Module 2 · Chapter 4

Governance and Conduct

Authorisation is won once and kept every day. MiCA's conduct rules say how a licensed firm treats clients, runs itself and plans for failure. The compliance binder is the proof.

≈ 11 min read 8-question test

In this chapter

  • The six conduct duties that keep a crypto licence
  • How the three lines of defence keep compliance independent
  • Where the binder answers each duty, and what you check

4.1Conduct rules in one paragraph

Authorisation lets Halcyon offer its services, but keeping it depends on how Halcyon behaves. MiCA sets general duties for every licensed firm, and six of them are in the table below. Each has an answer in the Compliance Binder, the policies the board approved for the licence. The Central Bank may withdraw the licence if those answers stop being true.

The dutyMiCAHalcyon's answer
Deal honestly with clients, warn them of the risks, show the feesArticle 66Appendix D
Fit and proper managers, policies that work, an independent checkArticle 68Binder section 2
Handle complaints promptly and fairly, free of chargeArticle 71Binder section 6
Find, manage and publish conflicts of interestArticle 72Binder section 5
Stay responsible for work done by othersArticle 73Binder 4.5
Keep a plan to close in good orderArticle 74Binder 3.3

Key point

Compliance is not a cost of the licence. It is the licence. Each duty must be met in practice and shown on paper.

Also in this chapter

  1. Telling clients the truth (Article 66)
  2. Fit and proper management (Article 68)
  3. Three lines of defence
  4. Complaints (Article 71)
  5. Conflicts of interest (Article 72)
  6. Outsourcing (Article 73)
  7. A plan to close in good order (Article 74)
  8. The binder is the evidence
  9. Your job

Preview

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