CP24/24: The MiFID Organisational Regulation

Read CP24/24 (PDF)[1]

Why we are consulting

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Provisions that we are not replacing in regulatory rules will either be restated or repealed by the Treasury to coincide with our Handbook rules coming into force.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[2] 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.   

Who this is for 

This consultation applies to: 

• MiFID investment firms including credit institutions and collective portfolio management investment firms
• MiFID optional exemption ‘Article 3’ firms
• Third country firms
• Undertakings for Collective Investment in Transferable Securities (UCITS) managers
• Residual Collective Investment Scheme (CIS) operators and small authorised UK
• Alternative Investment Fund Managers (AIFMs)
• Occupational Pension Scheme (OPS) firms
• Recognised investment exchanges (RIEs)

Next steps 

Please respond to the consultation paper (CP) using our online response form or by emailing [email protected] by 28 February 2025.

Consultation response form [3]

This CP includes a discussion in Chapter 4.

Please respond with comments on Chapter 4 by 28 March 2025 using our online form or by email.

Chapter 4 response form[4] 

The Prudential Regulation Authority (PRA) will publish a separate consultation paper on restating relevant firm-facing provisions in the MiFID Org Reg into PRA rules.

The Treasury will publish a draft statutory instrument (SI) which sets out how the Government will deal with the non-firm facing elements of the assimilated MiFID Org Regulation.

Once the PRA has published its consultation paper and the Treasury has published the draft SI, we will publish feedback on responses and issue a policy statement following the Government laying its SI.

Background

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[5] on its next steps for reforming the UK’s MiFID framework, published as part of announcements made around the Mansion House speech.