Global Trustee and Fiduciary Services Bite-Sized Issue 3 | 2026

10 QUICK LINKS AI DIGITAL ASSETS EMIR FINTECH FSB IOSCO MIFID II/MIFIR SUSTAINABLE FINANCE/ESG ASIA PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2026 ESMA Supports the Simplified ESRS and Suggests Targeted Adjustments On 18 February 2026, the European Securities and Markets Authority (ESMA) delivered its opinion on the draft revised European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG). ESMA says that it strongly supports the European Commission’s (Commission) goal of enhancing competitiveness and growth through simplification and burden reduction. On this basis, ESMA says that it welcomes EFRAG’s proposed changes to the ESRS and finds room for specific modifications. ESMA explains that the draft changes to the ESRS contain a number of improvements in readability, language, and format of the standards as well as in the volume of requirements. Additionally, ESMA adds that helpful simplifications have been introduced in several areas, promoting reporting which focuses more on material matters. ESMA states that it finds that the draft revised ESRS partly meet the objective of supporting investor protection and financial stability due to certain technical issues which it recommends the Commission to address. In the interest of investor protection and financial stability, ESMA advises the Commission to make some adjustments to the revised ESRS, namely: • Introduce time limits to certain permanent reliefs; • Refine requirements on transition plans; • Strengthen reporting on the sustainability competences of administrative, management and supervisory bodies; • Enhance transparency on the financial resources allocated to sustainability actions; and • Adjust the exemption from reporting sustainability risks and opportunities for subsidiaries excluded from consolidated financial statements due to immateriality. The Commission will now consider ESMA’s opinion alongside opinions submitted by the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Central Bank and other public bodies, with the aim to adopt the revised ESRS into a delegated act by summer 2026. Finally, ESMA says that the first years of ESRS application will imply a learning curve for all parties, as the sustainability reporting framework undergoes substantive changes. ESMA states that it will work with national competent authorities during this adjustment period to ensure proportionate and realistic supervision of sustainability reporting achieved in a harmonised way. Link to ESMA Opinion here ASIA PACIFIC SFCWelcomes Government Budget Measures to Bolster Hong Kong’s Role in Global Finance and National Development On 25 February 2026, the Securities and Futures Commission (SFC) welcomed the initiatives proposed by the Financial Secretary in the Government’s 2026-2027 budget to further consolidate Hong Kong’s status as an international financial centre and support the Nation’s development through mutual empowerment of finance and innovation. The SFC says that it will work closely with the Hong Kong Exchanges and Clearing Limited (HKEX) on several key initiatives to boost equity market vibrancy. These include enhancements of the weighted voting rights regime with a view to broadening the diversity of eligible companies, facilitation for initial public offerings by biotechnology and specialist technology companies and for secondary listings, a transition to T+1 settlement cycle, as well as taking forward board lot reforms. In addition, the SFC is working towards implementing the uncertificated securities market regime within this year. On deepening Mainland-Hong Kong mutual market access, the SFC will collaborate with Mainland authorities to push forward the inclusion of real estate investment trusts (REITs) and renminbi counters into Stock Connect, as well as the launch of China Treasury bond futures contracts.