Global Trustee and Fiduciary Services Bite-Sized Issue 4 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2024 3 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 To have a harmonised assessment, ECON wants ESMA to develop technical standards specifying the calculation method including potential data sources to classify a benchmark as significant. In addition, administrators of benchmarks used in the EU should attempt to obtain a globally agreed identifier code to identify their benchmarks. ECON also believe that ESMA should have a supervisory role in case of critical, significant, cross- border, third country, as well as EU CTB and EU PAB benchmarks. Finally, ECON agreed that previously supervised benchmark administrators would keep their existing registration, authorisation, recognition or endorsement for nine months after entry into force of the new rules and should not be obliged to re-apply if they voluntarily opt-in to this amending Regulation within nine months. Administrators of significant benchmarks should not be obliged to re-apply and should retain their previous status. Plenary is expected to vote on the text during the second plenary session in April, to close the first reading without agreement with Council. Negotiations between Parliament and Council are then expected to start after the elections. Link to Procedure File here CBDC Creation of Seven Additional Workstreams of the Digital Euro Rulebook Development Group On 18 March 2024, European Central Bank (ECB) announced seven new workstreams to develop the digital euro rulebook. The workstreams will report to the Rulebook Development Group (RDG) (representing consumers, retailers, and intermediaries) in order to assist it in drafting various sections of the digital euro rulebook. The rulebook sets out the framework for a new digital form of the euro which complements cash and which consumers and businesses can use throughout the euro area. The development of the digital euro rulebook is being supported by workstreams focusing on specific topics and involving market participants and Eurosystem representatives. The new workstreams cover: • Minimum user experience (UX) standards. • Certification and approval framework. • Risk management. Four different calls for the implementation specifications workstream, focusing on: • Interactions between payment and acceptance solutions of individual and business users. • Interactions between individual users and their intermediaries. • Interactions between business users and their intermediaries. • Interactions between Digital Euro Service Platform and intermediaries. The ECB states that the draft rulebook will be sufficiently flexible to accommodate any future adjustments and will be updated in accordance with the outcome of the digital euro legislative process. Link to the Announcement here HKMA Unveils Project Ensemble to Support the Development of the Hong Kong Tokenisation Market On 7 March 2024, the Hong Kong Monetary Authority (HKMA) announced the commencement of Project Ensemble, a new wholesale central bank digital currency (wCBDC) project to render support to the development of the tokenisation market in Hong Kong.