Global Trustee and Fiduciary Services Bite-Sized Issue 9 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2023 5 QUICK LINKS CYBER FINTECH MONEY MARKET FUNDS SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM ASIC intends to extend the operation of the instrument to retain certainty for industry ahead of any law reform. ASIC assessed that ASIC Instrument 2021/784, is operating effectively and efficiently, and continues to form a necessary and useful part of the legislative framework. The only changes proposed are to: • Extend the expiry of the instrument until the start of 5 October 2028; and • To remove an exemption for cashless welfare arrangements that is no longer necessary following the making of the Corporations Amendment (Design and Distribution Obligations – Income Management Regimes) Regulations 2023. ASIC states that these amendments should not have a substantive effect on the operation of the instrument. ASIC sought feedback on the proposal, including whether any amendments to the instrument are required. The deadline for submissions closed 25 August 2023. Link to ASICMedia Release here Link to Draft Instrument here Link to ASIC Corporations (Design and Distribution Obligations InterimMeasures) Instrument 2021/784 here ASICWarns of Further Action Against Market Misconduct On 2 August 2023, in a media release ASIC warned market participants that strong, targeted enforcement action will continue in the coming months as part of its focus on protecting consumers from harm and upholding market integrity. The warning comes after ASIC’s enforcement and regulatory update highlighted over AUD109.1 million in civil penalties for the half year to 30 June 2023, along with a number of significant outcomes aimed at maintaining market integrity. ASIC also banned an individual engaging in naked short selling, with ASIC continuing to monitor compliance with the short selling regime. During the quarter ASIC released an update on its recent greenwashing interventions and called on financial institutions to improve their approaches to handling scams. Link to ASICMedia Release here ASIA Hong Kong Regulators Conclude Consultation on Revising OTC Derivative Clearing Rules On 29 August 2023, the Hong Kong Monetary Authority ( HKMA ) and Securities and Futures Commission ( SFC ) issued their joint consultation conclusions on proposed amendments to the Clearing Rules for over-the-counter (OTC) derivative transactions. Under the proposal, certain interest rate swap transactions referencing alternative reference rates ( ARRs ) would be subject to the clearing obligation under specified conditions. At the same time, the HKMA and SFC would repeal the current requirement to clear certain interest rate swap transactions referencing interbank offered rates ( IBORs ) which are or will no longer be published or considered representative. The SFC states that this is in line with global interest rate benchmark reforms, particularly the transition from the use of IBORs to ARRs. The SFC say the proposal received general support and the amendments will be submitted to the Legislative Council for negative vetting. Subject to the legislative process, the amended Clearing Rules are expected to come into effect no earlier than 1 July 2024. Link to Joint Consultation Conclusions here