FCA Unveils New Rules to Cut Reporting Costs by £100m Annually

The Financial Conduct Authority (FCA) has announced measures that will streamline transaction reporting, aiming to reduce firms' costs by more than £100 million each year starting April 3, 2028. Simplified requirements intend to maintain high-quality data collection without unnecessary complexities, supporting both market oversight and competitiveness.

Key Changes to Reporting Requirements

The FCA's new rules introduce several pivotal changes. The number of transaction reporting fields will decrease from 65 to 52, simplifying data submission. Additionally, foreign exchange derivatives will be excluded from reporting, benefiting over 400 firms. The elimination of requirements for reporting approximately 7 million financial instruments traded solely on EU venues, including equities and bonds, is expected to further reduce costs by £32 million annually.

Error Correction and Oversight

The FCA is also adjusting the correction period for historical errors from five years to three. This change will result in a reduction of resubmitted reports by a third, easing the administrative load on firms. Despite these changes, Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasizes the continued need for accurate data: "Transaction reports are the backbone of our market oversight work. By taking a smarter, streamlined approach to reporting, we're giving firms meaningful cost relief while ensuring we continue to receive the accurate, high-quality data that keeps UK markets clean and competitive."

Implementation Timeline and Flexibility

The rules take effect on April 3, 2028, offering firms ample time to prepare and update their systems. However, the FCA will adopt a flexible supervisory approach for firms ready to implement earlier changes. This flexibility underscores the regulator's commitment to striking a balance between regulatory oversight and enabling business efficiencies.

Collaborative Efforts for Harmonization

In collaboration with the Bank of England and the Treasury, the FCA is working to harmonize transaction and post-trade reporting regulations. The establishment of the Transaction and Post-trade Reporting Industry Harmonisation Taskforce marks a significant effort toward this goal. The taskforce, which held its first meeting in July 2026, aims to forge a long-term strategic approach in this domain.

Financial Impact on the Industry

The current annual cost of MiFID transaction reporting amounts to £493 million. The FCA's proposals are expected to reduce this figure to approximately £385 million, yielding an estimated annual saving of £108 million for the industry. These changes not only relieve financial pressure but also position the UK more competitively on a global scale.

For more detailed information, refer to the FCA's Consultation Paper CP25/32 and Policy Statement PS26/15 on improving the UK's transaction reporting regime.

Preparing for the Future

Firms are encouraged to begin their preparation processes ahead of the 2028 implementation date. By understanding the revised requirements and leveraging the FCA's flexible approach, businesses can optimize their operations, aligning with the new reporting landscape to enhance efficiency and compliance.