Global Trustee and Fiduciary Services Bite-Sized Issue 8 2026

15 AIFMD CRYPTOASSETS EMIR FINTECH IOSCO MIFID II/MIFIR OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2026 Quick Links ESMA Calls on Firms to Finalise Preparations Ahead of T+1 Settlement Deadlines On 20 July 2026, the European Securities and Markets Authority (ESMA) published a statement highlighting key deadlines and action points to be ready for the transition to a T+1 settlement cycle in EU financial markets. With the move scheduled for 11 October 2027, ESMA underlines that 2026 is a critical year for market participants to finalise their preparations. The statement outlines key milestones, including the first regulatory deadline on 7 December 2026 for allocations and confirmations processes. Market participants are encouraged to prepare and test their own readiness, and to check the readiness of their entire ecosystem, across the entire trading and settlement chain. Link to the Statement here ASIA PACIFIC SFC Enhances Regulatory Framework for Daily Leveraged and Inverse Products to Ensure Orderly Market Trading On 24 July 2026, the Securities and Futures Commission (SFC) issued a revised circular to enhance its regulatory framework for authorised leveraged and inverse products (L&I Products), providing product providers greater flexibility in managing their products while drawing investors’ attention to their nature as daily trading instruments. The SFC says Hong Kong’s L&I Products market has expanded significantly since the beginning of 2026, driven by the surge in Single Stock L&I Products. As a result, these products’ operations have become increasingly dependent on the broader ecosystem surrounding the underlying stocks to maintain the targeted leverage exposure. As a result, the SFC says it will require L&I Products with highly dynamic capacity dependent on evolving market conditions to adopt a flexible leverage structure. Under this structure, the leverage factor may vary daily within the existing caps of 2x for leveraged products and -2x for inverse products. Product providers will therefore have more room to manage L&I Products during high- volume trading sessions by lowering the targeted leverage factor when necessary. The potential daily variation in these products’ leverage factors – to be disclosed after market close every day – will also raise investors’ awareness of L&I Products’ daily product nature, which are not intended for holding beyond one day. The SFC says this enhancement is a balanced approach that supports L&I Products’ orderly operation under varying market conditions while maintaining their effectiveness as daily trading and hedging instruments for investors by providing daily clarity on the targeted exposure and mitigating large tracking difference risk amid a dynamic market environment. To enhance transparency, the SFC also requires L&I Products providers to publish the targeted leverage factor for the next trading day on their product websites and Hong Kong Exchanges and Clearing Limited website after market close every day. Their product names should also indicate both the flexible leverage feature and the maximum leverage factor. The SFC says that investors are reminded that these products are not designed for holding beyond one day, as their performance may significantly deviate from the underlying assets. To facilitate understanding of these complex products, the SFC has issued an infographic themed “D-A-I-L-Y” to provide a checklist for investors and urge them to conduct daily assessment when trading L&I Products. Link to Revised Circular here SFC and Securities Commission Malaysia Sign MoU to Expand Mutual Recognition of Funds and Facilitate Simplified Dual IPO Listing Framework On 23 July 2026, the SFC and the Securities Commission Malaysia (SC) entered into a Memorandum of Understanding (MoU) to strengthen cooperation and information exchange to facilitate an expanded mutual recognition of funds (MRF) scheme and a simplified dual Initial Public Offering (IPO) listing framework, marking a newmilestone in the connectivity between Hong Kong and Malaysian capital markets.