Global Trustee and Fiduciary Services Bite Sized Issue 8 2025

12 QUICK LINKS CBDC CRYPTOASSETS CSDR EMIR FINTECH FSB OPEN FINANCE OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG ASIA PACIFIC NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2025 a) Remove requirement for mandatory financial advice With clearer complex product labelling and investor-friendly PHS disclosures, investors will be in a good position to make considered, informed investment decisions. Relevant warnings and risks will be highlighted, and investors encouraged to consider seeking professional financial advice. Given this, MAS proposes to remove the requirement for mandatory financial advice even where the investor does not have the qualifications, experience, or knowledge to invest in the product, except in the case of those who require added protection. b) Introduce Product Knowledge Assessment (PKA) MAS says it is introducing the PKA as an alternative way to assess an investor’s knowledge in complex products. This is in addition to existing criteria based on educational and professional qualifications. The PKA comprises questions on the key features and risks of a complex product and serves as a self-assessment and awareness-building tool. c) Impose targeted safeguards for investors who require added protection Investors who may need additional protection (“Selected Clients”) will still be required to go through a mandatory financial advisory process before they purchase complex products. This will ensure they continue to have available the safeguards MAS has implemented for Selected Clients – such as having a trusted individual present during the financial advisory process, and a call-back process to confirm the investment decision before proceeding. The response period for the consultation closes on 13 October 2025. Link to MASWebsite here NORTH AMERICA SEC Permits In-Kind Creations and Redemptions for Crypto ETPs On 29 July 2025, the Securities and Exchange Commission (SEC) voted to approve orders to permit in-kind creations and redemptions by authorized participants for crypto asset exchange-traded product (ETP) shares. The orders approved reflect a departure from recently approved spot bitcoin and ether ETPs, which were limited to creations and redemptions on an in-cash basis. With these approval orders, bitcoin, and ether ETPs, consistent with other commodity-based ETPs approved by the SEC, will be permitted to create and redeem shares on an in-kind basis. The SEC also voted to approve other orders that advance a merit-neutral approach to crypto- based products, including exchange applications seeking to list and trade an ETP that would hold mixed spot bitcoin and spot ether, options on certain spot bitcoin ETPs, Flexible Exchange (FLEX) options on shares of certain BTC-based ETPs, and an increase of position limits up to the generic limits for options (up to 250,000 contracts) for listed options on certain BTC ETPs. Additionally, the SEC issued two scheduling orders soliciting comments in support of, or in opposition to, the Division of Trading and Market’s approval, pursuant to delegated authority, of a national securities exchange’s proposals to list and trade two large cap crypto-based ETPs. Link to Announcement here Statement by Commissioner Mark T. Uyeda here U.S. Treasury Announces Postponement and Reopening of Investment Adviser Rule On 21 July 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced its intention to postpone the effective date of the final rule establishing Anti- Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (the IA AML Rule) and to revisit the scope of the IA AML Rule at a future date. FinCEN anticipates delaying the effective date of the IA AML Rule from 1 January 2026, until 1 January 2028, in order to ensure efficient regulation that appropriately balances costs and benefits. The IA AML Rule seeks to address ongoing illicit finance risks, threats, and vulnerabilities posed by criminals and foreign adversaries that exploit the U.S. financial system and assets through investment advisers. FinCEN recognizes, however, that the rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector.