Global Trustee and Fiduciary Services Bite-Sized Issue 6 2026

4 AIFMD CRYPTOASSETS FINTECH FSB IOSCO MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 6 | 2026 Quick LInks Building on IOSCO’s previous work on AI, the toolkit covers the full lifecycle of AI systems and applies across all system types, from traditional Machine Learning (ML) models to Generative AI (GenAI) and emerging Agentic AI techniques. As the use of these technologies expands across investment processes, risk management and operational functions, providing important benefits for firms and clients, they may also introduce or amplify risks related to complexity, reduced transparency, third-party dependencies and governance challenges. The report sets out three complementary layers to support supervisory oversight, through: • Potential risk areas in merit of supervisory consideration; • Tools for supervisory oversight of key areas: governance and risk management, third-party and outsourcing risk management, disclosure, and recordkeeping and reporting; and • Indicators for monitoring AI adoption and use, alongside engagement methods to gather relevant information. The report is complemented by a standalone extract of the toolkit designed for direct use in supervisory activities, including on-site examinations and inspections. IOSCO says that, following publication, it will turn its attention to emerging industry practices across governance, disclosure, and recordkeeping and reporting of AI systems in capital markets. To inform this review of industry practices, the report includes a survey, which is open until 26 June 2026 . IOSCO says it will also continue to play a coordinating role in addressing AI developments in capital markets and to engage with other relevant international organizations, including the Financial Stability Board. In light of recent developments in AI enabled cyber capabilities, IOSCO notes that they may materially accelerate threat evolution and increase the speed, scope, and scale of existing attack techniques. IOSCO says it is therefore examining how such AI driven cyber risks, and the need for more continuous assessment and remediation, should be reflected in its ongoing work on AI in financial markets. IOSCO says that financial market participants should remain vigilant to such risks and take timely, proactive steps to identify and remediate vulnerabilities. Link to Supervisory Toolkit for AI Use in Capital Markets here Link to the Standalone Toolkit here Link to the Survey here QuantumComputing in Financial Markets – Applications, Investments and Prospects On 13May 2026, the European Securities andMarkets Authority (ESMA) published a TRV Risk Analysis paper looking at the potential impact quantum computing could have on financial markets. The paper examines the funding and investment landscape of the global quantum ecosystem. In 2025, global investment in quantum technologies reached record levels, reflecting elevated market expectations regarding their longer-term commercial prospects. In public markets, valuations of several quantum computing firms have increased markedly since late 2024, albeit amid pronounced volatility, underscoring the continuing uncertainty surrounding profitability pathways. The paper goes on to assess the prospects for the application of quantum computing in financial market activities. Potential use cases include optimisation algorithms (e.g. for portfolio management or trade settlement), stochastic modelling (e.g., for asset pricing or risk management), machine learning applications (e.g., for credit rating or fraud detection), and quantum-enabled blockchain technologies. While current quantum hardware capabilities remain limited, several financial institutions have developed quantum computing proofs of concept. Finally, the paper looks at the risks that a sufficiently powerful quantum computer would pose a significant threat to cybersecurity, as it could undermine some of the cryptographic protocols currently used. Given the systemic and cross-sectoral nature of this challenge, initiatives are underway to support a transition to quantum-resistant encryption methods in the financial sector and across the wider economy. Link to the TRV Risk Analysis here