Global Trustee and Fiduciary Services Bite-Sized Issue 1 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2024 3 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 HKMA says that more details of the above best practices can be found in the Annex provided. AIs are expected to review their existing controls to manage cyber risk associated with third-parties against the guidance. Where gaps are identified, AIs should consider applying the sound practices in a manner commensurate with their cyber risk exposures and the level of reliance on third-parties. The HKMA states that it will continue to keep abreast of the international and industry developments in third-party cyber risk management, and provide further guidance to the industry as appropriate. Link to Circular here Link to Annex here Cybersecurity Disclosure On 14 December 2023 Erik Gerding, Director of the Securities and Exchange Commission’s (SEC’s) Division of Corporation Finance, gave a speech on cybersecurity disclosure. In his speech Director Gerding stated that in July 2023 the SEC adopted final rules that will require public companies to disclose both material cybersecurity incidents they experience and, on an annual basis, material information regarding their cybersecurity risk management, strategy, and governance. As some of the new disclosure requirements take effect in December 2023, Director Gerding also said that it is important to underscore the changes the SEC made from the proposal, highlight some significant parts of the rationale and mechanics of these rules, and clear up potential misconceptions. Areas covered in his speech include: • Overview of the Rule and Its Rationale; • The Cybersecurity Incident Disclosure Provision; • The National Security and Public Safety Delay Provision; and • The Risk Management, Strategy, and Governance Disclosure Provisions. As interpretative questions arise, Director Gerding emphasises the Division’s longstanding open door policy. Come talk to staff about your questions. The Division recognises that the disclosure belongs to public companies and that public companies and their advisers are on the front line of disclosure and informing investors. In recommending new disclosure requirements to the SEC, Director Gerding states the goal as staff is not simply to have another rule on the books, to simply add to a company’s compliance “checklist,” or to induce boilerplate disclosures. Rather, the SEC is hoping to elicit tailored disclosures that provide consistent, comparable, and decision-useful information to investors. Link to Speech here DEFI IOSCO Finalises its Policy Recommendations for Decentralized Finance On 19 December 2023 the International Organization of Securities Commissions (IOSCO) published its Final Report with Policy Recommendations for Decentralized Finance (DeFi). The nine Policy Recommendations aim to address market integrity and investor protection concerns arising from DeFi by supporting greater consistency of regulatory frameworks and oversight in member jurisdictions. The Recommendations cover six key areas: (1) Understanding DeFi Arrangements and Structures, (2) Achieving Common Standards of Regulatory Outcomes, (3) Identification and Management of Key Risks (4) Clear, Accurate and Comprehensive Disclosures (5) Enforcement of Applicable Laws, and (6) Cross-Border Cooperation.