Global Trustee and Fiduciary Services Bite-Sized Issue 11 2025

17 QUICK LINKS AIFMD CBDC CRYPTOASSETS DIGITAL ASSETS FINTECH FSB MIFID/MIFIR (UK) IFR/IFD OPERATIONAL RESILIENCE OUTSOURCING SUSTAINABLE FINANCE/ESG T+1 TOKENISATION ASIA PACIFIC EUROPE NETHERLANDS NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 11 | 2025 De-prioritisation of Level 2 Acts in Financial Services Legislation In a press release, published on 6 October 2025, the Commission announced the European Union (EU) has a comprehensive legal framework, in which many of the rules are regulatory and implementing standards (Level 2) that supplement or specify the EU Regulations and Directives (Level 1). In the last legislature, level 1 acts empowered the Commission to adopt around 430 level 2 measures. The Commission says that a high volume of level 2 acts can lead to compliance costs and regulatory complexity for stakeholders, while demanding significant resources from co legislators to scrutinise them. In consultation with the EU co legislators, the Commission states that it has informed the three European Supervisory Authorities and the Anti Money laundering Authority (AMLA) t hat it will not adopt these non essential acts before 1 October 2027. Where empowerments have legal deadlines, the Commission says that it will propose to amend or repeal them during the upcoming revisions of the relevant Level 1 acts. The Commission says that de prioritisation of some level 2 measures is a pragmatic approach that can deliver simplification quickly, in line with the savings and investments union objectives and the Commission’s simplification agenda. Link to Commission Letter here Link to Non-essential empowerments in the acquis of Directorate General for Financial Stability, Financial Services and Capital Markets Union here NETHERLANDS AFM and DNBWarn of Systemic Risks in the Financial Sector fromDigital Dependence On 20 October 2025, the Dutch Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB) published a joint report on digital dependency in the financial sector. In an accompanying press release, the AFM stated that the Dutch financial sector faces increasing systemic risks stemming from its growing reliance on a limited number of non-European IT service providers. In its press release, the AFM highlights the following points: • Heightened geopolitical tensions – Against the backdrop of heightened geopolitical tensions, there is a risk that state actors could exploit these digital dependencies for political leverage or weaponise them in trade disputes. The report outlines scenarios such as the sudden suspension of essential IT services due to sanctions, or a hybrid attack combining cyber intrusions and sabotage of infrastructure, which could severely disrupt critical and vital processes. While the report acknowledges that financial institutions are aware of these risks, it stresses that further action is needed. • Preparing for disruptive scenarios – Digital dependence is a complex issue that cannot be resolved overnight. The AFM and DNB urge institutions to prepare for disruptive scenarios by collaborating with IT vendors, authorities, and peers. This includes developing threat scenarios, sharing intelligence on actual incidents, and conducting chain tests throughout the ecosystem. In addition, it is essential that they can clearly articulate and justify how their decisions support data sovereignty and security. • Towards long-term strategic autonomy – Reducing digital dependence is a long-term challenge that transcends individual institutions and sectors. It requires coordinated European solutions. The report calls for the development of robust European alternatives to non-EU IT providers and emphasises the need to foster a strong innovation and investment climate for European technology companies. Link to AFM Press Release here Link to Report here (in Dutch only)