Global Trustee and Fiduciary Services Bite-Sized Issue 6 2025

5 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 FRC Publishes Stakeholder Insights on Future of UK Digital Reporting On 15 May 2025, the Financial Reporting Council (FRC) published insights from its discussion paper on “Opportunities for Future UK Digital Reporting,” revealing stakeholder support for digital reporting and the collaborative approach needed to address the challenges in the next phase of digital reporting in the UK. The discussion paper reflects responses received during a feedback period which gathered perspectives from preparers, regulators, software vendors, and other stakeholders on how to shape the future of digital reporting in an EU-exit environment and following new legislation such as the Economic Crime and Corporate Transparency Act 2023. Key findings include strong support for ongoing collaboration between regulators and preparers to reduce complexity, calls for improved guidance and support materials, and a recognition of the balance needed between UK-specific reporting requirements and international comparability. The FRC says the insights published in the discussion paper will inform ongoing development and technical approaches to digital reporting across UK regulatory bodies. Read Opportunities for Future UK Digital Reporting here Draft Report on the Impact of AI on the Financial Sector On 14 May 2025, the Committee on Economic and Monetary Affairs (ECON) of the European Parliament (EP) issued a draft report on the impact of Artificial Intelligence (AI) on the financial services sector. In the report ECONmakes the following recommendations: • That the European Commission (EC) ensures clarity and guidance on how existing financial services regulations apply to the use of AI in financial services; • Considers that such guidance should aim to enable the use of AI in the financial services sector; and • Calls for consistent definitions and the simplification of the regulatory framework to avoid duplicated requirements, including risk assessment reporting requirements. ECON goes on the warn against the adoption of new sectoral legislation to regulate AI in financial services, as there are already established sectoral rules that cover AI deployment and advises the EC and Member States to coordinate to avoid gold-plating relevant legislation and to prevent the creation of new barriers in cross-border markets. Finally, ECON calls on European and national supervisory authorities to support the uptake of AI by promoting consistent interpretations and avoiding overly strict application of existing regulations, emphasising that the attitude and approach of supervisors are as important as the rules themselves; and recommends that supervisory efforts prioritise tangible, operational risks where identified, rather than abstract or theoretical concerns. Link to the Draft Report here Scaling DLT Capital Markets – Enabling Central Bank Money Settlement and Collateral Eligibility for DLT-based Securities On 14 May 2025, the Association for Financial Markets in Europe (AFME) published proposals in areas key to further scaling of DLT-based capital markets. These include implementation proposals as well as ways in which DLT-based securities could be made eligible as collateral in central bank credit operations. AFME says both the ability to settle DLT transactions in central bank money and to use DLT-based securities as eligible collateral are key to building liquidity and attractiveness of DLT-basedmarkets. Link to Proposals here