On 9 October 2025, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) published policy statements in relation to the transfer of certain requirements in the MiFID Organisation Regulation (MiFID Org Reg) into the FCA Handbook (in PS25/13) and PRA Rulebook (in PS16/25), as appropriate.

Background

The MiFID Org Reg is currently assimilated law in the UK and is cross-referenced in FCA and PRA rules. HM Treasury is proposing to revoke that assimilated law and the FCA and PRA therefore need to restate the existing firm-facing requirements in the MiFID Org Reg before revocation, to avoid gaps in the ability to enforce key conduct and systems and controls requirements.

Key changes

FCA Handbook

The FCA has explained that it is keeping the substance of the MiFID Org Reg requirements the same without policy or scope changes and that most of the changes that have been made reflect FCA Handbook drafting style or clarify drafting. However, the FCA also highlighted that there are a few exceptions set out in the derivations and changes table in Annex 4 of PS25/13.

The FCA also set out that, as part of PS25/13, it is implementing two other changes consulted on separately. These are to remove 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, and that it is 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. 

PRA Rulebook

The PRA explained that in line with the proposals consulted on it is also restating the existing firm-facing requirements contained in the MiFID Org Reg into the PRA Rulebook with no material changes.

That said, the PRA did set out that it has decided to make a change to the draft, but it does not consider this to be significant or change the substance of the requirements. This is to restate provisions currently in Article 25 of the MiFID Org Reg in relation to a firm’s supervisory function, which the PRA had previously proposed not to include on the basis that UK firm structures typically do not have this function. However, the PRA explained that it now considers this could limit its oversight and give rise to a compliance gap and so it does intend to restate this requirement in its rules, but that it has used the term “governing body” instead of supervisory function, as it considers this to be the more appropriate term in the UK.

Next steps

The FCA and PRA have stated that the new rules will come into force on 23 October 2025 (other than the amended durable medium definition, which will come into on 12 January 2026), subject to the revocation of the MiFID Org Reg.