The regulator has proposed to 'retain the current substance of the requirements' to give firms continuity.
The Financial Conduct Authority has published a consultation paper looking into the transfer of the MiFID organisational requirements and operating costs rules for investment into its Handbook.
The consultation comes off the back of the Treasury plans to reform the MiFID framework to "reinvigorate" capital markets, as set out in Rachel Reeves' Mansion House speech earlier this month.
Mansion House speech: What does it mean for the investment and pension landscape?
Under the watchdog's consultation, not much change is expected to take place and impact regulated firms, given many of the conduct rules and systems and control rules under MiFID will be brought into the FCA's Handbook.
As such, the regulator has proposed to "retain the current substance of the requirements" to give firms continuity. There are some provisions the FCA is not replacing, but those will either be restated or repealed by the Treasury, it explained.
"We propose some consequential amendments and minor changes to reflect our Handbook drafting style, as well as to simplify the requirements and provide greater clarity," the FCA said in the consultation paper.
"We want to maintain the current requirements for firms while we restate these regulatory requirements from legislation into our rules, making them consistent with our Handbook style," it added.
"Our aim is to provide continuity and clarity, simplifying requirements where possible, without changing their scope or application."
FCA urged to adopt reforms as MPs warn watchdog's 'integrity is called into question'
The changes will apply to all firms that are subject to obligations under MiFID II, including investment firms; credit institutions; collective portfolio management investment firms; financial advisers; third-country firms; UCITS managers; residual collective investment scheme operators and small authorised alternative investment fund managers; occupational pension scheme firms and recognised investment exchanges.
The consultation will close on 28 February 2025 for the set questions and on 28 March for feedback on the simplification and rationalisation of the requirements in the future.
The Treasury is also expected to publish a draft statutory instrument to propose such changes.
