Global Trustee and Fiduciary Services Bite-Sized Issue 9 2025

2 QUICK LINKS CRYPTOASSETS CYBERSECURITY EMIR (UK) FINTECH MIFID/MIFIR (UK) SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 9 | 2025 Given the significant uncertainties surrounding the outcomes of these preliminary plans or applications, the abrupt market movements noted above, often driven by excitement or speculation, highlight the need to stay vigilant in these frenetic situations. This heightened volatility in share prices can lead to irrational decisions, thereby exposing investors to undue risks. In the light of this phenomenon, the SFC and the HKMA urge the public to exercise caution, conduct thorough research, and refrain frommaking irrational investment decisions based solely on market hype or price momentum. They should remember well-considered and informed decision-making is essential to mitigate risks in times of heightened volatility. Market participants are reminded to exercise responsibility in public communications, and refrain frommaking statements that could mislead investors or create unrealistic expectations. To safeguard market integrity and protect investors, the SFC’s dedicated market surveillance team, equipped with advanced and proven systems, will closely monitor trading activities in Hong Kong. It says it will take stringent actions against any manipulative or deceptive practices that could compromise the integrity of the market. Link to Joint Statement here SEC Division of Corporation Finance Issues Staff Statement on Certain Liquid Staking Activities On 5 August 2025, the Securities and Exchange Commission’s (SEC’s) Division of Corporation Finance issued a Statement regarding certain protocol staking activities. This Statement aims to provide greater clarity on the application of federal securities laws to crypto assets, specifically addressing a type of protocol staking known as “liquid staking.” Liquid staking refers to the process of staking crypto assets through a software protocol or service provider and receiving a “liquid staking receipt token” to evidence the staker’s ownership of the staked crypto assets and any rewards that accrue to them. The SEC says that the Statement clarifies the Division’s view that, depending on the facts and circumstances, the liquid staking activities covered in the Statement do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 or Section 3(a)(10) of the Securities Exchange Act of 1934. Link to Statement here FCA Opens Retail Access to Crypto ETNs On the 1 August 2025, the Financial Conduct Authority (FCA) announced that firms will soon be able to give retail consumers access to crypto exchange traded notes (cETNs). The FCA states in its announcement that cETNs, that retail consumers can access, must be traded on an FCA-approved, UK-based investment exchange (a Recognised Investment Exchange). Also, financial promotion rules will apply so consumers get the right information and are not offered inappropriate incentives to invest. The FCA also says that the Consumer Duty will apply to firms offering these products to retail investors. However, there will not be coverage from the Financial Services Compensation Scheme so the FCA says that consumers should ensure they understand the risks before deciding to invest. The FCA also reiterates that its ban on retail access to cryptoasset derivatives will remain in place and it will continue to monitor market developments and consider its approach to high-risk investments. The changes will come into force on 8 October 2025. Link to FCA Announcement here Link to Handbook Notice 132 here