Global Trustee and Fiduciary Services Bite-Sized Issue 7 2025

9 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 SFC to Adopt Fee Limits for Approved Securities Registrars Under Uncertificated Securities Market Regime On the 13 June 2025, the SFC published consultation conclusions on the limits for three types of fees that an approved securities registrar (ASR) may charge investors following the launch of the uncertificated securities market (USM) regime. The SFC says that respondents to the consultation were generally supportive of the proposed fee limits as well as the USM initiative, and that it will now proceed to incorporate the limits in the ASR Code. During the consultation, the SFC received a total of 11 submissions. Among their key comments, the SFC says that respondents considered that the fee limits establish a fair and transparent fee structure, protect small shareholders’ interests, and make it easy for investors to estimate expenses, while also facilitating the development of USM and the securities market. The SFC has updated its dedicated USMwebpage to include information about the limits in the sections on “frequently asked questions” and “list of consultation papers”. In the coming months, the SFC says it will continue to collaborate with Hong Kong Exchanges and Clearing Limited and the Federation of Share Registrars Limited to raise stakeholders’ awareness and enhance understanding of the new regime. Link to Consultation Conclusions here SFC Proposes to Further Restrict Use of Misleading Names to Enhance Investor Protection On 12 June 2025, the SFC launched a consultation aimed at restricting unregulated entities from improperly adopting names that may give the public a false impression that they are regulated entities. To this end, the SFC proposes expanding the current list of restricted titles under the Securities and Futures Ordinance (SFO) to cater for recent developments, including the emergence of virtual asset trading platforms (VATPs). In parallel, the SFC says that it proposes to include similar restrictions under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), as the VATP regime is set out under both ordinances. Additionally, the SFC says that the proposal will extend the restrictions to commonly used terms that are similar in meaning to “exchange” (e.g., “trading platform”) and those that refer to some of the financial products and platforms regulated under the SFO (e.g., “virtual assets” and “clearing facilities”). The proposal will also cover titles that may imply an association with established exchanges, VATPs and other similar entities. The SFC invites the public to submit written comments on the proposals by 11 August 2025. Link to Consultation here SFC Joins Global Regulatory Effort to Curb Activities of Unauthorised Finfluencers On 6 June 2025, the SFC announced it is joining regulators across the globe to curb activities of unlawful financial influencers (finfluencers) who are putting millions of social media users at risk by touting financial products or services illegally. Recognising that unlawful finfluencer activity is a global phenomenon that often transcends borders, and that international cooperation is vital to countering this problem, the SFC says that it and other members of the International Organization of Securities Commissions (IOSCO) are participating in the “Global Week of Action Against Unlawful Finfluencers” during the week of 2 June 2025. On the supervisory front, the SFC says that it commenced a thematic inspection in April 2025 to assess securities brokers’ compliance with applicable regulatory requirements when engaging finfluencers and digital platforms to market financial products and services.