News Bulletin: Legal Entity Identifier
1 Introduction
The European Securities and Markets Authority, in an effort to increase the safety and transparency of the European marketplace, has notified interested parties of a requirement pursuant to the new Markets in Financial Instruments Directive whereby all legal entities (including companies, partnerships charities and trusts) who own and trade in financial instruments are required to obtain a Legal Entity Identifier code (“LEI code”) the latest by Wednesday 3rd January 2018.
2 What is a LEI Code
A LEI is a 20-digit alphanumeric unique code to each legal entity, allowing a distinct and unique identification of legal entities participating in financial markets across the EU.
3 Who is affected?
All legal entities that own and/or trade in financial instruments within the European Union are affected. Cyprus-incorporated companies are advised to apply to the Cyprus Stock Exchange for obtaining a LEI code even if conducting trading only in another Member State given that the application in unified and the LEI code will apply and be valid for all EU regulated markets.
4 Consequences of not obtaining a LEI by the 3rd January 2018
Legal entities that have not obtained a LEI by the 3rd January 2018 may not be able to trade in their investments and investments firms will not be able to provide any services to them. Therefore, it is highly advisable that affected legal entities apply for a LEI code as soon as practicable in order to avoid any possible delays due to backlog of applications.
5 How to apply for a LEI code
5.1 For the issuance of a LEI code, the interested legal entity must submit a relevant application form to the Cyprus Stock Exchange with all required supporting documentation. The Cyprus Stock Exchange will evaluate the information provided and instruct the issuance of the code via the London Stock Exchange/Unavista. The supporting documents that need to be submitting for the LEI code application are required are the following:
5.1.1 original certificate of directors of the relevant company as issued by the Registrar of Companies in Cyprus and not older than 1 month;
5.1.2 original certificate of incorporation of the relevant company as issued by the Registrar of Companies in Cyprus and not older than 1 month;
5.1.3 in case the director of the relevant company is a corporation, an original certificate of incorporation of that corporate director as issued by the Registrar of Companies in Cyprus not older than 1 month; and
5.1.4 copy of ID/passport of the person signing the LEI code application.
5.2 Please note that additional documents and/or information may be required depending on complexity of legal entity’s corporate structure.
6 Renewal of LEI code
LEI codes have to be renewed on an annual basis and a similar process, as above, is required to that effect. In case of no renewal the issuing authority will immediately note the code has lapsed.
7 LEI cost of issuance and renewal
7.1 The issuance and renewal costs for the LEI code are the following:
7.1.1 Direct cost for the issuance of the LEI code: €138.
7.1.2 Direct cost for the submission of the legal documents: €10 for Cypriot legal entities and €15 for foreign legal entities.
7.1.3 Direct cost for the renewal: €84 (once a year).
Key Contacts
For further information, please contact:
Pavlos Kaimakliotis
Partner
Tel: +357 24 01 01 01
pavlos.kaimakliotis@kaimakliotis.com
Koula Fili
Counsel
Tel: +357 24 01 01 01
koula.fili@kaimakliotis.com