Global Trustee and Fiduciary Services Bite-Sized Issue 5 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2024 4 QUICK LINKS CYBERSECURITY DIVERSITY DORA ELTIF EMIR FINTECH FSB IOSCO SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM The five National Competent Authorities (NCAs) [CY, DE, FR, IE, NL] included in the follow-up report took specific measures at national level such as: • Rolling out data quality dashboards; • Undertaking more granular data quality checks; and • Increasingly using EMIR data as part of day-to-day supervision. The NCAs also carried out extensive supervisory work on EMIR data quality under the Union Strategic Supervisory Priority related to data quality that ran from 2020 to 2023. ESMA says that ensuring data quality will remain a key area of focus for all NCAs. They will continue to use the appropriate tools to drive up standards and checking entities’ compliance with their regulatory and reporting requirements. Link to Follow-up Report here FINTECH FCA: ‘Big Tech a Priority’ says FCA Chief Executive In a speech delivered on 22 April 2024, the FCA’s Chief Executive, Nikhil Rathi, announced the regulator’s plans to examine how Big Tech firms’ unique access to large sets of data could unlock better products, more competitive prices and wider choice for consumers and businesses. The speech, at a Digital Regulation Cooperation Forum (DRCF) event, outlined Nikhil Rathi’s focus on Big Tech as Chair of the DRCF, as well as the FCA’s response to the Government’s White Paper on Artificial Intelligence (AI), that was published on the same day (see next headline below). The FCA’s Big Tech plans are included in a feedback statement (FS24/1) to its call for input on data sharing between Big Tech and financial services firms. Currently, Big Tech firms can access financial services data through Open Banking but are not required to share their data with the financial industry. In FS24/1, the FCA sets out that: • It will continue monitoring Big Tech firms’ activities in financial services to assess whether policy changes are needed and working with its regulatory partners. • It will work with Big Tech firms to examine whether their data from their core digital activities would be valuable in certain retail financial markets. • Depending on these results, the FCA will develop proposals in the context of Open Finance, and for the Competition and Markets Authority to consider. • It will examine how firms’ incentives (including Big Tech firms) can be aligned to share data where this is valuable to achieve good outcomes for consumers. Link to Nikhil Rathi Speech here Link to FS24/1 here FCA AI Update – Further to the Government’s Response to the AI White Paper On 22 April 2024, the Financial Conduct Authority (FCA) outlined its approach to Artificial Intelligence (AI) following the Government’s publication of its pro-innovation strategy on AI. The FCA says that it welcomes the Government’s publication of A Pro-Innovation Approach to AI Regulation: Government Response and Implementing the UK’s AI Regulatory Principles: Initial Guidance for Regulators. The FCA states that it is focused on how firms can safely and responsibly adopt the technology as well as understanding what impact AI innovations are having on consumers and markets.