MiFID II - what companies need to know: Legal Entity Identifiers

Customers who are deemed to be Legal Entities, such as companies, must obtain a Legal Entity Identifier (LEI) in order to continue being able to use their account as normal from 3 January 2018, when new European legislation, 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 Trusts, Companies, and Unincorporated Bodies.

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. 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. We will be sending out notifications in due course to all those affected, with details of the best method of supplying this reference code to us.

If an LEI is not produced, customers could see limitations and restrictions in place on their account until this reference code is submitted.

Where can I obtain an LEI?

A list of LEI issuing organisations is available on the GLEIF website.

I am a Legal Entity, what should I do next?

We will be issuing instructions to all our customers that qualify as a legal entity, with details of how to provide us with these details. We will ensure that there is plenty of time to obtain an LEI and submit it to us, prior to the 3 January 2018 deadline.

What about if I have my own account?

If you have a single or joint account, you can find out what MiFID II means for you by clicking on the link below