Response to consultation on Guidelines on recovery plans under MiCAR
Q1. Is the approach to the application of the principle of proportionality adequate for the purposes of recovery planning?
While we support the principle that the information provided in a recovery plan, its format, and its assessment should align with the specific risk profile, business model, and scale of an issuer, we believe that a lack of specific guidelines or benchmarks for application may well lead to inconsistencies in how it's interpreted and implemented across firms in different member states.
Q2. Do you have any comments on the need to exchange information between the issuer and the relevant third party provider to avoid delays in the activation of the recovery plan in case the issuer has entered into an agreement pursuant to point (5)(h) of Article 34 of Regulation (EU) 2023/1114?
While we support the need to exchange information with third party entities for operating the reserve of the assets pursuant to point (5)(h) of Article 34 of Regulation EU 2023/1114, we recommend that the requirements set forth in such point are also binding for the third party entities operating and custodying the reserve of assets, to facilitate the negotiation with the issuers.