Global Trustee and Fiduciary Services Bite-Sized Issue 6 2024

14 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 Under the streamlined requirements, with immediate effect, master ETFs: • Will cover both passively and actively managed ETFs without the SFC authorisation; • Will not confine to specific types of schemes so long as they have a sizable AUMwith a good track record; and • Must be schemes with satisfactory safeguards and measures in place to provide substantially comparable investor protection as ETFs authorised by the SFC. Link to Circular here EUROPE Targeted Consultation Assessing the Adequacy of Macroprudential Policies for NBFI On 22 May 2024, the European Commission (EC) published a consultation aimed at identifying the vulnerabilities and risks of non-bank financial intermediation (NBFI) and mapping the existing macroprudential framework, and seeks to gather feedback on current challenges to macroprudential supervision and discuss areas for further improvement. The EC says that the objective of the consultation is to seek public authorities’ and stakeholders’ views on the adequacy of the macroprudential framework for NBFI with the intent not to revisit recent legislative agreements. The consultation aims to identify the vulnerabilities and risks of NBFIs and map the existing macroprudential framework for NBFIs. Second, it seeks to gather feedback on the current challenges to macroprudential supervision and discuss areas for further improvement. Based on the EC’s recent report on the macroprudential review for banks and NBFIs, the consultation paper identifies the following key vulnerabilities stemming fromNBFIs: 1. Unmitigated liquidity mismatches; 2. The build-up of excessive leverage; and 3. Interconnectedness among NBFI sectors and between NBFIs and banks. The EC also believes a lack of consistency and coordination among macroprudential frameworks across the EU can exacerbate the negative impact of such vulnerabilities, leading to unaddressed systemic risks. The EC aims to use the information gathered in this consultation to inform the policy planning of the upcoming 2024-2029 College of Commissioners. The consultation period closes on 22 November 2024. Link to the Consultation here UNITED STATES SEC Transitions to T+1 Settlements On 28 May 2024, the Securities and Exchange Commission (SEC) transitioned to a T+1 settlement date. On 15 February 2023, the SEC adopted a set of rule amendments and new rules to facilitate the shortening of the standard settlement cycle for most broker-dealer transactions from two business days after the trade date (or T+2) to one business day after the trade date (or T+1). The new rules aim to improve the processing of institutional trades by establishing new processing and recordkeeping requirements for broker-dealers and registered investment advisors, respectively. Further, the rules established a new requirement to facilitate straight-through processing by central matching service providers. The transition to one-day settlement occasioned a few trading glitches but overall has gone smoothly, according to fund industry and settlement services officials. All T+1 implementation activities have been completed and appear to be operating normally,” the Investment Company Institute said in a statement issued to Reuters. Link to Final Rule here