The FCA has published its 64th Market Watch Newsletter looking at transaction reporting issues as firms prepare for the end of the Brexit transition period.
Whilst the newsletter is very short, perhaps the shortest yet, the FCA clearly highlights the importance of firms getting their UK MiFIR transaction reporting up to par ahead of exit day on December 31.
The FCA has provided some leeway for certain aspects of the MiFID regulations for a period of time following exit day. However, MiFIR transaction reporting has not been included because of its importance for the FCA in terms of ensuring oversight and the integrity of financial markets.
In the 64th market watch newsletter, the FCA states: "firms and Approved Reporting Mechanisms should comply with the changes to their regulatory obligations by the end of the transition period on 31 December 2020."
Those unable to fully comply with the regime at the end of the transition period will need to back-report missing, incomplete or inaccurate transaction reports as soon as possible.
The newsletter focuses on 3 main areas:
"It is crucial that we receive these reports to ensure market oversight and the integrity of financial markets."
FCA Market Watch Newsletter, No 64, August 2020
With less than 6 months until the end of the transition period, SteelEye CEO, Matt Smith discusses how UK financial services regulation might evolve post-Brexit.
Now that we have seen the first sign of divergence between UK and EU rules, we are beginning to get a clearer idea of what UK financial regulation will look like post-Brexit. But what will happen to the reporting rules?