Global Trustee and Fiduciary Services Bite-Sized Issue 1 2025

16 QUICK LINKS AIFMD CRYPTOASSETS EMIR FINTECH MIFID II/MIFIR MMF NBFI OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA IRELAND LUXEMBOURG NETHERLANDS NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2025 Furthermore, the new CSSF FAQ introduces some new questions concerning notably the scope of application of the Circular CSSF 24/856, the application of tolerance thresholds to closed-ended UCIs and non-compliant cost/fee payments at UCI level. The FAQ regarding Circular CSSF 02/77 will continue to apply to errors /instances of non- compliance detected before 1 January 2025. With the entry into force of the new Circular CSSF 24/856 on 1 January 2025, the new CSSF FAQ applies to errors /instances of non-compliance detected as from 1 January 2025. With the entry into force of the new Circular CSSF 24/856 on 1 January 2025, references to Circular CSSF 02/77 or to its FAQ as well as related minor updates will also be implemented in the following CSSF FAQs: • FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment; • FAQ concerning Money Market Funds Regulation; and • FAQ concerning the application of the swing pricing mechanism. Link to FAQ on Circular CSSF 24/856 here NETHERLANDS Dutch AFM: Asset Managers Have Adequate Liquidity Stress Tests Policies in Place On 19 December 2024, the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB) announced they had reviewed policies and procedures regarding liquidity stress tests (LSTs) at large asset managers. The findings show that the managers have adequate policies in place and that the stress tests are largely in line with the European guidelines. The AFM notes that there are a few areas where the guidelines have not yet been fully implemented by all managers. Asset managers conduct LSTs largely in line with ESMA guidelines – In the second half of 2023, the AFM and DNB requested information from six large managers of investment funds and UCITS. They were asked about their policies for liquidity stress tests, taking the guidelines of the European supervisor ESMA as a starting point. The general picture that emerges is that the managers examined have adequate LST policies in place and implement LSTs largely in line with the ESMA guidelines. Some managers can improve in certain areas – For example, the AFM says that not all managers use both historical and hypothetical scenarios for their LSTs. If managers only use historical scenarios, they may underestimate future, more severe stress situations. In addition, not all managers take into account risk factors such as the type of investor and the investor concentration when applying scenarios on the liabilities side. The findings provide an overview of the sector and suggest potential areas of improvement – The AFM and DNB are now sharing the findings in a report that provides an overview of how various components of the LST policy have been implemented by asset managers in accordance with the ESMA guidelines. The AFM and DNB expect all managers to apply the ESMA guidelines and to implement improvements to their LST policies where necessary. Link to Report (Dutch only) here