On 23 April 2025, the Prudential Regulation Authority (PRA) published a consultation paper, CP9/25, on the Markets in Financial Instruments Directive (MiFID) Organisational Regulation (MiFID Org Regulation).

Background

The MiFID Org Regulation is currently assimilated law in the UK and is cross-referenced in PRA rules. HM Treasury is proposing to revoke that assimilated law and the PRA therefore needs to restate the existing firm-facing requirements in the MiFID Org Regulation into its Rulebook before that revocation takes effect, to avoid gaps arising in the PRA’s ability to enforce key components of its systems and controls requirements.

Proposals

In CP9/25, the PRA sets out its proposals for restating the MiFID Org Regulation in its Rulebook, noting that it is not proposing any new requirements on firms as part of the changes. The proposals cover the following Articles of the MiFID Org Regulation:

  • General organisational requirements, which areset out in Articles 21 and Article 25 and outline the responsibilities of the board and senior managers for the organisational framework within firms. 
  • Outsourcing (Articles 30 and 31) – these provisions cover firm requirements and responsibilities when outsourcing MiFID business.
  • Record keeping (Article 72).
  • Compliance and internal audit, including provisions covering the firm having an independent compliance function (Article 22) and an independent internal audit function (Article 24) where appropriate and proportionate.
  • Risk management (Article 23) – this covers risk control and maintaining risk management policies.
  • Technical standards regulation – the PRA proposes to make a standards instrument to update cross-references to the MiFID Org Regulation that are currently included in its technical standards.

Next steps

The consultation closes on 23 June 2025. Following the consultation period, the PRA and the Financial Conduct Authority plan to publish final rules in separate policy statements later in 2025, and the PRA proposes to implement its proposals in H2 2025.