Financial Traders require additional registrations
The extension of the international Legal Entity Identifiers (“LEI”) regulations will mean that, with effect from 3 January 2018, any company, LLP, trust or charity which has traded investments or certain derivatives will be required to provide their LEI number in order to proceed with the transaction.
The LEI essentially acts as a passport, a unique reference that allows the owner of an investment to be identified. The change is therefore part of the ongoing transparency & trust drive by the G20, and is meant to be a cornerstone of trace-ability.
However, like with any new deadlines, the strict cut-off date could leave some firms high and dry should they fail to register in time, as most financial providers (including banks) will be prohibited from trading on behalf of a client unless they are LEI-registered.
Whilst banks and stockbrokers are actively requesting their clients’ LEI’s, we strongly advise any entities with listed shares or similar to proactively obtain an LEI reference from one of the multitude of suppliers in the UK marketplace, to ensure that they are not frozen out of the system in the New Year.
If you are unsure whether you already have an LEI, the database can be searched by entity name at https://www.gleif.org/en/lei/search.
Please contact us for any further advice firstname.lastname@example.org – 01904 464 100