The FCA has announced that Temporary Transitional Power (TTP) will end at the close of business on 31 March 2022 and that UK established financial institutions and UK branches will be required to report transactions facing European System of Central Banks (ESCB) member banks from 1 April 2022. This brings UK SFTR further into line with EU SFTR, where the Bank of England is treated as a third country central bank and transactions facing them are reportable.
The FCA reiterated, to avoid duplication and in contrast with EU SFTR, no SFTs will be reportable under UK MiFID Transaction Reporting from 1 April 2022. Therefore, SFTs facing the Bank of England will neither be reportable under SFTR nor MiFID.
This announcement is further evidence that the FCA is keen on limiting the regulatory burden that follows divergence from EU rules. These changes see greater harmonisation and equivalence with EU SFTR, following the adoption of identical schemas and validation rules from 11 April.
However, the FCA have demonstrated their pragmatism with steps to reduce the regulatory burden of SFTR reporting where it adds little or no value from a regulatory perspective. Examples of this include the removal of SFTR reporting obligations for non-financial institutions and the removal of any MiFID Transaction Reporting requirements for SFTs.
Read the full announcement on the FCA’s website.
- For a conversation with Jonathan about your SFTR Reporting or a no-obligation review of the quality of your reporting, please contact us.