Global Trustee and Fiduciary Services Bite-Sized Issue 6 2024

5 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 • Strive to gather and establish a process to gain alignment of their AI policies and practices with other federal agencies, including the SEC, Treasury, and other agencies interested in the financial stability of markets. • Work toward engaging staff as both observers and potential participants in ongoing domestic and international dialogues around AI, and where possible, establish budget supplements to build the internal capacity of agency professionals around necessary technical expertise to support the agency’s endeavours in emerging and evolving technologies. Link to the Report here IFD/IFR The EBA and ESMA Invite Comments on the Reviewof the Investment Firms Prudential Framework On 3 June 2024, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published a discussion paper on the potential review of the investment firms’ prudential framework. The discussion paper aims at gathering early stakeholder feedback to inform the response to the European Commission’s call for advice (CfA) dated 1 February 2023. The discussion paper touches upon a broad range of topics, including: • The adequacy of the current prudential requirements; • An analysis of the existing methodology; and • Risks not covered by the current framework. It also discusses the implications of the adoption of the new EU Banking package (CRD VI and CRR 3) concerning the trading book, the fundamental review of the trading book (FRTB) and credit valuation adjustments (CVA). Furthermore, prudential consolidation and a possible extension to crowdfunding and crypto-assets service providers are also considered. In this respect, the discussion paper provides an overview of the interaction of IFD/IFR with requirements applicable to UCITS management companies and AIFMs providing MiFID services on an ancillary basis, or investment firms providing services related to crypto-assets. The discussion paper also covers aspects related to remuneration in relation to investment firms, AIFMs and UCITS management companies, including the scope of application, remuneration policies, the requirements on variable remuneration, their oversight, disclosure and transparency. Finally, the discussion paper includes a short section on the treatment of firms currently non-prudentially regulated and active in commodity markets. An ad-hoc data collection addressed to competent authorities, investment firms, and UCITS management companies and AIFMs is launched in parallel to the publication of the discussion paper. The consultation period ends on 3 September 2024. The EBA and ESMA plan to publish the final report in response to the CfA by December 2024. Link to Discussion Paper and Data Collection Documents here MAR ESMA Reminds on Rules for Sharing Information During Pre-close Calls On 29 May 2024, the European Securities and Markets Authority (ESMA) issued a statement reminding issuers about the applicable legislative framework to “pre-close calls” and encouraging them to follow good practices when engaging in such calls, with the goal of contributing to maintain fair, orderly, and effective markets.