Global Trustee and Fiduciary Services Bite-Sized Issue 2 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2024 17 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 5. Be a professional, vital and agile organisation with extensive capacity for learning, an effective IT infrastructure and sufficient budget. » a. Successful IT strategy thanks to predictable IT implementations, such as the completion of the cloud migrations, the support of newmandates and the update of MyAFM. » b. Participate in the creation of an appropriate cost framework, in cooperation with the Ministry of Finance and the Ministry of Social Affairs and Employment. » c. Reinforce agility and capacity for learning. Link to Agenda 2024 here NORTH AMERICA “Time is Money. Time is Risk” On 25 January 2024, Gary Gensler, Chair of the Securities and Exchange Commission (SEC), gave a speech to the European Commission on the US moves to T+1 settlement. Chair Gensler began by noting the importance of clearing houses to capital markets and their role in lowering settlement risks. Moving on the importance of shortening the settlement cycle, Chair Gensler noted that by doing so lowers risk, increases efficiency, boosts liquidity, and promotes resiliency in the markets. Chair Gensler discussed the settlement cycle around the world, noting that T+1 is not new and that US government securities, securities options, much of the derivatives markets, and mutual funds currently settle T+1, and that commercial paper, certificates of deposit, and money market funds largely settle T+0. He went on to notes other jurisdictions, such as the EU, Israel, UK, India, Japan, China and Hong Kong that had moved, or were in the process of moving to, T+2 and T+1 settlement, and in the case of China A shares T+0. Chair Gensler went on to describe the move to T+1 in the US on 28 May 2024. He also noted that trades relating to initial public offerings will move from T+4 to T+2. He noted that Mexico and Canada will also be moving to T+1 a day earlier, on 27 May 2024 (a US public holiday). Chair Gensler concluded by noting the challenges faced by jurisdictions in adopting shorter settlement cycles, the inevitable mismatches that will arise where jurisdictions have different settlement cycles, and the impact on funds. He asked regulators around the world to consider the possibility of shortening the currency settlement cycle from T+2 to T+1. And finally, he speculated on the whether even T+1 is too long and an even shorter cycle may be appropriate. Link to Speech here SEC Approves Bitcoin ETFs On 10 January 2024 the SEC announced that it had approved 11 US-listed exchange traded funds (ETF) designed to track bitcoin. The SEC found that the ETF proposals are consistent with the Exchange Act of 1934 and rules and regulations applicable to a national securities exchange and that the ETF proposals are consistent with rules be designed to prevent fraudulent and manipulative acts and practices and, in general, to protect investors and the public interest. Link to the Decision here Link to Statement by Chair Gary Gensler here Link to Statement by Commissioner Hester M. Peirce here Link to Statement by Commissioner Caroline A. Crenshaw here Link to Statement by Commissioner Mark T. Uyeda here