Global Trustee and Fiduciary Services Bite-Sized Issue 4 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2024 5 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 CRYPTOASSETS Technology Working Group Publish Second Fund Tokenisation Report On 26 March 2024, the Technology Working Group published a report on the second phase of its work: Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration. This new report builds on the publication of the Technology Working Group’s first report in November 2023, and expands the potential use cases of fund tokenisation first highlighted in that initial report. In particular, the report explores the use of tokens as collateral for money market funds, and the role tokenised funds play in a fully “on chain” investment market that will streamline back-office functionality. For the third phase of its work, the Technology Working Group will now shift its focus onto how the UK’s investment management sector can harness the opportunities presented by artificial intelligence. Link to the Report here ESMA Finalises First Rules on Crypto-asset Service Providers On 25 March 2024, the European Securities and Markets Authority (ESMA) published the first Final Report under the Markets in Crypto-Assets Regulation (MiCA). The report, which aims to foster clarity and predictability, promote fair competition between crypto-asset service providers (CASPs) and a safer environment for investors across the Union, includes proposals on: • Information required for the authorisation of CASPs; • The information required where financial entities notify their intent to provide crypto-asset services; • Information required for the assessment of intended acquisition of a qualifying holding in a CASP; and • How CASPs should address complaints. ESMA has submitted the Final Report to the European Commission (EC) and will provide further advice and technical guidance in this area if requested by the EC. Link to the Report here ESMA Launches Third Consultation under MiCA On 25 March 2024, ESMA published its third consultation package under the MiCA. In the latest consultation package, ESMA is seeking input on four sets of proposed rules and guidelines, covering: • Detection and reporting of suspected market abuse in crypto-assets (RTS). • Policies and procedures, including the rights of clients, for crypto-asset transfer services (Guidelines). • Suitability requirements for certain crypto-asset services and format of the periodic statement for portfolio management (Guidelines). • ICT operational resilience for certain entities under MiCA (Guidelines). The consultation period ends on 25 June 2024. ESMA aims to publish a final report based on the feedback received and will submit the draft technical standards to the European Commission for endorsement by 30 December 2024 at the latest. Link to the Consultation here