Global Trustee and Fiduciary Services Bite-Sized Issue 8 2024

2 QUICK LINKS AIFMD CBDC CRYPTOASSETS CSDR FINTECH FSB FUND LIQUIDITY MAR MIFID II/MIFIR OPERATIONAL RESILIENCE REMUNERATION SUSTAINABLE FINANCE/ ESG UCITS ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2024 NewQ&As Available On 12 July 2024, the European Securities and Markets Authority (ESMA) updated the following AIFMD Questions and Answers: • ESMA_QA_2227: Initial capital and additional own funds • ESMA_QA_711: Notification upon establishment of a branch Link to Q&As here CBDC The Bank of England’s Approach to Innovation in Money and Payments On 30 July 2024, the Bank of England (the Bank) published a Discussion Paper on its approach to innovation in money and payments. Building on the Bank’s work to date, the Discussion Paper asks for responses on the next step in a wide-ranging conversation on how to deliver the Bank’s agenda for the UK payments landscape. The Discussion Paper sets out how rapid innovations in payments can impact on the Bank’s monetary and financial stability objectives, bringing both opportunities and risks. The paper goes on to set out the Bank’s response to these innovations to date (including renewal of the Bank’s Real Time Gross Settlement service), and how its response will evolve going forward, so that innovation can take place in a safe way. The Bank invites responses to this Discussion Paper by 31 October 2024. Link to Discussion Paper here CRYPTOASSETS ESMA Opinion on Global Crypto Firms Using Non-EU Execution Venues On 31 July 2024, the European Securities and Markets Authority (ESMA) issued an Opinion to address the risks presented by global crypto firms seeking authorisation under the Markets in Crypto Assets (MiCA) Regulation for part of their activities (crypto brokerage) while keeping a substantial part of their group activities (intra-group execution venues) outside the European Union (EU) regulatory scope. ESMA says it recognises risks associated with global crypto firms’ complex structures where execution venues fall outside of the scope of MiCA. Such structures may include the involvement of an EU-authorised broker effectively routing orders to an intra-group execution venue based outside the EU, potentially leading to diminished consumer protection and to an unlevel playing field with EU-authorised execution venues. Considering these risks ESMA recommends National Competent Authorities (NCAs) to be vigilant during the authorisation process and to assess business structures of global firms to ensure that they do not bypass obligations established in MiCA, to protect consumers and ensure transparent and orderly functioning of crypto markets. The Opinion calls for a case-by-case assessment, outlining the specific requirements that should be met regarding best execution, conflicts of interest, the obligation to act honestly, fairly and professionally in the best interests of clients and the obligation relating to the custody and administration of crypto-assets on behalf of clients. Link to Opinion here