Global Trustee and Fiduciary Services Bite-Sized Issue 6 2023

Bite-Sized | 2023 Issue 6 11 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 Prototype of a Green Classification Framework for Hong Kong (HK Taxonomy) On the 30 May 2023 the Hong Kong Monetary Authority (HKMA) released a discussion paper entitled “Prototype of a Green Classification Framework for Hong Kong” to outline its current thinking on local green classification framework (i.e., taxonomy) and seeks to gather feedback from stakeholders on its development and application. To increase transparency and enable consistent policy making on green finance, the Green and Sustainable Finance Cross-Agency Steering Group (CASG) has been working to explore developing a green classification framework for adoption in the local market, with a view to facilitating easy navigation across the Common Ground Taxonomy (CGT) 2, Mainland China’s and the European Union’s taxonomies. The HKMA has commissioned an external consultant, Climate Bonds Initiative, to develop a prototype of such a framework to demonstrate the HKMA’s approach and facilitate discussion with stakeholders. Details of the prototype as well as the HKMA’s intended way forward can be found in the discussion paper which is enclosed within the relevant HKMA circular. The HKMA invites responses by 30 June 2023. Link to HKMA Circular here Link to HKMA Discussion Paper here Link to HKMA Appendix here ESAs Propose ESG Disclosures for STS Securitisations On 25 May 2023 the three European Supervisory Authorities (EIOPA, ESMA, EBA — the ESAs) jointly submitted to the European Commission on 25 May 2023, Draft Regulatory Technical Standards (RTS) on the ESG impact disclosure for Simple, Transparent and Standardised (STS) securitisations under the Securitisation Regulation (SECR). These final draft RTS aim to help market participants make informed decisions about the sustainability impact of their investments. The key proposals included in the technical standards specify ESG disclosures which would apply to STS securitisations where the underlying exposures are residential loans, auto loans and leases. These technical standards aim to ensure consistency with those developed under the Sustainable Finance Disclosure Regulation (SFDR) which distinguish between the publication of available information on mandatory indicators (e.g., energy efficiency) and on additional indicators (e.g., emissions). In terms of next steps, following the submission of these RTS, the European Commission is expected to endorse the RTS within three months of their publication. Link to Press Release here Link to Draft RTS here ESAs Publish Consolidated Q&As on SFDR and PRIIPs KID On 17 May 2023, the Joint Committee of the ESAs published consolidated versions of its Q&As on the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088) (SFDR) and the SFDR Delegated Regulation (Commission Delegated Regulation (EU) 2022/1288). Link to Q&A on SFDR and SFDR Delegated Regulation here Update on ASIC’s Recent Greenwashing Actions On 10 May 2023, the Australian Securities and Investments Commission (ASIC) released on 10 May 2023 a short report detailing the 35 interventions it has made in response to its greenwashing surveillance activities from 1 July 2022 to 31 March 2023. The report also identifies the increasing levels of representations on environmental, social and governance credentials by listed companies, managed funds and superannuation funds.