Global Trustee and Fiduciary Services Bite-Sized Issue 7 2026

7 AI CRYPTOASSETS CYBER DORA IOSCO MONEY MARKET FUNDS SUSTAINABLE FINANCE/ESG ASIA PACIFIC AUSTRALIA EUROPE IRELAND LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2026 Quick Links FCA Provide Update on Reforms to the UKMoney Market Fund Regulation On 8 June 2026, the Financial Conduct Authority (FCA) provided an update on Reforms to the UK Money Market Fund Regulation (UK MMFR). The FCA says that it is setting out next steps on issuing new rules and guidance on Money Market Funds (MMFs), following the Government plans to replace the current rules. The FCA says that it is planning to introduce, through a new rule, a requirement that all MMFs hold sufficient liquidity for adequate resilience. The FCA says that it intends to retain in rules the current minimumWeekly Liquid Assets (WLA) requirements as set out in UK MMFR. However, the FCA explains that it intends to set out in guidance its strong supervisory expectation that stable NAV MMFs will need to hold 40%WLA and variable NAV MMFs will need to hold 20%WLA to meet the new resilience requirement. Given this modified approach to WLA compared to what had been proposed in the original consultation, the FCA says that its expectation is that MMFs’ ability to be temporarily below the 40% / 20%WLA levels should be used only to meet redemptions or for reasons that are beyond the manager’s control (which the FCA says it considers would arise very rarely). The FCA adds that it would not expect MMFs to regularly hold lower levels of WLA at quarter and year-end. However, the FCA says it is planning to retain the current minimum Daily Liquid Assets (DLA) requirements and do not plan new guidance on DLA levels. The FCA says that its updated proposals will deliver a clear increase in the level of resilience expected of UK MMFs while making sure they can continue to meet the needs of investors. They are subject to final consideration and sign-off within the FCA. Next steps The FCA says that the Government has set out its expectation that legislation for the repeal of the MMFR will be introduced by the end of 2026. The FCA therefore plan to make its newMMF rules to this timescale. The FCA’s policy statement will provide more detail on the updated proposals and the modelling on which they are based, and it also plans to publish interim final guidance on UK MMF WLA levels before this. Link to FCA Update here Link to Government Statement here SUSTAINABLE FINANCE/ESG ESMA Consults on Simplifying EU Taxonomy Disclosure Framework On 1 July 2026, the European Securities and Markets Authority (ESMA) launched a consultation on technical advice to the European Commission (Commission) on selected Key Performance Indicators under the Taxonomy Disclosures Delegated Act, focusing on simplification and reduction of reporting burdens for market participants. ESMA says that the consultation builds on recent simplification efforts under the Commission’s Omnibus package and aims to support the broader review of Taxonomy reporting, focusing on simplifying the reporting framework while preserving the relevance of disclosures for investors. ESMA proposes several simplifications to the Taxonomy disclosure framework for non-financial undertakings and asset managers. ESMA says that these include the operational expenditure key performance indicator (OpEX), addressing stakeholder concerns about complexity and reporting burden. ESMA also seeks feedback on a possible pragmatic solution for group-level reporting in mixed groups, based on the parent undertaking’s reporting model. ESMA explains that the Commission requested each European Supervisory Authority (ESA) to provide advice on targeted aspects of the review the Taxonomy disclosure framework. The ESAs are requested to address specific issues within their remit, as well as horizontal topics of common interest.