The FCA has announced proposals aiming to overhaul the reporting requirements for firms aiming to deliver £100 million in savings across the industry. The announcements will mark a step towards reducing regulatory burdens and maintaining integrity and transparency in the UK financial markets.
The FCA has announced a series of proposals aimed at overhauling transaction reporting requirements for firms, with the goal of delivering approximately £100 million in savings across the industry (with the current annual cost of MiFID transaction reporting being £493 million). The proposals, announced on the 21st November 2025, mark a significant step towards reducing regulatory burdens while maintaining the integrity and transparency of UK financial markets.
According to the FCA, the current transaction reporting regime, established in the wake of MiFID II, has become increasingly complex and costly for firms to maintain. Many firms have voiced concerns over the administrative overhead and the resources devoted to compliance. The new proposals seek to address these issues by simplifying reporting processes, eliminating unnecessary duplication, and leveraging modern technology to improve efficiency.
Key elements of the FCA’s plan include streamlining the data fields required for transaction reports, introducing clearer guidance on reporting obligations, and providing greater flexibility for firms to use automated solutions. The regulator also intends to collaborate closely with industry stakeholders to ensure that the changes are both practical and effective.
The proposals specifically are as follows:
- Removing foreign exchange derivatives from reporting requirements, reducing costs for over 400 firms.
- Removing reporting requirements for 6 million financial instruments, including equities, bonds, and certain derivatives that are traded only on EU trading venues.
- Reducing the period for correcting historic reporting errors from 5 to 3 years, lowering the number of transaction reports that need to be resubmitted by a third.
The FCA has opened a consultation period, inviting feedback from firms and market participants before finalising the new rules. If adopted, the proposals are expected to come into effect in stages from mid-2026 onwards.
In summary, the FCA’s transaction reporting reforms represent a proactive move to support the UK’s financial sector, aiming to reduce firms’ administration burden while upholding high standards of market conduct. As firms digest the proposed changes, the coming months will be crucial in shaping a regulatory environment fit for the future.
How Thistle Initiatives Can Help
At Thistle Initiatives, we help firms stay ahead of regulatory change by strengthening their compliance frameworks. Whether you're looking to assess your current controls or prepare for the FCA’s proposed updates, we offer tailored support that’s practical, proportionate, and effective.
If you’d like to discuss how we can support your firm, get in touch at info@thistleinitiatives.co.uk or call 020 7436 0630 to speak with our team.
Meet the Expert
Richard Banham, Senior Consultant 
Richard joined Thistle Initiatives in May 2023, having gained experience in both the Wealth Management and M&A industries. Richard brings an array of financial services knowledge to the team, having worked in the industry for 6 years.