Global Trustee and Fiduciary Services Bite-Sized Issue 10 2026

15 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 HKMA Circular on Private Market Investments On 10 September 2026, the Hong Kong Monetary Authority (HKMA) issued a circular to the Chief Executive of all Registered Institutions (RIs) in response to the SFC’s 3 September 2026 Circular on SFC-authorised funds with exposure to private market assets (see below). The HKMA says it has also observed growing bank customers’ interest in funds and other investment products that provide exposure to private market assets as customers search for higher returns. However, private market investments are not suitable for all investors. Their underlying assets are often subject to limited regulatory oversight and exhibit characteristics that may render them illiquid or difficult to value. The risk of capital loss may be significantly heightened due to the corresponding lending or governance standards. Considering the above, the HKMA provides guidance to remind RIs of the relevant regulatory requirements in respect of sale and distribution of private market investments, publicly or privately offered. Link to Circular here SFC Enhances Guidance for Authorised Funds with Exposure to Private Market Assets On 3 September 2026, the SFC issued a circular to provide guidance on SFC-authorised funds with exposure to private credit and private equity (collectively, private market assets) to enhance their transparency on underlying investments and associated risks. The SFC says recent market developments have prompted regulators to pay closer attention to private market assets. The SFC says it has observed that some funds may gain indirect exposure to private market assets through various types of investments for asset allocation and yield enhancement purposes. The SFC says it also noted that retail investors in Hong Kong may have limited familiarity with private market assets and their associated risks, as some of these indirect exposures involve layered structures and complex financial instruments, which may lack transparency. Against this backdrop, the SFC sets out its enhanced disclosure requirements, obligating fund managers to provide a clear, sufficiently completed and balanced picture of the characteristics, nature and risks associated with a fund’s exposures to private market assets. In addition, the SFC says it may, where appropriate, subject such funds to enhanced scrutiny and classify them as a complex product with heightened distribution requirements for offering in Hong Kong. For existing funds that may have exposure to private market assets, the SFC also expects fund managers to review their funds and update the funds’ offering documents as soon as practicable. Link to Circular here EUROPE ESMA Sets its 2027 Priorities On 28 September 2026, European Securities and Markets Authority (ESMA) published its annual Work Programme for 2027. Guided by its multi-annual strategy for 2023–2028, ESMA says the programme is marking a shift from the preparation of, to the delivery of, several major initiatives. ESMA says in 2027 it will: • Advance its supervision of consolidated tape providers and external reviewers of European Green Bonds, as well as process the applications for, and begin the supervision of, ESG rating providers. It will also adapt to its expanded responsibilities for benchmark administrators. • Carry out oversight activities for Critical ICT Third-Party Service Providers together with the other European Supervisory Authorities and continue monitoring and promoting compliance with the Digital Operational Resilience Act (DORA) across all its supervisory mandates. • Review the impact of recent reforms aimed at making EU clearing markets more resilient. ESMA says the work will help ensure that EU clearing houses remain robust and reduce the EU’s dependence on certain systemically important clearing services located outside the EU.