Global Trustee and Fiduciary Services Bite-Sized Issue 6 2025

11 QUICK LINKS AIFMD BENCHMARKS REGULATION CBDC COSTS & CHARGES CRYPTOASSETS ETF FINTECH FUND LIQUIDITY IOSCO MIFID II/MIFIR OPERATIONAL RESILIENCE PRIIPS SIU SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 6 | 2025 T+1 IA Recommendation for Fund Settlement 2027 On 29 May 2025, the UK’s Investment Association (IA) published a statement recommending that the funds industry moves to a T+2 settlement cycle for October 2027 to facilitate co-ordinated action by firms who wish to mitigate challenges presented by the UK, EU and Swiss market change to T+1. The IA has been working with the UK Accelerated Settlements Taskforce (AST), the Financial Conduct Authority (FCA), the wider funds ecosystem and – for European domiciled funds, EFAMA – to assess the impact of the planned changes. Having discussed the implications on fund settlement timings with members, the IA is recommending to its members that all UK authorised funds, and those within the Overseas Funds Regime, should ideally operate a maximum T+2 fund settlement cycle as of 11 October 2027, to provide a framework for co-ordinated action by firms who wish to mitigate challenges presented by the market change. The IA made a similar recommendation in 2014/15 in relation to market changes in most of Europe to T+2. Link to Recommendation here (members only) On 30 May 2025, the FCA issued a statement welcoming the IA’s recommendation and updated its webpage on the T+1 transition. Link to FCA Statement here Link to FCAWebpage here Committee MEPs Votes for Shortening the Settlement Cycle in the EU On 20 May 2025, the Economic and Monetary Affairs Committee (ECON) of the European Parliament adopted amendments to the CSDR to enable transactions in transferable securities executed on trading venues. The settlement date will be no later than on the first business day after the trading takes place (T+1). MEPs agreed to shortening the settlement cycle in the EU to T+1. They noted that this would not prevent central securities depositories from voluntarily settling transactions on the same date as the trade date (T+0), where technologically feasible. The text also instructs ESMA to monitor the settlement efficiency during the move to T+1 and prepare a report on the shortening of the settlement cycle in the Union. This report should explore the feasibility of shortening the settlement cycle in the future to T+0. The ECON adoption follows the approval by the Council of the European Union of its negotiating mandate, on 7 May 2025. Link to ECON Announcement here Link to Council of the EU Announcement here ASIA PACIFIC TheFutureof Australia’sPublicandPrivateMarkets –ASICShares IndustryFeedbackandNext Steps On 4 June 2025, the Australian Securities & Investments Commission (ASIC) released more than 50 public submissions received in response to its discussion paper on the evolving dynamics between public and private markets, released in February 2025. The discussion paper followed ASIC’s report, Equity market cleanliness snapshot report (REP 786) , released in July 2024, and examined the health and future of Australia’s markets, including the growth in private markets, the decline in public listings, and the growing significance of superannuation funds. ASIC says it continues to meet with domestic and international stakeholders and has received almost 90 submissions. The responses have been overwhelmingly positive and reflect the views of industry bodies, market operators, superannuation trustees, fund managers and other stakeholders across the finance sector.