CP21/9: Changes to UK MIFID’s conduct and organisational requirements

Open consultation: CP21/9
Consultation closes

We are considering, alongside the Treasury, reforms to capital markets looking at changes to the UK’s regulatory regime to ensure this is adapted to the structures of UK markets and maintaining the highest regulatory standards. This consultation paper (CP) is the first output of that work and covers changes to two areas to the conduct and organisational rules in UK MiFID: research and best execution reporting.

Read CP21/9 (PDF)

Why are we consulting

The UK Markets in Financial Instruments Directive (MiFID) is the collection of laws regulating the buying, selling and organised trading of financial instruments. We see the fundamental requirements in MiFID as continuing to provide important protections. However, there are areas where markets have evolved, or objectives are not being met as efficiently as possible.

The proposals in this consultation are an initial set of changes within the wider context of the capital markets reform work. We are proposing changes to the conduct and organisational requirements in UK MiFID for two areas: research and best execution. We have spoken to a range of market participants about what we can do to ensure the rules achieve their objectives and reduce compliance costs, without compromising high standards of investor protection.

Who it applies to

  • investment firms and market operators in the UK
  • banks and Collective Investment Scheme operators providing investment services
  • firms providing investment advice and reception and transmission of orders who did not opt into MiFID (‘Article 3’ firms)
  • firms providing research that we do not authorise

Next steps

We are asking for comments on this CP by 23 June 2021.

Respond to the consultation