Global Trustee and Fiduciary Services Bite-Sized Issue 11 2025

7 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 Finally, the FCA says that in CP24/24, it included a discussion chapter, seeking feedback on improvements it could make, over time to the regime. The FCA received positive feedback on rationalising the SYSC 10 conflicts of interest rules and modernising the COBS 3 rules on client categorisation. The FAC says it will shortly publish a consultation with proposals to address this feedback. Link to PS25/13 here IFR/IFD ESMA and the EBA Recommend Targeted Revisions to the Investment Firms’ Prudential Framework On 15 October 2025, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) issued their technical advice in response to the European Commission’s Call for Advice (CfA) on the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD). They propose limiting significant changes to the framework, which has proven to be fit-for-purpose, as confirmed by stakeholder feedback during the joint consultation. ESMA/EBAs recommendations aim to: • Enhance the proportionality and functioning of the prudential framework; and • Improve the framework’s ability to contribute to a level playing field among investment firms, and between investment firms and financial institutions that perform similar activities. ESMA states that the joint report highlights the areas where higher or lower alignment with the banking framework would be beneficial. They add that it also identifies the need to improve definitions, calculation methodologies, and thresholds monitoring for investment firms, while emphasising the importance of harmonising the scope of calculation to ensure consistent application of the framework. In addition, ESMA says that the report addresses a wider range of topics, including the adequacy of own funds requirements, the implications of the Banking Package, the prudential consolidation of investment firm groups, and aspects related to remuneration. It also considers the interactions between the IFR/IFD framework and other regulations, namely the Market in Crypto-Assets Regulation (MiCA), the Undertakings for Collective Investment in Transferable Securities (UCITS), and the Alternative Investment Funds Managers (AIFM) Directives. The EBA and ESMA will submit the joint report to the European Commission. Link to Technical Advice here OPERATIONAL RESILIENCE BoE/PRA/FCA: Effective Practices – Cyber Response and Recovery Capabilities On 20 October 2025, the Bank of England (BoE), Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) published an effective practices document which the BoE/ PRA/FCA say highlights the effective practices they have observed in systemic firms’ (Other Systemically Important Institutions) and financial market infrastructures’ (FMIs) (referred to as ‘firms’) operational resilience self-assessments. They state that these practices demonstrate how firms are strengthening their ability to respond to, and recover from, severe cyber disruptions – whether they stem from their own systems or material third-party suppliers. The BoE/PRA/FCA say that they are sharing this effective practice for firms to consider and apply appropriately and proportionately. Boards may also use this to support conversations about operational resilience, and challenge and discuss elements such as: • The level of assurance they have that they can deliver their important business services within impact tolerances;