Global Trustee and Fiduciary Services Bite-Sized Issue 8 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2023 14 QUICK LINKS ANTI-MONEY LAUNDERING CBDC COSTS & CHARGES CRYPTOASSETS CULTURE & CONDUCT CYBERSECURITY EMIR FINTECH FSB FUND LIQUIDITY MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA IRELAND NORTH AMERICA UNITED KINGDOM ESMA and NCAs to Assess Disclosures and Sustainability Risks in the Investment Fund Sector On 6 July 2023, ESMA launched a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks. The goal is to assess the compliance of supervised asset managers with the relevant provisions in the Sustainable Finance Disclosure Regulation, the Taxonomy Regulation and relevant implementing measures, including the relevant provision in the UCITS and AIFMD implementing acts on the integration of sustainability risks. Using a common methodology developed by ESMA, NCAs will share knowledge and experiences on how to foster convergence in how they supervise sustainability related disclosure. Among the described main objectives are: • To assess whether market participants adhere to applicable rules and standards in practice; • To gather further information on greenwashing risks in the investment management sector; and • To identify further relevant supervisory and regulatory intervention to address the issue. In 2023 and until Q3 2024, NCAs will undertake their supervisory activities and share knowledge and experiences through ESMA to foster convergence in how they supervise sustainability-related disclosures and sustainability risk integration in asset managers. Link to Press Release here MAS Publishes Sustainability Report 2022/2023 The Monetary Authority of Singapore (MAS) published its Sustainability Report 2022/2023, on 5 July 2023. The report sets out the MAS strategy on climate resilience and environmental sustainability to strengthen the resilience of the financial sector to environmental risks, develop a vibrant sustainable finance ecosystem, build a climate-resilient investment portfolio, and incorporate sustainable practices within the organisation. Link to Sustainability Report 2022/2023 and Related Documents here Link to Speech here International Regulatory Strategy Group Consultation on Draft Code of Conduct for Environmental, Social and Governance (ESG) Ratings and ESG Data Product Providers On 5 July 2023, the ESG Data and Ratings Code of Conduct Working Group (DRWG), supported by the International Regulatory Strategy Group (IRSG) and the International Capital Market Association (ICMA), launched for consultation a draft voluntary Code of Conduct for ESG data and ratings providers. The consultation period runs from 5 July 2023 to 5 October 2023. Separately, the UK Financial Conduct Authority (FCA) issued a statement welcoming the consultation. Link to Consultation Press Release here Link to FCA Press Release here AUSTRALIA APRA and ASIC Commence Early Consultation on FAR On 20 July 2023 the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) released key materials for consultation, to support the implementation of the Financial Accountability Regime (FAR) by the financial services industry. The FAR will impose a strengthened responsibility and accountability framework for APRA- regulated entities in the banking, insurance and superannuation industries and their directors and most senior and influential executives. In doing so, it is designed to improve the risk and governance cultures of those financial institutions.