Global Trustee and Fiduciary Services Bite-Sized Issue 10 2024

11 QUICK LINKS CBDC CRYPTOASSETS FINTECH LIBOR TRANSITION OPERATIONAL RESILIENCE PRIIPS SUSTAINABLEFINANCE/ESG T+1 ASIA/PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2024 HKMA and SFC Conclude on Further Proposals to Enhance Hong Kong’s OTC Derivatives Reporting Regime On 26 September 2024, The Hong Kong Monetary Authority (HKMA) and SFC jointly published the conclusions paper on a further consultation on enhancements to the over-the-counter (OTC) derivatives reporting regime in Hong Kong. The HKMA and the SFC launched the further consultation in March 2024 on mandating the use of Unique Transaction Identifier and Unique Product Identifier and the reporting of Critical Data Elements. This is in line with the Group of Twenty’s commitment to reformOTC derivatives markets and aims to facilitate the analysis of OTC derivatives transactions by regulators. The HKMA and SFC say that, in general, respondents supported the proposal and recognised the benefits brought by the international standardisation and harmonisation of data elements reported to different OTC derivatives reporting regimes globally. After considering the feedback received, the HKMA and the SFC states that they have fine-tuned certain proposals to facilitate a smooth implementation. The conclusions paper also sets out the concluded list of data elements subject to mandatory reporting and confirms the implementation of the proposals in September 2025. Respondents’ feedback and the conclusions paper can be downloaded from the websites of the HKMA or the SFC. Link to Conclusions Paper here ASIC Receives New Powers Under Financial Market Infrastructure Reforms On 19 September 2024, the Australian Securities and Investments Commission (ASIC) welcomed the new Australian financial market infrastructure (FMI) laws, which introduce new powers aim to ensure a stable and efficient Australian financial system. FMIs include financial market operators, benchmark administrators, clearing and settlement (CS) facilities, and derivative trade repositories. The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 aims to strengthen the existing regulatory regime, ensuring ASIC and the Reserve Bank of Australia (RBA) (together, the Regulators) have strong and dependable powers to monitor, manage and respond to risks related to FMIs. ASIC says it will now plan and implement the new FMI regulatory regime and update its website with further publications and information, including the development of updated regulatory guidance to assist industry to comply with the enhanced regulatory framework for FMIs. Link to Announcement here ASIC Calls on Product Issuers to ReviewDistribution Practices for DDO Compliance On 10 September 2024, ASIC published the results of its latest design and distribution obligations (DDO) surveillance, which looked at the obligation for product issuers to take reasonable steps to support appropriate distribution of their products. ASIC reviewed 19 issuers of high-risk investment, insurance and credit products between October 2023 and August 2024. The review revealed: • Many issuers had limited due diligence arrangements to assess and monitor third party distributors; • Some issuers of high-risk products were relying on broad search terms in online marketing; • Many issuers used poor quality consumer questionnaires; and • Only a few issuers monitored consumer outcomes and product performance. The report recommends issuers improve distribution practices regarding the selection and supervision of distributors, training staff, marketing materials, consumer questionnaires, and information and monitoring outcomes.