New regulatory powers Financial Market Infrastructure: general rules and requirements Regulation of FMIs by the Financial Conduct Authority Data Reporting Service Providers
Data Reporting Service Providers (DRSPs) are currently regulated through:
the Data Reporting Services Regulations 2017 (SI 2017/699) (DRSRs)
chapter 9 of the FCA’s Market Conduct sourcebook (MAR 9), relating to data reporting services
the UK version of the Markets in Financial Instruments Regulation (UK MiFIR)
Regulation 2017/565; and
onshored technical standards such as Commission Delegated Regulation 2017/571.
	DRSPs are not authorised persons under FSMA 2000.
	The DRSRs impose a prohibition on the provision of data reporting services in the course of business unless that person is authorised to do so under the DRSRs or is verified by the FCA. The FCA has the power to authorise a person to carry out data reporting services only where the applicant satisfies certain conditions as set out in regulation 10 of the DRSRs. The FCA may provide verification only where an applicant fulfils the requirements set out at regulation 8 of the DRSRs.
	Operational requirements on DRSPs arise under the DRSRs and retained EU law, namely Regulation 2017/571 and Regulation 2017/565. Information requirements are set out across the DRSRs and UK MiFIR and vary depending on the type of DRSP.
	Whilst the FCA does not have any rule-making powers over DRSPs (except for the limited power in respect of technical standards), it does have a significant role in the regulation of DRSPs. The function of the FCA in respect of DRSPs is set out at regulation 17 of the DRSRs. In exercising its function, the FCA must cooperate with other persons with a regulatory role under the DRSR including, in certain situations, the Bank of England (see regulation 19 of the DRSRs).
	Under regulation 18, the FCA must maintain arrangements to monitor and enforce the provisions of the DRSRs. They may also give guidance, as it considers appropriate, and may direct DRSPs as to how information should be provided to them.
	Where the FCA considers that a DRSP has contravened its requirements under the DRSRs, it may:
impose restrictions on that entity (regulation 22),
publish a statement to that effect (regulation 23), and/or
impose financial penalties (regulation 24).
	The DRSRs create the offences of:
misleading the FCA (regulation 29); and
breaching the prohibition on providing a data reporting service, without authorisation or an exemption (regulation 30).
	A person found guilty of an offence under the DRSR would be liable:
on summary conviction
in England and Wales, to a fine; or
in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum; or
on conviction on indictment, to a fine.