Global Trustee and Fiduciary Services Bite-Sized Issue 9 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2023 10 QUICK LINKS CYBER FINTECH MONEY MARKET FUNDS SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM SEC Adopts Amendments to Exemption fromNational Securities Association Membership On 23 August 2023, the SEC adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934, which requires any broker or dealer registered with the SEC to become a member of a national securities association unless the broker or dealer effects transactions in securities solely on an exchange of which it is a member. FINRA currently is the only registered national securities association. Exchange Act Rule 15b9-1 provides an exemption from Section 15(b)(8) under which certain SEC-registered dealers may engage in unlimited proprietary trading of securities on any national securities exchange of which they are not a member or in off-exchange market without triggering Section 15(b)(8)’s national securities association membership requirement. The rule amendments set forth narrower exemptions from Section 15(b)(8)’s national securities association membership requirement. The narrower exemptions apply when a broker or dealer that does not carry customer accounts and is a member of at least one exchange effects off- member-exchange securities transactions that: (1) result solely from orders that are routed by a national securities exchange of which it is a member to comply with order protection regulatory requirements, or (2) are solely for the purpose of executing the stock leg of a stock-option order. The final rule will become effective 60 days after the date of publication of the adopting release in the Federal Register. The compliance date will be 365 days from the date of publication of the adopting release in the Federal Register. Link to Final Rule here Link to Fact Sheet here Link to Statement by SEC Chair Gary Gensler here Link to Statement by SEC Commissioner Caroline A. Crenshaw here Link to Statement by SEC Commissioner Mark T. Uyeda here Link to Statement by SEC Commissioner Jaime Lizarraga here Link to Statement by SEC Commissioner Hester M. Peirce here UNITED KINGDOM FCA Provide Update on its Wholesale Data Market Study On 31 August 2023, the Financial Conduct Authority (FCA) announced it is on track to publish its wholesale data market study report by 1 March 2024. In its Update Report the FCA states that it has proposed, at this stage, not to refer any of the three markets, covered by the market study, to the Competition and Markets Authority. The FCA says it is continuing to identify any harm in these markets and, where appropriate, potential ways to address it. The FCA considers at this stage that it is likely to be best placed to address any harm and have invited views on this proposed stance. The FCA’s Update Report highlights emerging issues in these markets, such as concerns about market power of large and established firms, which can reduce competition. The Update Report also highlights commercial practices that could increase complexity and reduce transparency in pricing and contractual terms. The FCA launched its study in March 2023 to investigate potential competition problems in the markets for benchmarks, credit ratings data and market data vendor services. The FCA invite stakeholders to share their views on its proposed market investigation reference decision and the emerging themes and issues set out in its Update Report by 29 September 2023. Link to FCA Update Report here FCA Finds Fund Managers’ Value Assessments Significantly Improved, But Still Work To Do In 2017, the FCA published its Asset Management Market Study, which found evidence of weak demand-side pressure on fund prices, resulting in uncompetitive outcomes for investors in authorised funds. Since then, the FCA has worked closely with industry to encourage a greater focus on assessment of value, to drive improved value for money for investors.