Global Trustee and Fiduciary Services Bite-Sized Issue 2 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2024 13 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 Cross-Agency Steering Group announces key initiatives to support Hong Kong in capitalising sustainable finance opportunities On 8 January 2024 the Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) met to consider its work plan for 2024 and agreed on three key initiatives (included below, taken directly from the SFC announcement linked) to capture financing and investment opportunities from the Asia-Pacific Region’s low carbon transition. The Steering Group also welcomed the Accounting and Financial Reporting Council (AFRC) as a newmember. 1. Adopting International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards locally as appropriate . A new working group, co-led by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), reported to the Steering Group on the progress in developing a roadmap on the appropriate adoption of the IFRS Sustainability Disclosure Standards. The roadmap will comprise four key areas — sustainability reporting, assurance, data and technology, and capacity building. The working group will start engaging with stakeholders to identify Hong Kong-specific circumstances that should be considered when implementing international reporting standards. 2. Leveraging technology to support sustainability reporting and data analysis . The Steering Group decided to organise an event in Q1 2024 to showcase potential green fintech use cases to scale the sustainable finance market. In the coming months, it will launch enhancements to its website , including the Climate and Environmental Risk Questionnaire for Non-listed companies in digital format, and new greenhouse gas emissions calculation and estimation tools jointly developed with the Hong Kong University of Science and Technology. It will also explore new features that would enable broader consent-based sharing of the data collected through the Questionnaire. 3. Supporting the development of transition finance to consolidate Hong Kong’s role as a leading sustainable finance hub . The Steering Group identified transition finance as a priority for 2024. Its members have continued to make progress in integrating transition considerations into their policy work to support sustainable finance development. The Steering Group will broaden the development of its local taxonomy to cover transition activities, work with regional and international partners on capacity building and elevate Hong Kong’s thought leadership in the net-zero transition. Link to SFC Announcement here ASIA SFC Issues Guidance to Eligible Licensed Corporations on Participation inWealth Management Connect Scheme On 24 January 2024, the Hong Kong Securities and Futures Commission (SFC) issued a circular setting out the eligibility criteria and guidance for licensed corporations (LCs) to participate in the Cross-boundary Wealth Management Connect Pilot Scheme (WMC Scheme) in the Guangdong- Hong Kong-Macao Greater Bay Area (GBA). Eligible brokers’ participation in the WMC Scheme was made possible by the revised Implementation Arrangements published by the People’s Bank of China for the Cross-boundary WMC Pilot Scheme in the GBA (Implementation Rules). The other revised arrangements cover increasing the individual investment quota to RMB 3 million; expanding the product scope to include, amongst others, funds with higher risk ratings; and enhancing the promotion and sales arrangements. The revised Implementation Rules will take effect on 26 February 2024. LCs interested in participating in the WMC Scheme should submit applications to the SFC. They should be licensed for Type 1 regulated activity, have paid-up capital and shareholders’ funds of not less than HKD$100 million, have at least three years of experience in distributing funds and/ or bonds and transaction volume of not less than HKD$500 million during any 12-month period in the past three years and adequate systems of control. In addition, similar to the current arrangement for banks, LCs should partner with one or more eligible Mainland broker when providing services under the WMC Scheme. Link to the Circular here