Global Trustee and Fiduciary Services Bite-Sized Issue 1 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2024 10 QUICK LINKS BENCHMARKS REGULATION CSDR CYBERSECURITY DEFI DIGITALISATION DORA ELTIF FSB FUND LIQUIDITY MONEYMARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Annex II then sets out acronyms and a glossary of terms related to the ESRS. The Delegated Regulation setting out the ESRS applies from 1 January 2024, for financial years beginning on or after 1 January 2024. Link to Media Release here EU Commission Issues Additional Guidance on Taxonomy Disclosures Delegated Act On 21 December 2023, the EU Commission adopted a guidance document, which is in the form of replies to Frequently Asked Questions, concerning the interpretation and implementation of the Taxonomy Disclosures Delegated Act for the purpose of providing guidance to financial undertakings reporting their KPIs under the Delegated Act. The document provides, amongst other things, clarifications as regards the scope of entities subject to the reporting obligations, the taxonomy-assessment of specific exposures such as to retail clients, local authorities and exposures to individual undertakings and groups. It also considers verification, assurance and evidence of compliance with the EU Taxonomy’s technical screening criteria, and targeted questions specifically related to credit institutions, insurance undertakings, and asset managers. Link to Draft Commission Notice here European Single Access Point Legislation Published in European Union Official Journal On 20 December 2023, Regulation (EU) 2023/2859, Regulation (EU) 2023/2869, and Directive (EU) 2023/2864, which establish the European single access point (ESAP) and amend certain existing regulations and directives accordingly, were published in the Official Journal of the EU. The ESAP is intended to provide the public with easy, centralised access to information about entities and their products that is made public and is of relevance to financial services, capital markets, sustainability and diversity. The European Securities and Markets Authority (ESMA) has been tasked with establishing and setting up the ESAP by 10 July 2027. Link to ESAP Publication here CSSF Publishes Document on Taxonomy Regulation Disclosure by Issuers On 18 December 2023, the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) published a report which details the results of a focused examination on corporate reporting practices specifically relating to Article 8 EU Taxonomy disclosures, as of 1 January 2023, of non- financial issuers under the CSSF’s supervision (noting that the information to be disclosed, as well as the timing for the disclosure are specified in Commission Delegated Regulation (EU) 2021/2178, as amended (the Disclosure Delegated Act)). 2023 was the first year during which non-financial issuers were required to disclose not only Taxonomy-eligibility, but also Taxonomy-alignment of their economic activities for the financial year 2022 with respect to the first two environmental objectives set out in the EU Taxonomy Regulation: climate change mitigation and climate change adaptation. The objective of the CSSF’s examination is to evaluate the quality of the disclosures provided by non-financial issuers under the new requirements contained in the EU Taxonomy Regulation. Regarding quantitative information, the CSSF assessed: • The use and completeness of the templates required by Annex II of the Disclosure Delegated Act; • The adequate reporting of the different key performance indicators; and • The avoidance of double counting for activities contributing to both climate objectives (mitigation and adaptation). For qualitative information, the accounting policy and the assessment of compliance with Annex I of the Disclosure Delegated Act were examined, as well as the existence of references to other parts of the financial or non-financial statements. The disclosure of additional voluntary information was also analysed.