The European Securities and Markets Authority (the “ESMA”) has issued today a statement to support the smooth implementation of Legal Entity Identifiers (LEI) requirements under the Markets in Financial Instruments Regulation (MiFIR). All EU investment firms have to identify their clients that are legal person with LEIs for the purpose of MiFID II transaction reporting.

It came to ESMA’s attention that not all investment firms will succeed in obtaining LEI codes from all their clients ahead of the entry-into-force of MiFIR on 3 January 2018. To support the smooth introduction of the LEI requirements the ESMA allows for a temporary period of six months that:

  • investment firms may provide a service triggering the obligation to submit a transaction report to the client, from which it did not previously obtain an LEI code, under the condition that before providing such service the investment firm obtains the necessary documentation from this client to apply for an LEI code on his behalf; and
  • trading venues report their own LEI codes instead of LEI codes of non-EU issuers currently not having their own LEI codes.

This approach is recognised by the FCA.

Read the ESMA’s press release 

Read the FCA’s response to ESMA’s public statement