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  • Part II – Additional Disclosures

    • A. Additional Whitepaper disclosures

      1.
             		 In addition to all other disclosures required in Rule III.A of the VA Issuance Rulebook, VASPs Licensed to issue FRVAs must include the following in the Whitepaper—
       
        a. the type[s] and composition of Reference Currency[ies];
        b. whether the type[s] and composition of Reference Currency[ies] may change and, if so, the circumstances in which any such changes may take place and the consequential effect of such changes;
        c. a clear and detailed policy on the creation and redemption of FRVAs in circulation and the consequence of such creation or redemption on the increase and decrease of the Reserve Assets;
        d.
             		 the type[s] and composition of Reserve Asset[s], and methodology for valuing such Reserve Assets;
        e. criteria for how Reserve Asset[s] are or will be identified;
        f. the custody arrangement of the Reserve Assets including, but not limited to, the custodian[s] involved and how the VASP Licensed to issue FRVAs ensures it has timely access to Reserve Assets to process redemption requests in compliance with Rule III.C of these FRVA Rules;
        g.
             		 a detailed description of how Reserve Assets are maintained, with reference to the requirements in Rule III.B of these FRVA Rules;
        h.
             		 a detailed description of how they will comply with Rules relating to the handling of redemption requests in Rule III.C of these FRVA Rules, and all relevant risks which may affect their compliance;
        i. the procedures and timeline for holders of FRVAs to redeem such FRVAs at par;
        j.
             		 prominently state whether having a valid Client Agreement with the VASP Issuer is a condition for redemption of the FRVA directly from the VASP Issuer;
        k.
             		 detailed assessments of risks relevant to the management, custody, investment and/or liquidation of the Reserve Assets, including, but not limited to, credit risk, market risk and liquidity risk, and policies and procedures to manage such risks for the purpose of processing redemption requests; and
        l.
             		 any other relevant information as may be determined by VARA.
       

    • B. Additional ongoing disclosures

      1.
             		 VASPs Licensed to issue FRVAs shall at least every month and in a clear, accurate and transparent manner disclose on their website the following information regarding whether an FRVA is one hundred percent [100%] backed by Reserve Assets—
       
        a. the number and value of FRVAs in circulation; and
        b.
             		 the value and composition of the Reserve Assets,
       

             		 as independently audited in accordance with Rule III.D.1 of these FRVA Rules.
       
      2.
             		 Disclosures in accordance with Rule II.B.1 of these FRVA Rules shall be accompanied by a statement confirming whether the FRVA is, for the period covered and at the time of the disclosure, at least one hundred percent [100%] backed by Reserve Assets in accordance with independent audit requirements in Rule III.D.1 of these FRVA Rules.
      3.
             		 VASPs Licensed to issue FRVAs shall as soon as possible and in a clear, accurate and transparent manner disclose on their website any event that has or is likely to have a significant effect, directly or indirectly, on the market value of the FRVAs.