Global Trustee and Fiduciary Services Bite-Sized Issue 12 2025

6 QUICK LINKS COSTS & CHARGES CRYPTOASSETS FINTECH FSB IOSCO OPERATIONAL RESILIENCE SAVINGS AND INVESTMENT UNION SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 12 | 2025 FSB FSB Chair’s Letter to G20 Leaders On 20 November 2025, the Financial Stability Board (FSB) published a letter from its Chair, Andrew Bailey, to G20 Leaders ahead of their Summit in Johannesburg held on 22-23 November. In the letter, Andrew Bailey highlighted the challenging economic outlook, and the role financial authorities can play in supporting growth. The FSB’s interim report of its Implementation Monitoring Review identified significant gaps in the implementation of financial reforms. While the next phase of the FSB’s work will look deeper into where implementation was not achieved, Andrew Bailey stressed the importance of striking a balance between modernising financial regulation and ensuring its effectiveness in safeguarding the global financial system. The letter highlighted the increasing role of nonbank financial intermediaries in global financial markets, particularly in government bond markets and private credit markets. The FSB said it remains committed to assessing the implications of these changes for the resilience of the financial system and ensuring that the evolution of nonbank finance does not compromise financial stability. The letter notes that new forms of payments and settlement are also emerging in what is a highly dynamic landscape. Digital assets, particularly stablecoins, are increasingly being used in payments, with implications for the financial system. The FSB said its work programme for the year ahead will include a focus on stablecoins and other forms of payment. Link to Letter here FSB Plenary Meeting and 2026Work Plan On 19 November 2025, the FSB published details of its Plenary convened on 18-19 November 2025, in Riyadh, Saudi Arabia, to address critical vulnerabilities in the global financial system, challenges facing emerging market and developing economies (EMDEs), and to outline its priorities and work plan for 2026. Key outcomes included the launch of new initiatives concerning regulation, stablecoins, and nonbank financial intermediation (NBFI), alongside a call for strengthened jurisdictional and regional efforts to improve cross-border payments. The FSB said the Plenary’s discussions underscored a commitment to adapting financial oversight to evolving risks, notably from AI-related securities, private credit markets, and the expanding crypto-asset sector, aiming to foster sustained economic growth and financial stability. 2026 Work Programme and Strategic Priorities The FSB approved its work programme for 2026, which includes key deliverables for the United States G20 Presidency, with a focus on: • Modernising Regulation and Supervision: Examining national initiatives to modernise financial regulation and supervision to support global alignment of approaches. • Crypto-assets and Stablecoins: Building on the FSB’s Thematic Peer Review, efforts will concentrate on addressing regulatory fragmentation, ensuring financial stability, and combating money laundering and terrorist financing. The work will explore financial stability implications of stablecoins and promote enhanced cooperation and coordination across international bodies like FATF. • Implementation Monitoring Review: Progressing to phase two of the strategic review of implementation. • Cross-border Payments: Continuing to monitor progress on the G20 Roadmap for Enhancing Cross-Border Payments, noting that targets are unlikely to be met by end-2027. Calls were made for jurisdictional and regional action plans to accelerate improvements. • Nonbank Financial Intermediation: Enhancing the resilience of the NBFI sector by promoting liquidity management recommendations for open-ended funds and addressing NBFI leverage, including enhancing disclosure and tackling data gaps related to leveraged trading strategies in sovereign bond markets.