Global Trustee and Fiduciary Services Bite-Sized Issue 8 2026

18 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 says the report also encourages NCAs with significant outbound cross-border activities to ensure that their supervisory and enforcement approaches match the scale and complexity of these activities, and keeps pace with evolving risks. ESMA encourages all NCAs, and in particular those where outgoing cross-border activities is significantly growing, to reflect on the report’s conclusions. Link to Follow-up Report here ESMA Launches Common Supervisory Action with NCAs on the Risk Management Function On 3 July 2026, ESMA launched a Common Supervisory Action (CSA) on risk management function of UCITS management companies and Alternative Investment Fund Managers (AIFMs) across the European Union. The CSA will be conducted throughout 2026 and 2027, in close collaboration with NCAs. ESMA says the objective of the CSA is to assess howmarket participants comply with key risk- related provisions under the UCITS and AIFMD frameworks. The focus will be on the effectiveness, independence and expertise of the risk management function. As part of this exercise, NCAs will focus on three key areas: • Governance and organisation of the risk management function; • Identification, measurement and monitoring of risks; and • Reporting to senior management and governing bodies. ESMA says the CSA will be conducted using a common assessment framework it developed. This framework sets out the scope, methodology, supervisory expectations, and supervisory expectations and timeline for the exercise, ensuring a comprehensive and convergent approach across the EU. Throughout the exercise, NCAs will share knowledge and supervisory experiences through ESMA, further supporting supervisory convergence in the oversight of risk management function. NCA exercise will take place: Throughout 2026 – 2027 ESMA publish a final report with the results of the exercise: In 2028 Link to Press Release here NORTH AMERICA SEC Provides Exemptive Relief Related to ETF Creation Baskets in Passive Exceedance of Concentration Policy On 27 July 2026, the staff (the Staff) of the U.S. Securities and Exchange Commission (SEC) Division of Investment Management issued a no-action letter in response to a request by the Investment Company Institute regarding creation baskets for ETFs that are experiencing a passive exceedance of their concentration policy. The letter confirms that the Staff will not recommend enforcement action against an ETF that accepts certain creation baskets during a period in which the ETF is experiencing a passive exceedance of its disclosed industry concentration policy. The Letter resolves long-standing uncertainty about how ETFs should treat in-kind creation basket activity when experiencing a passive exceedance of a disclosed concentration policy due to market movement. In addition, the Staff confirmed that the Letter applies equally to actively managed and index-based ETFs Link to No-Action Letter here