MiFID II – what companies and charities need to know: Legal Entity Identifiers
Customers who are deemed to be Legal Entities, such as companies and charities, must obtain a Legal Entity Identifier (LEI) in order to continue being able to use their account as normal from 3 January 2018, when the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) takes effect in the UK.
What is a Legal Entity?
Customers who are deemed to be legal entities include Companies, Charities, Unincorporated Bodies and Trusts (excluding bare trusts).
What is an LEI?
An LEI is a 20-alphanumeric reference code that is unique to each legal entity, allowing all transactions for that entity to be reported and identifiable to that investor. This identifier enables regulatory authorities in the UK and Europe to monitor trading activity with specific emphasis on market abuse and market manipulation. Customers who are deemed legal entities are responsible to obtain this LEI themselves.
An LEI is required to be renewed on an annual basis and is it up to the legal entity to ensure this is renewed each year. The cost for this annual renewal is the responsibility of the legal entity. A single LEI can be used across all investment accounts that legal entity owns.
What is the deadline for obtaining an LEI?
Legal entities must have obtained an LEI and have provided it to us by 3rd January 2018 to continue being able to trade and use their account as normal.
If a LEI is not produced, customers could see limitations and restrictions in place on their account until this reference code is submitted.
How to obtain an LEI
You need to register yourself as a user on the London Stock Exchange’s LEI platform, UnaVista. Create an account and click 'register'.
Please note: that UnaVista is not the only provider of LEIs and there may be other providers available worldwide who may charge less.
2. Request your LEI
Once logged into the UnaVista system, please see pages 9-12 of the user guide to request a new LEI.
How do I submit my LEI?
Simply sign into your account, go to ‘my profile’ and under accounts option populate the Legal Entity Identifier field. Please note, if this has not been provided before the 3 January 2018 you will not be able to deal.