Global Trustee and Fiduciary Services Bite-Sized Issue 4 2026

19 QUICK LINKS CMU CONDUCT CRYPTO ASSETS EMIR FINTECH FUND LIQUIDITY IOSCO OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 4 | 2026 The HKIMR says that, building on these findings, the report outlines considerations to further enhance Hong Kong’s FO ecosystem, including leveraging the cross-industry support network within the Guangdong-Hong Kong-Macao Greater Bay Area, advancing the development of Private Social Investments to enable FOs to achieve sustainable financial returns alongside meaningful environmental and social impact, and promoting talent developments. Link to the Report here EUROPE ESAs Spring Risk Update Highlights Geopolitical Pressures and Rising Private Finance Risks On 27 March 2026, the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published their spring 2026 Joint Committee update on risks and vulnerabilities in the EU financial system. The update focuses on the challenges arising from ongoing geopolitical tensions and developments in private finance. Despite the challenging geopolitical environment, the ESA’s say European financial markets have continued to demonstrate resilience. The insurance and Institutions for Occupational Retirement Provision (IORP) sectors maintain robust capital and funding positions. In the banking sector, capital ratios remain high, while liquidity positions and asset quality are solid. Direct exposures to countries most affected by the war remain limited. Given the ongoing geopolitical tensions, the Joint Committee of the ESAs calls on supervisors and market participants to maintain a high level of readiness. This includes proactive risk assessments with appropriate tools, the prudent management of sovereign exposures and the inclusion of geopolitical context in risk management. Possible indirect effects stemming from energy prices and exposures to highly affected sectors should also be closely monitored. The ESAs also encourage financial institutions, authorities and investors to closely monitor and manage risks associated with private markets, considering limited transparency, rising exposures, and potential shifts in risk profiles, linked to the upcoming Solvency II 2027 changes. Link to Joint Committee Update here EU Financial Markets Enter 2026 Amid High-risk Environment On 11 March 2026, the European Securities and Markets Authority (ESMA) published its first risk monitoring report of 2026, outlining the key risks and vulnerabilities in EU financial markets. ESMA said it finds that risks of market and systemic stress remain high despite resilient market performance in the second half of 2025. ESMA said that the likelihood of sudden and significant market price swings continues, driven by increasing geopolitical tensions, stretched equity valuations, and an uncertain economic outlook in the EU. Rising price correlations across asset classes heighten contagion risk while cyber and hybrid threats continue to grow in scale and sophistication, increasing the risk of operational disruptions in financial markets. Beyond the risk drivers, ESMA’s report sets out market developments and conditions across key segments of EU financial markets during the second half of 2025. It also provides deep dives on selected topics such as EU sovereign bonds’ sensitivity to unexpected events, funds’ exposure to private finance, EU listings trends, and physical risk and catastrophe bonds. The report focuses on: • Market developments, including: – Securities markets and crypto-assets; – Infrastructures and services; – Asset management; and – Consumers.