We summarise the feedback we received to CP24/24 and Chapter 4 of CP24/11 and set out our final rules to transfer the firm-facing requirements of the MiFID Org Reg into FCA Handbook rules.
We are keeping the substance of the MiFID Org Reg requirements the same without any policy or scope changes. Most of the changes that have been made are to reflect our Handbook drafting style and to clarify drafting where possible. The few exceptions are set out in the derivation and changes table in Annex 4.
We are also implementing two changes we consulted on in Chapter 4 of CP24/11. We are removing the requirement to report a 10% drop in portfolio value to a retail client from Conduct of Business Sourcebook (COBS) 16A.4.3UK so it no longer applies as a rule to optional exempt (Article 3) firms, in line with MiFID firms. We are also amending the definition of ‘durable medium’ in the Glossary to make electronic communications the default mode of communication with retail clients, reflecting changes previously made to the MiFID Org Reg.
This consultation applies to:
The rules in this instrument will come into force on the 23 October 2025. The PRA has also published their Policy Statement on restating relevant firm-facing provisions in the MiFID Org Reg, into PRA rules. The PRA instrument and the Treasury’s Statutory Instrument to revoke the MiFID Org Reg will also come into force on this date.
The changes to the durable medium definition will come into force 3 months after publication of the final rules on 12 January 2026. The removal of COBS 16A.4.3UK will come into force at the same time as the rest of the MiFID Org Reg transfer on 23 October 2025.
As we are re-stating the existing MiFID Org Reg requirements in our rules with no policy change, firms can continue to follow the MiFID Org Reg requirements as they do currently. However, where firms are updating their internal references in the regular course of business, they may need to reflect the new location of the rules.
In CP24/24, we included a discussion chapter, seeking feedback on improvements we could make, over time to the regime. We received positive feedback on rationalising the SYSC 10 conflicts of interest rules and modernising the COBS 3 rules on client categorisation. We will shortly publish a consultation with proposals to address this feedback.
The MiFID Org Reg contains conduct rules and systems and controls rules to ensure market integrity and investor protection. The UK version of the MiFID Org Reg applies directly to UK MiFID investment firms.
This consultation follows Treasury’s policy paper on its next steps for reforming the UK’s MiFID framework, published as part of announcements made around the November 2024 Mansion House speech.