Global Trustee and Fiduciary Services Bite-Sized Issue 4 2025

8 QUICK LINKS BENCHMARKSREGULATION CMU/SIU DORA FINTECH IOSCO MIFID II/MIFIR SUSTAINABLE FINANCE/ESG ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2025 • What policies and processes firms have in place. As part of this survey, the FCA says it also wants to understand how firms interact with the broader sustainability disclosures, which will inform the FCA’s approach to the future regulatory regime in this area. The FCA is encouraging firms to respond by 2 May 2025 but asks ESG ratings providers to respond through the link no later than 16 May 2025. Link to FCA Survey here FCA: Our Position on Sustainability Regulations and UK Defence On 11 March 2025, the FCA stated that its sustainability rules do not prevent investment in or finance for defence companies. The FCA added that the financial sector plays a vital role in supporting all sectors, including defence and that there is nothing in the FCA’s rules, including those related to sustainability, that prevents investment or finance for defence companies. The FCA says that its sustainable finance rules apply to firms providing financial products and services as well as some listed companies. They do not require financial institutions to treat defence companies differently because they are in the defence sector. The FCA states that its sustainability-related rules have 2 aims: • To ensure information about investments claiming to be sustainable can be trusted and readily understood. • To improve the quality of sustainability-related information in the market. The FCA explains that these rules should not be confused with financial institutions’ own policies relating to the type of businesses they wish to support and their own appetite for risk. Rightly, says the FCA, it’s up to individual lenders and investors whether they provide the capital defence companies need. The FCA also states that some consumers will also want options to invest in line with their ethical values, so it is important they have the freedom to make choices about where they invest their money. Link to FCA Statement here ASIA PACIFIC SFC: Updates on Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts On 31 March 2025, the Securities and Futures Commission (SFC) noted the overwhelming industry support and take-up of grants under the scheme to support the setting up of open-ended fund companies (OFCs) and real estate investment trusts (REITs) in Hong Kong. The SFC says that since the launch of the grant scheme in May 2021, it recorded a strong growth in the number of OFCs. As of end-February 2025, the number of registered OFCs in Hong Kong recorded a year-on-year increase of 81% to 502. A total of 430 OFCs and one REIT have benefited from the grant scheme. The SFC states that in light of industry demand, the government announced in the 2024- 25 Budget the extension of the grant scheme for three years to 2027 to facilitate continued development of the asset management industry and adoption of OFC structure in Hong Kong. To enable more participants to benefit from the scheme and considering that the industry as a whole is becoming more familiar with the set-up of OFCs, the eligibility criteria of the scheme will be adjusted.