MiCA Guidelines on suitability assessments

Published 1 November 2023

PrintCategory: Financial Regulation

On 20 October 2023, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) released a Consultation Paper outlining two sets of draft joint guidelines regarding suitability assessments concerning issuers of asset referenced tokens (ARTs) and crypto-asset service providers (CASPs):

  • Suitability assessment of management body members.
  • Suitability assessment of shareholders and members with qualifying holdings, in issuers of ARTs and CASPs.

Both guidelines may apply to alternative investment fund managers (AIFMs) managing crypto funds.

The draft joint guidelines on the suitability assessment of management body members of CASPs and issuers of ARTs offer standardised criteria for evaluating the management body members’ knowledge, skills, experience, good repute, etc., as well as their ability to dedicate sufficient time to their duties.

The second set of draft joint guidelines provide the methodology competent authorities should use for the assessment of the suitability of the shareholders or members with qualifying holdings in CASPs or issuers of ARTs.

Next steps: The consultation period ends on 22 January 2024. It is expected that the two final sets of joint guidelines will be available when MiCA becomes applicable on 30 December 2024.

Tags:  Crypto-assetsESMAMiCA


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