Global Trustee and Fiduciary Services Bite-Sized Issue 3 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2024 12 QUICK LINKS AIFMD CYBERSECURITY DIGITALISATION DORA EMIR LIBOR FSB IOSCO MICA MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA EUROPE IRELAND LUXEMBOURG NORTH AMERICA SWITZERLAND UNITED KINGDOM The Central Bank’s six supervisory priorities are: 1. Proactive risk management and consumer-centric leadership of firms. 2. Firms are resilient to the challenging macro environment. 3. Firms address operating framework deficiencies. 4. Firms manage change effectively. 5. Climate change and Net Zero transition are addressed. 6. The Central Bank enhances how it regulates and supervises. Link to Regulatory and Supervisory Outlook 2024 here LUXEMBOURG CSSF Publishes Circular on the Revised Long FormReport for Investment Firms On 6 February 2024, the Commission de Surveillance du Sector Financier (CSSF) published Circular 24/853 – Long Form Report – Practical rules concerning the self-assessment questionnaire to be submitted by investment firms. The CSSF says that the revision of the long form report is the result of a thorough reconsideration of its objective, scope and content in order to align it with supervisory and prudential points of focus of the CSSF. In this context, the CSSF says the revised long form report now focuses on central administration, internal governance, risk management requirements as well as MiFID and AML/CFT regulations. The CSSF states that under the revised approach, investment firms shall provide annually self- certifications on key aspects of Circular CSSF 20/758 as well as MiFID regulations via a self- assessment questionnaire (SAQ), taking into consideration the nature, size and complexity of their business model. Also, that their réviseur d’entreprises agréé (REA) shall provide dedicated reports allowing the CSSF to assess the investment firm’s compliance with relevant MiFID aspects, including provisions on the protection of financial instruments and funds belonging to clients as required under Article 7 of the Grand-ducal Regulation of 30 May 2018, and the relevant AML/CFT laws and regulations. The CSSF says that the completion and submission of the reports must be performed using online forms to be uploaded through a dedicated channel via the eDesk online portal of the CSSF. The CSSF states that the portal will be accessible in the coming days and will contain a user guide on how to fill in the online forms to support entities in this new process. Link to CSSF Circular 24/853 here NORTH AMERICA SEC Proposes Rule to Update Definition of Qualifying Venture Capital Funds On 14 February 2024, the Securities and Exchange Commission (SEC) proposed a rule that would update the dollar threshold for a fund to qualify as a “qualifying venture capital fund” for the purposes of the Investment Company Act of 1940 (Act). The SEC says that the rule would update the dollar threshold to USD12 million aggregate capital contributions and uncalled committed capital, up from the current standard of USD10 million. The SEC states that qualifying venture capital funds are excluded from the Act’s definition of an “investment company.” The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 requires the SEC to index the dollar figure for this threshold to inflation once every five years. The SEC’s proposed rule is designed to implement this statutory directive and would adjust the dollar amount to USD12 million, based on the Personal Consumption Expenditures Chain-Type Price Index. The proposed rule also would establish a process for future inflation adjustments every five years.