Global Trustee and Fiduciary Services Bite-Sized Issue 5 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2024 8 QUICK LINKS CYBERSECURITY DIVERSITY DORA ELTIF EMIR FINTECH FSB IOSCO SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM The CSDDD now needs to be formally endorsed by the European Council, be signed and then published in the EU Official Journal. It will enter into force 20 days later. Member states will have two years to transpose the new rules into their national laws. The new rules (except for the communication obligations) will apply gradually to EU companies meeting the following employee and worldwide turnover thresholds (noting employee thresholds are not relevant to non-EU companies): • From 2027, to in-scope companies with over 5,000 employees and worldwide turnover higher than EUR1.5billion in the last financial year preceding three years fromentry into force of the CSDDD; • From 2028, to firms with over 3,000 employees and more than EUR900 million worldwide turnover in the last financial year preceding four years from the entry into force of the CSDDD; and • From 2029, to all the remaining companies within the scope of the CSDDD. Link to European Parliament Press Release here Link to Adopted Text here FCA Confirms Anti-greenwashing Guidance and Proposes Extending Sustainability Framework On 23 April 2024, the Financial Conduct Authority (FCA), ahead of its anti-greenwashing rule coming into force on 31 May 2024, published its finalised non-handbook guidance in FG24/3, which is effective from the same date. The FCA confirms that the FG24/3 guidance “ is designed to help firms understand our expectations under the anti-greenwashing rule ”. The FCA says it introduced the anti- greenwashing rule “ to clarify to firms that sustainability‑related claims about their products and services must be fair, clear and not misleading. ” and the FCA states the rule “ gives [it] an explicit rule on which to challenge firms if we consider they are making misleading sustainability‑related claims about their products or services and, if appropriate, take further action. ” On the same day the FCA announced, in CP24/8 – ‘Extending the Sustainability Disclosure Requirements (SDR) regime to Portfolio Management’ – that it is also consulting on extending the SDR and labelling regime to portfolio management services. The FCA states that the “proposed labelling and Sustainability Disclosure Requirements (SDR) for portfolio managers largely mirror those introduced for asset managers in November 2023. They include: • Product labels to help consumers understand what their money is being used for; and • Naming and marketing requirements so products can only be described as having positive outcomes on the environment and/or society when those claims can be backed up.” The FCA have asked for comments on CP24/8 to be submitted by 14 June. It says it “will consider all feedback and plan to publish our final rules in the second half of 2024.” The FCA also describes in CP24/8 when they propose rules should start applying to portfolio managers (and the labelling and naming and marketing requirements, and associated consumer-facing and pre-contractual disclosures, would apply first from 2 December 2024 and other rules later). Link to FG24/3 here Link to CP 24/8 here SFCWelcomes SEHK’s Conclusions on Climate-related Disclosure Requirements for Listed Companies On 19 April 2024, the Securities and Futures Commission (SFC) welcomed the Stock Exchange of Hong Kong Limited’s (SEHK) publication of its consultation conclusions on the enhancement of climate-related disclosure requirements for listed companies in Hong Kong. The SFC says that “the new climate-related disclosure requirements, which will be implemented in phases starting from 1 January 2025, is the first step to align local sustainability disclosure requirements with the IFRS Sustainability Disclosure Standards published by the International Sustainability Standards Board (ISSB), as part of Hong Kong’s overall strategy to develop a comprehensive sustainability disclosure ecosystem.” The SEHK has also published an Implementation Guidance to assist listed companies in complying with the new requirements.