Global Trustee and Fiduciary Services Bite-Sized Issue 5 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2024 10 QUICK LINKS CYBERSECURITY DIVERSITY DORA ELTIF EMIR FINTECH FSB IOSCO SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM ESMA is additionally interested in gathering insights on some key notions and definitions used in the UCITS EAD and their transversal consistency with other pieces of legislation in the EU Single Rulebook. ESMA says that UCITS are the key retail investment product in the EU, accounting for around 75% of all collective investments by retail investors and that the acclaimed success of UCITS as a global brand is based on their established reputation of being well-regulated and supervised investment products. Since the adoption of the UCITS EAD almost two decades ago, ESMA says that the number and variety of financial instruments traded on financial markets has increased considerably, leading to uncertainty in determining whether some categories of assets are eligible for investment, in turn giving rise to divergent interpretations and market practices in terms of the application of the UCITS Directive. ESMA’s technical advice on the review of the UCITS EAD therefore aims to preserve and strengthen the well-functioning of the UCITS framework and the operation of UCITS in the best interest of investors, as well as the quality of investment products offered to retail investors. ESMA will consider all feedback received by 7 August 2024. Taking into account the evidence and views collected, ESMA will then develop its technical advice to the European Commission. Link to Call for Evidence here ASIA MAS Issues FAQs onRepeal of the Regulatory Regime for Registered FundManagement Companies On 25 April 2024, the Monetary Authority of Singapore (MAS) issued Frequently Asked Questions (FAQs) on the Repeal of the Regulatory Regime for Registered FundManagement Companies (RFMCs). Information in the FAQ includes: • The existing RFMC regime is targeted to be repealed on 1 August 2024. • Existing RFMCs intending to continue with regulated fund management activity from 1 August 2024 onwards must apply to be an A/I LFMC by completing and submitting Form 1AR via https://go.gov.sg/Form1AR between 1 April 2024 and 30 June 2024. • No supporting documents are required at the point of submitting Form 1AR. However, applicants must be prepared to provide additional documentation in support of the application if requested by MAS. • MAS will inform RFMCs of the outcome of their Form 1AR applications within a month of submission. Successful applicants will be issued a licence within the week of 29 July 2024 to become A/I LFMCs, with the AUM Cap. • MAS says in FAQ 2 that “RFMCs are encouraged to submit Form 1AR applications early. RFMCs making submissions near the deadline may not be able to secure a licence before the Repeal Date if additional documentation is required.” • MAS will approve (FAQ 6) a Form 1AR application if the RFMC: a. Has managed assets attributable to third-party investors in the six months immediately preceding the submission of the form to MAS. This requirement does not apply if the RFMC is registered for six months or less as at the submission date; b. Submits Form 1AR between 1 April 2024 and 30 June 2024; and c. Furnishes supporting documents toMAS, if requested, to satisfactorily address MAS’ queries. In total the FAQs on RFMCs contains 28 questions and answers and an Appendix that contains Instructions to Configure User Settings to Grant Systems Access. Link to MAS FAQs on RFMCs here