SIO-11.2 Content of Recovery Plan
SIO-11.2.1
The recovery plan must include the following:
(a) Information on governance, including a framework of recovery plan indicators and monitoring thresholds, as specified in Paragraph SIO-11.2.2.(b) The description of the applicable recovery options, including at least a recovery scenario analysis, a description of preparatory measures and information on the preservation of services as specified in Paragraphs SIO-11.2.2 to SIO-11.2.4.(c) The recovery plan’s communication and disclosure plan.Added: July 2025Information on Governance
SIO-11.2.2
Stablecoin issuers must include in their recovery plan a clear and detailed description of the governance processes related to the development, maintenance and implementation of the recovery plan.
Added: July 2025SIO-11.2.3
For the purposes of Paragraph SIO-11.2.2, the information on governance should cover at a minimum, the following:
(a) the role(s) and function(s) of the person(s) responsible for preparing, implementing and updating the plan;(b) the description of how the recovery plan fits with the stablecoin issuer’s internal governance, business strategy and risk management framework;(c) the description of the processes and timeframes to be used for the periodical update of the plan and for updating it to respond to any material changes affecting the specific stablecoin, the licensed stablecoin issuer or its environment;(d) the policies and procedures governing the approval of the recovery plan and its reviews and updates;(e) the escalation procedures, meaning the conditions and procedures necessary to ensure the timely implementation of particular recovery options foreseen in the recovery plan. It should include clear information on the decision-making process with regard to the activation of the recovery plan based on a detailed escalation process that applies when a breach of a recovery plan indicator threshold is detected or is likely to materialise in the near future, to consider and determine which recovery option may need to be applied to restore the compliance with the relevant regulatory requirements applicable to the reserve asset or to continue rendering services related to the relevant approved stablecoin;(f) the time limit for the decision on taking recovery actions and the point in time, as well as the modalities, for informing the CBB;(g) the description of quantitative and qualitative indicators reflecting possible vulnerabilities, weaknesses or threats to the amount, liquidity and allocation of the reserve assets and the funds that stablecoin issuers have to maintain at any time.Added: July 2025SIO-11.2.4
Where stablecoin issuers have entered in an arrangement with third party entities for operating the reserve assets, and for the investment of the reserve assets or for the custody of the reserve assets, they must include in their recovery plan a clear and detailed description of the processes established to exchange information in a way that would ensure the timely activation of the escalation process laid down in Paragraph SIO-11.2.10 in case a breach of recovery plan indicators is detected, either by the stablecoin issuer or by the relevant third party entity. A stablecoin issuer must also specify in the recovery plan how the agreement with any of those third parties ensures the information is timely shared in a way that would allow the stablecoin issuer to be aware of the breach or to acknowledge that the breach is likely to occur in the near future so that the plan can be activated in a timely manner.
Added: July 2025Recovery Plan Indicators & Monitoring Thresholds
SIO-11.2.5
Stablecoin issuers must lay down in the recovery plan an adequate framework of recovery plan indicators, via which the stablecoin issuer can establish predetermined criteria that may signal the necessity of an increased frequency of monitoring or the activation of the recovery plan. These criteria should be set in a way to allow the stablecoin issuer to monitor, escalate and activate recovery options as appropriate.
Added: July 2025SIO-11.2.6
Recovery plan indicators must reflect both the approved stablecoin’s and the stablecoin issuer’s specific risk profile and operating environment. As such, the calibration of recovery plan indicators and thresholds must be applied at the level of the approved stablecoin, except for the capital adequacy indicators that should be calibrated at the level of the stablecoin issuer, based on its specific size, complexity, nature and business model and the operational risk indicators and the market confidence indicators that must be calibrated both at the level of the stablecoin issuer and at the level of the approved stablecoin.
Added: July 2025SIO-11.2.7
When assessing what type of indicators will be included in the recovery plans, a stablecoin issuer should carefully consider the types of events that may lead to a breach of regulatory requirements and elaborate specific indicators based on its internal risk assessment. Therefore, stablecoin issuers should not limit their set of recovery plan indicators to the list provided in Appendix D. Rather, they should consider the list of indicators provided Appendix D as illustrative, so they may choose any or all of the indicators under each category.
