Global Trustee and Fiduciary Services Bite-Sized Issue 1 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2024 4 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 The DeFi Policy Recommendations are complementary to the Policy Recommendations for Crypto and Digital Assets (CDA) Markets issued in November 2023. The two sets of IOSCO recommendations have been developed in accordance with IOSCO’s Crypto-Asset Roadmap 2022/2023, and the interoperability between the two sets of Recommendations is detailed in the Umbrella Note which has been published alongside the DeFi Final Report. With delivery of these Recommendations, IOSCO is now shifting attention towards implementation monitoring, capacity building and technical assistance needs of its members. Link to Final Report here Link to Umbrella Note here DIGITALISATION ESMA Offers Recommendations on Digitalisation of Retail Investment Services On 14 December 2023 the European Securities and Markets Authority (ESMA) published a Discussion Paper on ‘MiFID II investor protection topics linked to digitalisation’. In the Discussion Paper, ESMA explores the evolving landscape of retail investments. This includes examining the recent surge in the adoption of digital tools and social media by firms and retail investors following the Covid-19 pandemic, and an exploration of how technology impacts retail investor behaviour and decision-making. Based on the supervisory experience of the National Competent Authorities and relevant academic literature, ESMA assesses both the opportunities and the potential risks linked to digitalisation. ESMA’s recommendations cover the following main topics: • Layering and accessibility of information; • Digital marketing communications and practices; • The use of influencers; • Social features of investment apps; • Gamification; • Nudging techniques; and • Dark patterns. Next steps These insights will enrich ESMA’s view on how to foster investor protection while harnessing the benefits of innovation. ESMA will consider all comments received by 14 March 2024. The feedback to this Discussion Paper will support ESMA’s convergence work and prepare it for potential mandates for technical advice/ standards in these areas. Link to Discussion Paper here DORA ESAs Issue Public Consultation on the Second Batch of Policy Products On 8 December 2023 the European Supervisory Authorities (ESAs: the European Securities and Markets Authority (ESMA), European Banking Authority (EBA) and European Insurance and Occupational Pensions Authority (EIOPA)) published consultation papers (CPs) on the second batch of policy products in relation to the Digital Operational Resilience Act (DORA). The CPs relate to the following draft regulatory technical standards (RTS) and implementing technical standards (ITS): • RTS and ITS on content, timelines and templates on information and communication technology (ICT)-related incident reporting;