Global Trustee and Fiduciary Services Bite-Sized Issue 3 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2024 15 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 UNITED KINGDOM FCA Finds Wholesale Data Market Can Be Improved On 29 February 2024, the Financial Conduct Authority (FCA) published the findings of its Wholesale Data Market Study, which examined competition in the markets for credit ratings data, benchmarks and market data vendor services. The FCA says it has ruled out a significant intervention ecause of potential unintended consequences, such as on the availability and quality of data, in a market relied upon by investors worldwide. However, across all three markets, the FCA has identified areas where competition does not work well. It says users may be paying higher prices for the data they buy than if competition was working more effectively. The FCA states that it will take forward ideas to help support wholesale data being available on fair, reasonable and transparent terms as part of its work to ‘repeal and replace’ assimilated EU law. Link to Study here FCA to Improve Pace and Transparency Around Enforcement Cases On 27 February 2024, the FCA announced that in the future it will focus on a streamlined portfolio of cases, aligned to its strategic priorities where it can deliver the greatest impact. The FCA will also close those cases where no outcome is achievable, more quickly. As part of the new approach the FCA says that it has begun a consultation on plans to be more transparent when an enforcement investigation is opened. Under the plans the FCA will publish updates on investigations as appropriate and be open about when cases have been closed with no enforcement outcome. The FCA states that the moves are a step change from the current process where investigations are only announced in very limited circumstances. It says any decision to announce an investigation would be taken on a case-by-case basis and depend on a variety of factors which will indicate whether to do so is in the public interest. These include whether the announcement will protect and enhance the integrity of the UK financial system, reassure the public the FCA is taking appropriate action, or assist in any investigations. The FCA states that announcing an investigation does not mean that it has decided whether there has been misconduct or breaches of its requirements. Investigations into individuals will be different and the FCA will not usually announce these types of investigations. The deadline for responses to the FCA’s consultation is 16 April 2024. Link to Consultation here Link to Speech ‘Evolving our enforcement approach to protect and grow our markets’ by FCA Joint Executive Director Therese Chambers here FCA Speech: Open Regulators and Open Markets On 22 February 2024, FCA Chair, Ashley Alder, delivered a speech at the UK Mission to the European Union. Highlights from his speech included: • Global cooperation amongst regulators is vital for cross-border risks; • The FCA’s three primary statutory objectives are fully aligned with an open markets philosophy; • The FCA is committed to finding consistent international responses to challenges that increasingly give rise to cross-border risks, including ESG, Fintech and NBFI; and • The 2023 UK-EUMOU on regulatory cooperation on financial services will enable the FCA to deepen relationships with our EU counterparts as we pursue similar reforms. Link to Speech here