Global Trustee and Fiduciary Services Bite-Sized Issue 9 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2023 2 QUICK LINKS CYBER FINTECH MONEY MARKET FUNDS SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM Given the cross-sectoral nature of these Fintech areas and technology types, the HKMA, together with the SFC and the IA, has recently conducted an industry-wide survey and a round of senior executive interviews with the support of external consultants to inform the development of the new Roadmap. To further expedite Fintech adoption in the wider financial services sector, the new Fintech Promotion Roadmap will provide practical recommendations at different stages of the Fintech adoption journey, from sourcing to implementation. To take these recommendations forward, a series of initiatives will be undertaken, which include regular Fintech showcase events, roundtables, seminars, training sessions, practical guidelines, promotional videos, as well as a new Fintech Knowledge Hub. The regulators state that detailed information about the upcoming initiatives will be announced separately. Link to Fintech Adoption Roadmap Report here MAS Finalises Stablecoin Regulatory Framework On 15 August 2023, the Monetary Authority of Singapore (MAS) announced the features of a new regulatory framework that seeks to ensure a high degree of value stability for stablecoins regulated in Singapore. The regulatory framework takes account of feedback received, following an October 2022 public consultation. MAS’ stablecoin regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency, which are issued in Singapore. Issuers of such SCS will have to fulfil key requirements relating to: • Value stability : SCS reserve assets will be subject to requirements relating to their composition, valuation, custody and audit, to give a high degree of assurance of value stability. • Capital : Issuers must maintain minimum base capital and liquid assets to reduce the risk of insolvency and enable an orderly wind-down of business if necessary. • Redemption at Par : Issuers must return the par value of SCS to holders within five business days from a redemption request. • Disclosure : Issuers must provide appropriate disclosures to users, including information on the SCS’ value stabilising mechanism, rights of SCS holders, as well as the audit results of reserve assets. Only stablecoin issuers that fulfil all requirements under the framework can apply to MAS for their stablecoins to be recognised and labelled as “MAS-regulated stablecoins”. This label will enable users to readily distinguish MAS-regulated stablecoins from other digital payment tokens, including “stablecoins” which are not subject to MAS’ stablecoin regulatory framework. MAS states that any person that misrepresents a token as an “MAS-regulated stablecoin”, may be subject to penalties under MAS’ stablecoin regulatory framework, and placed on MAS’ Investor Alert List. Link to MAS Media Release here Link to Response Feedback here MONEY MARKET FUNDS Thematic Peer Review on MMF Reforms: Summary Terms of Reference and Request for Public Feedback On 16 August 2023 the Financial Stability Board ( FSB ) announced it is seeking feedback from stakeholders as part of its thematic peer review on Money Market Fund ( MMF ) reforms. The objective of the review is to take stock of the progress made by FSB member jurisdictions in assessing and addressing MMF vulnerabilities in their domestic markets, including their evidence- based explanation of relevant MMF vulnerabilities and policy choices made.