Global Trustee and Fiduciary Services Bite-Sized Issue 11 2024

CULTURE FCA Publishes Results of Non-Financial Misconduct Survey On 25 October 2024, the Financial Conduct Authority (FCA) published the results of a survey to better understand how firms record and manage allegations of non-financial misconduct. The FCA says that when the survey launched, it was clear that it was likely that data could be read in different ways. For example, a high number of complaints could be an indicator of a healthy culture in which people feel they can speak up, confident they will be listened to. A low reporting rate may indicate the opposite. The FCA states that in the three years covered by the survey, bullying and harassment (26%) and discrimination (23%) were the most recorded concerns. However, the large ‘other’ group of concerns (41%) indicates how difficult it can be to categorise issues of personal misconduct. The FCA found that firms identified concerns through a variety of mechanisms. Some firms were using their internal systems to identify potential issues, although formal processes and whistleblowing were the most prevalent methods of detection. The FCA says that the findings are being shared to enable firms to benchmark their own reporting against this peer analysis and consider if their processes for reporting and investigating possible non-financial misconduct remain appropriate. The FCA adds that trade associations will play a key role in coordinating industry-wide analysis and actions and the FCA expects that stakeholders from other sectors of the economy, or with an interest in workplace culture may find this data useful. Link to Survey Findings here CRYPTOASSETS ESMA Responds to the EC Rejection of Certain MiCA Technical Standards On 16 October 2024, the European Securities and Markets Authority (ESMA) responded to the European Commission (EC) proposal to amend the Markets in crypto-assets Regulation (MiCA) Regulatory Technical Standards (RTS). ESMA acknowledges the legal limitations raised by the EC but emphasises the importance of the policy objectives behind the initial proposal. In the Opinion, ESMA says it takes note of the amendments proposed to the two RTS specifying: • The information to be included in a notification by certain financial entities of their intention to provide crypto-asset services; and • The information to be included in an application for authorisation as crypto-asset service provider. ESMA also reiterates that the final objective of these RTS is to ensure a thorough entry point assessment for applicant crypto-asset service providers (CASPs) and financial entities intending to provide crypto-asset services in the EU. Securities Services Bite-Sized Global Trustee and Fiduciary Services QUICK LINKS Issue 11 | 2024 CULTURE CRYPTOASSETS ELTIFS EMIR FINANCIAL STABILITY BOARD FINTECH MIFID II/MIFIR OPERATIONAL RESILIENCE SUSTAINABILITY T+1 ASIA/PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM