On Mar. 24, 2025, EU CMSN issued final Reg 2025/418 specifying minimum content of governance arrangements on remuneration policy of issuers of significant ARTs/EMTs.
Regulation shall enter into force on the twentieth day following OJ publication, Apr. 13.
On Oct. 20, EBA issued consultation on remuneration policy re MiCA.
EBA issued consultation on draft regulatory technical standards (RTS) on the minimum content of governance arrangements on the remuneration policy under the Markets in crypto-assets regulation (MiCA Reg 2023/1114) to ensure sound risk management.
Article 45(1) of MiCA requires issuers of significant asset-referenced tokens (ARTs) to adopt, implement, maintain remuneration policies that promote sound and effective risk management of issuers and that do not create incentives to relax risk standards.
Proposals
Draft RTS specify main governance processes on adoption, implementation and maintenance of remuneration policy and main policy elements that it should contain.
Remuneration policies should be performance-related, aligned with risks of the issuer, incentivize staff for long-term oriented risk behavior in line with issuer's risk appetite.
And should ultimately contribute to the protection of the holders of tokens with issuer.
Goal to ensure that issuers do not create incentives for staff to reduce risk standards.
To ensure cross-sectoral consistency, the draft RTS set a framework similar to the remuneration framework for investment firms that aims to achieve same objectives.
Effectiveness
The closing date for receipt of comments on the proposed RTS is Jan. 22, 2024.
EBA will hold virtual public hearing on proposals on Jan. 11, 2024, registration open.
All the consultations issued on Oct. 20, form a second batch of MiCA policy products. EBA expects to publish a third batch in November 2023.
Jun. 2024 Final Report on Draft RTS
On Jun. 6, 2024, EU EBA published the Final report on draft RTS on governance arrangements for remuneration under MICAR.
Specifies main governance processes re adoption, implementation and maintenance of remuneration policy; main policy elements to be included in remuneration policy.
Report presents a summary of key points and comments from the consultation, the analysis and discussion triggered and actions taken to address if deemed necessary.
Draft regulatory technical standards will be submitted to EU CMSN for endorsement, then subject to scrutiny by EP/EU CNSL before being published in EU official journal.
Once RTS enters into force, the RTS will be directly applicable in all member states.
Dec. 2024 EC Adoption
On Dec. 16, 2024, EU CMSN adopted RTS (C(2024)8740) on remuneration policy.
Remuneration policies should be performance-related, ensure alignment with the risks of the issuer of significant ARTs, provide incentives for staff for long term-oriented risk-taking behavior in line with issuer’s risk appetite, contribute to protection of holders.
While the RTS does not specify the elements of remuneration policies that should contribute to the risk alignment of the remuneration of staff, the RTS sets out a framework similar to the remuneration framework for investment firms.
Regulation in force on the 20th day following publication in the Official Journal of EU.
Mar. 2025 Official Journal
On Mar. 24, 2025, EU CMSN issued final Reg 2025/418 specifying minimum content of governance arrangements on remuneration policy of issuers of significant ARTs/EMTs.
Regulation shall enter into force on the twentieth day following OJ publication, Apr. 13.
