Global Trustee and Fiduciary Services Bite-Sized Issue 8 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2023 8 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 The requirements set out in the RTS envisage a phased-in implementation of the supervisory requirements to ensure a smooth model validation process. This phased-in approach will allow more time for smaller counterparties to comply with the new requirements. In addition, to minimise potential market disruption, competent authorities and counterparties will benefit from a transitional phase that will facilitate the validation of models, which are already in place at the moment. Jointly with the RTS, the EBA published an Opinion on IMMV, calling on co-legislators and the European Commission to consider the establishment of a centralised validation function at the EBA to ease the coordination issues linked to the validation of IMmodels that have industry-wide application. In addition, the Opinion suggests that the scope of entities subject to the RTS should be reconsidered so as to apply only to the most significant counterparties. These draft RTS have been developed in cooperation with European Securities and Markets Authority and European Insurance and Occupational Pensions Authority. Link to the Final Draft RTS on Initial Margin Validation here Link to the Opinion on Regulatory Scope and Validation of Initial Margin Models here FINTECH Report on “The Digitalisation of Financial Services in Hong Kong: Recent Experience, Regulatory Developments and Considerations for Sustainable Innovation and Growth” On 12 July 2023 the Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance, released a new Applied Research report, titled “The Digitalisation of Financial Services in Hong Kong: Recent Experience, Regulatory Developments and Considerations for Sustainable Innovation and Growth”. The report reviews market and policy factors that have accelerated the digitalisation of financial services in Hong Kong in the past few years. It then discusses the implications of digitalisation for financial inclusion and environmental sustainability, as well as the associated risks for consumers, featuring insights from local financial institutions based on interviews commissioned by the HKIMR. The report also highlights the measures implemented both in Hong Kong and internationally to mitigate the potential risks and enhance consumer protection, and it concludes with considerations for sustainable innovation and growth in the digitalisation journey for financial services in Hong Kong. Link to the Report here FSB FSB Chair Outlines Work on Recent Banking Turmoil and to Finalise Crypto-asset Recommendations On 12 July 2023 the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of their meeting on 17-18 July 2023. The letter covers the FSB’s work following the recent banking-sector turmoil. The FSB has reprioritised its work programme, including with an additional focus on the interactions between interest rate and liquidity risk across the financial system, the role of technology and social media in deposit runs and lessons for the effective implementation of the international resolution framework. The letter goes on to detail the FSB’s progress on: • Developing a global regulatory framework to address the vulnerabilities in crypto-asset markets and activities; • Its work to enhance the resilience of the non‑bank financial intermediation (NBFI) sector;