Emma RadmoreThe FCA is consulting on how it plans to transfer the firm-facing requirements of the MiFID Org Reg into its Handbook. It doesn’t intend to change the policy behind the Regulation, but some of the provisions will not be replicated in its rules. The new rules will take effect when the Treasury repeals the current assimilated Org Reg, and any parts that the FCA is not taking into its rules will be either just repealed or will be replaced as part of the transfer.
While the current intention is not to make any changes of substance, the consultation also includes a request for thoughts on how to make any future changes to make the rules better suited to UK firms, including, for example, where the Consumer Duty doesn’t apply. It also looks at:
- how conduct and organisational rules derived from MiFID II could perhaps be rationalised or improved in future, including for “article 3” firms;
- whether the client categorisation rules could be improved to work more effectively;
- what possible duplication of core rules could be removed as a result of simplification;
- how FCA rules should adapt to new regimes or risks
Immediately, the FCA’s plan is to restate the requirements as rules and guidance with minimal change only. It will mean changes to COBS, SYSC, MAR, REC and DISP.
The FCA asks for comment on the consultation element of the paper by 28 February 2025, and on the discussion element by 28 March 2025.
Meanwhile, the PRA intends to publish its paper on the requirements early in 2025.