Global Trustee and Fiduciary Services Bite-Sized Issue 6 2025

8 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 The Final Report on Online Imitative Trading Practices – Copy Trading, Mirror Trading, Social Trading – examines the regulatory aspects, benefits, and risks associated with imitative trading practices, particularly for retail investors. It highlights the potential for investor harm due to the automated nature of these strategies. The Final Report also emphasises the importance of promoting investor education as a means of helping investors understand the risks associated with online imitative trading strategies. The Final Report on Digital Engagement Practices (DEPs) reviews the various types and applications of DEPs employed by market intermediaries, highlighting both their potential benefits and associated risks. It also identifies regulatory challenges and gaps, particularly concerning their influence on retail investor behaviour and decision-making. The Final Report emphasises the importance of ensuring that DEPs used to communicate investment advice or recommendations do not prioritise the interests of market intermediaries over those of retail investors. It also advocates for clear, accurate, and comprehensive disclosures to promote investor protection and market integrity. All three reports identify Good Practices that regulators could consider in managing the potential risks on retail investors that may stem from the evolving retail market landscape in finfluencer activities, online imitative practices, and DEPs. Link to Finfluencers Final Report here Link to Final Report on Online Imitative Trading Practices – Copy Trading, Mirror Trading, Social Trading here Link to Final Report on Digital Engagement Practices here MIFID II/MIFIR ESMA Asks for Input on the Retail Investor Journey as Part of Simplification and Burden Reduction Efforts On 21 May 2025, the European Securities and Markets Authority (ESMA) launched a Call for Evidence (CfE) on the retail investor journey under MiFID II. ESMA says that the purpose of the CfE is to gather feedback from stakeholders to better understand how retail investors engage with investment services, and whether regulatory or non- regulatory barriers may be discouraging participation in capital markets. The CfE explores: • Key retail market trends, such as the appeal of speculative products for younger investors and the influence of social media on investment decisions; • The practical application of MiFID II requirements in areas such as regulatory disclosures, assessment of suitability and appropriateness; and • Additional areas such as the investor experience under the European crowdfunding framework and broader reflections on how to strike the right balance between investor protection and enabling informed risk-taking. Alongside the CfE, ESMA also publishes a summary of the main points, translated into all EU languages. ESMA say that, as part of broader efforts to support efficient simplification and burden reduction measures, it launched this work to assess whether current rules support or hinder retail investor participation, and to explore if simplifications could help investors better engage with capital markets without weakening existing protections. The response period ends on 21 July 2025. Based on the responses, ESMA, together with National Competent Authorities, will assess whether specific regulatory adjustments or clarifications may be needed to enhance investor protection and retail engagement in financial markets. Link to Call for Evidence here