Global Trustee and Fiduciary Services Bite-Sized Issue 6 2024

13 QUICK LINKS AIFMD CMU CRYPTOASSETS EMIR FINTECH IFD/IFR MAR MIFID II/MIFIR OPERATIONAL RESILIENCE SECURITISATION SUSTAINABLE FINANCE/ESG UCITS ASIA EUROPE UNITED STATES UNITEDKINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 6 | 2024 UCITS NewQ&As Published On 28 May 2024, the European Securities and Markets Authority (ESMA) updated the following Questions and Answers: • Performance fees (ESMA QA 2173) – Where a manager applies an additional reference indicator to the performance fee model (e.g., a hurdle rate on top of the High-Water Mark model or the benchmark model), should the minimum performance reference period be applied to the additional reference indicator? • Performance fees (ESMA QA 2175) – Can the manager of a Fund of Funds (FoF) charge performance fees? Link to NewQ&As here ASIA MAS Expands Application of Fair Dealing Guidelines to All Financial Institutions and All Products and Services On 30 May 2024, the Monetary Authority of Singapore (MAS) issued an updated set of Guidelines on Fair Dealing. A key change is that the scope of the Guidelines has been expanded to apply to all financial institutions (FIs), and all products and services they offer to their customers. The updated Guidelines state that they aim to raise standards of fair dealing and improve the experience of customers dealing with FIs. FIs will be expected to incorporate key principles of fair dealing at various stages of a product’s life cycle, or services rendered. With the updated Guidelines, customers can expect: a. Products suited to the needs of the target market segment; b. Advice with suitable product recommendations, accurate representation of information and extra consideration for those who are more vulnerable; c. Clear explanations on a product and its terms and conditions; and d. Independent and responsive handling of feedback. First introduced in 2009 under the Financial Advisers Act, the Guidelines covered the selection, marketing and distribution of investment products, as well as the provision of advice and post-sales services for these products. FIs have mostly adhered to the same principles in their dealings with customers beyond advisory services and investment products. The expanded scope of the Guidelines formally recognises this, while keeping unchanged the core objectives of fair dealing and focus on customer outcomes. Link to MASWebsite here SFC Facilitates Broadening of Master-feeder ETFs Offerings in Hong Kong On 16 May 2024, the Hong Kong Securities and Futures Commission (SFC) published a circular to allow SFC-authorised feeder ETFs under master-feeder structure to invest in overseas-listed master ETFs – including actively managed ETFs – from different markets under streamlined requirements, provided certain conditions are met. Having considered the potential benefits of actively managed ETFs to investors and to facilitate Hong Kong ETF market’s growth, the SFC considers it appropriate to extend the existing streamlined requirements for master ETFs to actively managed ETFs. The SFC will also broaden the types of schemes that are eligible for the streamlined requirements, provided that they have satisfactory safeguards in place and demonstrable benefits to the Hong Kong market.