FEDERATED HERMES, INC.

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Lease Renewal

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On September 25, 2026, Federated Hermes renewed its material operating lease related to its corporate headquarters in Pittsburgh, Pennsylvania. The renewed lease expires in 2041 and has renewal options for additional periods through 2051. The lease includes provisions for leasehold improvement incentives, rent escalation and certain penalties for early termination. The renewal resulted in non-cash increases of $34.6 million and $45.9 million to Right-of-Use Assets, net and Lease Liabilities, respectively, and $11.3 million of leasehold improvement incentive, primarily recorded in Other Long-Term Assets. These values recognized do not include the consideration of any renewal options, as they are not yet reasonably certain to be exercised.

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SEC Releases 2027 Examination Priorities. On October 23, 2026, the SEC Division of Examinations released its Fiscal Year 2027 Examination Priorities, identifying areas expected to receive heightened examination focus. Key priorities relevant to investment advisers and registered funds include fiduciary duties, conflicts of interest, compliance programs, retail investor protection, private funds and private credit strategies, cybersecurity and operational resiliency, protection of customer information, and the use of emerging technologies, including artificial intelligence. While the priorities do not create new legal requirements, they provide insight into the Division's current areas of regulatory focus.

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SEC Proposes Amendments to the Rule 17a-7 Cross Trading Rule. On October 9, 2026, the SEC proposed amendments to 1940 Act Rule 17a-7, the cross-trading rule, under the 1940 Act to: (1) expand the scope of securities eligible for cross trades (which are transactions between a registered investment company and certain affiliates, such as affiliated funds) to include most fixed income securities; (2) modernize the rule’s conditions, including those related to pricing and oversight of cross trades; and (3) require aggregated reporting and recordkeeping for related trading activity. The public comment period ends on December 14, 2026.

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SEC Proposes Custody Rule Amendments for Investment Advisers and Investment Companies. On October 1, 2026, the SEC proposed amendments to the custody requirements applicable to registered investment advisors and registered investment companies. While the proposal addresses the custody of crypto assets, it also would modernize certain existing custody requirements and address longstanding interpretive and operational issues under the Advisers Act and 1940 Act custody frameworks. The proposal would permit, subject to specified conditions, investment advisors and registered investment companies to self-custody certain crypto assets when a qualified custodian is unavailable and would modernize requirements for investment companies using broker-dealers as custodians. The proposal also would address certain non-crypto custody matters applicable to investment advisors, including standing letters of authorization, inadvertent custody, the authorized trading exception, segregation of client cash and bank deposits, and financial statement audit provisions. The proposed amendments include various conditions and safeguards that could require investment advisors and funds to modify their administrative, operational and compliance practices. The public comment period ends on December 7, 2026.

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Interval Fund Modernization and Multiple Share Classes. On September 30, 2026, the SEC proposed amendments to modernize the regulatory framework for interval funds and expand the ability of registered CEFs and BDCs to use multiple share-class structures. Among other changes, the proposal would amend 1940 Act Rule 23c-3 to permit extended deferral of an interval fund’s first repurchase offer, more frequent discretionary repurchases, monthly periodic intervals and, subject to specified conditions, the deduction of deferred sales loads from repurchase proceeds. The proposal also would simplify certain repurchase procedures and replace the rule’s existing liquidity requirements with a principles-based liquidity approach. In addition, the proposal would permit regulated CEFs to use multiple share-class structures and enter into arrangements for the payment of asset-based distribution and service fees; update certain prospectus and reporting requirements; require enhanced expense disclosures for regulated CEFs; and rescind certain existing exemptive orders relating to interval funds and multiple share-class arrangements. The public comment period ends on December 4, 2026.

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Investment Advisor Performance-Based Compensation Modernization. On September 30, 2026, the SEC proposed amendments that would expand the ability of investment advisors to receive performance-based compensation from registered management investment companies and BDCs. Under the proposal, such compensation could not exceed 20% of a regulated fund’s net gains over a specified period, the regulated fund would be required to satisfy specified fund-governance standards, and the fund’s board, including a majority of its independent directors, would be required to determine that the compensation arrangement is in the best interests of the fund and its shareholders and make specified findings regarding the arrangement. The proposal also would amend certain registration and reporting forms to require disclosure of performance-based compensation and revise the definition of “qualified client” to include investors meeting the definition of “accredited investor” under Regulation D, while removing the definition’s separate net-worth and assets-under-management tests. The public comment period ends on December 7, 2026.

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SEC Proposes Proxy Solicitation Modernization Reforms. On September 16, 2026, the SEC proposed amendments intended to modernize and simplify the federal proxy solicitation rules to reflect changes in technology and market practices. Among other changes, the proposal would eliminate the requirement that registrants deliver annual reports to security holders in connection with proxy solicitations, eliminate the delivery deadline for documents incorporated by reference into proxy statements, eliminate the requirement and ability to file notices of certain exempt solicitations, and shorten from 20 business days to five business days the minimum period for conducting broker searches in advance of record dates. The SEC stated that the

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amendments are intended to simplify compliance and update requirements that have not kept pace with current shareholder communication practices. The public comment period will end on November 20, 2026.

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SEC Proposes Rescission of Shareholder Proposal Rule and Amendments to Proxy Voting Rules. On September 16, 2026, the SEC proposed rescinding Exchange Act Rule 14a-8, which governs when public companies must include shareholder proposals in their proxy materials, on the grounds that the rule exceeds the SEC’s statutory authority and that matters concerning shareholder proposals are more appropriately governed by state law and company governing documents. The SEC also proposed amendments to Rule 14a-4(c) that would expand the circumstances in which companies may exercise discretionary voting authority over shareholder proposals presented at a meeting but not included in company proxy materials, while permitting shareholders to prevent the exercise of such authority with respect to their shares. If adopted, the rescission would represent a significant change to the current federal shareholder proposal framework and leave the treatment and inclusion of shareholder proposals principally to applicable state corporate law and company governing documents. The public comment period ends on November 20, 2026.

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SEC Proposes to Rescind Pay-to-Play Rules. On September 3, 2026, the SEC proposed rescinding Rule 206(4)-5 under the Advisers Act, commonly known as the “pay-to-play rule,” and the related recordkeeping requirements. The SEC stated that, after more than 15 years of administering the rule, it believes the rule is overly prescriptive, burdensome, and has produced unintended consequences, while existing fiduciary, antifraud, and compliance requirements would continue to address potential pay-to-play concerns. The public comment period ends on November 9, 2026, and the current rule remains in effect unless and until a final rescission is adopted.

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SEC Proposes Amendments to Transfer Agent Rules. On September 1, 2026, the SEC proposed updates to the rules and forms that apply to registered transfer agents. The proposal would, among other things: (1) amend the registration and annual reporting requirements for transfer agents, including the questions and instructions on Forms TA-1 and TA-2; (2) modernize the rules to reflect how transfer agents carry out their activities in light of technological advancements, including the use of electronic and blockchain-based recordkeeping and uncertificated securities; (3) establish new requirements related to turnaround, risk management, and inactive security holders; and (4) introduce two new rules addressing compliance and restrictive legends for registered transfer agents. The public comment period ends on November 3, 2026.

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SEC and Commodity Futures Trade Commission (CFTC) Further Extend Form PF Compliance Date. On August 31, 2026, the SEC and the CFTC jointly published a final rule further extending the compliance date for the comprehensive February 2024 amendments to Form PF (the confidential reporting form for certain SEC-registered investment advisors to private funds, including those also registered with the CFTC as a commodity pool operator or commodity trading advisor) from October 1, 2026 to July 1, 2027, effective September 3, 2026. This is the fourth extension of the compliance date for the 2024 Form PF amendments and follows the SEC’s and CFTC’s April 20, 2026 proposal to eliminate filing requirements for smaller advisors, raise reporting thresholds for large hedge fund advisors, and streamline or eliminate a range of other Form PF reporting requirements adopted in 2024. The SEC and CFTC stated that the extension is intended to allow Form PF filers to avoid the cost of implementing reporting changes that may be substantially revised or eliminated once the SEC and CFTC act on the pending April 2026 proposal, and to provide the SEC and CFTC additional time to fully consider the comments received on that proposal, which closed on June 23, 2026. Until the new compliance date, Form PF filers, including certain of Federated Hermes’ private fund advisory subsidiaries, may continue to file the version of Form PF in effect prior to the 2024 amendments.

