Global Trustee and Fiduciary Services Bite-Sized Issue 2 2025

5 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 CSSF Communiqué on the Application of DORA On 15 January 2025, the Commission de Surveillance du Secteur Financier (CSSF) published a communiqué, reminding Financial Entities (FEs) subject to DORA, that as from 17 January 2025, the requirements of the DORA regulation and its underlying regulatory technical standards and implementing technical standards take precedence over any overlapping elements or requirements present in CSSF circulars, notably in circulars: • CSSF 20/750 specifying the requirements regarding information and communication technology (ICT) and security risk management; • CSSF 22/806 on outsourcing arrangements (regarding ICT outsourcing arrangements); and • CSSF 24/847 on ICT-related incident reporting framework. The CSSF says that other topics covered by the above circulars, not related to DORA, remain applicable in their current form, to the respective FEs. Also covered in the CSSF communiqué are: • Reminder of press release of 5 December 2024; • Major ICT-related incident and significant cyber threats reporting; and • Reporting of the register of information. Link to CSSF Communiqué here EMIR European Commission Extends Time-limited Equivalence for UK Central Counterparties On 31 January 2025, the European Commission (EC) adopted a decision to extend the equivalence for UK central counterparties (UK CCPs) for a period of three years until 30 June 2028. The EC says that this decision will ensure EU financial stability in the short term and provide clarity to EU financial market participants. The EC explains that the extension is designed to provide time for the implementation of the European Market Infrastructure Regulation (EMIR 3), which contains measures that will improve the attractiveness and competitiveness of EU clearing markets. The EC say that this will help reducing the EU’s overreliance on systemically important UK CCPs, thus reducing risks to EU’s financial stability in the medium term. The decisionwill be published in the Official Journal of the EU soon after adoption. It will enter into force immediately and apply from1 July 2025, leaving no gap or uncertainty for EUmarket participants. Link to Equivalence Decision here Guidance to Readiness: Joint Newsletter by DNB and the AFM to Assist the Implementation of EMIR 3 Published on 30 January 2025, the joint newsletter by the Dutch Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB) provides guidance on the updated requirements that EU financial counterparties (FCs), non-financial counterparties (NFCs), central counterparties (CCPs), clearing members providing clearing services and clients providing clearing services (CSPs) face under the EMIR. Amongst others, the AFM/DNB state that the newsletter includes guidance on the active account requirement and on initial margin models in light of the pending applicability of the respective ESA Regulatory Technical Standards (RTS). Active account with European central counterparty mandatory – One of the new topics under EMIR 3 is the requirement for institutions that hold positions in certain interest rate derivatives to open and maintain an active account with a European central counterparty. The aim of the introduction of the active account is to reduce dependency on third-country central counterparties and to strengthen the efficiency of the EU derivatives settlement markets.