Global Trustee and Fiduciary Services Bite-Sized Issue 1 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2024 18 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 Notable highlights from the Report include: • Empirical research findings about investors’ comprehension of registered index-linked annuities as well as policy recommendations; • Research findings about investment advisory agreements use of mandatory arbitration clauses including suggested approaches on combating abusive use of those clauses; • Metrics measuring the activities of the Office including the substantial uptick in investor engagement, investor submissions, and inquiries; and • Topical discussions of private markets, cybersecurity, and equity market structure. Link to Report on Activities here UNITED KINGDOM UK Signs First of its Kind Financial Services Agreement with Switzerland On 21 December 2023 UK Chancellor of the Exchequer Jeremy Hunt and his Swiss counterpart Karin Keller-Sutter signed the Berne Financial Services Agreement (FS Agreement). The FS Agreement sets sectors where the UK and Switzerland will mutually recognise each other’s domestic laws and regulations on financial services, making it easier for corporate and high net worth clients in the two markets to do business with each other. The FS Agreement is intended to enable the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services. For certain sectors it means that a firm based in the UK will be able to serve clients in Switzerland while largely following UK rules, and vice versa. The FS Agreement requires approval by the parliaments of both parties before entering into force. Link to FS Agreement here FCA Seeks Views on Regulatory Approach for Overseas Funds On 4 December 2023, the Financial Conduct Authority (FCA) published a consultation paper (CP23/26) setting out its proposals for how the new Overseas Funds Regime (OFR) should operate. The OFR has been designed by the UK Parliament to provide a streamlined process that aims to allow non-UK domiciled funds to market to UK retail customers where the UK Government has found a jurisdiction equivalent. The FCA is consulting on changes to its rules that will allow overseas schemes to be recognised under OFR, should the UK Government make any determination on equivalence. This is to allow the FCA and firms enough time to prepare for the changes necessary. As the OFR allows the UK Government to recognise any overseas jurisdiction as equivalent, the FCA may consult about additional investor protection requirements following each decision by the UK Government. The FCA has proposed the categories of information that overseas schemes will need to submit to become recognised by the FCA under the OFR. This includes key information about the scheme’s investment objective and policy, and the main categories of assets that it invests in. The FCA has sought to design a regime that is efficient and effective. The FCA has also put forward newmeasures to make sure investors are aware of the protections they have, such as access to the Financial Ombudsman Service and the Financial Services Compensation Scheme, if they invest in an overseas fund. Overseas funds will need to make it clear when these customer protections are not available. This will help consumers to make informed decisions about which funds best meet their needs. The consultation period ends on 12 February 2024. Link to CP23/26 here