We are consulting on proposals to transfer the firm-facing requirements of the MiFID Org Reg into FCA Handbook rules.
This consultation paper sets out proposals to transfer the requirements when the Treasury begins the repeal of the MiFID Org Reg.
Provisions that we are not replacing in regulatory rules will either be restated or repealed by the Treasury to coincide with our Handbook rules coming into force.
We are proposing to retain the current substance of the requirements, providing continuity for firms.
We have included a discussion chapter about further reform, either now or in the future, to make the rules better suited to the range of UK authorised firms and clients they provide services to. This includes in circumstances where the Consumer Duty does not apply and considers how we could rationalise or improve MiFID II derived conduct and organisational rules, including for Article 3 firms. We also discuss whether and how the client categorisation rules could work more effectively.
This consultation applies to:
This consultation has now closed.
We will review comments to both Chapter 3 and 4. We will publish feedback and issue a Policy Statement for Chapter 3.
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 Mansion House speech.