Global Trustee and Fiduciary Services Bite-Sized Issue 3 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2024 14 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 SEC states that the final rules, Exchange Act Rules 3a5-4 and 3a44-2, further define the phrase “as a part of a regular business” in Sections 3(a)(5) and 3(a)(44) of the Securities Exchange Act of 1934 to identify certain activities that would cause persons engaging in such activities to be “dealers” or “government securities dealers” and be subject to the registration requirements of Sections 15 and 15C of the Act, respectively, in connection with certain liquidity-providing roles. Under the SEC’s final rules, any person that engages in activities as described in the rules is a “dealer” or “government securities dealer” and, absent an exception or exemption, required to: register with the SEC under Section 15(a) or Section 15C, as applicable; become a member of an SRO; and comply with federal securities laws and regulatory obligations and applicable SRO and Treasury rules and requirements. The adopting release for the final rules was published in the Federal Register on 29 February 2024. The final rules will become effective on 29 April 2024. The compliance date for the final rules will be one year after the effective date of the final rules. Link to Rule Details here Link to Fact Sheet here Link to Statement by SEC Chair Gary Gensler here Link to Statement by SEC Commissioner Mark T. Uyeda here Link to Statement by SEC Commissioner Caroline A. Crenshaw here Link to Statement by SEC Commissioner Jaime Lizarraga here Link to Statement by SEC Commissioner Hester M. Peirce here SWITZERLAND FINMA Introduces New Limited Qualified Investor Fund On 23 February 2024, the Swiss Financial Market Supervisory Authority (FINMA) announced the Swiss parliament and Federal Council will launch a new category of fund that is exempt from authorisation on 1 March 2024 . The new Limited Qualified Investor Fund (L-QIF) will not be authorised or supervised by FINMA. The Federal Council is simultaneously amending the Collective Investment Schemes Ordinance, particularly in the area of liquidity management, along with several other ordinances. The Swiss parliament voted to introduce the L-QIF in December 2021 and amended the Collective Investment Schemes Act (CISA) accordingly. The Federal Council will now put these changes into effect on 1 March 2024. FINMA says that L-QIFs are collective investment schemes that do not require FINMA authorisation or approval and are not supervised by FINMA. To be eligible, these funds must be offered solely to qualified investors and managed by entities that are supervised by FINMA. FINMA states that the institutions managing L-QIFs are responsible for complying with the L-QIF rules themselves. to ensure transparency, the L-QIF must be designated on the front page of the fund documents and in advertising as a Limited Qualified Investor Fund or L-QIF. The fund’s exemption from authorisation, approval and supervision by FINMA also needs to be made clear to investors. The Federal Department of Finance will maintain a public register of all L-QIFs. FINMA states it is not responsible for questions of interpretation in relation to an L-QIF or for issuing L-QIF-specific rules. Link to FINMA Press Release here Link to Federal Council Press Release here