Global Trustee and Fiduciary Services Bite-Sized Issue 4 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2024 24 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 Having reviewed the responses on a fund of fund’s ability to invest in second schemes, the FCA states that it is of the opinion that the proposed rules in COLL 5 and COLL 8 need further consideration. It will therefore not proceed with them at this time and will decide whether to consult on revised versions of them “in due course.” The FCA states that it will proceed with rules on broadening available investable assets to include loans for the QIS regime, as consulted on, and is open to considering allowing additional investments in QIS in future, but does “not think there is a case for going further based on responses to this consultation.” Link to Handbook Notice 117 here FG24/1: Finalised Guidance on Financial Promotions on Social Media On 26 March 2024, the FCA published its expectations on how financial promotions should be communicated on social media. The FCA states it wants to clarify its expectations for when firms and others, such as influencers, use social media to communicate financial promotions and address emerging consumer harm it has seen arising from the use of social media. Financial promotions on all advertising channels should be fair, clear and not misleading, and support consumer understanding. The FCA says its financial promotion rules are technology neutral and apply across all channels used to advertise, including social media. The FCAwants firms to ensure that promotions provide a balanced viewof the benefits and risks, and clearly communicate information that will help consumersmake effective, well-informed decisions. Unauthorised persons, such as social media influencers, who promote a regulated financial product or service without approval of an appropriate FCA-authorised person may be committing a criminal offence. The FCA also includes perimeter guidance to provide additional clarity on when a communication might constitute a financial promotion. The FCA says its Guidance will be relevant to: • Authorised persons involved in communicating or approving financial promotions on social media. • Unauthorised persons, including influencers or other affiliate marketers, involved in communicating financial promotions on social media. • Trade bodies that represent the above groups. The FCA says its Guidance does not create new obligations for those who promote financial products and services on social media. It indicates how they might approach complying with their existing regulatory obligations. For unauthorised persons, including influencers or other affiliate marketers, the Guidance explains when their communications might fall within its regulatory perimeter and how the FCA’s rules apply to their activities. Link to Guidance here FCA Sets Out Plan for the Year Ahead On 19 March 2024, the FCA published its Business Plan for 2024-25. The FCA states it will continue to deliver the 13 commitments in its three year strategy, which focuses on preventing serious harm, setting higher standards and promoting competition. Specific issues it will prioritise include: • Protecting consumers by testing if firms are meeting the high standards set by the Consumer Duty, supporting people’s long term financial wellbeing through the Advice Guidance Boundary Review and making sure pension products deliver value for money. • Contributing to UK competitiveness and growth by improving the attractiveness and reach of UK wholesale markets, supporting firms to invest, innovate and expand through its innovation services and continuing to make it quicker and easier for firms to apply for authorisation.