Global Trustee and Fiduciary Services Bite-Sized Issue 11 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2023 8 QUICK LINKS CRYPTO FUND LIQUIDITY MICA REMUNERATION SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM MAS says that since 2012, the business models and risk profiles of RFMCs and LFMCs that serve only accredited or intuitional investors (A/I LFMCs) have increasingly converged, making the regulatory distinction between the two less meaningful. Many RFMCs have also upgraded to become A/I LFMCs as their businesses grew, and most new entrants seeking to conduct fund management in Singapore tend to apply to be A/I LFMCs rather than RFMCs. Transitional arrangements for existing RFMCs MAS says that existing RFMCs can continue operating as usual during the transition process. MAS proposes a simplified process for RFMCs that wish to apply to become A/I LFMCs: a. RFMCs will need to submit a form during a prescribed application window, setting out their assets under management and confirming their ability to comply with the regulatory requirements for A/I LFMCs. MAS will respond to all applications from RFMCs within a month. b. MAS will retain the limit of S$250 million on the managed assets of RFMCs that transition to become A/I LFMCs. After the transition, they can apply to MAS to uplift the limit on managed assets, if they have plans to grow their managed assets. c. RFMCs that apply to become A/I LFMCs will not have to pay any application fees for transition to become A/I LFMCs. Prior to the repeal, MAS says it will conduct a briefing for RFMCs to address any uncertainty over the transitional arrangements. Interested parties are invited to submit their comments to the consultation by 31 December 2023. Link to MASWebsite here SFC Consults on Market Sounding Guidelines On 11 October 2023 the SFC launched a consultation on proposed guidelines for market soundings. The SFC says that the proposed guidelines would provide clarity on regulatory expectations and assist intermediaries in their compliance with the general principle to conduct their business activities honestly, fairly and in the best interests of their clients and the integrity of the market during market soundings. Under the SFC’s proposals, intermediaries would have to implement robust governance and effective policies and internal control procedures to prevent the misuse and leakage of non- public information they are entrusted with during market soundings, keep records of their market soundings, as well as follow specific requirements based on their respective roles (i.e., sell-side or buy-side). The SFC’s consultation follows a thematic review of market soundings the SFC commenced in early 2022. In developing the proposed guidelines, the SFC took into consideration local and overseas market practices and regulatory requirements, the Securities and Futures Appeals Tribunal’s recent determination in a related case, as well as information gathered and preliminary feedback from intermediaries in the thematic review. Interested parties are invited to submit their comments to the SFC on or before 11 December 2023. Link to Consultation here EUROPE ESMA Consults on the Potential Impact of Shortening the Standard Settlement Cycle On 5 October 2023 the European Securities and Markets Authority (ESMA) launched a Call for Evidence (CfE) on the shortening of the settlement cycle. The CfE is intended to help ESMA assess the costs and benefits of a possible reduction of the settlement cycle in the European Union (EU); and identify whether any regulatory action is needed to smoothen the impact for EUmarket participants of the planned shortening of the settlement cycle to T+1 in other jurisdictions, such as the US.