FCA consultation on streamlining the rules for structured electronic reporting

The FCA has published a consultation paper (CP23/2) on streamlining the rules relating to structured electronic reporting.

Under DTR 4.1.14, listed companies are required to publish their annual report in the single electronic format specified in the UK Transparency Directive European Single Electronic Format Regulation (the ESEF Regulation), the UK version of EU Regulation 2019/815 on the technical standards for reporting in electronic format, which is part of UK law post-Brexit – see our snapshot on reporting in structured electronic format for further details.

To simplify the structure of the UK’s rules, and in keeping with the government’s post-Brexit drive to replace retained EU laws and regulations, the FCA is proposing to remove the cross reference to the ESEF Regulation and to set out the requirements directly in the Transparency Rules.

Under the consultation, new provisions would be added to DTR 4, along with a new Annex to DTR 4, which broadly reflect the ESEF Regulation, though the FCA is taking the opportunity to make some minor clarifications and changes. The FCA is also proposing that the taxonomies approved for use when tagging information in financial statements and notes to financial statements, which are currently set out in the ESEF Regulation, should instead be contained in a new Technical Note. This would make it easier to amend the approved taxonomies to ensure that practice in the UK stays aligned with any changes to generally accepted taxonomies.

The consultation closes on 24 February 2023. As the changes are not intended to change the existing requirements or to disrupt the approach companies take when reporting in electronic format, the FCA is proposing that the new provisions will apply immediately once they are finalised, without any transitional period.