EU introduces new identification provisions for entities

EU introduces new identification provisions for entities

European financial institutions will soon have to report all transactions in certain financial instruments to their supervisory authority under new EU requirements for obligatory identification.

Requirement for LEI identification soon to apply to certain investment transactions as well

The LEI, or legal entity identifier, was introduced for dealing room transactions in 2013 under the European Markets Infrastructure Regulation (EMIR). It is a unique code for identifying legal entities worldwide.

As of 3 January 2018 (under MiFID II), legal entities trading in listed financial instruments such as shares, bonds, options, warrants, government loans and state notes also have to have an LEI. Investment funds, investment-type insurance products, time deposit accounts, deposits and savings certificates do not fall under the new requirements.

The new legislation gives regulators a more transparent view of the market, allowing them to track movements and detect attempted manipulation. It will have no tax implications for your business.

Request your LEI and send it to us by 3 January 2018

If you continue to trade in any of the above financial instruments, you’ll need an LEI (a single one covers all of your organisation’s legal entities). The transactions covered are buy and sell trades, some transfers, voluntary corporate actions, gifts and corporate winding-up.

Allow sufficient time for requesting your LEI from one of the designated authorities (like GS1 Belux or GMEI Utility) and send it to your KBC contact by 3 January 2018. Note that, if you're not in possession of an LEI by that date, we regret we'll be unable to process further orders from you in relation to the relevant securities. If you’ve already sent us your LEI, you don’t have to do anything. 

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