UK's FCA and BoE Unite for Simplified Transaction Reporting Framework

The UK's Financial Conduct Authority and Bank of England have initiated a new taskforce to develop a streamlined framework for transaction reporting. The taskforce will consist of three working groups focusing on policy, strategy, and architecture, aiming to reduce regulatory burdens and enhance market integrity.

The UK's Financial Conduct Authority (FCA) and the Bank of England (BoE) are joining forces to establish a taskforce with the aim of creating a more efficient and unified transaction reporting framework. This initiative seeks to harmonize transaction regulations, currently dictated by UK MiFIR, UK EMIR, and UK SFTR laws, to minimize redundancy and better align reporting demands with their intended benefits.

The FCA's terms of reference emphasize principles for long-term transaction and post-trade data collection and outline plans for a cross-authority and industry taskforce. The taskforce will include diverse industry stakeholders who will offer insight on the proposed framework. Its structure comprises a main Policy group, a Strategy group, and an Architecture group focused on data harmonization, strategic benefits, and leveraging technology.

The taskforce, while lacking formal decision-making authority, aims to simplify financial reporting and reduce regulatory complexity. Taskforce membership—capped at 50—includes FCA and BoE representatives, and members will initially serve an 18-month term. In light of recent UK regulatory changes following Brexit, particularly regarding MiFIR, the taskforce's role is critical in supporting economic growth and enhancing the fight against financial crime.