FCA Regulation Will Reduce Reporting Costs by £100 Million

The Financial Conduct Authority (FCA) of the United Kingdom has implemented new rules that will make transaction reporting requirements more efficient and proportionate. This is crucial for detecting market abuses and effectively supervising firms. The rules are designed to ensure that the FCA continues to receive accurate and high-quality data by eliminating unnecessary reports and reducing regulatory burdens. These changes are expected to save firms over £100 million annually.

'Transaction reports are the cornerstone of our market supervision work; they help us detect financial crime, monitor market stability, and effectively oversee firms,' said Therese Chambers, Executive Director of Compliance and Market Supervision at the FCA.

Key Changes to Reporting Requirements

The new regulations will reduce transaction reporting fields from 65 to 52. Foreign exchange derivatives will be removed from reporting requirements, cutting costs for over 400 firms. Reporting requirements for 7 million financial instruments, such as stocks, bonds, and certain derivatives traded only in the EU will also be eliminated, saving firms approximately £32 million annually.

Timeline and Supervision Approach

The changes will take effect on April 3, 2028, providing firms ample time to prepare and update their reporting systems. However, a flexible supervisory approach will be allowed for firms that can implement certain changes earlier.

Alignment with Other Regulatory Entities

The FCA will work alongside the Bank of England and the Treasury to harmonize transaction and post-trade reporting regulations. The Transaction Reporting and Post-Trade Harmonization Industry Committee, established in cooperation with the Bank of England, held its inaugural meeting in July 2026. This effort aims to establish a long-term approach to improve the United Kingdom's transaction reporting regime.

For more details, please refer to consultation paper CP25/32 and policy statement PS26/15.