Global Trustee and Fiduciary Services Bite-Sized Issue 7 2025

4 QUICK LINKS AIFMD CSDR ELIGIBLE ASSETS DIRECTIVE EMIR FINTECH FSB MIFID II/MIFIR SUSTAINABLE FINANCE/ESG VIRTUAL ASSETS ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2025 FCA to Launch Supercharged Sandbox On 9 June 2025, the Financial Conduct Authority (FCA) announced that it will launch a Supercharged Sandbox to help firms experiment safely with Artificial Intelligence (AI) to support innovation. Through a new collaboration, the FCA says that firms will have the opportunity to experiment with AI. The FCA states that the Supercharged Sandbox will give firms access to better data, technical expertise and regulatory support to speed up innovation. It is open to any financial services firm looking to innovate and experiment with AI. The FCA adds that the sandbox will help firms who are in the discovery and experimentation phase with AI. An existing AI Live Testing service helps those further along in development and ready to use AI. In its new strategy, the FCA says that it has committed to supporting economic growth by enabling innovation and harnessing technological advances like AI. Firms can apply to use Supercharged Sandbox now through the FCA’s website. The FCA explains that successful applicants will be able to experiment fromOctober 2025. Link to FCA Press Release here FSB FSB Examines Vulnerabilities in Non-bank Commercial Real Estate (CRE) Investors On 19 June 2025, the Financial Stability Board (FSB) published a report analysing the vulnerabilities in non-bank commercial real estate investors. The FSB says that report builds on the findings of the 2024 FSB report on interest rate and liquidity risks in the financial system, which identified non-bank CRE investors – comprising real estate investment trusts (REITs), property funds, and other non-bank mortgage lenders – as one of the entity types vulnerable to higher interest rates. The FSB says that data from its members suggests banks and nonbanks collectively provided at least USD12 trillion in equity and debt financing to CRE in 2023. While banks remain the main source of such financing, non-bank investors – particularly property funds and REITs – play a significant role in some jurisdictions. The FSB says that the report identifies three main vulnerabilities in these investors: • Liquidity mismatches; • High financial leverage; and • Opacity in valuations of CRE assets: The FSB also says that the report highlights the complex interlinkages between banks and non- bank CRE investors. The FSB states that so far, the global financial systemhas weathered the recent adverse developments in the CREmarket. However, ongoing monitoring of the market is warranted given the more volatile performance of CRE exposures compared to other assets, structural shifts in demand, and the effects of extreme weather events and new energy efficiency standards in some jurisdictions. Link to Report here