Global Trustee and Fiduciary Services Bite-Sized Issue 9 2024

9 QUICK LINKS AI DORA FUND LIQUIDITY MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG TOKENISATION AUSTRALIA ASIA EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2024 The changes to FormN-PORT were originally proposed in 2022 as part of a larger rulemaking on open-end fund liquidity programs, including requiring swing pricing and a hard 4:00 pm close for investor purchase and redemption orders. The adopted rules include a subset of those proposals, with the most significant changes relating to FormN-PORT at this time. A preview of the SEC’s 2025 regulatory agenda indicates that additional facets of the 2022 proposal could be revisited during the first half of 2025. The FormN-PORT amendments will require funds that are required to report on the form— generally registered open-end funds, registered closed-end funds, and exchange-traded funds organized as unit investment trusts—to file reports on FormN-PORT on a monthly basis within 30 days after the end of the month to which they relate. Currently, funds file these monthly reports on a quarterly basis within 60 days after quarter-end. The amendments will also make funds’ monthly reports on FormN-PORT available to the public 60 days after the end of each month instead of every third month of a quarter only. In addition, the SEC adopted reporting amendments and provided guidance related to open-end fund liquidity risk management program requirements. Specifically, the SEC adopted amendments to FormN-CEN requiring open-end funds to report certain information about service providers used to fulfil liquidity risk management program requirements so that the SEC can track certain liquidity risk management practices. The SEC also provided guidance related to certain aspects of open-end fund liquidity risk management program requirements to address questions raised through outreach and monitoring. The amendments to Forms N-PORT and N-CEN will become effective on 17 November 2025. Funds generally will be required to comply with the amendments for reports filed on or after that date, except that fund groups with net assets of less than $1 billion will have until 18 May 2026, to comply with the FormN-PORT amendments. Link to Press Release here Link to Final Rule here FinCEN Issues Final Rules to Safeguard Residential Real Estate, Investment Adviser Sectors from Illicit Finance On 28 August 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued two rules to help safeguard the residential real estate and investment adviser sectors from illicit finance as part of ongoing efforts to combat illicit finance and protect U.S. national security. Both rules deliver on key lines of effort outlined in the Biden-Harris administration’s U.S. Strategy on Countering Corruption. The final investment adviser rule will apply anti-money laundering/countering the financing of terrorism (AML/CFT) requirements—including AML/CFT compliance programs and suspicious activity reporting obligations—to certain investment advisers that are registered with the U.S. SEC, as well as those that report to the SEC as exempt reporting advisers. The rule will help address the uneven application of AML/CFT requirements across this industry. The final residential real estate rule will require certain industry professionals to report information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust, which present a high illicit finance risk. The rule will increase transparency, limit the ability of illicit actors to anonymously launder illicit proceeds through the American housing market, and bolster law enforcement investigative efforts. As part of the rulemaking process, Treasury carefully considered public feedback and consulted extensively with industry groups, intergovernmental partners, and other key stakeholders— including through listening sessions during the public comment periods—to develop rules that will be both effective and administrable while reducing potential burdens on businesses, including small businesses. Link to Press Release here Link to Final Investment Adviser Rule here Link to Final Residential Real Estate Rule here