Global Trustee and Fiduciary Services Bite-Sized Issue 7 2024

5 QUICK LINKS CBDC CYBERSECURITY DIVERSITY DORA FINTECH IOSCO MICA OPERATIONAL RESILIENCE PRIIPS RETAIL INVESTMENT PACKAGE SUSTAINABLE FINANCE/ ESG T+1 TOKENISATION ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2024 Also on 4 June 2024, the Central Bank published its Innovation Hub Update for 2023. The report outlines the Innovation Hub’s engagement with 66 firms in 2023, a 20% increase from 2022, and shows an increase in engagement with small early start up innovators. Link Full Central Bank Press Release here Remarks on Artificial Intelligence in Finance On 4 June 2024, the Financial Stability Board (FSB) published remarks by Nellie Liang, US Under Secretary for Domestic Finance, and Chair of the FSB Standing Committee on Assessment of Vulnerabilities, at the OECD – FSB Roundtable on Artificial Intelligence (AI) in Finance, Paris, held on 22 May 2024. The focus of Ms. Liang’s remarks were on how financial policymakers are learning about the use of new AI tools by financial firms, and what kinds of risks these tools could introduce to the financial system. Also, that adoption of new technologies in finance is not new and that financial firms are innovating continuously in order to increase efficiencies and offer new services. Ms. Liang said that policymakers have experience with changing technologies and have developed regulatory frameworks focused on building guardrails, regardless of the underlying technology used. Ms. Liang stated that the primary question today is whether new AI models are fundamentally distinct from existing technology or if they will be used in such a different way that the current regulatory frameworks are not sufficient or do not apply. Areas covered in Ms. Liang’s remarks included: • Defining AI. • Use of AI. • Risks. – Risks to financial institutions – microprudential considerations. – Financial stability and macroprudential considerations. – Changes in competitive landscape. – Consumers and investors. • Framework for addressing risks. Link to Remarks here IOSCO IOSCO publishes Good Practices to Improve Trading venues’ Resilience in Case of Market Outages On 5 June 2024, the International Organization of Securities Commissions (IOSCO) published its final report on Market Outages. IOSCO says that the final report addresses the need for improved preparedness and management of market outages to ensure market resilience and investor confidence. It identifies key findings from recent market outages and sets forth five good practices to assist regulators, trading venues and market participants in preparing for, and managing, future market outages and thereby helping improve market-wide resilience. IOSCO states that the good practices cover five key areas: • Outage Plans; • Communication Plans; • Reopening of Trading;