Global Trustee and Fiduciary Services Bite-Sized Issue 8 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2023 5 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 suitability of any person who will direct the target undertaking, (c) the financial soundness of the proposed acquirer, (d) the sound and prudent management of the target undertaking following the acquisition and (e) suspicion that money laundering of terrorist financing is committed or attempted or that it may increase following the acquisition. The consultation period ends on 12 October 2023. The EBA will hold a virtual public hearing on the consultation paper on 21 September 2023. Link to Consultation here EBA Encourages Timely Preparatory Steps Towards the Application of MiCAR to Asset- referenced and Electronic Money Tokens On 12 July 2023 the EBA published a statement for the attention of financial institutions and other undertakings who intend to commence, or have commenced, ART or electronic money token (EMT) activities prior to 30 June 2024 (the application date for the relevant provisions of MiCAR) and for competent authorities. The statement is intended to encourage timely preparatory actions to MiCAR application, with the objectives to reduce the risks of potentially disruptive and sharp business model adjustments at a later stage, to foster supervisory convergence, and to facilitate the protection of consumers. The statement includes ‘guiding principles’ to which financial institutions (and other undertakings) carrying out ART/EMT activities are encouraged to have regard until the application date. These guiding principles encompass: i. Disclosures to, and fair treatment of, potential acquirers and holders of ARTs and EMTs; ii. The business model; iii. Sound governance, including effective risk management; iv. Reserve, recovery and redemption arrangements; and v. Communications with the relevant competent authority. The statement is accompanied by a template that financial institutions (and other undertakings) intending to carry out, or carrying out, ART/EMT activities, are encouraged to communicate, on a timely basis, to the relevant competent authority. Consumers are reminded that, prior to 30 June 2024, ARTs and EMTs do not constitute regulated instruments under MiCAR and so consumers do not yet benefit from the rights and protections set out in MiCAR. Consumers are also reminded of the joint-ESA warning, including the list of ‘things you should know and check’ before acquiring crypto-assets available here. Link to Statement here Link to Template here ESMA Seeks First Input on Detailed Rules for Crypto Markets On 12 July 2023 ESMA published its first consultation package under the MiCAR. In this first of three consultation packages, ESMA is seeking input on proposed rules for crypto- asset service providers (CASPs), in particular, related to their authorisation, identification and management of conflicts of interests and also how CASPs should address complaints. In addition, ESMA aims to gather more insight on respondents’ current and planned activities, as a fact-finding exercise to better understand the EU crypto-asset markets and their future development. These questions relate to elements such as the expected turnover of the respondents, the number of white papers they plan to publish and the use of on-chain vs off- chain trading. The input to this part of the consultation will remain confidential and will serve to calibrate certain proposals to be inserted in the second and third consultation package. The consultation period ends on 20 September 2023. ESMA will consider the feedback received to this consultation and expect to publish a final