On 14 November 2024, HM Treasury (HMT) issued a policy paper, Next steps for reforming the UK Markets in Financial Instruments Directive.

Key points

Key points in the policy paper include that HMT has committed to:

• Make further legislative changes to the MiFID framework as part of the Government’s commitment to reinvigorate UK capital markets.
• Legislate to give the Financial Conduct Authority (FCA) fuller powers of direction in relation to the reporting of over-the-counter positions.
• Commence the revocation of firm-facing requirements in the Markets in Financial Instruments Regulation that pertain to transaction reporting, and delegate the setting of a new regime to the FCA.

HMT will also revoke the firm-facing regulations within the MiFID Organisational Regulation so that they can be replaced in the FCA’s Handbook.

HMT will liaise with the FCA and Prudential Regulation Authority (PRA) to ensure that any revocations coincide with the FCA and PRA’s replacement rules and provide a smooth transition for firms.