Global Trustee and Fiduciary Services Bite-Sized Issue 4 2025

7 QUICK LINKS BENCHMARKSREGULATION CMU/SIU DORA FINTECH IOSCO MIFID II/MIFIR SUSTAINABLE FINANCE/ESG ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2025 SEC Votes to End Defence of Climate Disclosure Rules On 27 March 2025, the Securities and Exchange Commission (SEC) voted to end its defence of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. The SEC says that the rules, adopted by the SEC on 6 March 2024 create a detailed and extensive special disclosure regime about climate risks for issuing and reporting companies. The SEC explains that States and private parties have challenged the rules. The litigation was consolidated in the Eighth Circuit (Iowa v. SEC, No. 24-1522 (8th Cir.)), and the SEC previously stayed effectiveness of the rules pending completion of that litigation. Briefing in the cases was completed before the change in Administrations. Following the SEC’s vote, it says SEC staff sent a letter to the court stating that the SEC withdraws its defence of the rules and that SEC counsel are no longer authorised to advance the arguments in the brief the SEC had filed. Link to SEC Press Release here Simplification: Council Agrees Position on the ‘Stop-the-clock’ Mechanism to Enhance EU Competitiveness and Provide Legal Certainty to Businesses On 26 March 2025, the Member States’ representatives (Coreper) approved the Council of the EU’s (the Council) position on one of the European Commission’s (Commission) proposals to simplify EU rules and thus boost EU competitiveness. This proposal (the so-called ‘Stop-the-clock’ directive) postpones the dates of application of certain corporate sustainability reporting and due diligence requirements, as well as the transposition deadline of the due diligence provisions. The Council says that the proposal forms part of the ‘Omnibus I’ package adopted by the Commission at the end of February 2025 to simplify EU legislation in the field of sustainability. The Council says that in view of significant implications for the business community, the Polish presidency has treated this proposal with utmost priority with the aim of providing EU companies with the necessary legal certainty as regards their reporting and due diligence obligations. Member States have broadly shared the presidency’s sense of urgency and, in that view, supported the Commission’s proposal to postpone: • By two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs, and • By one year the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD). On 3 April 2025, the European Parliament approved the proposals and to enter into force, the draft law now requires formal approval by the Council. Link to Council Press Release here Link to European Parliament Press Release here FCA Invites ESG Ratings Providers to Complete a Voluntary Survey On 24 March 2025, the Financial Conduct Authority (FCA) invited ESG ratings providers to complete a voluntary survey. The FCA says that the input from its survey will inform its cost benefit analysis (CBA), policy development and help ensure that the future regulation is both proportionate and tailored to the needs of the market. The information the FCA are requesting is to help it better understand the ESG ratings market, including: • The business models and group structures used to provide ESG ratings; • How ESG ratings are constructed and distributed; and