Global Trustee and Fiduciary Services Bite Sized Issue 12 2024

7 QUICK LINKS COSTS & CHARGES CSDR CRYPTOASSETS EMIR FINTECH FSB FUND LIQUIDITY MIFID II/MIFIR NBFI OPERATIONAL RESILIENCE SUSTAINABLEFINANCE/ESG T+1 ASIA NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2024 The direction does not affect the requirement that the EU venue has the necessary regulatory status to do business in the UK – such venues include those that: • Are a Recognised Overseas Investment Exchange; • Have been granted the relevant permission; or • Whose activities meet all the conditions required to benefit from the Overseas Person Exclusion. The direction will not apply to transactions: • Where the client is not established in the EU; • Concluded on a proprietary basis; or • Concluded by 2 EU entities trading through their UK branches. The new direction, in comparison to the transitional direction, includes the technical change that it automatically adjusts to only apply to transactions in classes of derivatives subject to the DTO in both the UK and in the EU. Link to the Direction here Next Steps for Reforming the UKMarkets in Financial Instruments Directive On 14 November 2024, HM Treasury (HMT) announced its commitment to make legislative changes to the MiFID framework as part of the government’s commitment to reinvigorate the UK’s capital markets. This was followed on 27 November 2024, by the FCA publishing a consultation paper setting out proposals to transfer the firm-facing requirements of the MiFID Organisational Regulation (MiFID Org Reg) into FCA Handbook rules, following HM Treasury’s announcement to lift requirements from legislation into the FCA’s rulebook. The FCA says it is maintaining the regulatory requirements for firms to provide continuity. The FCA has included a discussion chapter, in the consultation, about further reform, either now or in the future, “to make the rules better suited to the range of UK authorised firms and clients they provide services to.” The FCA says this includes in circumstances where the Consumer Duty does not apply, and the chapter considers how the FCA could amendMiFID II derived conduct and organisational rules. The FCA also discusses whether and how the client categorisation rules could work more effectively. The Consultation period ends on 28 February 2025. The period for responses to the Discussion Chapter ends on 28 March 2025. In addition, the Prudential Regulation Authority (PRA) issued a statement indicating that it would publish an equivalent consultation during Q1 2025. Link to Consultation CP24/24 here Link to PRA Statement here Link to HMT Announcement here