Source: OJ L, 2025/415, 24.3.2025

Current language: EN

Article 2 Procedure

Summary What does Article 2 of the RTS on stress test programmes say?

This article sets out the full procedural sequence that governs how a competent authority requires an issuer of asset-referenced tokens or e-money tokens to increase its own funds, building directly on the power granted under Article 35(3) of Regulation (EU) 2023/1114.

It walks through each stage of the process in order: the issuance of a draft decision, the issuer's right to respond, the final decision, the submission of an implementation plan by the issuer, and the ongoing monitoring obligations that follow.

The article places obligations on both the competent authority and the issuer, creating a structured back-and-forth between the two parties with defined timeframes at each step.

Important points:

  • Competent authorities are required to issue a draft decision before any final own funds increase requirement is imposed, and the issuer has 25 working days to express its views on that draft.
  • Submit a detailed implementation plan to the competent authority within 25 working days of receiving the final decision, including time-bound steps and confirmation that the instruments used meet the conditions of Article 35(2) of Regulation (EU) 2023/1114.
  • Where the increase timeframe exceeds three months, inform the competent authority on a monthly basis on implementation progress, and notify it immediately if any step cannot be achieved within the set timeframe.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

    1. The competent authority of the home Member State (‘the competent authority’) shall provide an issuer of asset-referenced tokens or e-money tokens with the draft of its decision to require the increase of own funds in accordance with Article 35(3) of Regulation (EU) 2023/1114 taking due account of the views expressed by the relevant issuer.

    1. The draft referred to in paragraph 1 shall set out:

      1. the amount by which the own funds must be increased and the percentage higher than the amount of reserve of assets resulting from the application of Article 35(1), first subparagraph, point (b), of Regulation (EU) 2023/1114;

      2. relevant reasoning as to the higher degree of risk;

      3. whether that higher degree of risk can have a material impact on the financial situation of the issuer or on the financial stability of the wider financial system;

      4. whether that higher degree of risk is independent from the relevant issuer’s governance or business model;

      5. the timeframe within which the relevant issuer shall increase its own funds in accordance with Article 3.

    1. The issuer of asset-referenced tokens or e-money tokens shall express its views on any of the elements referred to in paragraph 2 within 25 working days of receipt of the draft.

    1. The competent authority shall notify the issuer of asset-referenced tokens or e-money tokens of its final decision containing the elements listed in paragraph 2.

    1. The issuer of asset-referenced tokens or e-money tokens shall submit to the competent authority within 25 working days of receipt of the decision referred to in paragraph 4, a detailed plan on how its own funds are to be increased within the timeframe set by the competent authority. The plan shall contain the following:

      1. time-bound steps, specific measures and procedures to carry out the increase within the set timeframe;

      2. the confirmation that the envisaged use of own funds items and instruments to comply with the increased requirement fully meet the conditions set out in Article 35(2) of Regulation (EU) 2023/1114.

    1. Where the timeframe referred to in Article 3 set for the completion of the increase of own funds is longer than three months, the issuer of asset-referenced tokens or e-money tokens shall inform the competent authorities on a monthly basis on the plan’s implementation progress.

    1. The issuer of asset-referenced tokens or e-money tokens shall inform the competent authority immediately in case any step or procedure cannot be achieved within the timeframe respecting the requirements set out in Article 3.

    1. The competent authority shall closely monitor the implementation of the plan.

    1. Where a college referred to in Article 119(1) of Regulation (EU) 2023/1114 has been set up, the competent authority shall keep the European Banking Authority informed of all the information referred to in paragraphs 2 to 8, including the draft and the final decision, the plan and any relevant updates.

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