ALFI responds to the ESMA consultation on requirements of MiCA on detection and prevention of market abuse, investor protection and operational resilience

In the response to the ESMA consultation, ALFI conveyed the views and most relevant feedback from the investment funds industry perspective, reflecting the consensus view of the Luxembourg Fund Industry Association membership, with respect to the four different aspects covered.

In our response to this consultation, ALFI highlights the following views and concerns:

1. On the draft RTS on detecting and reporting suspected market abuse in crypto assets, ALFI raises concerns with regards to the scope definition, and suggests clarifications on the roles and responsibilities of the IFM, the depositaries and the Asset Managers respectively. In the interest of a cost-efficient implementation, we advise leveraging on the existing STOR template.
2. On the draft guidelines on suitability requirements applicable to portfolio management in crypto-assets, ALFI advocates for regulatory consistency between MiCA and the existing MiFID II regulation, in the interest of investors protection. In the same vein, we emphasise the overarching requirement of clear, complete and available information, provided or pushed to investors.
3. On the draft guidelines on procedures & policies, in the context of transfer services for cryptoassets, we advocate for a full alignment among NCAs, in the best interest of market participants, to ensure a level playing field across Europe. We also encourage a risk reassessment at a later stage, to ensure a consistent management of risks specific to cryptoassets while adequately considering proportionality.
4. On the draft guidelines on maintenance of systems and security access protocols, ALFI advise adequate requirement be put on the distant CASP and service providers to comply with any due diligence exercise from the AIFM performing their oversight We encourage operational flexibility in the implementation and the application of proportionality principle, including minimal administrative arrangements.

View the ALFI response.