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SEC Proposes Regulation Crypto Assets. On August 18, 2026, the SEC proposed Regulation Crypto Assets, which would create the SEC’s first tailored securities-offering regime for certain investment contracts involving crypto assets (“covered investment contracts”). As proposed, Regulation Crypto Assets would create two new exemptions from 1933 Act registration for offerings of covered investment contracts – a “startup exemption” permitting offerings of up to $5 million over a four-year period, and a “fundraising exemption” permitting offerings of up to $75 million during each 12-month period – each conditioned on principles-based disclosure and, for the larger exemption, financial statements and ongoing reporting. The proposal addresses only the offering side of the crypto regulatory framework, leaving questions of trading and exchange regulation, as well as custody matters subsequently addressed in the SEC’s October 2026 crypto asset custody proposal discussed above, to separate SEC rulemakings. The public comment period ended on October 20, 2026.

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State Actions and Litigation Relating to Proxy Advisory Firms. As previously disclosed, several states have enacted laws regulating proxy advisory firms with respect to certain proxy voting recommendations, and the two largest proxy advisory firms have challenged several of these laws on First Amendment and other grounds. During the 2026 legislative sessions, Tennessee, Oklahoma, Indiana, Kentucky and Kansas enacted proxy advisor disclosure laws, while more than a dozen states considered legislation regulating proxy advisory firms. Tennessee’s H.B. 2476, which became effective July 1, 2026, imposes certain requirements relating to proxy advisory services provided to state and local government investment programs and pension plans. Since June 30, 2026, federal courts have issued preliminary injunctions preventing the Kansas and Indiana proxy advisor disclosure laws from taking effect, following a similar preliminary injunction previously issued with respect to a Texas law; litigation challenging these laws remains pending. Litigation challenging Kentucky’s proxy advisor disclosure law also remains pending. In August 2026, one of the two largest proxy advisory firms filed a federal lawsuit seeking to enjoin Oklahoma’s H.B. 4429 before its November 1, 2026 effective date, asserting, among other things, that the law violates the First Amendment by imposing additional requirements when proxy advice differs from company management’s recommendation. Separately, state Attorneys General have continued to pursue consumer protection and other claims relating to proxy advisory firms, including through actions brought by multiple states against the largest proxy advisory firms.

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a new framework for Fund Reporting for Asset Management Entities (to be known as FRAME) in consultation paper CP 26/26 (which would replace the existing fund reporting requirements with a single framework calibrated to fund type, size and activity), and revised remuneration requirements for solo-regulated firms that would be less prescriptive and more principles-based in consultation paper CP 26/27 (which would replace the existing AIFM, UCITS and Markets in Financial Instruments Directive Prudential Requirements remuneration codes with a single code). Since June 30, 2026, the FCA has extended the deadline for responses to the principal consultation paper on the new AIFM regulatory framework and the discussion chapter on prudential reforms to October 22, 2026 (CP 26/28) and separately extended the deadline for its FRAME reporting proposals (CP 26/26) to October 22, 2026. The original response deadlines for CP 26/28 and CP 26/26 were October 14, 2026 and September 22, 2026, respectively. The consultation period for CP 26/27 closed on September 16, 2026, the deadline for responses on the other discussion chapters in CP 26/28 was September 18, 2026, and HM Treasury’s deadline for technical comments on its draft statutory instrument was October 14, 2026. Final Handbook rules are expected in 2027, with the new regime anticipated to take effect in 2028.

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U.K. Money Market Fund Reform Update. On September 4, 2026, the FCA published Quarterly Consultation CP 26/32, which included reforms intended to facilitate the integration of money market fund reporting within the FRAME proposals discussed above. The FCA stated that the proposed changes are intended to ensure a proportionate approach that allows for effective monitoring of financial stability risks. Under the proposals, U.K. money market funds and non-U.K. money market funds that are marketed in the U.K. would be required to submit essential and enhanced reporting on a quarterly basis. This would replace the current quarterly reporting obligations for U.K. money market funds. In addition, the FCA proposes to replace daily reporting of NAV calculations (currently applicable to U.K. money market funds) with weekly reporting of a limited number of metrics, including data on NAV, liquidity buffers and other metrics such as money market fund maturity metrics and net flows to support timely oversight. The consultation period for CP 26/32 closed on October 12, 2026. In addition, the FCA confirmed that it intends for the new money market fund rules and guidance to take effect on the same timetable as the U.K. Government’s planned repeal of the existing U.K. Money Market Funds Regulation, with the Government expecting to introduce implementing legislation in Parliament by the end of 2026.

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U.K. Liquidity Risk Management Reforms. On August 13, 2026, the FCA published Policy Statement PS 26/17 (following consultation paper CP 25/38, which closed on February 23, 2026), which sets out final rules and guidance on enhancing liquidity risk management requirements for authorized fund managers of U.K. UCITS schemes and non-UCITS retail schemes. Among other changes, the final rules refine requirements for assessing asset liquidity and the anti-dilution tools available to fund managers. In particular, authorized fund managers must have an anti-dilution mechanism available for use, although the FCA did not adopt fixed triggers for when it must be used, and the FCA introduced new guidance on liquidity stress testing. The rules do not apply to U.K. money market funds on the basis that the requirements for U.K. money market funds are being consulted on separately as part of the broader U.K. money market fund reforms discussed above. The final rules and guidance take effect on February 1, 2027, with transitional provisions for certain requirements applying until August 1, 2027. The FCA has stated its intention to consult separately on the wider liquidity tools for authorized funds investing in illiquid assets (such as daily-dealing property funds).

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U.K. Consumer Duty Requirements. The Consumer Duty refers to certain FCA rules that aim to ensure firms providing financial services in the U.K. deliver good outcomes to retail customers. On June 29, 2026, the FCA published consultation paper CP 26/23, which proposes targeted amendments to some of the existing FCA rules and guidance. The proposals include (amongst other matters) changes to clarify how the Consumer Duty should apply to firms across a distribution chain, including when firms may rely on information provided by, or actions taken by, other firms in the chain, and changes to remove non-U.K. customers from the scope of the Consumer Duty (subject to limited exceptions, such as pre-paid funeral plans and certain U.K. pension-related activities). The consultation closed on September 18, 2026. The FCA expects to publish final rules in a policy statement in the first quarter of 2027. In addition, the FCA continues to conduct reviews to assess whether firms are adequately complying with the Consumer Duty. On July 10, 2026 the FCA published its findings and expectations regarding the products and services outcome under the Consumer Duty, and, on July 27, 2026, the FCA published its findings and guidance for firms’ approaches to monitoring consumer outcomes, in each case identifying examples of good and poor practice.

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EU Sustainability Requirements for Asset Managers and Investment Offerings. As previously disclosed, the European Commission published its proposed overhaul of the Sustainable Finance Disclosure Regulation (SFDR 2.0) on November 20, 2025. On May 4, 2026 the European Parliament published a draft report suggesting certain changes to the European Commission proposal. The Council of the EU reached an agreement regarding its negotiating position on June 24, 2026. On September 10, 2026, the European Parliament’s Economic and Monetary Affairs Committee (ECON) announced that it had reached a broad compromise on the proposal for a regulation amending SFDR 2.0, and on September 15, 2026, a revised report was published to show ECON’s amendments against the European Commission’s initial proposals. The positions of the Council

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of the EU and European Parliament broadly align on retaining the European Commission’s proposed transition from the current Article 6, 8 and 9 disclosure framework to three voluntary product categories - sustainable, transition and ESG basics (under proposed new Articles 9, 7 and 8, respectively), each generally requiring that at least 70% of a product’s assets be invested in accordance with the category’s criteria. Areas of disagreement remain regarding the criteria for those categories (in particular the treatment of fossil fuel-related investments in the transition category), and the length of the implementation period. Regarding next steps, trilogue negotiations among the Commission, Council and Parliament are expected to commence shortly, with the co-legislators targeting political agreement by the end of 2026.

