Global Trustee and Fiduciary Services Bite Sized Issue 7 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2023 6 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 Market data from all trading platforms will be included in consolidated tapes, which will aim to publish the information as close as possible to real time. As a result, investors will have access to up-to-date transaction information for the whole of the EU. Once the text of the provisional political agreement has been consolidated, it will need to be formally adopted by both the EU Council and the Parliament, before it can be published in the EU’s Official Journal and enter into force. Link to EU Council Press Release here NBFI BoE Launches First System-wide Exploratory Scenario Exercise On 19 June 2023 the Bank of England (BoE) launched its first system-wide exploratory scenario (SWES) exercise. The exercise aims to improve understanding of the behaviours of banks and non-bank financial institutions (NBFIs) in stressed financial market conditions. It will explore how those behaviours might interact to amplify shocks in UK financial markets that are core to UK financial stability. Participating firms will include large banks, insurers, central counterparties and a variety of funds (pension funds, hedge funds, and funds managed by asset managers). The exercise aims to: • Enhance understanding of the risks to and fromNBFIs, and the behaviour of NBFIs and banks in stress, including what drives that behaviour; and • Investigate how these behaviours and market dynamics can amplify shocks in markets and potentially bring about risks to UK financial stability. The BoE will publish the full list of participants and details of the stress scenario later in 2023. A final report will be published in 2024, which will include the system-wide findings, implications for the SWES markets of focus, and any conclusions for the BoE’s assessment of risks to UK financial stability. Link to BoE Exercise Announcement Document here SUSTAINABLE FINANCE/ESG MAS Proposes Code of Conduct for Providers of ESG Ratings and ESG Data Products On 28 June 2023 the Monetary Authority of Singapore (MAS) launched a public consultation on an industry code of conduct for providers of ESG ratings and data products. This is part of a proposed approach centred on an industry code of conduct that was co-created by MAS with ESG rating and data product providers (including key global players) through a soft consultation exercise. The MAS state that the proposed code of conduct aims to improve market confidence in the use of ESG ratings and data products by setting minimum standards on governance, management of conflicts of interest and transparency. The MAS further states that it will implement the voluntary industry code of conduct andmonitor global developments and, where there is greater regulatory convergence, the MAS will conduct a more detailed public consultation to develop a local regulatory framework. Interested parties are invited to submit their comments by 22 August 2023. Link to Consultation here