Global Trustee and Fiduciary Services Bite-Sized Issue 4 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2024 22 QUICK LINKS AIFMD BENCHMARK REGULATION CBDC COSTS & CHARGES CRYPTOASSETS CYBERSECURITY DIVERSITY & INCLUSION FINTECH IFD/IFR LIBOR TRANSITION MIFID II/MIFIR OPERATIONAL RESILIENCE PRIIPS RETAIL INVESTMENT STRATEGY SETTLEMENT SUSTAINABLE FINANCE/ESG UCITS ASIA LUXEMBOURG NORTH AMERICA UNITED KINGDOM NORTH AMERICA SEC Adopts Reforms Relating to Investment Advisers Operating Exclusively Through the Internet On 27 March 2024, the Securities and Exchange Commission (SEC) adopted amendments to the rule permitting certain internet investment advisers to register with the SEC (internet adviser exemption). The amendments will require an investment adviser relying on the internet adviser exemption to have at all times an operational interactive website through which the adviser provides digital investment advisory services on an ongoing basis to more than one client. The SEC says that the amendments will also eliminate the current rule’s de minimis exception by requiring an internet investment adviser to provide advice to all of its clients exclusively through an operational interactive website and to make certain corresponding changes to Form ADV. The amendments will become effective 90 days after publication in the Federal Register. The SEC states that an adviser relying on the internet adviser exemption must comply with the rule, including the requirement to amend their Form ADV to include a representation that the adviser is eligible to register with the SEC under the internet adviser exemption, by 31 March 2025. Most investment advisers will have filed their annual updating amendments to Form ADV by this date i.e., 90 days after the 31 December 2024, fiscal year end). An adviser that is no longer eligible to rely on the amended exemption and does not otherwise have a basis for registration with the SEC must register in one or more states and withdraw its registration with the SEC by filing a Form ADV-W by 29 June 2025. Link to Rule Details here Link to Fact Sheet here Link to Statement by Chair Gay Gensler here CFTC’s Global Markets Advisory Committee Advances Three Recommendations On 7 March 2024, the Commodity Futures Trading Commission’s (CFTC) Global Markets Advisory Committee (GMAC) advanced three new recommendations to promote U.S. Treasury markets resiliency and efficiency, provide resources on the upcoming transition to T+1 securities settlement, and publish a first-ever digital asset taxonomy to support U.S. regulatory clarity and international alignment. Each recommendation was approved without objection at the GMAC meeting on 6 March 2024. The meeting also included a keynote presentation from Financial Stability Board (FSB) Secretary General John Schindler on the FSB’s 2024 work program and priorities, a panel discussion on the impact of the Basel III endgame proposal on derivatives markets and access to clearing, and an update on the GMAC’s earlier recommendation regarding appropriately calibrated swap block and cap sizes to enhance market liquidity and financial stability. The three recommendations cover: • Global Market Structure Subcommittee Recommendation - Inclusion of U.S. Treasury ETFs as Eligible Initial Margin Collateral. • Technical Issues Subcommittee Recommendation – Publication of Resource Document to Support Transition to T+1 Securities Settlement. • Digital Asset Markets Subcommittee Recommendation – Adoption of an Approach for the Classification and Understanding of Digital Assets. Link to Announcement here SEC Adopts Amendments to Enhance Disclosure of Order Execution Information On 6 March 2024, the SEC adopted rule amendments that update the disclosure required under Rule 605 of Regulation NMS for order executions in national market system stocks (NMS stocks). Rule 605 was adopted in 2000 to help the public compare and evaluate execution quality at different market centres.