Global Trustee and Fiduciary Services Bite-Sized Issue 10 2024

2 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 Central Bank Digital Currency and the Future of Digital Money in Australia On 18 September 2024, the Reserve Bank of Australia (RBA) and Treasury released a report on central bank digital currency (CBDC). The Report summarises the research done so far and explains how it has shaped their current view on CBDC in Australia. It also outlines a three‑year plan for future work on digital money. Findings The report finds that there is no strong case for a retail CBDC in Australia at this time, and that Australia’s current payment system is working well and meets people’s needs. Other countries that have introduced or are considering a retail CBDC are motivated by factors that don’t apply as strongly in Australia. However, the RBA and Treasury are open to revisiting this as more is learned about the benefits and costs, both globally and domestically. Possible benefits The report also explores how a wholesale CBDC could help improve Australia’s financial markets. It could work with other forms of digital money and infrastructure upgrades to make wholesale markets more efficient. Link to the Full Report here CRYPTOASSETS UK Digital Securities Sandbox Opens for Applications On 30 September 2024, the Financial Conduct Authority (FCA) and Bank of England (BoE) announced the opening of the Digital Securities Sandbox (DSS), which is designed to allow firms to test legislative changes in real world scenarios before the changes are implemented. The FCA states that there is a range of support available to firms to help them through the application process. For example, firms can arrange pre-application meetings to better understand the DSS requirements and can find an introductory video on the BoE’s website. The BoE and the FCA state that they are working together to operate the DSS and have published the response to the DSS consultation paper and updated their guidance for participants. Link to DSSWebpage here Link to the Introductory Video here Link to Response to DSS Consultation Paper here Link to Updated Guidance for Participants here Property (Digital Assets etc) Bill Introduced into UK Parliament On 11 September 2024, the UK Government introduced the Property (Digital Assets etc) Bill into Parliament. The Bill enacts the recommendations of the Law Commission of England and Wales. Its effect is to confirm the existence of a third category of personal property, into which crypto-tokens and other assets could fall. The Law Commission’s digital assets report in June 2023 concluded that certain digital assets, including crypto-tokens and non-fungible tokens (NFTs), are capable of attracting personal property rights. However, because they are fundamentally different both from physical assets, and from rights-based assets like debts and financial securities, they do not fit easily within traditional categories of personal property. The Commission recommended that legislation should confirm the existence of a “third” category of personal property. The Commission published a draft bill to implement this recommendation in July 2024. The draft Bill makes clear that a thing is not prevented from being the object of personal property rights merely because it is neither a thing in action nor a thing in possession. This reflects the trajectory of recent case law, but removes the lingering uncertainty that remains in the absence of a definitive statement from an upper court.