Global Trustee and Fiduciary Services Bite Sized Issue 7 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2023 5 QUICK LINKS CRYPTOASSETS CYBER DORA ELIGIBLE ASSETS DIRECTIVE FINANCIAL STABILITY BOARD FINTECH LTAF MICA MIFID II/MIFIR NBFI SUSTAINABLE FINANCE/ ESG ASIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM The FCA says that LTAFs are a higher risk product that can provide greater diversification to investment portfolios, in exchange for potentially higher returns but less immediate liquidity and longer redemption periods. To help protect consumers, LTAFs will be subject to additional protections under the FCA’s high risk investment framework, including risk warnings and customer assessments. The FCA is also seeking views on whether the protections of the Financial Services Compensation Scheme should be available for this product, or whether a different approach should be in place, before LTAFs get to the retail market. The deadline for responses is 10 August 2023. Link to Policy Statement here MICA ESMA Sets Out Timetable for MiCA Implementing Measures On 15 June 2023 the European Securities and Markets Authority (ESMA) set out its timetable for consulting on the implementing measures under the Markets in Cryptoassets Regulation (MiCA). During the implementation phase of MiCA, ESMA (in close cooperation with EBA, EIOPA, and the ECB) is consulting with the public on a range of technical standards that will be published sequentially in three packages. The aim is to deliver draft level 2 and 3 measures that incorporate feedback from the public as soon as possible. The date for the entry into application of the measures is subject to their adoption by the European Commission and approval by the European Parliament and the Council of the EU. ESMA states that the first package will be launched in July 2023. ESMA plans to publish the second package by October 2023. The third and final consultation package, which includes the MiCA mandates with an 18-month deadline, will be published (tentatively) in Q1 2024. The first consultation package includes technical standards (that is RTS and ITS) for the following mandates: • Content of notification from selected entities to NCAs; • Forms and templates for notification from entities to NCAs; • Content of the application for authorisation for CASPs; • Forms and templates for CASP authorisation application; • Complaint handling procedure; • Management and prevention, disclosure of conflict of interest; and • Intended acquisition information requirements. Link to MiCA Implementing Measures Webpage here Link to MiCA Implementation Timeline here MIFID II/MIFIR EU Council and Parliament Agree on Proposal to Strengthen Market Data Transparency On 29 June 2023 the EU Council reached a provisional agreement with the European Parliament on changes to the EU’s trading rules. The revision agreed will establish EU-level ‘consolidated tapes’ or centralised data feeds for different kinds of assets, bringing together market data provided by platforms on which financial instruments are traded in the EU. This shouldmake it easier for both professional and retail investors to access information such as the price of instruments and the volume and time of transactions.