Global Trustee and Fiduciary Services Bite-Sized Issue 9 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2023 4 QUICK LINKS CYBER FINTECH MONEY MARKET FUNDS SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM The CSSF outlines it is currently engaging with investment fund managers ( IFMs ) in relation to the observations made in this context, and asking, where applicable, for IFMs to implement the necessary corrective measures in relation to the shortcomings observed by the CSSF. The CSSF also states IFMs shall, in the context of their ongoing assessment of their compliance with the sustainability-related requirements, take into account the CSSF’s observations contained in the Thematic Review and, if applicable, take necessary corrective measures. The CSSF’s Thematic Review consists of observations and expectations across five different aspects of the sustainability-related provisions: 1. Organisational arrangements of IFMs, including the integration of sustainability risks by IFMs; 2. Compliance of precontractual disclosures, including product website disclosures; 3. Compliance of periodic disclosure information; 4. Fund documentation and marketing communications; and 5. Portfolio analysis. Link to CSSF’s Thematic Review here A Framework to Create UK Sustainability Disclosure Standards Further to the International Sustainability Standards Board publishing its first standards in June 2023 (IFRS S1 and IFRS S2, ISSB Standards ), and further to the UK government’s 2023 Green Finance Strategy (in which the UK government laid out its plans to establish a framework to assess the suitability of IFRS S1 and S2 for endorsement in the UK), the UK Government’s Department for Business and Trade (DBT) published information on 2 August 2023 on the UK government’s framework to create the UK Sustainability Disclosure Standards (UK SDS). The DBT outlines that the Secretary of State for the DBT will consider the endorsement of the ISSB Standards, to create the UK SDS, by July 2024 (and the UK SDS will only divert from the global baseline if absolutely necessary for UK specific matters). In this respect, the DBT describes how two committees have been established (the UK Sustainability Disclosure Technical Advisory Committee and the UK Sustainability Disclosure Policy and Implementation Committee) to assist with assessing and endorsing the ISSB Standards and implementing any UK SDS. The DBT states that the UK SDS will set out corporate disclosures on sustainability-related risks and opportunities that companies face. The DBT outlines that the aim for using the ISSB Standards, as a baseline, is so that information that companies disclose under the UK SDS can be globally comparable and decision-useful for investors. The DBT describes that the UK SDS will help investors compare information (assisting with investors’ decision-making) and supporting the efficient allocation of capital, and smooth running of the UK’s capital markets. Finally, the DBT outlines that the UK SDS will form the basis of any future requirements in UK legislation or regulation for companies to report on risks and opportunities relating to sustainability matters (including risks and opportunities arising from climate change). The DBT goes on to describe that decisions to require disclosure will be taken independently by the UK government (for UK registered companies and limited liability partnerships) and by the Financial Conduct Authority (for UK listed companies). Link to UK Government Webpage here AUSTRALIA ASIC Proposes to Extend Design and Distribution Obligations Instrument On 15 August 2023, the Australian Securities & Investments Commission (ASIC) invited industry feedback on a proposal to extend the operation of the ASIC Corporations (Design and Distribution Obligations InterimMeasures) 2021/784 instrument for a further five years. The instrument was initially made for a period of two years and implements measures announced by Treasury. These include relief for distributors from the obligation to report to product issuers if they received nil complaints during a reporting period.