EBA Endorses European Commission’s Amendments on Conflicts of Interest for Asset-Referenced Tokens

The European Banking Authority (EBA) has endorsed the European Commission’s substantive amendments to the final draft of the Regulatory Technical Standards (RTS) on conflicts of interest for issuers of asset-referenced tokens. The EBA accepts the Commission’s changes, assuming that risk alignment mechanisms will be included in the final version. A key amendment narrows the definition of “personal transactions” to enhance proportionality, excluding shareholders or members from the scope. The European Commission further restricted this scope by removing additional connected persons, aligning the focus on management bodies and employees. Another major change refines the application of RTS provisions to specific connected persons and clarifies relevant contractual arrangements. The Commission also removed references to risk alignment mechanisms for variable remuneration, but agreed to reinstate them following discussions with the EBA. Additionally, the detailed reporting obligations for conflict of interest management were replaced with a high-level requirement. The EBA acknowledges these modifications as substantive but finds them acceptable for proportionality reasons. Non-substantive changes include structural and wording adjustments to improve clarity and legal coherence.