Global Trustee and Fiduciary Services Bite-Sized Issue 6 2025

7 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 IOSCO IOSCO Statement on Combatting Online Harm and the Role of Platform Providers On 21 May 2025, the International Organization of Securities Commissions (IOSCO) published a statement on Combatting Online Harm and the Role of Platform Providers. IOSCO says it welcomes and strongly supports current efforts by some Platform Providers in some jurisdictions, to disrupt the misuse of their products and services by bad actors who seek to target retail investors, but a continually improving approach is needed to achieve tangible success. IOSCO says it has identified the following measures currently used in some jurisdictions, that can help disrupt online harm involving financial misconduct and encourages Platform Providers to consider adopting these measures, as consistent with local law: • Due diligence on unauthorised offerings : Conducting due diligence, including by using I-SCAN, to ensure that entities seeking to advertise paid content on their platforms are legally authorised to operate in the targeted jurisdictions and are not the subject of investor warnings by regulators; • User compliance : Rigorously enforcing applicable terms of services by monitoring and swiftly removing investment scam content or advertisements that violate platform policies; • Internal processes : Developing and regularly updating appropriate internal rules, policies, processes, and tools for detecting scams; • Legal requirements : Ensuring knowledge of and compliance with all applicable local laws and regulations in the jurisdictions where the Platform Provider company operates; • Direct engagement with regulators : Establishing active communication channels with financial regulators and governmental authorities to enable effective information sharing, including referrals of identified fraudulent activity. Collaboration with national regulators can help produce tailored and jurisdiction-specific strategies to combat online financial misconduct. IOSCO says it calls on Platform Providers to join this effort to combat online harm and to thwart their services from being misused to conduct fraud. Link to Statement here IOSCO Publishes Final Reports on Finfluencers, Online Imitative Trading Practices and Digital Engagement Practices On 19 May 2025, IOSCO published the Final Reports on Finfluencers, Online Imitative Trading Practices and Digital Engagement Practices, as part of the third wave of its Roadmap for Retail Investor Online Safety (the ‘Roadmap’). IOSCO says that this strategic initiative, launched in November 2024, aims to safeguard retail investors worldwide from fraud, excessive risk taking, and misinformation as digital marketing and social media reshape the retail financial markets. It is represented by five waves of activity. IOSCO’s work identifies a growing intersection between online imitative trading strategies and the activity of finfluencers, sometimes further complicated by digital engagement practices and gamification techniques employed by platforms to influence retail investors’ behaviour. These technological transformations, while creating new opportunities, could also blur the lines between the provision of authorised and regulated financial advice and the provision of general financial information, creating further risks for retail investors. The Finfluencers Final Report explores the evolving landscape of finfluencers, the associated potential benefits and risks, and the current regulatory responses across jurisdictions. It identifies potential gaps in regulatory coverage, particularly for unregistered individuals who influence retail investors without the professional qualifications or oversight required of registered investment advice professionals, and proposes a set of Good Practices for securities regulators, market intermediaries, and finfluencers themselves which aim to foster a more transparent and accountable environment.