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EU Sustainability Requirements for Corporations. The CSRD imposes requirements in the EU on the disclosure of sustainability reports by in-scope companies, as previously disclosed. The detailed reporting requirements are set out in European Sustainability Reporting Standards (ESRS). On July 3, 2026, the European Commission adopted revised ESRS as part of the EU’s simplification of CSRD. The revised ESRS are designed to reduce administrative burdens for EU businesses by (amongst other matters) introducing additional flexibility measures and new exemptions and reducing the mandatory datapoints by more than 60% (and total datapoints by more than 70%). In addition, the European Commission has adopted voluntary sustainability reporting standards for certain small companies not subject to the CSRD (Commission Delegated Regulation (EU) 2026/1560, which entered into force on September 24, 2026). The adopted Delegated Act was transmitted to the European Parliament and the Council for a two-month scrutiny period, which ended without objection, and was published in the Official Journal of the EU on September 21, 2026 as Commission Delegated Regulation (EU) 2026/1563. The Commission Delegated Regulation will enter into force on November 10, 2026, and apply to financial years beginning on or after January 1, 2027, with optional early application for financial year 2026. The voluntary reporting standard is intended to facilitate reporting by companies that are not themselves subject to mandatory reporting under CSRD, but may be in value chains with counterparties that are subject to CSRD and that require sustainability information. The voluntary standard also includes a “value chain cap” intended to limit the information that CSRD-reporting companies may require from smaller value chain counterparties to what the voluntary standard covers. The European Financial Reporting Advisory Group is consulting on a draft digital (XBRL) taxonomy for the revised ESRS until November 11, 2026.

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EU T+1 Settlement. In the EU, preparations for the T+1 settlement cycle transition (scheduled to take effect on October 11, 2027) are ongoing. On July 6, 2026, the European Commission adopted legislation to supplement the EU Central Securities Depositories Regulation (CSDR), notably the delegated regulations which amend: (1) the RTS on settlement discipline and (2) the RTS on central securities depositaries providing information to regulators. In addition, ESMA published a statement on July 20, 2026, which sets out key deadlines and action points that firms should follow when preparing for the EU T+1 settlement cycle. The statement noted that firms should consider applicable requirements in combination with recommendations

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from the EU T+1 industry committee, and it was noted that the first T+1 deadline is scheduled for December 7, 2026, for requirements relating to allocations and confirmations. ESMA also consulted on revised CSDR guidelines on standardized procedures and messaging protocols for allocations and confirmations (the consultation period closed on July 7, 2026), with final guidelines expected in October 2026 and proposed to apply from December 7, 2026.

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U.K. Financial Services and Markets Bill 2026-27 Advances Through Parliament. The Financial Services and Markets Bill 2026-27 is proposed legislation that will make certain changes to the U.K. financial services regulatory framework. The proposals include changes to the U.K. SMCR that will provide greater flexibility to the FCA to simplify the regime applicable to individuals working for financial services businesses (including by removing the Certification Regime from legislation so that it can be recast in regulator rules). The proposals also include abolishing the Payment Systems Regulator and transitioning its remaining functions to the FCA. The Financial Services and Markets Bill 2026-27 would also, among other matters, bring appointed representatives within the scope of the SMCR and the compulsory jurisdiction of the Financial Ombudsman Service and consolidate anti-money laundering supervision of professional firms within the FCA. The Financial Services and Markets Bill 2026-27, which was introduced in the House of Lords on May 19, 2026, received its third reading in the House of Lords on September 15, 2026, and has moved to the House of Commons (where it received its first reading on the same day) for further consideration.

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U.K. Transaction Reporting Reform Update. On August 3, 2026, the FCA published Policy Statement PS 26/15, confirming final rules simplifying the U.K. Markets in Financial Instruments Regulation (MiFIR) transaction reporting regime. Among other changes, the final rules reduce the number of transaction reporting fields from 65 to 52, remove certain instruments (such as foreign exchange derivatives) from the reporting requirements and reduce the default back-reporting period from five to three years. The new regime takes effect on April 3, 2028, although the FCA is applying a flexible supervisory approach to certain requirements beginning August 3, 2026. The FCA estimates that the changes will reduce firms’ reporting costs by more than £100 million annually, and expects to consult on a draft reporting schema, validation rules and guidelines beginning in October 2026. Collective portfolio management investment firms, including U.K. UCITS management companies and AIFMs, generally remain outside the U.K. MiFIR transaction-reporting firm definition, with their reporting requirements being considered separately through the FCA’s FRAME consultation.

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EU Transaction Reporting Simplification and EU EMIR III. On July 2, 2026, ESMA published its Final Report on the Call for Evidence regarding simplification of financial transaction reporting. ESMA concluded that a transition toward a “report once” framework represents the preferred approach to simplifying reporting across MiFIR, EMIR and Securities Financing Transactions Regulation (SFTR), under which transaction data would be reported through a common modular structure and reused across supervisory authorities, which ESMA estimates could deliver annual net cost savings of up to EUR 1 billion but would require targeted legislative amendments to MiFIR, EMIR and SFTR. On July 14, 2026, the European Commission adopted a delegated regulation amending the EMIR clearing threshold RTS (reflecting the revised clearing threshold regime under EMIR III, which is based primarily on uncleared over-the-counter (OTC) derivative positions), which will enter into force on the twentieth day after its publication in the Official Journal of the EU unless the European Parliament or the Council objects, and on July 31, 2026, the European Supervisory Authorities published a joint report on a draft RTS amending EMIR initial margin requirements, which would extend the current exemption from exchanging initial margin for counterparties below the EUR 8 billion aggregate average notional amount threshold to their existing uncleared OTC derivative contracts and which has been submitted to the European Commission for endorsement. ESMA has indicated that it will engage with EU institutions regarding its recommendations as next steps toward implementation.

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U.K. Short Selling Regime. The FCA finalized rules replacing the U.K.’s prior short selling regime based on assimilated EU law with bespoke FCA rules in a new Short Selling Rules sourcebook (published in Policy Statement PS 26/5 on April 16,

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2026). The first phase of the new regime became effective on July 13, 2026, including the new framework for aggregated net short position disclosures (under which the FCA publishes anonymous aggregate net short positions by company based on notifications at a 0.2% threshold, replacing individual public disclosures at 0.5%) and removal of U.K. sovereign debt and sovereign credit default swaps from certain ordinary reporting and short-selling restrictions. A second phase introducing a bulk position-reporting submission facility is scheduled to take effect on November 30, 2026.

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U.K. and EU Anti-Money Laundering (AML) and Financial Crime. HM Treasury’s Money Laundering and Terrorist Financing (Amendment) Regulations 2026 (S.I. 2026/621, made on June 9, 2026) amend the U.K.’s existing AML framework, including customer due diligence requirements for crypto asset businesses and high-risk jurisdictions and a new due diligence regime for pooled accounts. Most provisions of these regulations came into force on June 30, 2026, with certain crypto-related change-in-control provisions scheduled to take effect from October 25, 2027, and new enhanced due diligence requirements for crypto asset correspondent relationships scheduled to take effect from February 1, 2027. In addition, on July 27, 2026, the FCA published its findings on financial crime controls at asset management and alternative firms, highlighting good practices and areas of improvement that firms should be aware of. The FCA emphasized that firms which face higher financial crime risks must establish frameworks and appropriate controls to mitigate these risks. Separately, in the EU, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism has continued its consultation and standard-setting activities, including launching a survey of national Central Contact Points on August 6, 2026 (which closed on September 15, 2026) and consulting on draft guidelines on ongoing monitoring of business relationships. The consultation closed on September 3, 2026, with final guidelines expected in the fourth quarter 2026.

