Global Trustee and Fiduciary Services Bite-Sized Issue 5 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2024 15 QUICK LINKS CYBERSECURITY DIVERSITY DORA ELTIF EMIR FINTECH FSB IOSCO SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM “Recommendation” is not defined in the rule but will instead hinge on the facts and circumstances of the particular situation – including whether the communication reasonably could be viewed as a “call to action” and the extent to which the communication is tailored to an individual. The DOL stated that it intends for its use of “recommendation” to be consistent with the Securities and Exchange Commission’s (SEC) framework in Regulation Best Interest. Under the new rule and PTEs, investment advice is expected to be prudent and loyal for reasonable fees or commissions. It must avoid misleading statements about conflicts of interest, fees, and investments, and must disclose conflicts of interest. Firms must have policies and procedures to manage conflicts of interest and ensure that advice providers follow them. One-time advice will be covered, including advice to roll assets from a workplace retirement plan into an IRA; this was a major DOL goal. Link to DOL Press Release here SEC Staff Publishes New Registered Fund Statistics Report On 24 April 2024, the staff of the Securities and Exchange Commission (SEC) published a new report of Registered Fund Statistics, which is based on aggregated data reported by SEC-registered funds on FormN-PORT. The new report, which will be updated on a quarterly basis, is designed to provide the public with a regular and detailed picture of the registered funds industry with its more than 12,000 funds andmore than USD26 trillion in total net assets under management. The SEC says that the “report provides key industry statistics and shows trends over time, including information and trends related to portfolio holdings, flows, and returns, interest rate risk, and other exposures across U.S. mutual funds, exchange-traded funds, closed-end funds, and other registered funds.” The SEC also states that the “Registered Fund Statistics contains the first aggregated report that reflects both the public and non-public information filed on FormN-PORT, and most of the aggregated data in the more than 70 separate tables of the report is being made public for the first time. Also, the public may download the statistics reported in Registered Fund Statistics in a structured format, which will provide the historical statistical series of information with each publication of the report.” Link to Report here SEC Issues Second Fee Rate Advisory for Fiscal Year 2024 On 17 April 2024, the SEC announced that, starting on 22 May 2024, the fee rates applicable to most securities transactions will be set at USD27.80 per million dollars. Consequently, the SEC says that each self-regulatory organisation will continue to pay it a rate of USD8 per million for covered sales occurring on charge dates through 21 May 2024, and a rate of USD27.80 per million for covered sales occurring on charge dates on or after 22 May 2024. The SEC states that pursuant to 15 U.S.C. § 78ee, it sets fiscal-year fee rates after the agency receives its full-year appropriation. Until the new rate becomes effective, the existing rate stays in place. In fiscal year 2023, the fee rate was USD8 per million, and that fee rate will stay in effect during the first eight months of FY 2024. Because the rate did not increase at the beginning of FY 2024, and because the SEC did not receive its full-year appropriation until March 2024, the SEC says that the fee rate for the remainder of the year increased to balance collections to the targeted collection amount. The SEC states that for more information on the term “charge date,” please refer to Rule 31(a)(3) and Exchange Act Release No. 49928 at http://www.sec.gov/rules/final/34-49928.htm. The SEC also says that the assessment on security futures transactions will remain unchanged at USD0.0042 for each round turn transaction. Link to Press Release here