Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

17 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 • The SFC says it is also working on Guidelines for issuers which will highlight the preparatory steps needed for issuers to participate in USM, and their subsequent ongoing obligations. As companies may need to amend their articles or bye-laws to ensure USM-compatibility, sample provisions will also be included in the Guidelines for issuers’ reference. The USM initiativewill remove the need for manual and paper-based processes. Investors will be able to hold securities in uncertificated formand have direct legal ownership of their securities electronically, instead of only holding a beneficial interest through the existing nominee structure in CCASS. Link to Consultation Conclusions here ASIC and APRA Issue Final Rules and Information for the Financial Accountability Regime On 11 July 2024, Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have published new information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR). The FAR already applies to the banking industry, and takes effect for the insurance and superannuation industries from 15 March 2025. It imposes a strengthened responsibility and accountability framework to improve the risk governance cultures of APRA-regulated entities, their directors and most senior executives. New information in the package includes: • An amendment to the Regulator rules, which prescribes key functions information for inclusion in the FAR register of accountable persons for insurance and superannuation industries; see Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and Financial Accountability Regime Act (Information for register) Regulator Rules 2024; and • A joint ASIC and APRA letter summarising key issues raised during consultation and their response, including the concept and application of key functions. The package also updates previously released information to reflect the final Regulator rules. Link to ASIC FARWebpage here SFC and HKMAWelcome PBoC’s NewMeasure on Northbound Swap Connect Margin Collateral Arrangement On 9 July 2024, the SFC and the Hong Kong Monetary Authority (HKMA) issued a statement welcoming the announcement of the People’s Bank of China (PBoC) to support offshore investors to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions. This measure will provide Northbound Swap Connect investors with the additional choice of non- cash collateral, reducing their liquidity cost and improving capital efficiency. It will also help vitalise offshore investors’ onshore bond holdings and further enhance the attractiveness of onshore bonds. The measure will also promote synergies between Bond Connect and Swap Connect, thereby further invigorating market participation in the Connect Schemes. This is a new arrangement for the use of onshore bonds as eligible collateral in the offshore market, following the inclusion of onshore bonds issued by the Ministry of Finance and policy banks on the Mainland in the list of eligible collateral for the HKMA’s RMB Liquidity Facility on 26 February 2024. The SFC and the HKMA state they will continue to provide guidance to the financial infrastructure institutions (including the HKMA Central Moneymarkets Unit and OTC Clearing Hong Kong Limited) to take forward the preparatory work, including promulgating rules for the provision of collateral by way of security interest or title transfer, and for the transfer of the relevant bonds, with a view to implementing this newmeasure as soon as practicable. Link to Press Release here