Global Trustee and Fiduciary Services Bite-Sized Issue 11 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2023 7 QUICK LINKS CRYPTO FUND LIQUIDITY MICA REMUNERATION SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM AUSTRALIA APRA and ASIC Commence Joint Administration of the New Financial Accountability Regime On 3 October 2023 the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) published an information package to support the financial services industry in implementing the Financial Accountability Regime (FAR). The FAR imposes a strengthened responsibility and accountability framework for APRA-regulated entities in the banking, insurance and superannuation industries and their directors as well as their most senior executives. In doing so, ASIC states that the FAR aims to improve the risk and governance cultures of those financial institutions. Implementing the FAR fulfils recommendations made by the Financial Services Royal Commission that provisions modelled on the Banking Executive Accountability Regime (BEAR) be extended to all APRA-regulated entities. The FAR replaces the BEAR, which came into effect on 1 July 2018 and was solely administered by APRA. In addition to authorised deposit-taking institutions (ADIs), the FAR will apply to insurance companies, superannuation trustees and licensed non-operating holding companies (NOHCs). Additionally, the FAR introduces conduct-focused prescribed responsibilities, and will be jointly administered by APRA and ASIC. The FAR will come into force for the banking industry on 15 March 2024 and for the superannuation and insurance industries on 15 March 2025. The information package comprises: • The Joint Administration Agreement between APRA and ASIC setting out the framework within which the regulators will work together to administer the FAR; and • A joint information paper providing guidance for ADIs on transitioning from the BEAR to the FAR, supported by the ADI accountability statement guidance and template. ASIC says that further details on industry engagement will follow shortly. Link to Information Package here ASIA SFCWelcomes New Financial Infrastructure for Retail Fund Distribution in Hong Kong On 2 November 2023 the Securities and Futures Commission (SFC) welcomed the plan to establish an integrated platform for retail fund distribution as part of the government’s initiatives to foster co-development of fintech and the real economy in Hong Kong. The integrated fund platform, which will be developed and operated by the Hong Kong Exchanges and Clearing Limited (HKEX), will provide a business-to-business service model initially and will cover the front-to-back distribution life cycle and value chain for distribution of SFC-authorised funds in Hong Kong. The SFC acknowledged the support of industry stakeholders and industry association on this initiative and will work closely with HKEX and other related parties to bring about the implementation of the platform. Link to SFC Announcement here MAS Consults on Streamlined Regulatory Framework for Fund Managers On 24 October 2023 the Monetary Authority of Singapore (MAS) launched a public consultation on its proposal to streamline the regulatory framework for fund managers. Specifically, the existing Registered Fund Management Companies (RFMCs) regime will be repealed, and existing RFMCs that are in operation will be approved as Licensed Fund Management Companies (LFMCs) upon application.