MFA called on the Financial Conduct Authority (FCA) to eliminate redundant transaction reporting requirements for UK buy-side firms in a letter. The letter is in response to the FCA’s discussion paper on improving the UK MiFID transaction reporting regime.

“Alternative asset managers drive economic growth and strengthen capital markets. Reducing redundant and costly requirements on managers while preserving regulatory oversight will enhance the attractiveness of the UK as a global financial services centre,” said Bryan Corbett, MFA President and CEO. “MFA’s recommendations will improve market efficiency, lower costs, and increase UK economic competitiveness. This aligns with Prime Minister Keir Starmer’s directive to cut red tape to drive economic growth.”

The current UK MiFID transaction reporting regime requires both buy-side and sell-side firms to report the same trade, creating unnecessary redundancies. MFA urges the FCA to remove buy-side firms from the scope of transaction reporting, as dual-sided reporting is duplicative, costly, and inefficient.

Sell-side firms are better suited for reporting because they execute trades in the market for buy-side firms and have the systems and compliance infrastructure to capture and report trade details accurately. Requiring buy-side firms to resubmit the same data does not improve regulatory oversight. Eliminating this unnecessary regulatory burden will attract capital, and enhance the UK’s global competitiveness, without compromising data quality.

Removing buy-side firms from the transaction reporting regime would bring the UK in line with other major financial centres, such as the U.S., Hong Kong, and Singapore. Aligning with this global standard would support the FCA’s competitiveness and growth objective while maintaining high regulatory standards.

Read the full comment letter here.

Source: MFA