Global Trustee and Fiduciary Services Bite-Sized Issue 12 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2023 14 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 Who this is for: • The anti-greenwashing rule applies to all FCA-authorised firms who make sustainability-related claims about products and services. • The investment labels, disclosure and naming and marketing rules apply to UK asset managers. • The FCA has also introduced targeted rules for the distributors of investment products to retail investors in the UK. Firms have until 31 May 2024 to implement the anti-greenwashing rule. The transitional periods for all other rules vary between 31 July 2024 to 2 December 2026. Link to Policy Statement PS23/16 here Guidance on the Anti-greenwashing Rule On 28November 2023 the FCA published Consultation Paper GC23/3 on newguidance on its expectations for FCA-authorised firmsmaking claims about the sustainability of a product or service. All sustainability-related claims made by FCA-authorised firms about their products and services must be fair, clear and not misleading, as the new anti-greenwashing rule (see above) sets out. The rule applies to all communications about financial products or services which refer to the environmental and/or social (i.e., ‘sustainability’) characteristics of those products or services. According to the FCA, sustainability-related references can be present in, but are not limited to, statements, assertions, strategies, targets, policies, information, and images. A sustainability-related claimmay be any claimwhich includes references relating to the sustainability characteristics of a product or service. For example, an investment or pension fund is ‘sustainable’ and aims to deliver positive outcomes for people or the planet. It could also include, but is not limited to, claims relating to the environment, climate or climate change, biodiversity and nature, social issues, or corporate social responsibility. This proposed guidance is designed to help firms better understand the FCA’s expectations under the anti-greenwashing rule and other existing, associated requirements. The consultation period ends on 26 January 2024. The FCA intends to publish the finalised guidance in early 2024 prior to its 31 May 2024 implementation date. Link to Consultation GC23/3 here ESMA Explanatory Notes for the Sustainable Finance Framework. On 22 November 2023 the European Securities and Markets Authority (ESMA) published three explanatory notes covering key topics of the Sustainable Finance (SF) framework: a. Definition of sustainable investments; i. This document is intended as an aide to stakeholders to navigate the SF framework concerning the SFDR definition of sustainable investment and the Taxonomy Regulation (TR) definition of environmentally sustainable economic activities. b. Application of do no significant harm (DNSH) requirements; i. This document is intended as an aide to stakeholders to navigate the SF framework concerning the DNSH principle. It sets out the relevant DNSH requirements in each of the three pieces of SF legislation, notably TR, SFDR and Benchmarks Regulation (BMR). c. Use of estimates. i. This document is intended as an aide to stakeholders to navigate the key elements concerning estimates and equivalent information under SFDR, BMR and the TR. It describes the situations where the concepts of estimates and equivalent information may be applied under TR, SFDR and BMR.