(18 March 2025 – United Kingdom) Chancellor Rachel Reeves has committed to eliminating “duplicative and unnecessary” reporting requirements for financial services firms by overhauling regulations inherited from the European Union.
Following discussions with UK fintech leaders, the Treasury announced plans to introduce legislation aimed at reducing the volume of data companies must submit to the Financial Conduct Authority (FCA). The move aligns with the government’s broader efforts to simplify financial regulations and enhance the competitiveness of UK capital markets.
Reeves has described the financial services industry as the “crown jewels” of the UK economy. The sector is one of eight high-growth industries identified by the government as central to its industrial strategy.
The Treasury stated that the upcoming legislation would allow the FCA “to scrap any rules which are duplicative and unnecessarily hold UK firms back by designing a new regulatory framework that supports economic growth.”
Many City firms have voiced concerns about excessive regulatory reporting, arguing that some requirements are redundant. Trade association UK Finance has urged the FCA to take bold action in reducing the data reporting burden, even suggesting that over-the-counter derivatives transactions between financial institutions could be excluded from current regulations.
In November, the FCA launched a discussion paper to explore ways to “improve the quality of data reported to us and reduce reporting burdens on market participants.” The regulator receives more than 7 billion transaction reports annually under the Markets in Financial Instruments Directive (MiFID) framework, introduced by the EU in 2018.
These regulations mandate financial firms to report transactions across more than 20 million instruments, including bonds, equities, and derivatives. The FCA has signalled its intention to consult on a “new transaction reporting regime that will remove unnecessary burdens for firms while maintaining the high regulatory standards our markets are renowned for.”
As part of this review, the regulator will assess whether some reporting fields and processes impose disproportionate costs relative to their regulatory benefits. Additionally, it will explore the role of emerging technologies, such as artificial intelligence, in streamlining compliance.
During the chancellor’s meeting with fintech executives from firms including Revolut, Stripe, and Wise, discussions centred on accelerating growth in the sector. Francesca Carlesi, CEO of Revolut UK, welcomed the government’s initiative, stating: “It is encouraging to see the UK government taking decisive steps to cement the UK’s reputation as a global fintech leader.”
The government also reaffirmed its commitment to developing digital gilts—a modernised approach to asset trading. While proponents argue that blockchain technology offers efficiency gains, critics warn that it can become costly during peak usage periods and remains reliant on the support of developers.