Global Trustee and Fiduciary Services Bite-Sized Issue 5 2024

Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2024 9 QUICK LINKS CYBERSECURITY DIVERSITY DORA ELTIF EMIR FINTECH FSB IOSCO SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM The SFC state that “to achieve the goal of introducing ISSB-aligned Hong Kong sustainability reporting standards, the SFC will continue to work closely with the Government, SEHK, and other relevant stakeholders to provide a transparent and well-defined pathway on sustainability reporting for businesses.” Link to SFC Press Release here Transition Plan Taskforce Publishes Latest Transition Plan Resources On 9 April 2024, the Transition Plan Taskforce (TPT) launched its final set of transition plan resources to help businesses unlock finance for net-zero. The TPT says that the materials it published include: • Sector-specific transition plan guidance for Asset Owners, Asset Managers, Banks, Electric Utilities & Power Generators, Food & Beverage, Metals & Mining and Oil & Gas. • Sector summary guidance, with high level guidance for 30 sectors of the global economy. • Guidance on the how to undertake a transition planning cycle. • A paper on the opportunities and challenges of transition plans in emerging markets and developing economies. • Independent advisory pieces from TPT Working Groups on Adaptation, Nature, Just Transition and SMEs, exploring how transition planning can extend beyond realising net zero. Link to TPT Press Release here Link to TPT Homepage here ESMA Consults on Possible Amendments to the Credit Rating Agencies Regulatory Framework On 2 April 2024, the European Securities and Markets Authority (ESMA) launched a consultation on proposed amendments to Commission Delegated Regulation (EU) No 447/2012 and to Annex I of the Credit Rating Agencies Regulation (CRAR). ESMA states that “the objective of the proposals is to ensure a better incorporation of ESG factors in the credit rating methodologies and subsequent disclosure to the public, as well as to enhance transparency and credibility in the credit rating process.” In particular ESMA says that they aim to: • Ensure that the relevance of ESG factors within credit rating methodologies is subject to systematic documentation; • Enhance disclosures on the relevance of ESG factors in credit ratings and rating outlooks; and • Deliver a more robust and transparent credit rating process through the consistent application of credit rating methodologies. The deadline for responses is 12 June 2024 and ESMA says it will consider the feedback received and will submit its Technical Advice to the European Commission by December 2024. Link to Consultation here UCITS ESMA Asks for Input on Assets Eligible for UCITS On 7 May 2024, the European Securities and Markets Authority (ESMA) published a Call for Evidence (C4E) on the review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD). ESMA says that the objective of its C4E is to gather information from stakeholders to assess possible risk and benefits of UCITS gaining exposure to various asset classes. ESMA states that investors and consumer groups interested in retail investment products, management companies of UCITS, self-managed UCITS investment companies, depositaries of UCITS and trade associations are invited to provide their feedback on market practices and interpretation or practical application issues with respect to the eligibility criteria and other provisions set out in the UCITS EAD. The C4E contains 25 questions.