Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
FCA Finalises Rule Changes to Reduce Reporting Costs
The Financial Conduct Authority (FCA) has finalised new rules aimed at reducing transaction reporting costs for firms by over £100 million a year. The changes are set to take effect from 3 April 2028, with the regulator describing the new requirements as “smarter, simpler and more proportionate.”
The FCA states that transaction reports remain essential for detecting market abuse and supervising firms. The new rules are designed to eliminate duplication and low-value reporting, thereby reducing the administrative burden on firms.
Key changes include a reduction in the number of transaction reporting fields from 65 to 52. Foreign exchange derivatives will no longer be included in reporting requirements, which is expected to reduce costs for over 400 firms. Additionally, 7 million financial instruments that the FCA does not consider relevant will be removed from reporting obligations.
The period for correcting previous reporting errors will also be shortened from five years to three years. The FCA says these changes will give firms time to prepare, test, and implement updated reporting systems, although some firms may be able to make certain changes sooner if they are ready.
These updates are relevant to UK property professionals, including letting agents and inventory clerks, who may be affected by changes in regulatory reporting requirements within the financial and property sectors.
Source: Mortgage Strategy