Global Trustee and Fiduciary Services Bite-Sized Issue 5 2025

15 QUICK LINKS AIFMD (UK) CRYPTOASSETS DATA EMIR FINTECH FSB IOSCO MARKET ABUSE REGULATION MICA MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG ASIA PACIFIC AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2025 EUROPE ESMA Publishes Implementing Rules on Liquidity Management Tools for Funds On 15 April 2025, the European Securities and Markets Authority (ESMA) published the draft Regulatory Technical Standards (RTS) on Liquidity Management Tools (LMTs) under the AIFMD and UCITS Directive and a final report on the Guidelines (GL) on LMTs of UCITS and open-ended AIFs. ESMA says that these provisions will make EU fund managers better equipped to manage the liquidity of funds, in particular in case of market stress. In addition, the draft RTS will also clarify the functioning of LMTs, such as the use of side pockets for which rules currently vary significantly across the EU. ESMA also says that, through their role in mitigating financial stability risks, these rules are an important contribution to the ongoing debate on Non-Bank Financial Intermediation. ESMA states that the publication is a key step in the implementation of the revised AIFMD and UCITS Directive and will facilitate the harmonisation and full availability of the LMTs defined in the Directives in all Member States. In terms of next steps, ESMA says that the draft RTS have been submitted to the European Commission (EC) for adoption. From the date of submission, the EC shall take a decision on whether to adopt the RTS within three months. The EC may extend that period by one month. ESMA says it will translate the GL after the adoption of the draft RTS by the EC. Should the EC amend the draft RTS in a way that impact the GL, ESMA will adjust the GL to ensure full consistency between the RTS and the GL. Upon publication of the translations on the ESMA website, national competent authorities will have two months to notify ESMA whether they comply or intend to comply with the GL. Lastly, ESMA says that the GL will start applying on the date of entry into force of the RTS. Funds existing before the entry into force of the RTS will have twelve months to comply with the GL. Link to Draft RTS here Link to Final Report here LUXEMBOURG Launch of the ESMA CSA on Compliance and Internal Audit Functions of UCITS Management Companies and AIFMs On 4 April 2025, the Commission de Surveillance du Sectuer Financier (CCSF) announced that, further to the European Securities and Markets Authority (ESMA) Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on Compliance and Internal Audit Functions of UCITS Management Companies (UCITS Managers) and authorised Alternative Investment Funds Managers (AIFMs), it will launch its own questionnaire. The CSSF says that it will launch by mid-June at the latest, the first phase of the CSA by asking a sample of Luxembourg-based UCITS Managers and AIFMs to complete a questionnaire covering policies, procedures, measures relevant to functions, delegation, reporting to senior management, and internal control plans. The CSSF stated that it will have contacted by email the Luxembourg-based UCITS Managers and AIFMs that are in scope of this CSA by 11 April 2025. The CSSF adds that the UCITS Managers and AIFMs who did not receive an email from the CSSF on this subject matter, are not impacted by this exercise. In this regard, the CSSF reminds the UCITS Managers and AIFMs that they must keep the email addresses of eDesk users and their corresponding roles up to date, so that specific communications reach the concerned persons. Link to CSSF Communiqué here