MFA submits letter to FCA on proposed financial reforms

MFA submitted a letter to the Financial Conduct Authority (FCA) warning that the proposed financial reporting reforms squander a chance to boost UK competitiveness and reduce unnecessary compliance costs by failing to adopt a broad buy-side reporting exemption.

MFA recommended targeted changes to modernise the regime and reduce operational complexity, including:

• Consolidating reporting under the UK Markets in Financial Instruments Regulation (UK MiFIR), UK European Market Infrastructure Regulation (UK EMIR), and UK Securities Financing Transactions Regulation (UK SFTR) into a single, simplified reporting model.

• Providing an 18-month implementation period to give firms sufficient time to update systems and third-party arrangements.

• Reducing the default back-reporting period to three years and introducing a clear materiality threshold for errors and omissions reporting.

• Removing instruments traded only on European Union venues and excluding instruments whose principal liquidity is outside the UK.