Global Trustee and Fiduciary Services Bite-Sized Issue 12 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2023 17 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 Dutch AFM Publishes Position Paper on Improving the SFDR On 2 November 2023 the Dutch Authority for the Financial Markets (D-AFM) proposed improvements to the EU’s Sustainable Finance Disclosure Regulation (SFDR). The proposal seeks to make the framework more meaningful to investors and to facilitate the reorientation of capital towards investments with sustainable impact. The D-AFM proposes improvements to the framework to make the disclosures easier for consumers to understand. With a view to ensuring alignment with investor expectations and objectives, the D-AFM proposes to introduce three distinct sustainable product labels that investors can understand: “transition”, “sustainable” and “sustainable impact”. The intention is that these labels enable investors to understand the different types of sustainable investment products. To address greenwashing risks the D-AFM details specific minimum quality and disclosure requirements tailored to each of these labels. Link to the Paper here Australian Government Consults on Proposed Sustainable Finance Strategy On 2 November 2023 the Australian Government published its Sustainable Finance Strategy, which aims to support Australia’s pathway to net zero, by providing a framework for reducing barriers to investment into sustainable activities. The strategy’s policy priorities are structured in 3 key pillars: • Pillar 1: Improve transparency on climate and sustainability: – Priority 1: Establish a framework for sustainability-related financial disclosures; – Priority 2: Develop a Sustainable Finance Taxonomy; – Priority 3: Support Credible net Zero transition planning; – Priority 4: Develop a labelling system for investment products marketed as sustainable. • Pillar 2: Financial system capabilities: – Priority 5: Enhancing market supervision and enforcement; – Priority 6: Identifying and responding to potential systemic financial risks; – Priority 7: Addressing data and analytical challenges; – Priority 8: Ensuring fit for purpose regulatory frameworks. • Pillar 3: Australian Government leadership and engagement: – Priority 9: Issuing Australian sovereign green bonds; – Priority 10: Catalysing sustainable finance flows and markets; – Priority 11: Promoting international alignment; – Priority 12: Position Australia as a global sustainability leader.