Global Trustee and Fiduciary Services Bite-Sized Issue 6 2024
9 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 • Developing and keeping up-to-date testing plans that detail how a firm can remain within impact tolerances for each of its important business services. • Mapping and scenario testing that should identify any vulnerabilities which may cause a firm to not remain within impact tolerance as a result of severe but plausible scenarios. • Observations and insight on governance and self-assessment and embedding operational resilience. The FCA says it expects all firms to be resilient and provide services for their customers when needed. Link to the FCAWebpage here SECURITISATION FCA Handbook Notice 119 On 24 May 2024, the UK Financial Conduct Authority (FCA) published Handbook Notice 119 which contains details of the Securitisation (Smarter Regulatory Framework and Consequential Amendments) Instrument 2024, the result of CP23/17 – Rules relating to Securitisation. This instrument makes changes to the FCA Handbook to transfer the largely preserved firm facing requirements of the UK Securitisation Regulation (UK SR) to the FCA Handbook and bring clarity to a targeted number of provisions of the UK SR. The FCA states that it intends that its second consultation will have a broader remit for policy change, including a review of the reporting regime. The instrument comes into force on 1 November 2024. Feedback is published in a separate policy statement previously published on 30 April 2024. Link to Handbook Notice 119 here SUSTAINABLE FINANCE/ESG ESAs Call for Enhanced Supervision and ImprovedMarket Practice onSustainability-relatedClaims On 4 June 2024, the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published their Final Reports on Greenwashing in the financial sector. In their respective reports the ESAs reiterate the common high-level understanding of greenwashing as “a practice whereby sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services.” The ESA’s state that this practice may be misleading to consumers, investors, or other market participants. The ESAs stress that financial market players have a responsibility to provide sustainability information that is fair, clear, and not misleading. It is stated that each ESA provides a stocktake of the current supervisory response to greenwashing risks under their remit and notes that national competent authorities (NCAs) are already taking steps in the area of supervision of sustainability-related claims. In addition, the ESAs provide a forward-looking view of how sustainability-related supervision can be gradually enhanced in coming years. While the ESAs’ reports focus on the EU’s financial sector, it is stated that the reports acknowledge that addressing greenwashing requires a global response, involving close cooperation among financial supervisors and the development of interoperable standards for sustainability disclosures. ESMA Final Report ESMA has indicated priority actions in order to enable supervisors to better mitigate greenwashing risks:
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