Global Trustee and Fiduciary Services Bite-Sized Issue 2 2025

16 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 Q11.4. What information do UCITS have to communicate to the CSSF in relation to an active breach of the VaR limit (whether the maximum limit laid down in regulation – 20% for absolute VaR or 200% for relative VaR – or the internal limit, below the above regulatory thresholds, as laid down in the sales prospectus)? Answer: The notification to the CSSF should include at least the following information: • The legal name of the notifying person/entity and the corresponding CSSF identifier of the entity; • The legal name of the fund and the sub-fund, and the corresponding CSSF code of the fund and the sub-fund; • The VaR computation method (absolute VaR or relative VaR); • The internal VaR limit (if prospectus mentioned a limit below the regulatory limit); • The VaR limit consumption; • The date when the active breach occurred and the date when the breach ended; and • The reason(s) of the breach (i.e. new position, redemptions which miss to be managed by the fund manager, etc.). If needed, the CSSF may ask additional explanations. In these cases, the investment fund managers should not use the UCI forms for the notification of errors and instances of non-compliance under Circular CSSF 24/856, but they should notify the CSSF by email. Link to Updated FAQ here NETHERLANDS Dutch AFM: Reliance on Big Tech has Major Impact on Financial Sector On 16 January 2025, the Dutch Authority for the Financial Markets (AFM) said that it observed that developments in digitalisation, sustainability and internationalisation are accelerating and having a growing impact on the financial sector. To absorb these developments, the AFM says that the financial sector will need to adapt, and policymakers and supervisory authorities will need to take action where necessary. Domestically, the AFM says that the pension transition remains an obvious notable development. The AFM has published an overview of its priorities and other supervisory activities for the coming year in its annual supervisory agenda. The AFM Agenda 2025 is based in part on the trends and risks set out in the AFM Trend Monitor 2025. Reliance on big tech has major impact on financial sector The AFM says that technology is playing an increasingly indispensable role in the business operations and business models of financial institutions. The dominance in the technology sector of a small group of large, US tech companies (‘big tech’) could potentially have a major impact on the financial sector. The AFM adds that with the digitalisation of the financial sector, the dependency on IT systems coupled with the importance and use of data are also increasing. The failure of one crucial party in the chain can bring services to a standstill for a large part of the sector. Major cyber risks can cause substantial financial damage and even threaten financial stability. This affects consumers as well as financial institutions.