Global Trustee and Fiduciary Services Bite Sized Issue 7 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 7 | 2023 7 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 ISSB Issues Inaugural Global Sustainability Disclosure Standards On 26 June 2023 the International Sustainability Standards Board (ISSB) issued its inaugural standards —IFRS S1 and IFRS S2 (the Standards). The ISSB states that the Standards will help to improve trust and confidence in company disclosures about sustainability to inform investment decisions. The ISSB also explains that for the first time, the Standards create a common language for disclosing the effect of climate-related risks and opportunities on a company’s prospects. The ISSB states that IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. The ISSB says that the Standards fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures. The ISSB says that now the IFRS S1 and IFRS S2 are issued, it will work with jurisdictions and companies to support adoption. The first steps will be creating a Transition Implementation Group to support companies that apply the Standards and launching capacity-building initiatives to support effective implementation. Link to IFRS S1 here Link to IFRS S2 here Link to Financial Statement Board Statement Welcoming Publication of ISSB Disclosures Standards here Link to IFRS Foundation Monitoring Board Statement Welcoming Finalization of the First Two Sets of Standards by the ISSB here Link to UK Financial Conduct Authority Statement Welcoming Launch of ISSB Standards here The AFM Publishes Consultation on Guidelines on Sustainability Claims The Dutch Authority for the Financial Markets (AFM) published for consultation, on 12 June 2023, Guidelines on sustainability claims relevant to financial institutions and pension providers. The guidance aims to clarify to market participants how to make correct, clear and non-misleading sustainability claims, and based on responses to the consultation, the Guidelines will be adjusted where necessary and a final version published on the AFM’s website. The consultation will run until 24 July 2023. Link to Proposed Guidelines for Consultation here ESMA Launches Call for Evidence on Sustainability in Suitability and Product Governance On 16 June 2023 the European Securities and Markets Authority (ESMA) launched a Call for Evidence (CfE) on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II. ESMA state that the objective of the CfE is to gather industry feedback that will help it better understand the evolution of the market and how firms are applying the newMiFID II rules on integrating sustainability preferences into suitability assessments and product governance arrangements to consider whether to complement these new rules with Q&As and/or make any necessary changes during the next review of the guidelines. In particular, the CfE aims to help ESMA: • Develop a better understanding of howMiFID II requirements are being implemented and applied by firms across the Union and the challenges firms face in their application; • Gain a better understanding of investor experience and reactions to the inclusion of sustainability factors in relation to the services of investment advice and portfolio management; and • Collect information, views and data on main trends on aspects related to the provision of sustainable investment products and services to retail clients. The deadline for responses is 15 September 2023. Link to Call for Evidence here