Commission Delegated Regulation (EU) 2025/418 Article 2: Definitions

Article 2 - Definitions

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Article 2

Definitions

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For the purposes of this Regulation, the following definitions shall apply:

((1))

‘Staff’ means all employees of an issuer of asset-referenced tokens or e-money tokens, and all members of such issuer’s management bodies;

((2))

‘Senior management’ means those natural persons who exercise executive functions within an issuer of asset-referenced tokens or e-money tokens and who are responsible and accountable to the management body, but are not members of that body, for the day-to-day management of the issuer under the direction of its management body;

((3))

‘Identified staff’ means staff that has a material impact on the risk profile of the issuer of asset-referenced tokens or e-money tokens, or on the risk profile of significant asset-referenced or electronic-money tokens they issue;

((4))

‘Managerial responsibility’ means a situation, in which a staff member either:

((a))

leads a business unit, material business unit or a control function and is directly accountable to the management body as a whole or to a member of the management body or to the senior management; or

((b))

carries out a function or a task laid down in Article 5(2), point (c);

((5))

‘Risk appetite’ means the aggregate level and types of risk that an issuer of asset-referenced tokens or e-money token is willing to assume within its risk capacity, in line with its business model, to achieve its strategic objectives;

((6))

‘Business unit’ means a business unit as defined in Article 142(1), point (3), of Regulation (EU) No 575/2013;

((7))

‘Material business unit’ means a business unit as defined in Article 142(1), point (3), of Regulation (EU) No 575/2013 that is assessed by the issuer of asset-referenced tokens or e-money tokens as having a material impact on the issuer’s business model or as representing a material source of revenue, profit or franchise value for an issuer;

((8))

‘Control function’ means a function that is independent from the business units it controls and that is responsible for internal control procedures and includes the risk management, compliance and the internal audit functions;

((9))

‘Remuneration’ means all forms of fixed and variable remuneration, including the following:

((a))

monetary or non-monetary payments and benefits, awarded directly to staff by or on behalf of issuers of asset-referenced tokens or e-money tokens in exchange for professional services provided by staff;

((b))

carried interest payments within the meaning of Article 4(1), point (d), of Directive 2011/61/EU;

((c))

other payments made via methods and vehicles which, if they were not considered as remuneration, would lead to a circumvention of the remuneration requirements set out in Regulation (EU) 2023/1114 and in this Regulation.