Global Trustee and Fiduciary Services Bite-Sized Issue 12 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2023 8 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 LIBOR TRANSITION FCA Instructs IBA to Extend LIBOR Publication On 15 November 2023 the Financial Conduct Authority (FCA) instructed ICE Benchmark Administration Limited (IBA) to continue publishing 3-month sterling LIBOR (the LIBOR Version) for a period of 3 months starting immediately after the publication of the LIBOR Version on 29 December 2023 and ending immediately after the final publication on 28 March 2024. The FCA has decided to exercise its power under Article 21(3) of the Benchmarks Regulation to compel IBA to continue publishing the LIBOR Version for a further 3 months under the existing changed, ‘synthetic’, methodology, until 28 March 2024, in order that the LIBOR Version may be ceased to be provided in an orderly fashion. In its consultation published on 30 June 2022, the FCA sought views on when it would be possible for the LIBOR Version to cease in an orderly fashion. Based on the feedback received to this consultation and further information received through its engagement with UK supervised mortgage lenders, the FCA considers that it is necessary to extend the period of compelled publication by a period of 3 months and that the LIBOR Version can be ceased on 28 March 2024 in an orderly fashion. This is to provide more time for market participants, especially parties to mortgage contracts, to complete transition away from the LIBOR Version. The FCA states that it has no intention to use its powers to compel IBA to continue to publish the LIBOR Version beyond 28 March 2024. Link to Notice here MiCA EBA Consults on RTS, ITS and Guidelines Under MiCA On 8 November 2023 the European Banking Authority (EBA) launched nine consultations under the Markets in Crypto-Assets Regulation (MiCA). The deadline for the submission of comments on all consultations is 8 February 2024. EBA Consults on the Reporting of Transactions with Asset-referenced Tokens (ART) and e-Money Tokens Denominated (EMT) in a Non-EU Currency Under MiCA Consultation on draft Regulatory Technical Standards (RTS) specifying the methodology to be applied by issuers of ARTs and of EMTs denominated in a non-EU currency for reporting transactions associated to uses of these tokens “as a means of exchange”. In addition, the EBA also consulted on draft Implementing Technical Standards (ITS) specifying the related reporting requirements under MiCA. These consultations, together with other consultations papers published, form part of the third batch of MiCA policy products. The proposals set out in the draft RTS aim to clarify the scope of the transactions associated to the use of ARTs and EMTs denominated in a non-EU currency as a means of exchange that should be reported by issuers, and how issuers should estimate the number and value of such transactions. The draft RTS also aim at contributing to the objective of MiCA of monitoring and preventing risks that the wide use of ARTs and of EMTs denominated in a non-EU currency as a means of exchange may have on monetary policy transmission and monetary sovereignty within the EU. The draft ITS, in turn, provide specific templates and related instructions for the issuers of ARTs and of EMTs denominated in a non-EU currency to comply with their reporting obligations. The draft ITS also provide templates and related instructions that crypto-asset service providers (CASPs) must provide to issuers of ARTs and of EMTs denominated in a non-EU currency. Link to Consultation Paper on RTS on the use of ARTs and EMTs denominated in a non-EU currency as a means of exchange (MiCA) here Link to Consultation Paper on ITS on the reporting on ARTs and EMTs denominated in a non-EU currency under MiCA here