Global Trustee and Fiduciary Services Bite-Sized Issue 6 2023

Bite-Sized | 2023 Issue 6 7 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 ELTIF ESMA Seeks Input on Rules for Long Term Investment Funds On 23 May 2023 the European Securities and Markets Authority (ESMA) published a consultation on draft regulatory technical standards (RTS) under the revised European Long-term Investment Fund (ELTIF) Regulation. The RTS will specify the way the new requirements of the revised ELTIF regulation, in particular on the redemption policy and matching mechanism, will apply. In the consultation paper ESMA is seeking stakeholders’ views on: • The circumstances in which the ELTIF is considered compatible with the life-cycles of each of the individual assets, as well as different features of the redemption policy of the ELTIF; • The circumstances for the use of the matching mechanism, i.e., the possibility of full or partial matching (before the end of the life of the ELTIF) of transfer requests of units or shares of the ELTIF by exiting ELTIF investors with transfer requests by potential investors; and • The costs disclosure. The consultation period ends on 24 August 2023. Link to theDraft RTS here IFD/IFR EBA Publishes Draft Technical Standards on the Prudential Consolidation of an Investment Firm Group On 12 May 2023 the European Banking Authority (EBA) published its draft Regulatory Technical Standards (RTS) on the scope and methods of consolidation of an investment firm group under the Investment Firms Regulation (IFR). These RTS detail the scope and methods for the prudential consolidation, as well as the methodology for the consolidation of capital requirements and the rules applicable for minority interest and additional Tier 1 and Tier 2 instruments issued by subsidiaries in the context of prudential consolidation. The aim of these RTS is to ensure prudential consolidation is carried out in a harmonised and consistent way. The IFR requires investment firm groups to identify a parent undertaking and those of its subsidiaries that are subject to the IFR to carry out the consolidation of the group. Particular attention is given to the setting up of a proper organisational structure and appropriate internal control mechanisms to ensure that the data required for consolidation are duly processed and reported. These RTS address in detail the main elements that come into play when carrying out prudential consolidation for investment firm groups. In particular, the RTS detail four key aspects: • The scope of consolidation (types of entities in the scope and types of relationships bringing entities in the scope); • The methods of consolidation; • The methodology for the prudential consolidation of the capital requirements; and • The rules applicable for minority interest and additional Tier 1 and Tier 2 instruments issued by subsidiaries in the context of prudential consolidation). In developing these draft RTS the EBA has leveraged, where possible, the existing work on the prudential consolidation of credit institutions, although differences exist based on the legal texts (i.e. IFR vs CRR). Link to the Draft RTS here