Art. 3 Prudential requirements | RTS on CASP authorisation | MiCA

This article specifies what financial information applicants must submit to the competent authority as part of their authorisation application, directly supporting the prudential safeguards requirement set out in Article 67 of Regulation (EU) 2023/1114.

The article requires applicants to demonstrate both their current financial standing and their forward-looking financial health, covering the two permitted forms of prudential safeguards: own funds and insurance policies or comparable guarantees.

It also draws a distinction between already-active undertakings and those in the process of being incorporated, tailoring the evidentiary requirements accordingly.

Important points:

Provide a snapshot and a three-year forecast of prudential safeguards, including stress scenarios, expected client numbers, transaction volumes, and crypto assets under custody.
Prove compliance with prudential safeguard requirements through supporting documentation, which varies depending on whether the applicant is already active, unaudited, or still being incorporated.
Where an insurance policy or comparable guarantee is used as a prudential safeguard, submit the full details of the insurer and a copy of the policy or signed insurance agreement.

For the purposes of Article 62(2), point (e), of Regulation (EU) 2023/1114, applicants shall provide to the competent authority all the following information:

a description of the applicant’s prudential safeguards set out in Article 67 of Regulation (EU) 2023/1114, consisting of:
1. the amount of the prudential safeguards at the time of the application for authorisation and the description of the assumptions used for calculation of that amount;
2. the amount of the prudential safeguards covered by own funds referred to in Article 67(4), point (a), of Regulation (EU) 2023/1114, where applicable;
3. the amount of the applicant’s prudential safeguards covered by an insurance policy referred to in Article 67(4), point (b), of Regulation (EU) 2023/1114, where applicable;
forecast calculations and plans to determine own funds, including:
1. forecast calculation of the applicant’s prudential safeguards for the first 3 business years following the authorisation;
2. planning assumptions including stress scenarios for the forecast referred to in point (i) and explanations of the figures;
3. expected number and type of clients, volume of orders and transactions and volume of crypto assets under custody;
for undertakings or other legal persons that are already active, where available, the financial statements of the last 3 years approved, where audited, by external auditor;
a description of the applicant’s prudential safeguards planning and monitoring procedures in accordance with Article 67(1) of Regulation (EU) 2023/1114;
proof that the applicant meets the prudential safeguards set out in Article 67 of Regulation (EU) 2023/1114, including:
1. in relation to own funds referred to in Article 67(4), point (a), of Regulation (EU) 2023/1114:
  documentation specifying how the applicant has calculated the amount of prudential safeguards in accordance with Article 67 of Regulation (EU) 2023/1114;
  for undertakings or other legal persons that are already active and whose financial statements are not audited, a certification by the national supervisor of the amount of own funds of the applicant;
  for undertakings in the process of being incorporated, a statement issued by a credit institution certifying that the funds are deposited in the applicant’s account;
2. in relation to the insurance policy or comparable guarantee referred to in Article 67(4), point (b) of Regulation (EU) 2023/1114:
  the legal name, the date and Member State of incorporation or foundation, the address of the head office and, where different, of the registered office and contact details of the undertaking authorised to provide the insurance policy or comparable guarantee;
  a copy of any of the following:
  the subscribed insurance policy incorporating all the elements necessary to comply with Article 67(5) and (6) of Regulation (EU) 2023/1114, where available,
  the insurance agreement incorporating all the elements necessary to comply with Article 67(5) and (6) of Regulation (EU) 2023/1114 signed by an undertaking authorised to provide insurance in accordance with Union or national law.