Global Trustee and Fiduciary Services Bite-Sized Issue 7 2026

AI AI: Council Gives Final Green Light to Simplify and Streamline Rules On 29 June 2026, the Council of the EU (Council) gave its final green light on a new regulation, which it says aims to streamline and simplify certain rules regarding artificial intelligence (AI). The new law forms part of the so-called ‘Omnibus VII’ legislative package in the EU’s simplification agenda. The package includes proposals for two regulations aiming to simplify the EU’s digital legislative framework and the implementation of harmonised rules on AI. The Council says that given that provisions on high-risk AI systems were due to enter into force on 2 August 2026 , the co-legislators treated this part of the package with utmost priority and agreed on a fixed timeline for the delayed application of high-risk rules: the new application dates would be 2 December 2027 for stand-alone high-risk AI systems and 2 August 2028 for high-risk AI systems embedded in products. The legislative act will be published in the EU’s official journal shortly and will enter into force on the third day after this publication. Link to Council Press Release here FSB Consults on Sound Practices for the Responsible Adoption of AI On 10 June 2026, the Financial Stability Board (FSB) published a consultation report on ‘Sound Practices for Responsible Adoption of Artificial Intelligence (AI)’ and says that the sound practices focus on AI-specific aspects and risks that are relevant to financial institutions and financial stability. The FSB states that it has identified 12 sound practices to help financial institutions responsibly adopt AI. The sound practices build on and are broadly compatible with existing and ongoing work by the FSB and other standard-setting bodies. The FSB says that they seek to foster coordination, cooperation and information-sharing among stakeholders, including financial institutions and supervisors, within and across jurisdictions. The sound practices cover: • Organisation-wide AI governance (sound practices 1 to 4); • The management and mitigation of AI risks through the different stages of AI development and deployment (sound practices 5 to 10); and • The management of AI-related cyber, information and communication technology, and third- party risks (sound practices 11 and 12). The FSB says that it strongly encourages the board and senior management of financial institutions to reference this toolkit as they consider business strategy, technology adoption, and risk management in an increasingly AI enabled environment. Investor Services Bite-Sized Global Trustee and Fiduciary Services Quick Links Issue 7 | 2026 AI CRYPTOASSETS CYBER DORA IOSCO MONEY MARKET FUNDS SUSTAINABLE FINANCE/ESG ASIA PACIFIC AUSTRALIA EUROPE IRELAND LUXEMBOURG NORTH AMERICA UNITED KINGDOM