Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

10 QUICK LINKS AIFMD CBDC CRYPTOASSETS CSDR FINTECH FSB FUND LIQUIDITY MAR MIFID II/MIFIR OPERATIONAL RESILIENCE REMUNERATION SUSTAINABLE FINANCE/ ESG UCITS ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2024 REMUNERATION The EBA Publishes Report on the Application of Gender-neutral Remuneration Policies On 16 July 2024 the European Banking Authority (EBA) published a report on the application of gender-neutral remuneration policies by institutions and investment firms. The report is based on the information collected from institutions, investment firms and competent authorities. The report shows that the industry faces no major hurdles in adopting and implementing gender- neutral remuneration policies, but that some entities still have not yet adopted remuneration policies that explicitly contain measures that ensure that remuneration is awarded gender neutrally and that this aspect is monitored over time. While the review focusses on the principle of equal pay, it also looked at the gender pay gap and the monitoring of indicators in the area of equal opportunities and equal pay. Despite some progress made by the industry, it has been observed that a gender pay-gap persists and that monitoring and transparency on those topics could be further improved. The persistence of a gender pay gap indicates that further work is needed to ensure ‘equal opportunities’ and that there are biases that require further attention. The EBA emphasises the importance of the consistent implementation of gender-neutral remuneration policies across all financial institutions. Link to the Report here SUSTAINABLE FINANCE/ESG IASB Proposes Illustrative Examples to Improve Reporting of Climate-related and Other Uncertainties in Financial Statements On 31 July 2024, the International Accounting Standards Board (IASB) published a consultation document, proposing eight examples to illustrate how companies apply IFRS Accounting Standards when reporting the effects of climate-related and other uncertainties in their financial statements. The IASB says it developed these illustrative examples in response to strong demand from stakeholders, particularly from investors. They expressed concerns that information about climate-related uncertainties in financial statements was sometimes insufficient or appeared to be inconsistent with information provided outside the financial statements. To respond to these concerns, the IASB says its proposed examples aim to: • Improve transparency of information in financial statements; and • Strengthen the connection between financial statements and other parts of a company’s reporting, such as sustainability disclosures. The eight illustrative examples are stated to focus on areas such as materiality judgements, disclosures about assumptions and estimation uncertainties, and disaggregation of information. The principles and requirements illustrated in these examples apply equally to other types of uncertainties beyond climate-related uncertainties. These illustrative examples are one of several actions that the IASB says it is undertaking to help improve the reporting of climate-related and other uncertainties in financial statements. The IASB states the illustrative examples do not add to or change the requirements in IFRS Accounting Standards. Instead, they are stated to provide guidance on how the requirements in the Standards should be applied to provide investors with better information about climate- related risks and other uncertainties. The IASB invites all stakeholders to provide feedback on the proposed illustrative examples. The comment period is open until 28 November 2024. Link to Proposed Illustrative Examples here