Global Trustee and Fiduciary Services Bite-Sized Issue 11 2024

2 QUICK LINKS CULTURE CRYPTOASSETS ELTIFS EMIR FINANCIAL STABILITY BOARD FINTECH MIFID II/MIFIR OPERATIONAL RESILIENCE SUSTAINABILITY T+1 ASIA/PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2024 ESMA therefore recommends the EC consider amendments to the MICA regulation (Level 1), namely: • Requiring applicant crypto-asset service providers and notifying entities to provide the results of an external cybersecurity audit; and • Including, in the assessment of the good repute of the members of the management body of applicant crypto-asset service providers, checks regarding the absence of penalties also in areas other than commercial law, insolvency law, financial services law, anti-money laundering and counter terrorist financing, fraud or professional liability. This opinion has been communicated by ESMA to the EC, the European Parliament and the European Council. The EC may adopt the two RTS with the amendments it considers relevant or reject it. The European Parliament and the Council may object to an RTS adopted by the EC within a period of three months. Link to Opinion here IOSCO Announces Final Report on Investor Education on Crypto-Assets On 9 October 2024, the International Organization of Securities Commissions (IOSCO) released its Final Report on Investor Education surrounding Crypto-Assets. IOSCO says that this Report summarises the results of a survey distributed to members of IOSCO’s Committee for Retail Investors (C8) in autumn last year about retail investor behaviour, demographics, and experiences with crypto-assets. IOSCO says that the Final Report highlights examples of regulatory changes and enforcement activity by C8 members since the related 2020 report, as well as current priority issues around investor education in the crypto-asset space, such as relationship investment scams and the need to communicate with retail investors on, and about, social media. The Report suggests specific investor education messages which C8 members could consider when driving forward education of crypto-assets in their local jurisdiction. Link to Final Report here ELTIFS European Commission: Reform of ELTIFs Benefits Investors and Strengthens EU Capital Markets In a Newsletter published on 30 October 2024, the European Commission (EC) announced it has finalised its reform of the European Long-Term Investment Funds (ELTIFs) rules with the publication of the Commission Delegated Regulation specifying regulatory technical standards (RTS) on 25 October 2024. The EC says that the revised regime, commonly referred to as ELTIF 2.0 and applicable since January 2024, makes ELTIFs more accessible and attractive for investors. Also saying it removes existing hurdles and enables ELTIFs to be marketed to investors across the EU. The EC also mentions that ELTIF 2.0 democratises private investing by empowering retail investors and opening the door to assets classes, projects and investment strategies previously reserved primarily for highly sophisticated institutional investors. Moreover, the EC states that the new regime enhances investor protection safeguards by introducing a suitability assessment aligned with general rules under the Markets in Financial Instruments Directive (MiFID II), a depositary for retail ELTIFs as well as comprehensive disclosure requirements and investor alerts. The EC says that some of the features of ELTIF 2.0 include: • Expanded investment universe; • Enhanced liquidity options; and • Simplified marketing and distribution.