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FCA Requirements on U.K. Equity IPO Information Flows and other Regulatory Developments. On August 5, 2026, the FCA published Policy Statement PS 26/16, finalizing reforms relating to information flows in connection with U.K. equity initial public offerings, including by removing the seven-day waiting period before connected research may be published and the requirement that syndicate banks share the same information with unconnected analysts as with their own research analysts, with effect from publication. Separately, on August 7, 2026, the FCA issued a statement raising concerns regarding risks associated with certain unregulated lenders, custody providers, money brokers and financial leasing companies (Annex 1 firms), in particular the potential for those firms to facilitate financial crime and their reliance on parent company controls. The FCA also sent an information request to approximately 900 Annex 1 firms and is closely scrutinizing applications to register as an Annex 1 firm. The FCA also announced that its authorization window for crypto-asset activities (including qualifying staking) opened on September 30, 2026 and will remain open until February 28, 2027 for firms seeking to rely on transitional provisions, ahead of the U.K.’s broader crypto-asset regulatory regime becoming effective on October 25, 2027.

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European Single Access Point (ESAP) Implementation. On July 10, 2026, ESMA began collecting information from national competent authorities and officially appointed mechanisms (which act as collection bodies that forward information and metadata submitted by reporting entities) as part of the phased implementation of the European Single Access Point, a centralized EU platform intended to provide public access to financial and sustainability-related information filed by companies and financial market participants. The first phase covers information required under the Transparency Directive, the Prospectus Regulation and the Short Selling Regulation. Public accessibility is required to begin by July 2027, with further categories of information phased in from January 2028 and January 2030.

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Nonoperating Income (Expenses), net decreased $15.5 million for the nine-month period ended September 30, 2026, as compared to the same period in 2025. The decrease is primarily due to (1) a decrease of $11.2 million in Gain (Loss) on Securities, net primarily due to the 2025 deconsolidation of two VIEs based on Federated Hermes’ ownership level and (2) a decrease of $4.4 million in Investment Income, net primarily due to lower investment yields related to decreases in the federal funds target rate.

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Other Current Assets at September 30, 2026 decreased $10.3 million from December 31, 2025 primarily due to a decrease in fixed-asset deposits as a result of a long-lived asset being placed into service.

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Goodwill at September 30, 2026 increased $262.2 million from December 31, 2025 primarily due to the FCP acquisition.

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Property and Equipment, net of accumulated depreciation at September 30, 2026 increased $24.3 million from December 31, 2025 primarily due to a long-lived asset being placed into service.

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rulebook applicable across the SEC’s regulated entities, without altering the content or format requirements for existing disclosures. The public comment period for this proposal will end on September 21, 2026.

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SEC Publishes Agency Rule List – 2026 (2026 Reg. Flex Agenda). On July 3, 2026, the SEC released its 2026 Reg. Flex Agenda, which was originally produced on May 14, 2026, and included two pre-rule items, 36 proposed rule items, and no final rule items. In a July 7, 2026 statement regarding the 2026 Reg. Flex Agenda, the SEC Chairperson stressed that the SEC recognizes: (1) the importance of advancing the regulatory framework to reflect today’s operating environment by embracing innovation and technology; (2) the importance of reversing the decline of public companies and revitalizing public markets; and (3) the need to ensure a regulatory framework for private markets that is transparent and accessible while remaining safeguarded. Each item from the SEC’s Division of Investment Management is designated as “deregulatory,” reflecting the SEC Chairperson’s strategy for advancing regulatory frameworks into the modern era, clarifying jurisdictional lines, and transforming SEC rules by returning them to first principles. In addition to the electronic delivery rule proposal discussed above, the 2026 Reg. Flex Agenda includes a number of items relating to registered investment advisors and funds, including, among others: (1) proposed amendments to Advisers Act Rule 206(4)-5 (the Pay to Play Rule); (2) Advisers Act recordkeeping modernization; (3) Advisers Act and 1940 Act custody rule amendments, including proposals for crypto-assets; (4) proposed rules to facilitate retail and registered fund access to private markets; (5) 1940 Act Rule 17a-7 amendments to restore fixed income cross-trading; (6) a proposed exemptive rule to permit funds to use an affiliated securities lending agent that can be compensated via a share of securities lending revenue, subject to certain conditions; and (7) various proxy rule amendments. The 2026 Reg. Flex Agenda no longer includes a proposal for a registered investment advisor and exempt reporting advisor customer identification program.

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SEC Chairperson Announces Comprehensive Review of SEC Enforcement Processes. On July 1, 2026, the SEC Chairperson announced that the SEC will conduct a sweeping review of its enforcement processes, describing the review as only the second such comprehensive evaluation in the SEC’s history. Speaking at the Economic Club of New York, the SEC Chairperson stated that the SEC has “ended the regulation by enforcement approach of the past and recentered [its] enforcement program on the SEC’s core mission by prioritizing cases that provide meaningful investor protection and strengthen market integrity.” The announcement follows a period of significant change at the SEC’s Division of Enforcement, including the appointment of David Woodcock as Enforcement Director on May 4, 2026, who has emphasized a shift away from case volume in favor of prioritizing quality and “back-to-basics” principles. Effective May 21, 2026, the SEC also rescinded a long-standing (since 1972) policy codified in its rules of informal procedure that provided that, when the SEC chose to settle an enforcement action in which a sanction was imposed, the SEC would not settle unless the defendant or respondent also agreed not to publicly deny the allegations in the complaint or administrative order. The SEC Chairperson also previously articulated a four-year strategic blueprint highlighting his intentions to shift regulatory practices and enforcement and improve operational efficiency, with the SEC’s Division of Enforcement focusing on fraud and manipulation. These developments are consistent with the broader deregulatory direction of the current Presidential administration discussed in Federated Hermes’ prior public filings.

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DOL Submits Proposed Rule on Prudence and Loyalty in Plan Investments and Shareholder Rights. On June 30, 2026, the DOL submitted a proposed rule titled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” to the Office of Management and Budget (OMB) for review under the regulatory review process. While the title of the proposed rule does not use the term “ESG,” the rulemaking is expected to address the permissible factors that Employee Retirement Income Security Act (ERISA) plan fiduciaries may consider when making investment decisions or exercising proxy voting and other shareholder rights on behalf of retirement plans. The proposed rule follows the current administration’s broader efforts to revisit the prior administration’s 2022 rule, which facilitated the consideration of governance, environmental and social factors in ERISA-governed investment decisions, and is consistent with recent DOL enforcement signals and guidance - including Technical Release 2026-01 (discussed below) and Employee Benefits Security Administration (EBSA) head Daniel Aronowitz’s May 8, 2026 remarks (discussed below) - emphasizing that ERISA fiduciaries must act solely in the economic interest of plan participants and beneficiaries.

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Supreme Court Rules That Section 47(b) of the Investment Company Act of 1940 Provides No Private Right of Action. On June 11, 2026, the U.S. Supreme Court held 6-3 in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. that 1940 Act Section 47(b) does not create a private right of action for rescission of contracts that violate the 1940 Act. The Court held that Section 47(b)’s phrase “rescission at the instance of any party” does not imply that private parties may sue. The Court concluded that Section 47(b)’s provision is a “mandate directed to … courts” and does not confer a right to individuals. The Court’s decision reaffirms the SEC’s central role in enforcing - or exempting investment companies from - the 1940 Act and reduces the risk that private suits will undermine the SEC’s enforcement priorities. The decision is a setback for activist investors that are now foreclosed from suing for contract rescission under the 1940 Act to prevent exchange-listed closed-end funds and other issuers from adopting safeguards, like control share provisions, designed to protect the interests of long-term

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shareholders. The Court’s decision reduces the exposure of registered investment companies and their advisors to private litigation alleging violations of the 1940 Act, though the full implications will depend on how lower courts apply the decision.

