Art. 3 Timeframe | RTS on stress test programmes | MiCA

This article directly follows on from Article 2, which governs the process by which a competent authority issues a decision requiring an issuer to increase its own funds.

Article 3 deals specifically with the timeframe a competent authority must grant an issuer of asset-referenced tokens or e-money tokens to comply with that increased own funds requirement.

It sets an outer boundary on how long that window can be and defines the factors a competent authority must weigh when determining the appropriate length of time.

Important points:

Competent authorities are required to set a compliance timeframe that cannot exceed six months from the notification of the final decision under Article 2.
Competent authorities are required to factor in the degree of risk to the financial stability of the wider financial system or of the issuer, as well as any deficiencies in the issuer's governance or business model, when setting that timeframe.
The six-month maximum is the default rule, but it is subject to the considerations in paragraph 2, meaning the timeframe set may be shorter depending on the risk assessment.

1. Without prejudice to paragraph 2, the competent authority shall set a timeframe for the issuer of asset-referenced tokens or e-money tokens to adjust to higher own fund requirements, set on the basis of the assessment by the competent authority referred to in Article 35(3) of Regulation (EU) 2023/1114, that cannot exceed six months from the notification of the final decision referred to in Article 2(4).
1. When the competent authority sets the timeframe for the issuer of asset-referenced tokens or e-money tokens to adjust to higher own fund requirements, it shall take into account any potential higher degree of risk that can have a material impact on the financial stability of the wider financial system or of the issuer and any potential deficiencies in relevant issuer’s governance or business model.