Global Trustee and Fiduciary Services Bite-Sized Issue 11 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2023 3 QUICK LINKS CRYPTO FUND LIQUIDITY MICA REMUNERATION SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM ESMA Encourages Preparations for a Smooth Transition to MiCA On 17 October 2023 ESMA published a Letter and a Statement to encourage preparations for a smooth transition to the Markets in Crypto-Assets Regulation (MiCA). In the Letter, ESMA Chair Verena Ross called on Member States to designate without delay the national competent authorities (NCAs) responsible for carrying out the functions and duties provided for under MiCA, and to consider limiting the optional grand-fathering period to 12-months should they choose to offer it in their jurisdictions. ESMA also published a Statement, addressed to entities providing crypto-asset services and NCAs that will be responsible for their supervision, which lists expectations for each from now until the end of the MiCA transitional period. The competent authorities are encouraged to dedicate resources and align their supervisory practices with those of their counterparts across the EU to begin effective supervision from day one. ESMA says that market participants are encouraged to begin planning towards a smooth transition and ensure their clients are aware of the regulatory status of their ‘grand-fathered’ crypto-asset offerings. ESMA’s Statement also reminds consumers of the risks associated with holding or investing in crypto-assets until and even after MiCA enters into application. Link to ESMA Letter here Link to ESMA Statement here ESMA Publishes Second Consultation on Crypto Market Rules On 5 October 2023 the European Securities and Markets Authority (ESMA) published a second consultation package under the Markets in Crypto-Assets Regulation (MiCA). In the consultation, ESMA is seeking input on five sets of proposed rules, covering: • Sustainability indicators for distributed ledgers; • Disclosures of inside information; • Technical requirements for white papers; • Trade transparency measures; and • Record-keeping and business continuity requirements for crypto-asset service providers. The deadline for comments is 14 December 2023. ESMA says it will publish a final report on the basis of feedback received and submit the draft technical standards to the European Commission for endorsement by 30 June 2024 at the latest. Additionally, ESMA will publish a third consultation package with the remaining 18-month mandates in Q1 of 2024. More information on the timeline for MiCA implementing measures and the transitional period can be found here. Link to Consultation here REMUNERATION PRA and FCA Policy Statement on Ratio Between Fixed and Variable Components of Total Remuneration On 24 October 2023 the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) published a joint policy statement (PRA PS9/23 & FCA PS23/15), providing feedback to responses to the joint consultation paper PRA CP15/22 and FCA CP22/28 – Remuneration: Ratio between fixed and variable components of total remuneration (‘bonus cap’). The proposals in the joint consultation concerned removing the current limits on the ratio between fixed and variable components of total remuneration.