Global Trustee and Fiduciary Services Bite-Sized Issue 10 2026

12 AIFMD CRYPTOASSETS FINTECH FUND LIQUIDITY OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2026 Quick Links MEPs Vote for Clearer and Simpler Sustainable Finance Disclosure Rules On 10 September 2026, the European Parliament’s Economic and Monetary Affairs Committee (ECON) agreed that the proposed Sustainable Finance Disclosure Regulation (SFDR) revision should cut red tape and lower costs, without weakening the credibility of green investments. Comparable, transparent products MEPs said they want retail investors to be able to compare sustainable financial products easily and avoid greenwashing. They backed the European Commission’s proposal for three standard product categories (sustainable, transition, and ESG basics) each of which must disclose its investments’ main adverse impacts on sustainability. MEPs said they insist, however, that the transition products channelling investments towards companies not yet sustainable should exclude those earning revenue from fossil fuel exploration, extraction, mining, or refining, unless such companies invest heavily in environmentally sustainable activities, have a measurable, time-bound plan to cut emissions, and put more capital into sustainable activities than into new fossil fuel projects. MEPs also said the products falling under ESG basics category should disclose their exposure to the fossil fuel sector, all three categories should exclude investments in companies violating human rights and humanitarian law, and investors should be able to distinguish clearly between non-categorised and categorised financial products. Simplified rules, lower costs MEPs also agreed that only the largest financial market participants would disclose their impact on environment and society, to exempt professional investors and remove financial advice and portfolio management from the rules’ scope, without limiting firms’ ability to recommend other products that genuinely match clients’ sustainability preferences. Credible green investments To ensure the credibility, MEPs said the investment companies would need due diligence and monitoring processes for categorised financial products, reviewed at least once year and updated as needed. Companies would report on exposure to the fossil fuel sector, greenhouse gas emissions, and activities harming biodiversity-sensitive areas, and disclose any adverse impact on a product’s ESG objectives. Next steps The text was adopted with 37 to 9 and 4 abstentions. The negotiating mandate will be announced at the start of the October plenary session. The final legislation will have to be negotiated with the Council of the EU before coming into force. Link to Press Release here HKMA Launches Consultation on Phase 2B Prototype of Hong Kong Taxonomy for Sustainable Finance On 7 September 2026, The Hong KongMonetary Authority (HKMA) launched a public consultation on the Phase 2B prototype of the Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy). Following the publication of Phase 2A of the Hong Kong Taxonomy earlier this year, the HKMA says it has continued to enhance the framework. Guided by market feedback, government policies, industry needs, and the latest developments in technology and climate science, the Phase 2B prototype introduces a number of enhancements that further support Hong Kong’s decarbonisation efforts, facilitate the region’s transition to a low-carbon economy, and reinforce Hong Kong’s position as an international financial centre. The HKMA says the key features of the Phase 2B prototype include: • Broadening climate change mitigation activities :10 new economic activities are added, with technical criteria for green and transition activities and measures where applicable. Together with re-categorisation of some Phase 2A activities, the total number of economic activities is increased from 25 to 39.