Global Trustee and Fiduciary Services Bite-Sized Issue 11 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2023 12 QUICK LINKS CRYPTO FUND LIQUIDITY MICA REMUNERATION SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM Joint EU-UK Financial Regulatory Forum Issue First Joint Statement The first meeting of the Joint EU-UK Financial Regulatory Forum (the Forum) between the European Union (EU) and the United Kingdom of Great Britain and Northern Ireland (UK) took place in London on 19 October 2023. The Forum is intended to serve as a platform to exchange views and facilitate dialogue on financial services issues. Amongst other things, the Forum discussed: • Views on the organisational aspects and practical arrangements for the future of regulatory cooperation under the Memorandum of Understanding (MoU), including how the Forum could be used in future to exchange views on subjects covered therein. • UK participants provided an update on their reforms to financial services regulation, including the implementation of the Smarter Regulatory Framework, under the Financial Services and Markets Act 2023, and the Edinburgh and Mansion House reforms. • Participants also discussed addressing vulnerabilities in non-bank financial intermediation (NBFI). Participants agreed that to address vulnerabilities in NBFI and enhance the resilience of the sector, it is critical to finalise and implement international reforms. Both sides welcomed the FSB’s upcoming review of leverage in NBFI which will be co-chaired by the FCA and the ECB. • Participants discussed the need for international cooperation and continued bilateral dialogue which remain important for monitoring vulnerabilities and enhancing the resilience of the financial system. • Participants also provided general updates on their respective recent regulatory developments, including areas of work regarding banking, insurance, capital markets, digital finance, and sustainable finance. The next meeting is expected to take place in spring 2024 in Brussels. Link to Joint Statement here Smarter Regulation and the Regulatory Landscape On 17 October 2023 the Department of Business and Trade (DBT) released a Call for Evidence (CfE) on what works and what could be improved across the landscape of UK regulators. The CfE is a core part of the government’s Smarter Regulation programme of regulatory reform. The purpose of the DBT’s CfE: • What works well and what could be improved in how regulators operate to deliver for the sectors they serve; and • Any further steps the DBT can take to reform the existing stock of regulation on the UK statute book. Whilst the DBT encourages respondents to answers as many questions as possible, it recognises that respondents may wish to be target responses to areas of interest. The CfE: • Section 1: Preliminary questions , asks for some high-level views on the regulatory landscape. • Section 2: Complexity and Ease of Understanding the Regulatory System , asks important questions on how easy it is to navigate the landscape of regulators and understand what their objectives are. • Section 3: Regulator Agility, Responsiveness and Skills , covers the speed with which regulators make decisions and whether they have the right balance of skills to deliver effectively. • Section 4: Proportionality in Implementing Regulation , is concerned with whether the approach of regulatory authorities to delivering outcomes is proportionate. • Section 5: Process and Governance , is concerned with whether the governance structures of regulatory authorities are conducive to delivering the best outcomes and whether the rationale for decisions is well communicated. • Section 6: Regulator Performance , asks for views on whether regulators are delivering on their objectives and whether there is sufficient performance monitoring in place.