Global Trustee and Fiduciary Services Bite-Sized Issue 6 2023

Bite-Sized | 2023 Issue 6 10 QUICK LINKS AIFMD ANTI-MONEY LAUNDERING CMU — RETAIL INVESTMENT PACKAGE CBDC COSTS & CHARGES CRYPTOASSETS ELTIF IFD/IFR LIBOR TRANSITION MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG WHISTLEBLOWING AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM SUSTAINABLE FINANCE/ESG NGFS Publishes Stocktake on Financial Institutions’ Transition Plans On 31 May 2023, the Network for Greening the Financial System (NGFS) published a report taking stock of emerging practices relating to financial institutions’ climate transition plans and assessing the role of central banks and supervisors in relation to transition plans. In the report, the NGFS sets out six key findings: • There are multiple definitions of transition plans reflecting their use for different purposes. • Distinguishing transition planning (the process to design a transition strategy) from a transition plan (transparency to a specific audience) has merits. • Existing frameworks speak to a mix of objectives, audiences and concerns for transition plans but predominantly relate to climate-related corporate disclosures. • Transition plans could be a useful source of information for micro-prudential authorities to develop forward-looking views of risks and risk management frameworks. • There are common elements to all transition plans which are relevant to assessing safety and soundness. • The role of micro-prudential authorities needs to be situated in context of the actions of other financial and non-financial regulators. For full details of the update, please follow the links below. Link to NGFS Report here Link to NGFS Press Release here “A Supervisory Push for Transition Planning and Blended Finance”— Opening Address by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, and Chair, Network for Greening the Financial System, at the Green Swan Conference 2023 On 31 May 2023, Mr Ravi Menon delivered an opening address entitled “A Supervisory Push for Transition Planning and Blended Finance”, focused on several points: • The world is still not on a transition path that is aligned with the goals of the Paris agreement. • A call to convert commitments to plans and plans to outcomes. • Green and transition financing is nowhere near what is required to get to net-zero by 2050. In the address, Mr Menon explained that the NGFS aims to promote the financial sector as a catalyst for the transition to a net-zero world. Mr Ravi Menon goes on to say that the NGFS work programme is multi-faceted in that it will: • Enhance supervisory practices on managing climate risks. • Design actionable climate scenarios. • Assess the implications of climate change for monetary policy. • Provide guidance for central banks’ own net-zero transition. • Analyse nature-related financial risks; and • Build skills and capabilities among the NGFS membership. The opening address focused on two key areas: transition planning and blended finance, and Mr Ravi Menon concluded by saying that an ecosystem approach is required to resolve the climate crisis. Link to Full Speech here