Added: July 2025SIO-11.2.8
Stablecoin issuers must include in the recovery plan that they will monitor the recovery plan indicators with an adequate frequency which would allow the timely submission of the indicators data records to the CBB upon request stablecoin issuers must also specify how they will monitor the said indicators.
Added: July 2025SIO-11.2.9
Stablecoin issuers must include recovery plan indicators of both quantitative and qualitative nature. When setting the quantitative recovery plan indicator thresholds, consistently with their overall risk management, stablecoin issuers must use progressive metrics (‘traffic light approach’) in order to inform the stablecoin issuer’s management that such indicators threshold could potentially be reached.
Added: July 2025SIO-11.2.10
Stablecoin issuers must ensure that any breach of recovery plan indicator threshold is reported as soon as practicable to the senior management but within a maximum of 24 hours, by activating the appropriate escalation process and, where relevant, acted upon. In addition, any breach of recovery plan indicator threshold and activation of internal escalation matrix must be notified to the CBB within 24hrs following the breach of recovery plan indicator threshold.
Added: July 2025SIO-11.2.11
Where a recovery plan indicator has been breached, the stablecoin issuer must assess the situation, decide whether to trigger the activation of the recovery plan and promptly notify the CBB.
Added: July 2025Recovery Options
SIO-11.2.12
Stablecoin issuers must include in their recovery plan a range of recovery options that are tailored to the stablecoin issuer’s business model and the nature of the approved stablecoin issued.
Added: July 2025SIO-11.2.13
The recovery options referred to in Paragraph SIO-11.1.3 and SIO-11.2.12 must include the following:
(a) the recovery plan must set a maximum amount for liquidity fees to be imposed on redemptions;(b) in setting the maximum amount of liquidity fees to be imposed on redemptions, stablecoin issuers must ensure that this recovery option is not applied as a means to increase the issuer’s liquidity resources at the expenses of clients. Stablecoin issuers must ensure that this recovery options are applied only temporarily during the distress phase with the sole purpose to reduce redemption requests while stabilising the value of the approved stablecoin;(c) the recovery plan should set out different quantitative levels of limits on the number or amount of approved stablecoins that can be redeemed on any working day. These levels should be determined based on the severity of the breach(es) of recovery plan indicators and must be set both at aggregate level (e.g. as a percentage of the entire amount of approved stablecoin issued) and at wallet level;(d) the recovery plan should explain what other remedial actions the stablecoin issuer will take once it has suspended redemptions. Stablecoin issuers must include in their recovery plan that they will consider that suspending redemptions could negatively impact their reputation and the confidence of clients and result in higher volumes of redemption requests once the suspension is lifted. Stablecoin issuers must include in their recovery plan that they will especially consider whether the lift of the suspension should be accompanied by other measures, including but not limited to liquidity fees or limits to the amount of approved stablecoins that can be redeemed on a daily basis;(e) stablecoin issuers must include in the recovery plan how they plan to restore compliance with the regulatory requirements and clearly communicate to the market the next steps.Added: July 2025SIO-11.2.14
Stablecoin issuers must outline for every recovery option how the continuity of operations will be ensured when implementing that option. This must include an analysis of internal operations (e.g. information technology systems and human resources operations) and of the access of the stablecoin issuer to key services from third parties which are essential for the regular conduct of its operations.
Added: July 2025Continuity of Service
SIO-11.2.15
Stablecoin issuers must include in the recovery plan the mechanism and process they intend to implement to recover operations in a timely manner and fulfil their obligations in case of events that pose a significant risk of disrupting operations. Stablecoin issuers must also include in the recovery plan the services they intend to preserve based on their business model and detail how they will ensure the continuation of the services related to approved stablecoins. The list of services to be continued must at least include services related to the issuance and the redemption of approved stablecoins. Where the implementation of the recovery options has the potential to negatively impact the stablecoin issuer’s provision of any of the services identified, the description of the recovery options must outline how the stablecoin issuer plans to ensure the continuity of said services when implementing the recovery plan.
Added: July 2025
