The FCA has finalised rules designed to reduce firms’ transaction reporting costs by over £100m a year.

The watchdog says its new requirements from April 3, 2028 will be “smarter, simpler and more proportionate”.

However, it says that transaction reports remain critical to the regulator’s ability to detect market abuse and supervise firms effectively.

The changes seek to eliminate duplication and low-value reporting in order to reduce the burden on firms.

Under the new rules, the number of transaction reporting fields will be cut from 65 to 52.

Foreign exchange derivatives will no longer be included in reporting requirements, reducing costs for over 400 firms.

A further 7m financial instruments will also be removed, which the FCA does not deem to be relevant.

The period for correcting previous reporting errors will be cut from five to three years.

The changes will take effect on 3 April 2028, to give firms time to prepare, test and implement updated reporting systems.

However, firms that are ready to make certain changes sooner may be able to do so.

Joint executive of enforcement and market oversight Therese Chambers says: “Transaction reports are the backbone of our market oversight work — they help us catch financial crime, monitor market stability and supervise firms effectively.

“By taking a smarter, streamlined approach to reporting, we’re giving firms meaningful cost relief while ensuring we continue to receive the accurate, high-quality data that keeps UK markets clean and competitive.”