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SEC Division of Examinations (DOE) Issues Risk Alert on Investment Adviser Conflicts of Interest. On June 9, 2026, the SEC’s DOE issued a Risk Alert describing observations related to SEC-registered investment advisors’ economic conflicts of interest. The Risk Alert, which echoes topics in the DOE’s 2026 Examination Priorities, emphasizes the fiduciary obligations of investment advisors to identify, disclose and manage economic conflicts of interest. The Risk Alert addresses five key areas of concern: (1) conflicts of interest associated with investment advisors’ cash management recommendations, including automatic sweeps of uninvested cash into interest-bearing accounts without enabling informed client consent and undisclosed revenue-sharing arrangements; (2) conflicts of interest associated with other revenue opportunities, including the selection of higher-cost mutual fund share classes when lower-cost share classes were available; (3) compensation-related misstatements or omissions in Form ADV brochures, including failures to disclose industry activities, affiliations and revenue-sharing arrangements; (4) advisory fee calculations that were inconsistent with agreements and disclosures, including charging for services not provided and failing to issue refunds upon early termination; and (5) compliance programs that did not fully address fee-related economic conflicts, including the lack of controls to ensure accurate billing. The SECs DOE noted that examination findings often resulted in investment advisors returning money owed to clients due to fee billing and calculation errors and encouraged investment advisors to routinely review and refine their billing policies, procedures, practices and conflict disclosures.

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SEC Proposes to Rescind Climate-Related Disclosure Rules. On May 29, 2026, the SEC proposed to rescind, in their entirety, the climate-related disclosure rules that the SEC had adopted in March 2024 but stayed pending litigation in the U.S. Court of Appeals for the Eighth Circuit. The SEC stated that the 2024 rules exceeded the SEC’s statutory authority and, independently, reflected unsound policy because they were inconsistent with a registrant-specific, materiality-based approach to disclosure. If adopted, the proposed rescission would eliminate the 2024 rules’ specific line-item climate disclosure requirements, (covering climate-related risks, governance, targets and certain greenhouse gas emissions) rather than replace them with an alternative climate-specific framework, reverting public companies to existing principles-based and materiality-based disclosure obligations regarding climate matters. The proposal does not affect separate, non-SEC climate-related disclosure obligations that may apply to public (and private) companies under California law (including SB 253 and SB 261, discussed below) or other state, federal or non-U.S. regimes. The public comment period on the proposed rescission ends on August 3, 2026 and, because a subsequent vote of the SEC’s Commissioners would be required, a final rule is not expected before late 2026 or early 2027.

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SEC Proposes Sweeping Changes to Filer Status Framework and Executive Compensation Disclosure. On May 19, 2026, the SEC proposed a simplified two-classification system for public reporting companies, replacing the existing five filer categories with two: (1) non-accelerated filer (NAF); and (2) large-accelerated filer (LAF). Under this proposal, a public company will be categorized as an NAF unless it satisfies specified public float and time requirements (at least $2 billion and 60 consecutive months of Exchange Act reporting). The public float threshold would need to be satisfied for two consecutive fiscal years before transition to LAF status. Every company conducting an initial public offering, regardless of public float, will benefit from a minimum five-year on-ramp as an NAF. While Federated Hermes would not benefit from the proposal because it would continue to qualify as a LAF, if final rules are adopted as proposed, NAFs’ compensation disclosure obligations will be significantly reduced. NAFs would be required to provide compensation disclosure for only three (rather than five) executive officers, a summary compensation table for up to two (rather than three) fiscal years, an outstanding equity awards table and a director compensation table. The proposal would eliminate for NAFs the Compensation Discussion and Analysis (CD&A), the grants of plan-based awards table, the option exercises and stock vested table, pension benefits and non-qualified deferred compensation tables, pay ratio and pay versus performance disclosures, say-on-pay advisory votes, golden parachute tables, the compensation committee report and compensation committee interlock disclosures. The proposal follows the SEC Chairperson’s January 2026 statement instructing the SEC’s Division of Corporation Finance to undertake a comprehensive review of Regulation S-K, as discussed in Federated Hermes’ First Quarter 2026 Form 10-Q. The public comment period for this proposal ended on July 20, 2026.

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SEC Proposes Sweeping Reforms to the Registered Offering Process, Including for Closed-End Funds (CEFs) and Business Development Companies (BDCs). On May 19, 2026, the SEC proposed a broad package of rule and form amendments under the 1933 Act intended to modernize and expand issuer eligibility for shelf registration, well-known seasoned issuer (WKSI) benefits, and related communications safe harbors. As proposed, the amendments would extend enhanced registration and communication benefits - including short-form Form N-2 eligibility (without regard to the current $75 million public float requirement), automatic shelf registration for certain qualifying issuers, and an expanded Rule 139b research-report safe harbor without a minimum public float requirement - to BDCs and registered closed-end funds, including exchange-listed CEFs, that register securities on Form N-2. The public comment period for this proposal ended on July 27, 2026.

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DOL Signals Targeted Enforcement on ESG/DEI in 401(k)s. The DOL’s EBSA has signaled a more pointed enforcement approach toward retirement plan fiduciaries engaging in governance, environmental and social or diversity, equity and inclusion (DEI)-related investing. Speaking on May 8, 2026, EBSA head Daniel Aronowitz emphasized that the agency will prioritize action against “bad faith” actors who misappropriate plan assets or pursue “disloyal” objectives collateral to participant benefits, explicitly identifying governance, environmental and social and DEI motivations as potential red flags. The remarks build on recent agency guidance pivoting away from broad fiduciary-prudence inquiries and coincide with efforts to revisit prior administration rules that facilitated governance, environmental and social investment options in 401(k)s.

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SEC Proposes Optional Semiannual Reporting for Public Companies. On May 5, 2026, the SEC proposed rule and form amendments that would give public companies the option of filing semiannual reports on a new Form 10-S in lieu of quarterly reports on Form 10-Q. Companies that elect semiannual reporting would file one semiannual report and one annual report each fiscal year instead of three quarterly reports and one annual report. The election would be made annually on the cover page of Form 10-K; companies that do not affirmatively elect would continue to file quarterly. Form 10-S would require the same disclosures as Form 10-Q - including reviewed financial statements, management’s discussion and analysis (MD&A), legal proceedings, risk factor updates and executive officer certifications - but for a six-month period. Companies electing semiannual reporting could continue to issue quarterly earnings releases and hold quarterly earnings calls, though such information would not be subject to independent accountant review. The SEC Chairperson described the proposal as part of his agenda to incentivize companies to go and stay public. On July 6, 2026, Federated Hermes submitted a comment letter recommending that the SEC maintain mandatory quarterly reporting requirements and, instead, streamline Forms 10-K and 10-Q to focus on the most decision-useful, material disclosures - including financial statements and MD&A - by eliminating or reducing prescriptive and immaterial disclosure requirements that do not meaningfully inform investors. The public comment period for this proposal ended on July 6, 2026.

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SEC and Commodity Futures Trade Commission (CFTC) Propose Amendments to Form PF. On April 20, 2026, the SEC and CFTC proposed amendments to Form PF to: (1) eliminate filing requirements for smaller advisors by raising the Form PF filing threshold for all filers from $150 million in private fund AUM to $1 billion in private fund AUM and raising the reporting threshold for large hedge fund advisors from $1.5 billion in hedge fund AUM to $10 billion in hedge fund AUM; (2) eliminate certain reporting requirements for smaller hedge fund advisors; and (3) eliminate, streamline and simplify certain other reporting requirements by, among other proposed changes, eliminating certain “look through” requirements, eliminating certain performance volatility reporting requirements, simplifying certain large hedge fund counterparty exposure reporting, eliminating certain current reporting for large hedge fund advisors, and eliminating quarterly event reporting for all private equity fund advisors. SEC-registered investment advisors that satisfy Form PF’s filing thresholds must file Form PF, which is intended to provide the SEC, CFTC and FSOC with confidential information about the operations and strategies of private funds and their investment advisors. The proposed amendments would repeal certain enhanced reporting requirements promulgated by the SEC in 2024. The public comment period for this proposal ended on June 23, 2026.

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SEC Publishes Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources. On April 16, 2026, the SEC published a concept release soliciting comments in support of a comprehensive review of the Consolidated Audit Trail and other audit trails and related data sources currently used in the regulation of U.S. securities markets, including comments regarding the funding mechanisms for these audit trails and/or related data sources. The Consolidated Audit Trail is a centralized, SEC-mandated system that collects and links detailed data on all orders, quotes and trades across U.S. equity and options markets that purports to enable regulators to efficiently surveil, reconstruct and investigate market activity. The public comment period for this concept release ended on June 22, 2026.

