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On 9 October 2025, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) published policy statements PS25/13 and PS16/25 respectively, completing the transfer of the Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg) into UK regulatory rulebooks and statutory instruments.
The FCA also published two accompanying instruments – the Markets in Financial Instruments (Transfer of MiFID Organisational Regulation) Instrument 2025 (FCA 2025/40) and the Technical Standards (Markets in Financial Instruments Regulation) (Organisational Requirements) Instrument 2025 (FCA 2025/41) – implementing the technical changes and addressing algorithmic trading requirements.
Background
The MiFID Org Reg, which has provided the organisational and conduct framework for investment firms since 2018, currently exists as assimilated law cross-referenced in FCA and PRA rules. Its planned revocation by HM Treasury (HMT) necessitated transferring certain requirements into domestic rulebooks to avoid regulatory gaps in key conduct, systems and controls requirements.
FCA Implementation
Through PS25/13 and FCA 2025/40, the FCA has incorporated MiFID Org Reg provisions across multiple Handbook modules. The transfer affects Senior Management Arrangements, Systems and Controls (SYSC), Conduct of Business (COBS), Market Conduct (MAR), Recognised Investment Exchanges (REC), and other sourcebooks.
The scope encompasses UK MiFID investment firms, MiFID optional exemption (Article 3) firms, third country firms operating in the UK, UCITS managers, small authorised UK AIFMs, and recognised investment exchanges. While maintaining policy continuity, the FCA has implemented two targeted changes for optional exemption firms:
- removal of the 10% portfolio depreciation reporting requirement from COBS 16A.4.3UK, aligning treatment with MiFID firms; and
- amendment of the "durable medium" definition to make electronic communication the default for MiFID-derived disclosures to retail clients.
Separately, FCA 2025/41 makes technical amendments to algorithmic trading governance.
PRA Implementation
The PRA's PS16/25 restates provisions relevant to prudential oversight – governance, risk management, compliance, internal audit, outsourcing, and record-keeping – into existing Rulebook Parts. Following consultation feedback, the PRA has retained oversight requirements originally in Article 25 of the MiFID Org Reg, substituting "governing body" for the EU-style "supervisory function" to reflect UK governance structures while preserving board-level accountability.
Implementation Timeline
The new rules come into force on 23 October 2025, coordinated with HMT's revocation of the MiFID Org Reg. The amended durable medium definition takes effect on 12 January 2026. Should HMT's commencement order not materialise as expected, the PRA will delay or revoke its rules; the FCA states it will consider delaying or revoking its rules.
The FCA has announced November consultations on streamlining conflicts of interest requirements (SYSC 10) and modernising client categorisation rules (COBS 3). Articles 50 and 51 of the MiFID Org Reg, relating to disclosure of costs and charges information to investors, will be finalised separately alongside the FCA's consumer composite investments rules (CCIs).
More information on the FCA's CCI consultations is available here.
PS25/13, PS16/25, FCA 2025/40 and FCA 2025/41 are available here, here, here, and here respectively.
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