Global Trustee and Fiduciary Services Bite-Sized Issue 2 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2024 3 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 The feedback from respondents from a range of industries and organisations was largely supportive of the proposed design set out in the 2023 Consultation Paper, while other respondents raised concerns about the implications of a digital pound for access to cash, users’ privacy, and control of their money. To address these concerns, the publication confirms that, if a digital pound were to be implemented, primary legislation would be introduced, and this would guarantee users’ privacy and control. The BoE and UK Government would not have access to any personal data and users would have freedom in how they spent their digital pounds. There would also be a further public consultation on a digital pound prior to the introduction of primary legislation. These commitments would give both UK Parliament and the public further opportunities to have their say. In addition, the publication reiterates the commitment of both the UK Government and the BoE to protect access to cash, even if a digital pound were introduced. Link to Response here Second Update on the Work of the Digital Euro Scheme’s Rulebook Development Group On 3 January 2024 the European Central Bank (ECB) published a report summarising the progress made by the digital euro scheme’s Rulebook Development Group (RDG). Since the last update in June 2023, the RDG has drafted the first chapters of the digital euro rulebook in line with the legislative proposal and the digital euro design decisions approved by the Governing Council of the ECB. This first draft of the rulebook is an intermediate version which covers: i. The functional and operational models, including the end-to-end flows describing the functioning of all use cases and services relating to a digital euro; ii. The technical scheme requirements depicting a high-level architecture and standards which should potentially be considered in a digital euro landscape; and iii. The adherence model setting out the rights and obligations of scheme members in accordance with the draft legislation. The draft rulebook will be sufficiently flexible to accommodate any future adjustments and will be updated in accordance with the outcome of the digital euro legislative process. Throughout the digital euro preparation phase, the RDG will carry out further work aimed at finalising the rulebook and will include additional sections on: i. Minimum requirements for user experience; ii. Branding and communication standards; iii. Certification; iv. Testing and approval procedures; v. Internal rules; vi. Risk management; and vii. Interoperability and implementation specifications. Link to the Report here