# Article 2 — Procedure **Commission Delegated Regulation (EU) 2025/415 · binding · OJ L, 2025/415, 24.3.2025 · dated 13 Dec 2024 [in force]** *In force · Commission Delegated Regulation (EU) 2025/415, OJ L, 2025/415, 24.3.2025 · Checked against EUR-Lex on 26 Oct 2026 · [Official source](https://eur-lex.europa.eu/eli/reg_del/2025/415/oj/eng)* 1. The competent authority of the home Member State (‘the competent authority’) shall provide an issuer of asset-referenced tokens or e-money tokens with the draft of its decision to require the increase of own funds in accordance with [Article 35(3)](../../articles/35.md) of Regulation (EU) 2023/1114 taking due account of the views expressed by the relevant issuer. 2. The draft referred to in paragraph 1 shall set out:\ a) the amount by which the own funds must be increased and the percentage higher than the amount of reserve of assets resulting from the application of [Article 35(1)](../../articles/35.md), first subparagraph, point (b), of Regulation (EU) 2023/1114;\ b) relevant reasoning as to the higher degree of risk;\ c) whether that higher degree of risk can have a material impact on the financial situation of the issuer or on the financial stability of the wider financial system;\ d) whether that higher degree of risk is independent from the relevant issuer’s governance or business model;\ e) the timeframe within which the relevant issuer shall increase its own funds in accordance with Article 3.\ 3. The issuer of asset-referenced tokens or e-money tokens shall express its views on any of the elements referred to in paragraph 2 within 25 working days of receipt of the draft. 4. The competent authority shall notify the issuer of asset-referenced tokens or e-money tokens of its final decision containing the elements listed in paragraph 2. 5. The issuer of asset-referenced tokens or e-money tokens shall submit to the competent authority within 25 working days of receipt of the decision referred to in paragraph 4, a detailed plan on how its own funds are to be increased within the timeframe set by the competent authority. The plan shall contain the following:\ a) time-bound steps, specific measures and procedures to carry out the increase within the set timeframe;\ b) the confirmation that the envisaged use of own funds items and instruments to comply with the increased requirement fully meet the conditions set out in [Article 35(2)](../../articles/35.md) of Regulation (EU) 2023/1114.\ 6. Where the timeframe referred to in Article 3 set for the completion of the increase of own funds is longer than three months, the issuer of asset-referenced tokens or e-money tokens shall inform the competent authorities on a monthly basis on the plan’s implementation progress. 7. The issuer of asset-referenced tokens or e-money tokens shall inform the competent authority immediately in case any step or procedure cannot be achieved within the timeframe respecting the requirements set out in Article 3. 8. The competent authority shall closely monitor the implementation of the plan. 9. Where a college referred to in [Article 119(1)](../../articles/119.md) of Regulation (EU) 2023/1114 has been set up, the competent authority shall keep the European Banking Authority informed of all the information referred to in paragraphs 2 to 8, including the draft and the final decision, the plan and any relevant updates.