Global Trustee and Fiduciary Services Bite-Sized Issue 3 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2024 4 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 • ESMA will also take the role of co-chair of supervisory colleges together with the relevant national competent authorities, who will keep ultimate decision-making powers. Furthermore, ESMA will be informed about and may request to be invited to on-site examinations and provide opinions in an extended range of areas. The provisional agreement sets a solid active account requirement (AAR) that will require certain financial and non-financial counterparties to have an account at an EU CCP, which includes operational elements such as the ability to handle the counterparty’s transactions at short notice if need be and activity elements so that the account is effectively used. The EC says this is ensured by a number of requirements, which have to be fulfilled by these accounts, including requirements for counterparties above a certain threshold to clear trades in the most relevant sub-categories of derivatives of substantial systemic importance defined in terms of class of derivative, size and maturity. Furthermore, a Joint Monitoring Mechanism is created to keep track of this new requirement. Next steps The provisional political agreement is subject to approval by the Council and the Parliament before going through the formal adoption procedure and entering into force. Link to Final Compromise Text here Link to EMIR Speech by Commissioner Mairead McGuinness (28 February) here Link to Speech by Klaus Löber, Chair of the CCP Supervisory Committee, ESMA (29 February) here LIBOR FCA: Three-month Synthetic Sterling LIBOR – One Month To Go On 29 February 2024, the Financial Conduct Authority (FCA) issued its final message before the end-March 2024 deadline and a reminder of the expected cessation of US dollar synthetic LIBOR at end-September 2024. The FCA states that, at the time of publication, it is now one month until the three-month synthetic sterling LIBOR setting ceases permanently on 28March 2024 . The FCA says this is the last remaining synthetic sterling LIBOR setting, and its end marks another critical milestone in the transition away from LIBOR. Ahead of the deadline, firms with outstanding sterling LIBOR exposures must continue their active transition efforts. The FCA also published a report, under Article 23E of the Benchmarks Regulation (BMR), setting out its review of whether the use of the FCA’s power under Article 23D(2) of the BMR with respect to three- month synthetic sterling LIBOR has advanced its consumer protection and integrity objectives. Synthetic US dollar LIBOR The FCA also reminds market participants that US dollar synthetic LIBOR is expected to cease in September 2024. Market participants must ensure they are prepared for these final synthetic US dollar LIBOR settings to cease at end-September 2024. Parties to contracts still referencing LIBOR should be taking steps to transition to robust, appropriate reference rates, re-negotiating with counterparties where necessary. Link to FCA Press Release here Link to Report here