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FINRA Proposes Amendments to Rules 5130 and 5131 to Exempt Collective Trust Funds (CTFs). On April 7, 2026, FINRA filed a proposed rule change to amend FINRA Rule 5130, (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and paragraph (b) (Spinning) of FINRA Rule 5131, (New Issue Allocations and Distributions) to exempt specified CTFs. The proposed amendments would modernize the new issue rules, which generally prohibit FINRA member firms from selling new issues to accounts in which certain “restricted persons” (such as broker-dealers, their employees, finders, and certain others) have a beneficial interest, unless an exemption applies, by extending an exemption to specified CTFs, consistent with the treatment of registered investment companies. As proposed, a CTF would be eligible for the exemption if: (1) it has investments from 1,000 or more plan participants and beneficiaries; and (2) it was not formed or maintained for the specific purpose of permitting restricted persons to invest in new issues. The public comment period for this proposal ended on May 1, 2026.

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Texas Stock Exchange (TXSE) Proposes to Exempt CEFs from Requirement to Hold Annual Shareholder Meetings. On April 6, 2026, the TXSE filed a proposed rule change with the SEC, SR TXSE 2026-005, establishing listing and continued listing standards for CEFs and interval funds on its new exchange. As part of this proposal, the TXSE proposed to eliminate the

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exchange-level requirement that listed CEFs hold annual shareholder meetings. The TXSE proposal follows the Cboe Global Markets Inc. (Cboe) withdrawal on December 12, 2025 of its May 20, 2025 proposal that would have exempted newly-listed CEFs from the requirement to hold annual shareholder meetings and, subject to shareholder approval, also would have exempted previously listed CEFs from the annual shareholder meeting requirement, and the New York Stock Exchange withdrawal on January 5, 2026 of a similar June 6, 2025 proposal. Federated Hermes submitted a comment letter on July 2, 2026, supporting efforts to eliminate annual shareholder meetings for exchange listed CEFs. In Federated Hermes’ view, CEFs are more akin to registered mutual funds, which are not required to have annual meetings, than listed operating companies and the annual shareholder meeting requirement subjects them to attack by activist shareholders who buy discounted shares and then take action to force the CEFs to incur liquidity events, (such as tender offers, reorganizations or open-ending of the CEFs) to realize or arbitrage the difference between the discounted purchase price and the CEFs’ NAV, all to the detriment of the CEFs and their long-term investors.

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DOL Clarifies Fiduciary Status of Proxy Advisory Firms and Reinforces ERISA Standards on Proxy Voting. On April 1, 2026, the DOL published Technical Release 2026-01, providing guidance to plan administrators and other fiduciaries of plans subject to ERISA that rely on proxy advisory services, as well as to state legislators regulating proxy advisory services. The Release addresses two key issues. First, the Release clarifies that proxy advisory firms that either exercise authority or control over shareholder rights attributable to shares that are ERISA plan assets, including the voting of proxies, or provide advice for a fee to ERISA plans about how such plans should exercise proxy voting rights, must meet ERISA’s functional fiduciary requirements. This appears to be the first time the DOL has explicitly stated that the exercise of discretionary authority over the management of proxy voting rights could, standing alone, render a person or entity a fiduciary under ERISA. Prior DOL guidance had long recognized that proxy voting itself is a fiduciary act because proxy rights are plan assets, which implied that a party exercising discretion over those rights could become a functional fiduciary, but the DOL had not previously issued guidance on the fiduciary status of proxy advisory firms. Indeed, in announcing the Release, the DOL described the guidance as “first-of-its-kind guidance” addressing circumstances in which proxy advisory firms may satisfy the test for fiduciary status under ERISA. Second, the Release addresses ERISA preemption, opining that where a state law mandates disclosure to investors by proxy advisory firms only when they make recommendations other than for the purpose of maximizing risk-adjusted return for the advisee, such laws are generally not preempted by ERISA. The DOL stated that “[a] proxy advisory firm covered by such a law is not permitted to come within its ambit when providing services to an ERISA plan because ERISA imposes even stronger consumer protections in the form of fiduciary protections, including a bar on taking into account anything other than the exclusive purpose of providing benefits to participants and beneficiaries by maximizing risk-adjusted returns - since such a law creates an obligation to provide disclosure only when offering nonfinancial advice (that is, advice based on considerations other than maximizing risk-adjusted returns).”

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State Actions Relating to Governance, Environmental and Social Factors and Proxy Advisory Firms.

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State Proxy Advisor Disclosure Laws. Several states have enacted laws modeled on Texas S.B. 2337 (2025) that regulate proxy advisor firms that provide certain recommendations involving governance, environmental and social factors or diversity, equity and inclusion factors. For instance, Indiana (H.B. 1273), Kentucky (S.B. 183), Kansas (S.B. 375), and Oklahoma (H.B. 4429), each enacted proxy advisor disclosure laws similar to Texas S.B. 2337. The two largest proxy advisory firms have filed federal lawsuits challenging the Indiana, Kansas, and Kentucky laws on First Amendment grounds, alleging the disclosure requirements constitute viewpoint discrimination because they impose burdens only when the proxy advisor’s recommendation disagrees with management’s position. On June 24, 2026 and June 26, 2026, two federal courts issued preliminary injunctions preventing the Kansas and Indiana laws, respectively, from going into effect on July 1, 2026. These injunctions follow a similar preliminary injunction issued in Texas in 2025. In July 2026, the Kentucky Attorney General agreed with one of the two largest proxy advisory firms not to enforce its proxy advisor disclosure law against it pending the outcome of an injunction hearing.

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Separately, on May 20, 2026, four Republican state Attorneys General - Texas, Nebraska, Iowa, and West Virginia -filed state court consumer protection lawsuits against one of the two largest proxy advisory firms alleging the firm failed to disclose that its voting recommendations prioritize governance, environmental and social policies over clients’ financial interests. These lawsuits follow a similar suit filed by Florida in November 2025. On May 26, 2026, the state Attorneys General also announced the formation of a 16-state “Multistate Proxy Advisor Coalition” to coordinate enforcement efforts against the proxy advisory firm.

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California Climate Corporate Data Accountability Act Update. On June 24, 2026, the California Air Resources Board (CARB) announced that the first reporting deadline under the Climate Corporate Data Accountability Act (SB 253) would be extended from August 10, 2026 to November 10, 2026, providing covered entities, including certain investment advisors and fund complexes doing business in California (such as Federated Hermes), additional time to prepare Scope 1 and Scope 2 greenhouse gas emissions disclosures. Enforcement of the related Climate-Related Financial Risk Act (SB 261) remains stayed

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pending the United States Court of Appeals for the Ninth Circuit’s ongoing review of a preliminary injunction against that statute.

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State Attorneys General Probe Governance, Environmental and Social Factor Influence in Credit Rating Practices. On April 22, 2026, a coalition of 23 Republican state Attorneys General, co-led by Alaska, Florida, Nebraska, and Texas, sent letters to Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings alleging that the agencies’ downgrades of fossil fuel companies were based on speculative governance, environmental and social predictions that “materially contravened” their stated methodologies and reflect undisclosed conflicts of interest tied to their commitments to United Nations-backed initiatives. The coalition demanded that the agencies explain or reverse the downgrades, withdraw from or disclose their governance, environmental and social commitments, revise methodologies to remove transition-risk factors, and cease offering governance, environmental and social advisory services to entities they also rate. The coalition warned that failure to act could result in enforcement under state unfair and deceptive acts or practices laws, antitrust investigations, or referral to the SEC and Department of Justice. On May 20, 2026, a group of eight Democratic state and local finance officials - including the state treasurers of Connecticut, Massachusetts, Rhode Island, and Colorado - sent a counter-letter urging the agencies to maintain “independent, forward-looking” risk frameworks, arguing that the Republican demands would “narrow risk analysis in ways inconsistent with sound credit practice and the needs of investors and issuers.”

