Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

13 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 • Regulatory and supervisory work is also at an early stage globally, and approaches differ considerably across jurisdictions and institutions. That said, some authorities from both emerging markets and advanced economies already have regulatory and supervisory initiatives underway. The report highlights examples of approaches taken by international organisations and authorities. There is a general recognition that more expertise is needed in the supervisory community, in central banks, and in the private sector to understand and, where needed, address nature-related risks. A number of capacity building initiatives are underway from around the world. Link to the Stocktake here NGFS Publishes Information Note on “Improving Greenhouse Gas Emissions Data” On 16 July 2024, the Network for Greening the Financial System (NGFS) published an information note on improving greenhouse gas (GHG) emissions data. The note reviews some of the difficulties encountered in the measurement, estimation, and collection of GHG emissions data, and proposes several measures that could enhance the granularity and comparability of emissions data. These include: • Harmonising the metrics in reporting standards. The NGFS says this would support disclosure by making it easier to compare emissions and monitor them over-time; • Encouraging coordination between supervisors and government agencies in the collection and dissemination of emissions data. NGFS says this would reduce operational costs and risks; and • Intensifying collaboration across public bodies, financial institutions, and businesses to address the challenges of emissions data. Link to the Information Note here Consultation on Climate Risk supervisory Guidance On 15 July 2024, the International Association of Insurance Supervisors (IAIS) published its fourth consultation on climate risk in the insurance sector. The consultation includes proposed new supporting material to better reflect climate-related risk as part of effective supervisory practice. The consultation covers issues related to supervisory reporting and public disclosure, as well as macroprudential considerations and supervisory cooperation. The consultation encompasses two documents: • Draft Application Paper on public disclosure and supervisory reporting of climate risk: Providing supervisors with advice on considerations related to the development of supervisory reporting (ICP 9) and public disclosure regimes (ICP 20). IAIS says it is important for supervisors to consider the issues of climate-related financial disclosure and supervisory reporting holistically to ensure that adequate information is shared with policyholders, market participants and supervisors. This Application Paper therefore considers these issues in tandem and helps supervisors consider how approaches to addressing these matters may be tailored to the individual needs of their respective jurisdictions. • Draft supporting material on macroprudential and group supervisory issues and climate risk: Providing further advice, illustrations, recommendations and examples of good practice to supervisors on how ICP 24 (Macroprudential Supervision) may be implemented in the context of climate-related risk drivers. It builds on the existing Application Paper on Macroprudential Supervision. The draft material also considers the need for climate-related risks to be embedded in group-wide supervision of insurers, consistent with ICP 25 (Group-wide supervision). The consultation period ends on 30 September 2024. Link to Draft Application Paper on Public Disclosure and Supervisory Reporting of Climate Risk here Link to Draft SupportingMaterial onMacroprudential and Group Supervisory Issues and Climate Risk here