The FCA Reduces Transaction Reporting Costs by £100 Million

The Financial Conduct Authority (FCA) of the United Kingdom will implement new rules starting from April 3, 2028, to simplify transaction reporting requirements. These measures aim to reduce costs and improve competitiveness without compromising the quality of data, which is essential for detecting market abuse and supervising companies effectively.

New Rules for Transaction Reporting

The new rules involve a reduction in the number of required fields in transaction reports, decreasing from 65 to 52. Additionally, foreign exchange derivatives are removed from reporting requirements, which will affect more than 400 companies. The obligation to report on 7 million financial instruments, such as shares, bonds, and certain derivatives traded exclusively on EU markets, will also be eliminated, saving companies approximately £32 million per year.

Financial Impact

The FCA estimates that these measures will reduce annual sector costs from £493 million to around £385 million, resulting in a net savings of £108 million annually. These changes are designed to be proportionate and efficient, eliminating duplication and low-value reporting.

Timeline and Approach

The changes will take effect from April 3, 2028, providing sufficient time for companies to adapt and test their updated reporting systems. However, the FCA will take a flexible supervisory approach, allowing companies that are ready to implement certain changes early.

Collaboration and Future Improvements

The FCA will continue to collaborate with the Bank of England and the Treasury to harmonize transaction and post-market reporting regulations. To advance its long-term approach, the FCA has organized the Transaction and Post-Market Reporting Harmonization Working Group together with the Bank of England, holding its inaugural meeting in July 2026.

The simplification in the error correction period for historical reports, reducing the time from 5 to 3 years, will decrease the need to resubmit transaction reports by one third.

Official Statements

Therese Chambers, Executive Director for Markets and Enforcement, commented:

"Transaction reporting is the backbone of our market supervision work. By adopting a smarter and simpler approach to reporting, we are providing companies with significant cost relief, ensuring that we continue to receive accurate and high-quality data that keeps UK markets clean and competitive."

Further details can be found in the Consultation Document CP25/32.

Conclusions

In summary, the new FCA measures not only alleviate the regulatory burden on companies but also support the growth and competitiveness of the UK financial market while maintaining high integrity standards.