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Oklahoma Fossil Fuel Boycott Law Found Unconstitutional. On April 7, 2026, the Oklahoma Supreme Court ruled 5-3 in Keenan v. Russ that the Oklahoma Energy Discrimination Elimination Act of 2022 is “unconstitutional in its entirety when applied to the Oklahoma Public Employees Retirement System” (OPERS), upholding a 2024 district court injunction. The law required the Oklahoma Treasurer’s Office to maintain a list of financial companies that boycott energy companies and directed state entities to divest from them. The court held that the law violated Article 23, Section 12 of the Oklahoma Constitution by creating an impermissible “dual purpose” for investment decisions that interfered with OPERS’s constitutional duty to act solely in the interest of participants and beneficiaries, noting that companies on the restricted list controlled approximately 64% of the system’s assets. The Chief Justice of the Oklahoma Supreme Court dissented on the merits, arguing the Constitution expressly delegates to the Legislature the authority to prescribe investment conditions. The ruling is part of a broader pattern of judicial resistance to state anti-governance, environmental and social boycott laws, following a February 2026 federal court decision striking down a similar Texas law on First and Fourteenth Amendment grounds, with potential implications for comparable statutes in other states.

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Remuneration: Solo-regulated Firms’ Rules Reform). In these consultation papers, among other things: (1) the FCA proposes replacing the current U.K. AIFMD-derived framework with a new, standalone rulebook - the Alternative Investment Funds (AIFs) sourcebook (ALTS) - and introduces a three-tier system that classifies AIFMs as small (under £750m NAV), medium (£750m–£5bn NAV), or large (over £5bn NAV), with obligations scaling proportionately by size; (2) the FCA sets out a proposed new reporting framework covering the thresholds, frequency, time to report, and scope of the regime, along with its approach to leverage, master and feeder funds, and calculation methodologies that AIFMs would need to follow; and (3) the FCA proposes changes to the remuneration code applicable to solo-regulated asset managers, aiming to simplify and modernize pay-related rules that currently derive largely from the AIFMD, tailor applicable remuneration requirements more proportionately by firm size, and reduce compliance burdens for smaller managers while preserving standards for larger, more systemically significant firms. The public consultation periods for these papers end on October 14, 2026, September 22, 2026, and September 16, 2026, respectively.

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EU Sustainability Requirements for Corporations. On July 3, 2026, the EU’s European Commission adopted the final European Sustainability Reporting Standards (ESRS) as part of the simplification of the Corporate Sustainability Reporting Directive (CSRD). The ESRS are designed to reduce administrative burdens for EU businesses while maintaining high-quality disclosures by: (1) introducing additional flexibility measures and new exemptions; (2) reducing the mandatory datapoints; (3) enhancing the connectivity with international standards and other EU legislation; and (4) introducing a more proportionate approach with principle-based guidance and the possibility to include clearly identified non-material information without obscuring material disclosures. Under the ESRS, asset managers who manage investments subject to a fiduciary duty on behalf of clients are not expected to make certain assessments/disclosures relating to those investments. The European Commission also adopted the voluntary sustainability reporting standards for certain small companies not subject to the CSRD.

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EU Savings and Investments Union (SIU) and the Market Integration and Supervision Package (MISP). On June 12, 2026 the European Parliament published three draft reports on the MISP, which is a key component of the EU’s SIU initiative. The MISP consists of, among other things, a Master Regulation amending fourteen underlying acts governing various supervisory aspects of financial markets and a Master Directive amending three acts related to asset management and trading (including the UCITS Directive, AIFMD, and Markets in Financial Instruments Directive II (MiFID II)). The MISP is intended to integrate the EU’s capital markets by expanding the role and direct supervisory powers of ESMA, increasing supervisory coordination, and simplifying and harmonizing the requirements for market participants.

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EU and U.K. Anti-Money Laundering (AML) Requirements. In the U.K., on June 9, 2026, HM Treasury published the Money Laundering and Terrorist Financing (Amendment) Regulations 2026, which had been laid before U.K. Parliament on March 25, 2026, amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. This statutory instrument implements targeted updates to the U.K.’s AML and counter-terrorist financing framework. The revisions include amendments regarding customer due diligence and enhanced due diligence requirements for crypto asset businesses and unusually complex or large transactions, high-risk jurisdictions, and pooled client accounts. Most provisions came into force on June 30, 2026, though certain crypto-related change-in-control provisions take full effect from October 25, 2027, aligned with the U.K.’s incoming crypto-asset regulatory regime. In the EU, on April 16, 2026, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published two consultation papers concerning: (1) draft guidelines on the business-wide risk assessment under Article 10(4) of the Anti-Money Laundering Regulation (AMLR), for which the consultation period closed on July 15, 2026; and (2) draft regulatory technical standards (RTS) on group-wide requirements and additional measures for branches and subsidiaries in third countries under Articles 16(4) and 17(3) of the AMLR, for which the consultation period closed on June 15, 2026.

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EU RIS and the Retail Investment Directive (RID) and Retail Investment Regulation (RIR). In relation to the RIS, on June 9, 2026, the EU Council published its compromised text of the proposed RID and RIR. These set out the EU Council’s negotiation position with other EU legislators. The RID is designed as an omnibus measure amending, among other directives, the Markets in Financial Instruments Directive, the UCITS Directive, and the AIFMD, with the goal of ensuring that the EU's retail

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investment framework adequately empowers and protects consumers while growing retail investor participation in capital markets. The companion RIR amends the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation to adapt its Key Information Documents to the digital environment and the evolving needs of retail investors. The European Parliament has indicated that it is due to consider the proposed RID during its plenary session on November 11, 2026.

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Global Investment Fund Valuation. On June 1, 2026, IOSCO published a final report (FR/03/2026) setting out its Recommendations on Valuing Collective Investment Schemes (CIS). The final report supersedes the 2013 IOSCO CIS Valuation Principles and 2007 Hedge Fund Valuation Principles. It merges those principles and sets out a unified list of 13 recommendations that are intended to ensure that IOSCO’s CIS valuation standards remain consistent with market practice and account for recent market developments, including the increased retail investment in CISs, and the particular challenges posed by illiquid assets and private assets. The recommendations emphasize, among other things: (1) the importance of governance and oversight of valuation processes; (2) the need to identify and manage conflicts of interest; and (3) the need for the responsible entity to ensure assets are valued at fair value in line with applicable regulations, accounting standards and the fund documentation. National and supra-national regulators of financial services regulators are expected to take into consideration the IOSCO recommendations in their regulation of asset managers’ valuation policies and procedures.

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“EU T+1” Settlement. On May 26, 2026, ESMA published a consultation paper on amending its guidelines regarding standardized procedures and messaging protocols under Article 6(2) of the EU Central Securities Depositories Regulation (CSDR). These amendments are intended to enhance settlement efficiency and support a smooth transition to T+1 settlement, which is scheduled to take effect across the EU on October 11, 2027. Among other things, the proposed amendments would mandate electronic, standardized, machine-readable communication of allocations and confirmations using international messaging standards, removing existing references to non-electronic and non-machine-readable communication methods (such as oral allocations and confirmations) except in cases of temporary technical disruption. The consultation period for this paper closed on July 7, 2026, and ESMA expects to publish its final report, including the updated guidelines, by October 2026.

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U.K. Financial Services and Markets Bill 2026-27. On May 19, 2026, the Financial Services and Markets Bill 2026-27 was introduced to the House of Lords, completing its first reading. The Financial Services and Markets Bill 2026-27 sets out significant changes to the overall U.K. financial services regulatory framework, including, among others: (1) reforming the U.K. Senior Managers and Certification Regime (SMCR), including removing the certification regime from primary legislation; (2) reforming the Financial Ombudsman Service framework to resolve disputes more quickly; (3) creating a new provisional authorization regime; (4) empowering HM Treasury to consolidate the AML supervision for various professional services; (5) empowering HM Treasury to establish broader overseas recognition regimes which may extend beyond the current “equivalence” regimes, an ability HM Treasury does not currently have outside areas of financial services activity already covered by assimilated EU law; and (6) changing various requirements relating to how the FCA and Prudential Regulatory Authority (PRA) should exercise their supervisory functions, including shorter statutory deadlines for certain authorization determinations and the removal of certain consultation obligations on guidance and minor rule changes. The Financial Services and Markets Bill 2026-27 also separately provides for the abolition of the Payment Systems Regulator and the transfer of its functions to the FCA. The Financial Services and Markets Bill 2026-27 received its second reading in the House of Lords on June 8, 2026, and is currently going through the legislative process.

