on these undertakings via the acquisition of qualifying holdings. Under MiCAR, the offer to the public or the admission to the trading of an ART is reserved to legal persons or other undertakings established in the EU subject to the authorisation and approval of the publication of a white paper. The draft RTS on information for authorisation lay down the information requirements to be included when applying for such an authorisation. The information requirements cover the business model, internal governance, including ICT risk management, liquidity, reserve of assets, sufficiently good repute of the members of the management body and of shareholders with qualifying holdings. The draft ITS set out the standard application letter, the application template and clarify the process relating to the assessment of completeness of the application by the competent authority. As credit institutions are only required to receive approval to publish a white paper, the draft RTS and ITS do not apply to credit institutions. Consistent with the general regime applicable in the financial sector, MiCAR envisages a prudential assessment by competent authorities for the acquisition of qualifying holdings in issuers of ARTs that are not credit institutions. The draft RTS on the detailed content of the information to be included in the notification for of the proposed acquisition clarify the information requirements that are necessary for such an assessment. This information covers five criteria relating to (a) the reputation of the proposed acquirer, (b) the