Global Trustee and Fiduciary Services Bite-Sized Issue 10 2024

5 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 The EU AI Pact voluntary pledges call on participating companies to commit to at least three core actions: • AI governance strategy to foster the uptake of AI in the organisation and work towards future compliance with the AI Act. • High-risk AI systems mapping : Identifying AI systems likely to be categorised as high-risk under the AI Act. • Promoting AI literacy and awareness among staff, ensuring ethical and responsible AI development. The EC states that, in addition to these core commitments, more than half of the signatories committed to additional pledges, including ensuring human oversight, mitigating risks, and transparently labelling certain types of AI-generated content, such as deepfakes. Companies are welcome to join the EU AI Pact and commit to the core and the additional pledges at any moment until the AI Act fully applies. Link to the EU AI Pact here Link to the List of Pledge Signatories here Link to the European AI Office | Shaping Europe’s Digital Future Web Page here Generative Artificial Intelligence Sandbox On 20 September 2024, the HKMA published a circular addressed to the Chief Executive of all Authorized Institutions (AIs), inviting them to apply for participation in the Generative Artificial Intelligence (GenAI) Sandbox initiative. The HMKA says the GenAI Sandbox aims to provide a risk-controlled environment for AIs to develop, test, and pilot innovative artificial intelligence-based solutions in real world banking scenarios. AIs can leverage the computing power offered by Cyberport and obtain targeted supervisory feedback throughout the trial process. Based on the results of the Sandbox trials, the HKMA says it will share good practices and consider the need for developing further supervisory guidance on the adoption of AI. Applications for the first cohort of the GenAI Sandbox are now open and will be accepted until 15 November 2024. To achieve a fair allocation of the Sandbox resources, the HKMA says applications will be prioritised based on a number of factors as detailed in the Annex to the Circular. Link to Circular and Annex here LIBOR TRANSITION Remaining Synthetic US Dollar LIBOR Settings On 5 September 2024, the Financial Conduct Authority (FCA) issued its final announcement about the end of LIBOR. The 1-, 3- and 6-month synthetic US dollar LIBOR settings ceased permanently after their final publication on 30 September 2024. The FCA stated that it will not use its powers to compel ICE Benchmark Administration Limited to continue to publish the settings beyond this date. The FCA stated that cessation of the last remaining LIBOR settings was the final milestone in the transition away from LIBOR and will mark the end of LIBOR overall. Link to Statement here Link to Joint FCA, BoE andWorking Group Press Release dated 1 October 2024 here