Global Trustee and Fiduciary Services Bite-Sized Issue 2 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2024 11 QUICK LINKS AIFMD ANTI-MONEY LAUNDERING CBDC CRYPTOASSETS CYBERSECURITY FINTECH FSB IOSCO MIFID II/MIFIR OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA EUROPE LUXEMBOURG NETHERLANDS NORTH AMERICA UNITED KINGDOM MEPs requested that the EC “publishes eight sector-specific reporting standards as soon as they are ready before the deadline.” MEPs also want to improve the transparency and flexibility of the process and request the EC to consult the European Parliament on the progress with development of the sustainability reporting standards at least once a year and on related planning, prioritisation and timeline adopted in this context by the responsible institution. Link to Announcement here TPT Mandate Extended On 24 January 2024, the Transition Plan Taskforce (TPT) announced that HM Treasury had extended its mandate to at least 31 July 2024 with a possible further extension of 3 months to end of October 2024, in order to support the Transition Finance Market Review. It is stated that the TPT has nearly completed delivery of the tasks listed in its Terms of Reference, including the publication of the TPT Disclosure Framework together with implementation guidance and draft sector guidance. The TPT outlines that it will, this year, release the following final inputs: • Final Deep Dive Sector Guidance for Asset Owners, Asset Managers, Banks, Electric Utilities & Power Generators, Food & Beverage, Metals & Mining and Oil & Gas; • Notes on adaptation, nature, just transition, Emerging Markets & Developing Economies and SMEs; and • A Forward Pathway on transition plans, with considerations for the maintenance of a strong ecosystem around transition plans. Link to the Announcement here NGFS Publishes a Technical Document Providing Guidance on the Purpose and Use of the NGFS Scenarios On 23 January 2024 the Network for Greening the Financial System (NGFS) published the Technical Document “NGFS scenarios: Purpose, use cases and guidance on where institutional adaptations are required” . In the context of the growing use of the NGFS scenarios, the NGFS describes in its announcement that the Technical Document “sets out the purposes and practical applications of the NGFS scenarios, as well as acknowledges the need for scenario users to clarify what they intend to achieve and to consider how the scenarios they use allow them to meet their objectives and/or specific requirements.” The NGFS go on to outline that the document concludes with a frequently asked questions section about the scenarios, an online version of which will be regularly updated. This NGFS summarises that the Technical Document “sets out that, while being a starting point for assessing climate and transition related financial risks, the NGFS scenarios reflect only a small selection of potential future pathways, which do not necessarily represent the most likely or most extreme potential outcomes.” The NGFS describes that, owing to technical and practical limitations, they also do not encompass every potential implication of climate change. Hence, the NGFS outline that the Technical Document “emphasises the need for scenario users to seek to tailor their analyses to suit their requirements and determine what additional risk assessment tools and scenario calibration may be required.” It is outlined in the NGFS announcement that the Document also provides the main areas where users may need to adapt the intensity of the scenarios. Link to the NGFS Scenarios here Link to the NGFS announcement here FRC Revises UK Corporate Governance Code On 22 January 2024, the Financial Reporting Council (FRC) announced what it describes as “important revisions to the UK Corporate Governance Code (the Code) that enhance transparency and accountability of UK plc and help support the growth and competitiveness of the UK and its attractiveness as a place to invest” .