Global Trustee and Fiduciary Services Bite-Sized Issue 2 2025

15 QUICK LINKS BENCHMARKS REGULATION CRYPTOASSETS DORA EMIR FSB MIFID II/MIFIR MMF SUSTAINABLE FINANCE/ESG T+1 ASIA EUROPE INTERNATIONAL LUXEMBOURG NETHERLANDS NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2025 As of December 2024, 1,328 entities globally have indicated their adherence to the Code’s principles by signing a Statement of Commitment (SoC). With the publication of the updated Code, the GFXC encourages all market participants to review the amendments and to consider renewing their SoC, taking into account the nature and relevance of the updates to their FX market activities. With this in mind, the GFXC considers that a 12-month period should be sufficient for those affected by the changes to align their practices with the Code’s principles. The December 2024 version of the Code will also include new links in its Foreword section that highlight some of the existing GFXC Reports. These reports are intended to facilitate wider awareness and understanding of specific aspects of the FX market and, where relevant, describe how they relate to the Code’s principles. Link to Updated Code here LUXEMBOURG CSSF Updates its FAQ Concerning the Luxembourg Law of 17 December 2010 Relating to Undertakings for Collective Investment On 2 January 2025, the Commission de Surveillance du Secteur Financier (CSSF) published an update to its ‘FAQ Law of 17 December 2010’ relating to UCITS. The following updates (either new or amended questions) were made: Q1.16. Is a UCITS authorised to invest in bank deposits, money market instruments or other eligible assets listed under Article 41(1) of the Law of 2010 if it is not clearly foreseen in its investment policy? Answer: No. A UCITS should clearly disclose in its investment policy the categories of eligible assets in which it is authorised to invest: • In order to achieve its investment goals; • For treasury purposes; and • In case of unfavourable market conditions. If a UCITS invests in a category of assets that is not foreseen in its investment policy, the provisions of Circular CSSF 24/856 apply. Q7.6. In accordance with point 26.b. and c. of the ESMA Opinion the UCITS management company should, at the level of the share class with a derivative overlay, ensure that the over-hedged positions do not exceed 105% of the net asset value of the share class and that the under-hedged positions do not fall short of 95% of the portion of the net asset value of the share class which is to be hedged against currency risk. If the hedge ratios of 105%/95% should be breached, do the provisions of Circular CSSF 24/856 apply? Answer: No. Following from the requirements of point 26.d. and e. of the ESMA Opinion, the CSSF expects UCITS management companies/investment companies to define and implement monitoring and control processes/procedures for ensuring compliance with the hedge ratios on an ongoing basis.