Global Trustee and Fiduciary Services Bite-Sized Issue 12 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2023 19 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 In view of these developments and feedback, MAS states that it considers it timely to undertake a broader review of the suite of measures that work together to protect and empower retail investors in accessing a wide range of investment products. MAS intends to issue a new consultation paper in the first half of 2024 to consult on broader proposals on the complex products regime, including a review of the safeguards applicable to SIPs, as well as enhancements to the Product Highlights Sheets for investment products. MAS states that as a result it will hold back on responding to its proposals on EIP/SIP classification changes and the safeguards, and will take them into consideration in the broader review. MAS set out its preliminary responses to the feedback received in Sections 2 and 3 of the response paper. Link to the Response Paper here EUROPE ESMA to Put Cyber Risk as a NewUnion Strategic Supervisory Priority On 9 November 2023 the European Securities and Markets Authority (ESMA) announced that it is changing its Union Strategic Supervisory Priorities (USSPs) to focus on cyber risk and digital resilience alongside ESG disclosures. With this new priority, EU supervisors will put greater emphasis on reinforcing firms’ ICT risk management through close monitoring and supervisory actions, building new supervisory capacity and expertise. The aim is to keep pace with market and technological developments, and closely monitor potential contagion effects of attacks and disruptions across markets and firms. The new USSP will come into force in 2025, at the same time as the Digital Operational Resilience Act – DORA. This timeline is intended to provide supervisors and firms in Member States with sufficient time to prepare for compliance with the new regulatory requirements. Meanwhile, ESMA and national competent authorities (NCAs) will carry out preparatory work planning and shaping the supervisory activities to undertake under this priority. The new USSP on cyber risk and digital resilience will replace the USSP on market data quality. ESMA and NCAs have carried out intensive and concerted supervisory efforts to make structural, long-lasting improvements in this area. Notably, they have: • Built common data quality methodologies and data sharing frameworks; and • Worked on the detection of supervisory issues, carried out investigations and developed supervisory tools to extract further intelligence from the data reported. ESMA says that ensuring data quality remains a primary duty of supervised entities. Firms, and in particular their top management, should take ownership of the data they report and increase its use also for internal purposes. EU supervisors will continue to undertake important supervisory work on data quality, leveraging on the newmethodologies and tools developed through the USSP. ESMA states that paying close attention to this topic remains fundamental in building a data-driven supervisory approach, a key strategic objective under the ESMA Strategy. Link to Press Release here