What is an LEI?
A Legal Entity Identifier (LEI) is a 20-character alphanumeric reference code unique to each legal entity.
Who needs one?
Generally speaking, legal entities or structures including companies, charities and trusts who own financial instruments and want to continue to be able to trade in those. Financial instruments for this purpose includes: shares; bonds; collective investment schemes; and derivatives.
Please note that an LEI is not required if investment is being made exclusively in collectives such as investment bonds, OEICs or unit trusts.
Why is it needed?
It is required under European legislation, the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). Entities without an LEI in place after the deadline may not be able to trade in their investments and investment firms will not be able to provide any services to that entity.
What is the deadline for obtaining an LEI?
The deadline for obtaining an LEI is Wednesday 3rd January 2018, however, some investment managers are asking their clients to have LEIs in place well before then and our advice is to apply as soon as possible as there may be a rush to apply just before the deadline.
What is the cost?
The London Stock Exchange charges a fee of £115 plus VAT. LEIs have to be renewed annually and the renewal charge is currently £70 plus VAT.
How do you apply?
Entities can apply direct or instruct an agent to deal on their behalf. Turcan Connell is dealing with LEI applications for many of the trusts, charities and companies for whom we act.
This is intended as a brief summary only. Please contact your usual Turcan Connell contact if you would like more detailed advice.