Global Trustee and Fiduciary Services Bite-Sized Issue 12 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2023 12 QUICK LINKS AIFMD BENCHMARK REGULATION CBDC COSTS & CHARGES CRYPTOASSETS FUND LIQUIDITY LIBOR TRANSITION MiCA OPERATIONAL RESILIENCE UK PRIIPs SUSTAINABLEFINANCE/ESG ASIA EUROPE IRELAND NORTH AMERICA UNITED KINGDOM UK PRIIPs UK Retail Disclosure Framework – Draft SI and Policy Note On 22 November 2023 HM Treasury published a near-final version of the statutory instrument (SI) to replace the EU Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation and create a new UK retail disclosure framework. On 9 December 2022, as part of the Edinburgh Reforms, the UK government committed to repealing and replacing the EU-inherited PRIIPs Regulation as a matter of priority and issued a consultation on a proposed replacement framework. On 11 July 2023, the UK government published its consultation response, confirming the government’s intention to entirely remove from legislation all firm-facing retail disclosure requirements and ensure the FCA can deliver a new UK retail disclosure framework.. This draft SI, alongside an accompanying explanatory policy note, explains the government’s approach to establishing a new legislative framework for UK retail disclosure, and will facilitate the delivery of new FCA rules to replace PRIIPs. Technical comments on the draft SI can be submitted to HM Treasury by 10 January 2024. Link to Draft SI here Link to Policy Note here SUSTAINABLE FINANCE/ESG The ESAs Publish Interactive Factsheet on Sustainable Finance On 30 November 2023 the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published an interactive factsheet that answers various frequently asked questions about sustainable finance. The factsheet provides information to consumers considering buying financial products with sustainability features, including loans, investments, insurances and pensions. The factsheet provides answers to frequently asked questions and steps the ESAs consider consumers could potentially take in this regard. In addition, the factsheet provides four tips the ESA’s consider consumers should take into account before choosing financial products with sustainability features. In the factsheet, consumers are encouraged to: 1. Decide how important sustainability is for them and what financial goals they want to achieve before they choose a product; 2. Pay attention to the conditions and the sustainability features, to avoid being misled by ‘greenwashing’; 3. Keep in mind that financial products with sustainability features are not risk-free; 4. For investments and life insurance policies, take their time before deciding and, if need be, seek further clarification from the firmor person that can advise themon and sell them such products. In addition to this, the factsheet has pop-up boxes that seek to explain specific terms in a simple and easy-to-understand way. Link to the Interactive Factsheet (All EU Languages) here