UK FCA finalises rules on the MiFID Organisational Regulation

The UK Financial Conduct Authority (FCA) has published policy statement PS25/13, finalising the transfer of firm-facing requirements from the UK version of the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg) into the FCA Handbook. This follows the FCA's November 2024 consultation and Chapter 4 of Quarterly Consultation No 44 on the transfer of those requirements, as well as HM Treasury's publication of the Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 (MiFIR Amendment Regulations), which restate certain definitions that are retained in domestic financial services law. The FCA is restating the MiFID Org Reg requirements without policy change, so firms may continue to follow existing practices. However, firms should update internal references accordingly to reflect the new location of the rules. The final rules are set out in the relevant statutory instruments included in the Annex to the policy statement.

Responding to the November 2024 consultation, the FCA has largely retained the proposed rules, with amendments primarily reflecting the FCA Handbook drafting style and providing clarification. A further consultation is expected in November to make further improvements to the regime, focusing on streamlining conflicts of interest requirements and modernising client categorisation rules. The rules will come into force on 23 October 2025, the same date the MiFID Org Reg is intended to be revoked. However, if the statutory instrument revoking the MiFID Org Reg has not been laid before Parliament by that date, the FCA will consider delaying or revoking these rules.

In response to Chapter 4 of Quarterly Consultation No 44, the FCA has also finalised the rules to: (i) remove the requirement from the Conduct of Business Sourcebook 16A.4.3UK for firms to notify retail clients of a 10% drop in portfolio value, aligning the treatment of optional exempt (Article 3) firms with MiFID firms; and (ii) revise the definition of "durable medium" in the FCA Handbook Glossary to make electronic communication the default for retail clients. The removal of COBS 16A.4.3UK will take effect on 23 October, with the durable medium amendment effective from 12 January 2026.

The UK Prudential Regulation Authority (PRA) has published a separate policy statement on the restatement of relevant firm-facing provisions in the MiFID Org Reg into PRA rules.

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