Global Trustee and Fiduciary Services Bite-Sized Issue 2 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2024 9 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 Next steps The final draft technical standards have been submitted to the European Commission, who will review with the objective to adopt these first standards in the coming months. Link to Final report on draft RTS on ICT Risk Management Framework and on simplified ICT Risk Management Framework here Link to Final Report on draft RTS on classification of major incidents and significant cyber threats here Link to Final report on draft RTS to specify the policy on ICT services supporting critical or important functions here Link to Final report on draft ITS on Register of Information here SUSTAINABLE FINANCE/ESG ECB Steps up Climate Work with Focus on Green Transition, Climate and Nature-related Risks On 30 January 2024, the European Central Bank (ECB) announced its decision to expand its work on climate change, identifying the following three focus areas that will guide its activities in 2024 and 2025 (as taken from the ECB press release): 1. The impact and risks of the transition to a green economy , especially the associated transition costs and investment needs; 2. The increasing physical impact of climate change, and howmeasures to adapt to a hotter world affect the economy; and 3. The risks stemming from nature loss and degradation , how they interact with climate-related risks and how they could affect the ECB’s work through their impact on the economy and financial system. The ECB describes the following measures (as taken from its press release) have been agreed: • On the transition to a green economy , the ECB will intensify its work on the effects of transition funding, green investment needs, transition plans and how the green transition affects aspects of the economy such as labour, productivity and growth. The results will also inform the ECB’s macro modelling framework. Furthermore, the ECB will explore, within its mandate, the case for further changes to its monetary policy instruments and portfolios in view of this transition. • On the increasing physical impact of climate change , the ECB will deepen its analysis of the impact of extreme weather events on inflation and the financial system, and how this can be integrated into climate scenarios and macroeconomic projections. It will also assess the potential impact of adaptation, or lack thereof, to climate change on the economy and financial sector, including related investment needs and the insurance protection gap. • On nature loss and degradation , the ECB will analyse the close link with climate change, and the associated economic and financial implications. It will also further explore the role of ecosystems for the economy and the financial system. • With regard to its own operations , the ECB will launch its eighth Environmental Management Programme to support achieving its 2030 carbon reduction targets. Together with the entire Eurosystem, its work will include eco-design principles for the future euro banknote series and incorporate environmental footprint considerations into the design of a digital euro that is currently in the preparation phase. The ECB describes its decision to step up efforts in these areas follows the its stocktake of its climate actions since launching its 2022 climate agenda, and an adjustment of its work plan in the light of the changing environment and improvements in data availability and methodologies.