Global Trustee and Fiduciary Services Bite Sized Issue 10 2025

2 QUICK LINKS FINTECH MIFID II/MIFIR OPEN FINANCE SUSTAINABLE FINANCE/ESG T+1 ASIA AUSTRALIA EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2025 • Regulators could adapt or create innovation tools to support quantum development; and • AnewApplications Regulatory Readiness Framework could support effective regulatory engagement. The research note says that this framework would assess the maturity of individual applications and match themwith proportionate regulatory tools at each stage. The FCA says it would help regulators support innovation, while signaling the UK’s leadership in adaptive, proportionate regulation of emerging technologies. Link to the FCA’s Research Note here Supplemental Joint Circular on Intermediaries’ Virtual Asset-related Activities On 30 September 2025, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a circular to supplement their Joint Circular on intermediaries’ virtual asset-related activities issued on 22 December 2023 (Joint Circular). The new circular sets out the changes to the Joint Circular. Corresponding updates have also been made to the Licensing or registration conditions and terms and conditions for licensed corporations or registered institutions providing virtual asset dealing services and virtual asset advisory services (Appendix 6 of the Joint Circular) (Terms and Conditions). In relation to staking activities by intermediaries, given the SFC has issued requirements on staking for SFC-licensed platforms and SFC-authorised virtual asset funds and the HKMA has issued similar guidance for authorised financial institutions and subsidiaries of locally incorporated authorised financial institution, both regulators say they are now prepared to allow intermediaries to provide staking services to their clients. The Terms and Conditions have been amended accordingly. Intermediaries may provide staking services to clients for whom they are dealing in virtual assets but should only do so through segregated account(s) maintained with an SFC-licensed platform or an authorised financial institution (or a subsidiary of a locally incorporated authorised financial institution), while complying with, among others, requirements relating to the disclosure of information and risks. In relation to the provision of virtual asset dealing services to clients, licensed corporations and registered institutions may now execute a trade via the off-platform virtual asset trading services of SFC-licensed platforms. Accordingly, clause 4.2 of the Terms and Conditions has been removed. The SFC and the HKMA say that they wish to clarify that client’s subscriptions and redemptions of investment products using virtual assets or in-kind subscriptions or redemptions of virtual asset funds will not be treated as providing virtual asset dealing services. Relevant intermediaries (including portfolio managers and discretionary account managers) should: a. Notify the SFC (and the HKMA, where applicable) of such activities in advance; b. Hold the virtual assets in account(s) established and maintained with SFC-licensed platforms or an authorised financial institution (or a subsidiary of a locally incorporated authorised financial institution), except for virtual asset portfolio managers and virtual asset discretionary account managers which have the RA9 Terms and conditions (see paragraph 23 of the Joint Circular) imposed on their licences or registrations); and c. Ensure compliance with the applicable requirements under Chapter 12 of the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations and SFC-licensed Virtual Asset Service Providers) when handling these virtual asset deposits and withdrawals conducted for clients. Paragraph 6.2 of the Joint Circular requires intermediaries to ensure that their clients have sufficient net worth to be able to assume the risks and bear the potential losses of trading virtual asset-related products. The SFC and the HKMA say they wish to clarify that this requirement does not apply to clients who are institutional professional investors and qualified corporate professional investors. With respect to paragraph 13 of the Joint Circular, the SFC and the HKMA say they wish to clarify the requirement that intermediaries should provide clients with risk disclosure statements specific to virtual asset futures contracts does not apply to clients who are institutional professional investors and qualified corporate professional investors.