Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

4 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 NewMiCA Rules Increase Transparency for Retail Investors On 4 July 2024, ESMA published the second Final Report under MiCA covering eight draft technical standards that aim to provide more transparency for retail investors, clarity for providers on the technical aspects of disclosure and record-keeping requirements, and data standards to facilitate supervision by National Competent Authorities (NCAs). The final report includes the following draft technical standards: 1. Sustainability indicators for crypto-asset consensus mechanisms; 2. Business continuity measures for crypto-asset service providers (CASPs); 3. Trade transparency; 4. Content and format of orderbooks and record-keeping by CASPs; 5. Machine readability of white papers and the register of white papers; and 6. Public disclosure of inside information. The draft standards provide market participants with technical requirements to ensure human and machine readability of crypto-asset white papers, as well as templates and formats for CASP order and transaction records. The rules also detail how CASP trading platforms should publish the data required for pre-and post-trade transparency. Once in place, this will ensure that NCAs have access to the information needed for effective supervision of the EU crypto-asset market. Finally, the report covers public disclosures, helping investors to understand the impact on the climate and the environment of the consensus mechanisms underpinning the crypto-assets they hold, as well as descriptions on how issuers should disclose price-sensitive information to the public to prevent market abuses, such as insider dealing. Link to Final Report here CSDR ESMA Consults on Rules to Recalibrate and Further Clarify CSDR Refit On 9 July 2024, the European Securities and Markets Authority (ESMA) launched a consultation on different aspects of the Central Securities Depositories Regulation (CSDR) Refit. The proposed rules relate to the information to be provided by European CSDs to their national competent authorities (NCAs) for the review and evaluation, the information to be notified to ESMA by third- country CSDs, and the scope of settlement discipline. The draft rules are set out in three separate consultation papers, covering: • The review and evaluation process of EU CSDs, suggesting a harmonisation of the information to be shared by CSDs on their cross-border activities and the risks to be considered by the relevant authorities for the purpose of feeding the overall assessment of the competent authorities; • Third country CSDs, where ESMA is proposing to streamline the information to be notified, aiming for an accurate understanding of the provision of notary, central maintenance, and settlement services in the Union, limiting the reporting burden; and • The scope of settlement discipline, covering ESMA’s proposals on the underlying cause of settlement fails that are considered as not attributable to the participants in the transaction, and the circumstances in which operations are not considered as trading. The CSDR Refit aims to fine-tune and further clarify the CSDR framework. All the policy mandates under consultation will contribute towards the effective recalibration of the CSDR regime. Next Steps ESMA invites EU CSDs, third-country CSDs, CSD participants, as well as any stakeholders that may be impacted by the CSDR settlement discipline to respond to these three consultation papers by 9 September 2024.