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U.K. and EU Money Market Fund Reform. In the U.K., on May 14, 2026, as an update to a 2023 consultation paper, HM Treasury and the FCA published a joint statement expressing their commitment to reforming the U.K. money market fund regulatory regime (MMFR). The FCA subsequently published a statement on June 8, 2026, stating certain updated proposals that differ from those in the 2023 consultation paper. The updated proposals include: (i) retaining the current minimum daily liquid asset and weekly liquid asset (WLA) requirements (these were initially proposed to be increased in the 2023 consultation); (ii) setting out in guidance a “strong supervisory expectation” that stable NAV money market funds should hold 40% (rather than the required 30%) WLA and variable NAV money market funds hold 20% (rather than the required 15%) WLA; and (iii) requiring all U.K. money market funds to hold sufficient liquidity for adequate resilience. The new U.K. MMFR is expected to be in place by the end of 2026, subject to the legislative process to replace the regulations. In the EU, on May 11,

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2026, the European Commission published a report on the adequacy of the EU MMFR, along with Frequently Asked Questions (FAQs). The report found that, among other things, in stressed market conditions, WLA of 40% for stable NAV money market funds and 20% for variable NAV money market funds is generally sufficient and functions as an “early warning indicator” for EU member state regulators. The report also found that it would not be proportionate to increase the binding regulatory minimum to these levels. As such, the report concludes that these higher WLA levels should be regarded as “market resilience levels” that money market fund managers should monitor to identify situations warranting closer monitoring and increased supervisory engagement.

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CBI Publishes Revised AIF Rulebook. On May 5, 2026, the CBI published a comprehensively updated AIF Rulebook, together with its Feedback Statement on Consultation Paper 162, consolidating the requirements applicable to Irish-authorized AIFs, AIFMs and depositaries. Key changes include, among others: (1) removing the legacy loan origination chapter for qualifying investor AIFs (QIAIFs), aligning with the new EU loan-origination framework under AIFMD II; (2) removing the restriction on QIAIFs providing third-party guarantees, simplifying subscription-line and other fund-financing arrangements for private funds and private equity, real estate and direct lending fund structures; (3) for Retail Investor AIFs, removing the restriction on granting loans (enabling loan-originating Retail Investor AIFs), introducing harmonized liquidity management tools, revising performance-fee verification expectations, and imposing new stress-testing requirements for money market funds; and (4) corresponding updates to the European Long-Term Investment Fund (ELTIF) chapter addressing liquidity, performance fees, share classes and disclosure. The CBI declined to adopt a proposed increase in AIFM financial reporting frequency following industry feedback.

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EU EMIR III and EU Transaction Reporting Simplification. On July 2, 2026, ESMA published its Final Report on the Call for Evidence on a comprehensive approach for the simplification of financial transaction reporting, following a call for evidence launched on June 23, 2025 and a May 4, 2026 interim report. ESMA determined that a transition toward a “report once” framework represents the most effective and future-proof approach to simplifying transaction reporting across Markets in Financial Instruments Regulation, EMIR, and Securities Financing Transactions Regulation (SFTR), under which transaction data would be reported once through a common modular structure and then reused across national competent authorities and supervisory mandates, reducing duplication while preserving the information needed for effective supervision. Consistent with feedback received during the call for evidence process, ESMA confirmed the need to reduce the burden associated with dual-sided reporting under both EMIR and SFTR and the associated reconciliation processes. ESMA has indicated that it will engage with EU institutions on the recommendations set out in the Final Report as next steps toward implementation, which reportedly can take up to five to seven years.

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EU and U.K. Sustainability Requirements for Asset Managers and Investment Offerings. In the EU, amendments to the Sustainable Finance Disclosure Regulation (SFDR), commonly known as “SFDR 2.0”, are still ongoing following the European Commission’s adoption of the proposed SFDR 2.0. On May 4, 2026, the European Parliament published a draft report setting out its amendments to SFDR 2.0. The European Parliament agreed in principle with the proposed labelling regime but proposed changes to certain detailed requirements. Among these changes, the report proposes mandatory Principal Adverse Impact indicator disclosures for products using one of the new sustainability categories, a requirement that products under the “ESG Basics” category exclude at least 20% of the lowest sustainability-rated securities, and a retail investor disclaimer for products that reference sustainability factors without qualifying for one of the new labelled categories. In the U.K., the FCA published a consultation paper on June 5, 2026 proposing to remove the Task Force on Climate-related Financial Disclosures (TCFD) product reporting requirements. The FCA intends to reduce the disclosure burden and complexity, recognizing the overlap with the product disclosure required under the FCA’s Sustainability Disclosure Requirements (SDR). The consultation period for this paper closed on July 13, 2026.

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Ireland Transposes AIFMD II and UCITS VI. On May 1, 2026, two statutory instruments - S.I. No. 181/2026 (the AIFMD II Regulations) and S.I. No. 182/2026 (the UCITS VI Regulations) - came into operation, giving effect in Irish law to Directive (EU) 2024/927 (AIFMD II/UCITS VI). The new regulations embed the Directive’s core reforms at the national level, including harmonized liquidity management tools for both EU UCITS and open-ended AIFs (such as suspensions, redemption gates, swing pricing and side pockets) and a harmonized EU framework for AIFs engaged in loan origination, including QIAIFs and, for the first time, retail investor AIFs. Ireland’s implementation closely tracks the EU directive, exercising limited national discretion, including preservation of Ireland’s existing depositary model.

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information during a specified period, it is required to be retained under the federal securities laws and an issuer would generally have to send a paper copy, free of charge, within three business days of the request. To facilitate this new e-delivery approach, the SEC also proposed to: (1) rescind 1940 Act Rule 30e-3, (which provides alternative means for registered investment companies to satisfy shareholder report transmission requirements); and (2) amend current rules addressing the dissemination of proxy materials and tender offer materials. Federated Hermes submitted a comment letter supporting the modernization of the delivery-method rulebook applicable across the SEC’s regulated entities and encouraging the SEC to consider certain clarifications to the proposal. The public comment period ended on September 21, 2026.

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response to regulatory developments and regulatory requirements, including the internal and external resources dedicated to such efforts, have had, and can continue to have, on a cumulative basis, a material impact on Federated Hermes’ expenses and, in turn, Financial Condition.

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interests in subsidiaries. These were partially offset by $71.2 million of contributions from noncontrolling interests in subsidiaries.

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As of December 31, 2025, due to a decrease in projected cash flows, primarily driven by a decrease in projected revenue, management concluded that an indicator of potential impairment existed for the indefinite-lived intangible asset related to the

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Nonoperating Income (Expenses). Nonoperating Income (Expenses), net decreased $2.6 million for the three-month period ended June 30, 2026, as compared to the same period in 2025. The decrease is primarily due to a $2.0 million decrease in Investment Income, net.

Previous report — wording carried elsewhere

Borrowings. On March 17, 2022, pursuant to the Note Purchase Agreement, Federated Hermes issued unsecured senior Notes in the aggregate amount of $350 million at a fixed interest rate of 3.29% per annum, payable semiannually in arrears in March and September in each year of the agreement. The entire principal amount of the $350 million Notes will become due March 17, 2032. Citigroup Global Markets Inc. and PNC Capital Markets LLC acted as lead placement agents in relation to the

Previous report — wording carried elsewhere

of Financial Condition and Results of Operations (unaudited)

Previous report — wording carried elsewhere

of Financial Condition and Results of Operations (unaudited)

Previous report — wording carried elsewhere

of Financial Condition and Results of Operations (unaudited)