Global Trustee and Fiduciary Services Bite-Sized Issue 1 2025

6 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 • Biases can also arise due to choices made during the AI modelling process itself, such as what variables are included, what specific statistical model is used, and how humans choose to use and interpret predictive models. • In reviewing technical methods for identifying and mitigating such biases, literature suggests these methods should be supplemented by careful consideration of context and human review processes. As the FCA discusses in the paper, however, technical mitigation strategies may affect model accuracy and could have unintended consequences for model bias on other groups. Link to Research Note here MIFID II/MIFIR ESMA Consults on EU Code of Conduct for Issuer-sponsored Research On 18 December 2024, the European Securities and Markets Authority (ESMA) launched a consultation on draft Regulatory Technical Standards (RTS) to establish an EU code of conduct (EU CoC) for issuer-sponsored research. The EU CoC sets out standards of independence and objectivity for research providers and specifies procedures andmeasures for the effective identification, prevention, and disclosure of conflicts of interest (COI), with a view to enhance the trust in and use of issuer-sponsored research. In its proposals ESMA indicates that: • Issuers and research providers should only enter into an agreement where the minimal initial term of the contract is two years and where, at minimum, 50% of the annual remuneration is paid upfront; • Research providers should establish, implement and maintain an effective COI policy; and • Research that is fully paid for by the issuer should be made public immediately. Investment firms will also be expected to ensure that all issuer-sponsored research that they produce or intend to distribute to (potential) clients complies with the EU CoC. The consultation is primarily aimed at research providers, issuers, investment firms, and investors. Further information on the Listing Act can be found on the dedicated web page. The consultation period ends on 18 March 2025. ESMA says it will prepare the final report for subsequent submission of the final draft RTS to the European Commission by 5 December 2025. Link to the Consultation here ESMA Delivers Final Report on Equity Transparency Under MiFID II On 16 December 2024, ESMA published the Final Report with proposals for amendments related to equity transparency under the Markets in Financial Instruments Directive (MiFID II). Through its proposals, ESMA says it aims to contribute to a more informative pre-trade and post-trade transparency regime. The report includes proposals for the amendment of the RTS as well as technical advice (TA) on the provisions on equity transparency, covering: • Changes to the definition of a liquid market for equity instruments; • Specification of information to be disclosed for pre-trade transparency purposes, which is also of relevance for the equity consolidated tape; • Review of the pre-trade transparency requirements for Systematic Internalisers (SIs), including the calibration of two quoting sizes; and • Post-trade transparency reports, including flags for equity instruments.