Global Trustee and Fiduciary Services Bite-Sized Issue 1 | 2026

11 QUICK LINKS AI BENCHMARKS REGULATION (UK) CRYPTOASSETS EMIR FSB FUND LIQUIDITY MIFID/MIFIR IOSCO RETAIL INVESTMENT STRATEGY SAVINGS & INVESTMENTS UNION SUSTAINABLE FINANCE/ESG ASIA PACIFIC EUROPE IRELAND NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 1 | 2026 Link to Commission Announcement here Link to Factsheet here Link to FAQs on Market Integration Package here Link to ESMAWelcome of Commission’s Proposal on Market Integration here SUSTAINABLE FINANCE/ESG ESMA Reviews Impact of Guidelines on ESG or Sustainability Related Terms in Fund Names On 17 December 2025, the European Securities and Markets Authority (ESMA) released research which it says assesses the impact of its fund naming guidelines on ESG and sustainability-related terms. ESMA says that the study found that its Guidelines have: • Improved consistency in the use of ESG terms by increasing alignment of fund names and their actual investment strategies; and • Enhanced investor protection by reducing greenwashing risks. Drawing on nearly 1,000 shareholder notifications in reaction to the Guidelines from the 25 largest EU asset managers with EUR 7.5 trillion in assets under management, ESMA says that the study found that: • 64% of the funds mentioned in shareholder notifications changed their name, in most cases to avoid the use of ESG related terminology; and • 56% updated their investment policies to strengthen their sustainability focus. ESMA adds that the study then focuses on the impact of the fossil-fuel related exclusions on 4,000 EU funds using ESG terminology in their names, with EUR 2 trillion in assets under management. Here, ESMA says that the analysis shows that: • Funds with higher fossil fuel exposures were more likely to remove ESG terms from their names, underscoring how portfolio composition influences compliance choices; and • Since the publication of the Guidelines, funds retaining ESG terms in their names have reduced their portfolio share of fossil fuel holdings more than all other funds, suggesting efforts to green their portfolios. ESMA also states that a webinar to present the findings will take place on 20 January 2026 at 10.00 (European time), with the registration deadline by 19 January at 12:00 (CET). Link to ESMA Research here Commission Provides Guidance on Simplified EU Taxonomy Reporting Rules On 17 December 2025, the European Commission (Commission) issued guidance to help stakeholders prepare for the simplified disclosure rules under the EU Taxonomy for sustainable economic activities, which will apply from January 2026. The Commission says that the simplified framework, introduced through the Taxonomy Omnibus Delegated Act adopted in July 2025, significantly reduces reporting burdens for EU businesses. For example, the Commission states that companies no longer need to assess non-material activities under the EU Taxonomy, key performance indicators for financial institutions are simplified, and the number of data points in reporting templates is cut by 89% for financial undertakings and 66% for non-financial undertakings. The Commission explains that the guidance, which takes the form of a draft set of responses to frequently asked questions (FAQs), provide early and practical guidance on the implementation and legal interpretation of the simplified disclosure rules ahead of their entry into application. The Commission adds that the guidance will help stakeholders to prepare their first annual Taxonomy reporting under the simplified rules, due to be published in 2026 for the financial year 2025.